Entry deterrence through credit denial

Firms in oligopoly can use debt to commit to a strategic position that negatively affects rival firms and improves profitability. In this paper, I show that an incumbent firm can deter entry by using debt to commit to such a low price that an entrant's lender will not finance entry, even if the entrant's expected profit from entry is positive. Empirical evidence shows that concentration and debt are positively related in several industries, indicating that debt may be used to reduce competition.     

Enhancing value for Chinese shoppers: The contribution of store and customer characteristics

This study tested the relationships between store and customer characteristics with perceived value and customer loyalty in retailing in China. Survey data were collected from shoppers in department stores (n=200) and supermarkets (n=200) in the tier 2 coastal city of Tianjin. Data for each type of store were analysed separately using structural models. In supermarkets, value was predicted by quality and price, but for department stores, only the customer orientation of the store was significant, suggesting that customers seek different shopping experiences in each context. In each case, value mediated the links to loyalty and, for supermarkets, choice of merchandise and consumer time pressure demonstrated direct links to loyalty. The paper discusses the implications of the findings, and concludes with possible future research.     

The Determinants of Tying Litigation, 1961–2001

The idea that changes in Supreme Court decision rules should have measurable effects on the volume of cases litigated has a compelling plausibility, and several models of litigation predict this result. The prediction is a fragile one, however, because it implies very restrictive assumptions about the probability distributions of the cases subject to dispute. The period studied includes four Supreme Court decisions widely regarded as changing the rules and altering the level of uncertainty surrounding the legality of the anti-tying provisions of the antitrust laws. Broad trends in antitrust activity generally and changes in firm profitability statistically explain over three-quarters of the observed variation in tying litigation. Changes in legal precedent have only modest effects upon litigation.

Prototypicality advantages for pioneers over me-too brands: the role of evolving product designs

Prior empirical research suggests that consumers perceive pioneers as more prototypical (i.e., representative) of their product categories than me-too followers. This prototypicality advantage is believed to contribute to an enduring marketplace advantage for the pioneer. We extend research into pioneering prototypicality advantages by considering the ramifications of simultaneous product design (i.e., product attribute) evolutions. We hypothesize that the simultaneous evolution of product designs of both the pioneer and me-too will diminish the pioneer’s prototypicality advantage over the me-too, even though the me-too does not initiate the change. To test our hypotheses, we create an experimental environment consisting of four cells, each corresponding to a different marketplace scenario: a no-change condition; a simultaneous-evolution condition; a pioneer-updates-first condition; and a leapfrogging (i.e., me-too updates first) condition. The results suggest that simultaneous design evolutions can diminish the pioneer’s prototypicality advantage. As a result, me-too entry may be a more attractive strategy in the long-run than currently believed in product categories characterized by substantial design evolution.

Making compassion count: equal recognition and authentic involvement in mental health care

Compassionate care within mental health services is often taken for granted as something that can be made visible and authentic. However, recent government reports and policy suggest that we are far from providing compassionate care and may be more focused upon risk and surveillance. This paper will discuss the visibility of compassionate care and explore outcomes that consumers and practitioners could measure in practice. Separating the fact from fiction within compassionate care will make authentic involvement practices more visible and open to discussion around consumer collaboration. In a qualitative analysis of a small study with mental health consumers, compassion was found to be a major factor in whether consumers became more involved in their own health care. Demonstrating compassionate care may therefore also demonstrate consumer participation and engagement. This paper will argue that compassionate care can be observed in the relationships between practitioners and consumers that are collaborative and use presence and persistence as methods of practice. Emancipatory practices can be made more visible in mental health care in order to make compassion measurable and to encourage consumer participation and engagement.     

Modeling international trade flows and market shares for agricultural commodities: a modified Armington procedure for rice

The Armington procedure (AP) has become increasingly popular in agricultural trade analyses. However, some arguments have arisen concerning the relevance of using the procedure for such analyses. This study examines the assumptions commonly made when using the Armington procedure and suggests modifications for agricultural trade analyses. Results from models utilizing rice-trade data suggest that the assumptions of the single constant elasticity, in particular, may not be appropriate for analyzing agricultural trade. These results also suggest that, with proper modifications, the AP can be applied to agricultural trade. Further, results of a modified Armington procedure indicate that trade in rice exports is highly competitive and that changes in market shares of individual exporters are not independent of changes in budget expenditure allocated to imports.