A Note on Some Properties of STUR Processes*

This note presents some properties of the stochastic unit‐root processes developed in Granger and Swanson [Journal of Econometrics (1997) Vol. 80, pp. 35–62] and Leybourne, McCabe and Tremayne [Journal of Business & Economic Statistics (1996) Vol. 14, pp. 435–446] that have not been or only implicitly discussed in the literature.     

Is volatility risk priced in the KOSPI 200 index options market?

The negative volatility risk premium is understood as a result for a hedging demand against market declines. Although this negative volatility risk premium is observed in most index options markets, there are some doubts about its presence in the KOSPI 200 index options market. The majority of KOSPI 200 index option holders do not possess any position in the underlying market; the composition of trading groups of the KOSPI 200 index options significantly differs from that of its underlying index; in this circumstance, the presence of a hedging demand is questionable. This study shows that volatility risk does not require a premium in the KOSPI 200 index options market. Rather, jump fears influence KOSPI 200 options. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:797–825, 2009     

Towards a Real Estate Land use Modeling Paradigm

This article develops a conceptual research-oriented framework for understanding how land uses are allocated in the marketplace. The analyses highlight the crucial roles that market information and transaction costs play in determining the outcomes of transactions between real estate users and suppliers and the dynamics of real estate land uses and prices.     

New industrial product performance: The effects of market characteristics and strategy

There's no need to state again the complexity of the problem of achieving high performance in the new product process. What we do need is a framework to help sort out the complexity, and that is what Eunsang Yoon and Gary Lilien provide in this article. They first differentiate between original and reformulated new products. Then they examine how patterns of R&D and marketing activities determine short and long-run success.     

Variable elasticity of substitution in urban housing production

The notion that the elasticity of substitution in urban housing production should vary with changing intensities of land use seems to be realistic and theoretically viable. Hence the variable elasticity of substitution production function has been proposed by some authors. However, it suffers from a serious shortcoming that the elasticity of substitution should not exceed unity. To allow for flexibility in the range of the elasticity of substitution, we explore a general functional form for the housing production function, the weak disposability of inputs production function in particular. Our empirical findings, based on the Santa Clara County single-family housing data, provide evidence that this general function is a more accurate specification of urban housing production than the variable elasticity of substitution function.     

The effects of nonverbal communication of employees in the family restaurant upon customers’ emotional responses and customer satisfaction

The purpose of this study was to understand interrelationships among customers’ perception of nonverbal communication, customers’ emotional responses and customer satisfaction in the family restaurant. A total of 333 customers in Korea participated. The results showed that employees’ kinesics and proxemics among nonverbal communications have a significant effect on customers’ positive emotions, while employees’ kinesics and paralanguage affect customers’ negative emotions. Also, it was found that whether customers feel positive or negative determines their satisfaction. Limitations and future research directions are also discussed.     

Are Banner Advertisements in Online Games Effective?

Advertising in online games has grown considerably in recent years and is expected to see continued expansion (Cauberghe and DePelsmacker 2010). However, the literature suggests that banner advertisements in games are sometimes ineffective, often being seen as annoying and potentially triggering avoidance behavior. Because of the possibility of avoidance it is important to examine whether gamers have implicit memory of banner ads even if they don't explicitly recall them. The experiment conducted here measures both explicit and implicit memory of a banner ad in an advergame to assess whether and how well the game players exposed to the ad remembered it. Results suggest that a high proportion of the gamers exposed to the ads did have explicit and implicit memory of the messages shown. Moreover, gamers who were high achievers reported a higher level of implicit memory than those who were less effective at playing games, suggesting that these ads can be remembered despite a high level of concentration on the game. These findings are consistent with the notion that banner ads have a stronger chance of being effective in advergames than in some other contexts, especially among avid gamers.     

Demand forecasting for new media services with consideration of competitive relationships using the competitive Bass model and the theory of the niche

New broadcasting services such as Internet protocol TV (IPTV) have been totally revolutionizing the broadcasting industry; thus, the prediction of the degree of diffusion of new media services is a major topic of interest for both governments and providers. This paper proposes a new approach towards demand forecasting for new services with no data and with consideration of competitive relationships with existing services. The underlying model of the proposed approach is the competitive Bass model, which is the most widely used competitive diffusion model. The competition coefficients of the model are estimated by introducing the theory of the niche. The theory of the niche, which originates from ecology, has often been used as a framework for examining competition patterns in the media industry. This study develops a new integrated measure, competitive superiority, by modifying and combining the two conventional measures of the theory of the niche, viz., niche overlap and niche superiority. The competition coefficients are then obtained by adjusting the values of competitive superiority to be incorporated in the model based on the relationship between competition and imitation effects. A case of Korean digital broadcasting services is presented to illustrate the proposed approach.     

Risk Behavior Under Linear Utility Function

An uncertainly model based on money-market imperfections and on linear utility functions (of money) is reformulated so as to be directly with the traditional non-linear utility approach. We postulate that the utility is a linear functions of “augmented” income. But the augmented income is a non-linear function of the nominal income, due to differential interest rates. This new formulation is shown to generate all the essential implications of the traditional approach as in Friedman and Savage, Markowtiz, Arrow, and Pratt. [020]     

Identifying and evaluating strategic partners for collaborative R&D: Index-based approach using patents and publications

Identifying and selecting appropriate strategic partners have been the subject of many previous studies: but most have dealt with partner selection that has relied heavily on experts' judgements: the value of a literature-based quantitative approach as a source of technology intelligence has seldom been addressed. This paper therefore aims to develop a systematic framework to guide strategic partner selection, taking a literature-based approach. Reviewing the factors that can lead to successful R&D partnerships to develop partner selection criteria, we designed 14 indexes – grouped into four major categories – to reflect desirable partner characteristics, and used the literature data to suggest a framework for prioritising potential partners. As data sources, the United States Patent and Trademark Office (USPTO) and the ISI Web of Science databases are adopted for patent analysis and publication analysis, respectively. This research applied the framework to identify strategic R&D partners for Korean firms and found that the use of literature data enabled a wide ranging search for potential partners and the quick analysis of their characteristics, with results that provided objective evidence for selection decisions. It also investigated the relative importance of literature databases and that of the four decision criteria by industry, and examined the relationships between the indexes to improve the application of the framework. The suggested framework is expected to be valuable as a complementary tool for decision-making about R&D collaboration.