Trade and the (dis)incentive to reform labor markets: The case of reform in the European Union

We study the relation between international trade and the gains to reform labor markets by removing firing restrictions. We find that trade linkages imply substantially smaller benefits to reform than those calculated in the closed economy general equilibrium model of Hopenhayn and Rogerson [Hopenhayn, Hugo, Rogerson, Richard, 1993. Job Turnover and policy evaluations: a general equilibrium analysis. Journal of Political Economy 101 (5), 915–938 October]. When economies trade, labor market policies in one country spill over to other countries through their effect on the terms of trade. A key finding in the open economy is that the share of the welfare gains from domestic labor market reform exported substantially exceeds the share of goods exported. Thus, with international trade, a country retains little to no benefit from unilaterally reforming its labor market. A coordinated elimination of firing taxes yields considerable benefits. We also find that the U.K. benefits from labor market reform by its continental trading partners. These insights provide some explanation for recent efforts toward labor market reform in the European Union.     

Applications of system dynamics in marketing: Editorial

This special issue of the JBR illustrates a range of applications of modeling and simulation from the system dynamics perspective to problems in marketing and related areas. The papers pertain to the diffusion of new products and technologies, advertising effectiveness, management decision-making, forecasting, project dynamics, and innovation and leadership. Papers presented in this special issue were selected from submissions to attend a two-day workshop on applications of system dynamics in marketing, held at the Johnson School of Management, Cornell University, Ithaca, New York, in June 2007.     

Understanding and motivating salesperson resilience

Marketing Letters - Prior research has shown that approximately half of salespeople fail to achieve their targets each year. Not only is the role difficult but also sales jobs are often marked by...     

New Technology in Shopping: Forecasting Electronic Shopping With the Use of a Neuro-Fuzzy System

This article presents the application of neuro-fuzzy techniques in forecasting a new technology in shopping. Neural networks have been used successfully to forecast time series due to their significant properties of treating nonlinear data with self-learning capability. However, neural networks suffer the difficulty of dealing with qualitative information and the “black box” syndrome that more or less limits their applications in practice. To overcome the drawbacks of neural networks, in this study, we proposed a fuzzy neural network that is a class of adaptive networks functionally equivalent to a fuzzy inference system. The results derived from the experiment based on electronic sales indicated that the suggested fuzzy neural network could be an efficient system to forecast a new technology in shopping. Experimental results also show that the neuro-fuzzy approach outperforms the other two conventional models (AR and ARMA).     

Re-examining the Determinants of Non-Performing Loans in Ghana’s Banking Industry: Role of the 2007–2009 Financial Crisis

This paper uses robust econometric methods to estimate the determinants of non-performing loans (NPLs) with a specific focus on the role of the 2007–2009 financial crisis in explaining NPLs in the banking industry of Ghana. Findings suggest that non-performing loans are significantly affected by bank-specific, industry, and macroeconomic variables. We observed heterogeneity in the determinants of NPLs for sub-samples of the data. The effect of the financial crisis on NPLs is observed to be conditional on the level of credit risk in our sub-sample analysis. The results from the impulse response corroborate that of the regression estimation.     

Toward an Understanding of Dynamic Moral Decision Making: Model-Free and Model-Based Learning

In business settings, decision makers facing moral issues often experience the challenges of continuous changes. This dynamic process has been less examined in previous literature on moral decision making. We borrow theories on learning strategies and computational models from decision neuroscience to explain the updating and learning mechanisms underlying moral decision processes. Specifically, we present two main learning strategies: model-free learning, wherein the values of choices are updated in a trial-and-error fashion sustaining the formation of habits and model-based learning, wherein the brain updates more general cognitive maps and associations, thus sustaining flexible and state-dependent behaviors. We then summarize studies explaining the neuro-computational processes of both learning strategies—the calculation of prediction errors and valuation. We conclude by emphasizing how the incorporation of dynamic aspects in moral decision making could open new avenues for understanding moral behaviors in a changing world.     

The Evolution of Scholarly Research on Sponsorship: Expectations About the Future of This Research Domain

This study examines how scholarly research on sponsorship has evolved from 2001–2011 and envisages the shape of this domain from 2012–2014. From the 6,240 words counted in 573 articles, we identified prominent themes around “sponsorship,” “sponsor,” “sport,” “brand,” and “marketing” from 19 key concepts. We assessed sets of concepts that best reflect the sponsorship theme by conducting a series of multiple linear regression analyses. Trend analyses from 2012–2014 indicated prospects for a dramatic increase in research activity around six topics. We anticipate the rate of sponsorship research will continue briskly in line with the continued escalation of global sponsorship expenditure.     

Exploring the Effects of Compliance/Non-Compliance Message Framing,Desirability of End States,and Brand Zealotry on Consumers’ Responses to Wearables Advertising

Abstract

An experiment examined the combinatory effects of advertising message framing, desirability of end states, and brand zealotry on consumers’ responses to wearables advertising. The compliance framed ad elicited more favorable ad attitude, purchase intention, and word of mouth (WOM) intention compared with the noncompliance framed ad. Results also showed brand zealotry moderated the interaction between message framing and desirability of end states on WOM intention. Specifically, for low brand zealotry individuals, the compliance-framed ad elicited greater WOM intention than the noncompliance-framed ad regardless of the desirability of end-states. The desirable end-state ad triggered a greater WOM intention than the undesirable end-state ad regardless of message framing. For high brand zealotry individuals, the effect of message framing on WOM intention relied on the desirability of end-states. Theoretical and practical implications were discussed.