HOW LARGE ARE LEARNING EXTERNALITIES?*

The quantitative features of human capital externalities are not fully understood. Although static externalities are estimated in some studies, learning externalities remain mostly unestimated. By calibrating a growth model, this article provides an estimate of learning externalities. The calibration uses an equilibrium condition that equates private returns on physical capital and human capital. The results suggest that sizable learning externalities exist, even in a conservative setup. The estimated social rate of return on human capital is 9.0%, compared to the private rate of return, 6.6%. Therefore, human capital externalities are an important source of economic growth.     

Visitor Books and Guest-generated Discourses of Hospitality: The Case of the Hanok

This study analyzes visitor book entries as cultural repositories of guest-generated hospitality discourses to understand how guests articulate/narrativize hospitality. Inquiry into visitor book entries offers insight into ways in which tourists render people and place intelligible. Utilizing textual analysis, this study examines discursive entries contained within visitor books displayed at a traditional South Korean hanok guesthouse/commercial home. The findings indicate that tourists' entries could be classified into three emergent categories: Structural Esthetics, Emotions/Affective State, and Inter-personal Engagement. Guests' entries indicated that there was an appreciation for the display of traditional architecture, which facilitated sentiments of relaxation, contentment, tranquility, and homeliness. The hanok is thus regarded as a therapeutic landscape in which positive emotions are nurtured. Guests' entries also showcased evidence of genuine and personalized exchanges with hosts. This study points to the need for further theorizations on the role of indigenous knowledge in informing the performance and reception of hospitality.     

Environmental and Economic Dimensions of Sustainability and Price Effects on Consumer Responses

The lack of attention to sustainability, as a concept with multiple dimensions, has presented a developmental gap in green marketing literature, sustainability, and marketing literature for decades. Based on the established premise of customer–corporate (C–C) identification, in which consumers respond favorably to companies with corporate social responsibility initiatives that they identify with, we propose that consumers would respond similarly to companies with sustainability initiatives. We postulate that consumers care about protecting and preserving favorable economic environments (an economic dimension of sustainability) as much as they care about natural environments. Thus, we investigate how two sustainability dimensions (i.e., environmental and economic) and price can influence consumer responses. Using an experimental method, we demonstrate that consumers favor sustainability in both dimensions by giving positive evaluations of the company and purchase intent. In addition, consumers respond more negatively to poor company sustainability than to high company sustainability. In comparison, consumers respond more negatively to the company’s poor commitment to caring for the environment than to the company’s poor commitment to economic sustainability. We also find that consumers do not respond favorably to low prices when they have information about the firm’s poor environmental sustainability. Finally, we find support for an interaction effect between consumer support for sustainability and corporate sustainability; that is, consumers evaluate a company more favorably if the company shares the consumers’ social causes. Overall, we conclude, from our empirical study, support for the idea that consumers do respond to multiple dimensions of sustainability.     

Electronic Word-of-Mouth in Social Networking Sites: A Cross-Cultural Study of the United States and China

ABSTRACT

Understanding electronic word-of-mouth (eWOM) in social networking sites (SNSs) is crucial as consumers have potential to reach global audiences quickly and easily. This article presents the first cross-cultural study on eWOM in SNSs by examining social relationship variables between the United States and China. Specifically, social capital, tie strength, trust, and interpersonal influence were examined as potential predictors of eWOM communication in the emerging online social channels. The results suggest that national culture plays a significant factor that affects consumers’ engagement in eWOM in SNSs in the two countries. Theoretical and managerial implications for global Internet marketers were presented and discussed.     

When culture meets trade: Screen quota in Korea

This paper probes into what goes behind the publicly‐stated dichotomy of “cultural diversity” versus “pro‐competition” in the domestic battle of screen quota. Using a multi‐stakeholder model, the paper analyzes who the key players are, what interests they represent, and how much influence they wield to force the outcome to their preference. The forecasted domestic equilibrium is biased toward the status quo or the long‐term phase out, which is apparently unacceptable to the U.S. in the negotiations of the bilateral investment treaty (BIT). Consequently, the stalemate of the BIT negotiations is only natural and reasonable. The forecasting model used in this paper offers several important directions and guidelines for such strategy as the timing of decision‐making, coalition building and issue linkage.     

“I won't leave you although you disappoint me”: The interplay between satisfaction,investment, and alternatives in determining consumer–brand relationship commitment

While commitment is among the key constructs of consumer–brand relationships, past research has regarded the impact of predictors of brand commitment as being linear and has ignored potential interactive effects among the different antecedents. Applying the investment model of interpersonal relationship, the present research examines the dynamic interplay among the key determinants of consumers' commitment to their relationship with brands (satisfaction, alternatives, and investment) and substantiates the roles of the antecedents in consumer–brand relationship contexts. Results of two studies demonstrate that greater consumer satisfaction and investment and less attractive alternatives lead to a higher level of consumers' commitment to their relationship with a brand. Most important, the results suggest that the perceived size of investment exerts a stronger impact on brand relationship commitment when satisfaction is low while making no significant difference in the commitment level when satisfaction is high. Conversely, the influence of alternative attractiveness on brand relationship commitment appeared to be largely monotonic. © 2010 Wiley Periodicals, Inc.     

Globalization of agriculture and European integration: A deepening effect of the Uruguay round

Taking the effect of the agricultural liberalization promoted by the Uruguay Round of GATT negotiations on European integration as an example, this paper discusses whether the globalization process promotes or undermines regional integration. This paper suggests that the UR had a positive effect on further European integration. It did so by triggering the reform of EC's common agricultural policy, which had been the source of repeated budgetary crises of the EC. Consequently, the UR made money available for a more integrative project, i.e., redistributional policy in the form of structural funds. The assumption of redistributional function by the EC means that the EC expanded its supranational policy competency into an area that in the past belonged exclusively to state prerogatives. Therefore, as the UR was in part responsible for the CAP reform, it can be said that the UR contributed to the deepening of European integration. This is a case where globalism moves regionalism forward.     

Comparative Statics Predictions for Changes in Uncertainty in the Portfolio and Savings Problems

The paper investigates comparative statics effects of changes in uncertainty for a general family of problems that encompasses both the portfolio and saving decisions. Conditions are derived on preferences that are necessary and sufficient for unambiguous comparative statics predictions. The paper consolidates and completes the statement of restrictions on attitudes toward risk–bearing needed for determinate predictions in the portfolio and saving problems.