Manufacturers and retailers in the global economy

We develop a model with multi‐product retailers acting as intermediaries between manufacturers and consumers. We show that the rise in retailer product assortment, the rise of up‐front payments in many retail markets and the observed shift in employment from manufacturing to retailing may be the consequence of the global integration of product markets. We also identify a novel benefit from market integration consisting of efficiency gains in the vertical distribution chain.     

Estimating stochastic volatility: the rough side to equity returns

Decisions in Economics and Finance - This paper evaluates the forecasting performance of a Brownian semi-stationary (BSS) process in modelling the volatility of 21 equity indices. We implement a...     

The brand anchoring effect: A judgment bias resulting from brand awareness and temporary accessibility

Following the Selective Activation, Reconstruction, and Anchoring (SARA) and consumer‐based brand equity models, high awareness brands are expected to serve as anchors for forming impressions of co‐branded entities. Comparing the brand personality profiles of fictitious brand alliances with high and low awareness brands, the brand anchoring effect is found in Studies 1 and 2. Moreover, Study 3 shows that the effect generalizes to specific brand characteristics and results from making brand‐related information more available. Future research on brand awareness and on the brand anchoring effect is discussed. © 2009 Wiley Periodicals, Inc.     

Eliza in the uncanny valley: anthropomorphizing consumer robots increases their perceived warmth but decreases liking

Marketing Letters - Consumer robots are predicted to be employed in a variety of customer-facing situations. As these robots are designed to look and behave like humans, consumers attribute human...     

Commodity taxation and parallel imports

We examine the interaction between commodity taxes and parallel imports in a two-country model with imperfect competition. While governments determine non-cooperatively their commodity tax rate, the volume of parallel imports is determined endogenously by the retailing sector. We compare the positive and normative implications of having commodity taxes based on destination or origin principle. We show that, as the volume of parallel imports increases, non-cooperative origin taxes converge, while destination taxes diverge. Moreover, origin taxes are more similar and lead to higher aggregate welfare levels than destination taxes.     

Collective Action with Incomplete Commitment: Experimental Evidence

Face-to-face communication is investigated as an efficiency-enhancing mechanism in experimental common-pool resource environments in which the appropriation activities of outside appropriators create coordination and monitoring problems for the communicating group. We identify three distinct problems that can threaten successful collective action. Outsiders respond strategically to reductions in appropriation by cooperating group members. Members of the communicating group deviate from agreements more frequently when monitoring is imperfect and over appropriation can be blamed on outsiders. Groups that are allowed to communicate anticipate the potential problems and have difficulty reaching agreements or committing to a specific appropriation rule.