No-arbitrage condition and existence of equilibrium with dividends

In this paper we first give an elementary proof of existence of equilibrium with dividends in an economy with possibly satiated consumers. We then introduce a no-arbitrage condition and show that it is equivalent to the existence of equilibrium with dividends.     

The effects of interaction behaviors of service frontliners on customer participation in the value co-creation: a study of health care service

This research explores the roles of various interaction behaviors of service frontliners in activating customer participation and creating customer value in the context of health care service. Based on the data of 285 paired patient–physician cases of serious chronic diseases, the analysis revealed that individuated, relational, and empowered interactions expressed by a service frontliner play a critical role in activating customer participation, leading to a higher level of perceived value; while ethical interaction has a direct-only impact on perceived value. These results imply that frontliner interaction can be further broken into participation-activating interaction and value-enhancing interaction. Both of which eventually lead to the improvement of customer value.     

Pesticide use in Vietnamese vegetable production: a 10-year study

Vietnam has had varying success over the past decade with its pesticides policy. Some of the most toxic pesticides have been banned from the market. But while many countries have successfully decreased agricultural pesticide use per hectare, this has not (yet) happened in Vietnam. Due to insufficient pesticide management capacity of the Vietnamese government, pesticide types and quantities registered and distributed on the market have substantially increased in Vietnam over the last 10 years. A 10-year monitoring programme at farm level showed that pesticide use follows the increasing pesticide availability on the market, and many toxic and illegal pesticides are still being used. In an agricultural country dominated by millions of small-scale farmers and with limited state capacity for control at farm level, reduction of the use of the most toxic pesticides can best be achieved by more effective pesticide market control through stricter and more effective state regulations and implementation, aimed at eliminating illegal, low quality and counterfeit pesticides from the market. But even then, better state and private extension services, and greater state capacity for control and enforcement remain essential in enabling farmers to make better decisions about pesticide use.     

Supermarkets in Vietnam: Opportunities and Obstacles

The present paper is the first study to link the perceptions of Vietnamese consumers to the barriers and prospects related to the development of supermarkets in Vietnam by applying quantitative and statistical analysis to Hanoi consumer survey data. It is found that shopping habits related to the purchase of fresh produce in traditional markets, combined with the proximity and low prices these outlets provide, act as a major deterrent to supermarket development. Supermarkets have made considerable advances in the sales of processed food and non-food products. However, without expanding their fresh food category, lowering prices and enhancing their location convenience, supermarkets cannot expand their current position.     

The economics of land fragmentation in the north of Vietnam*

Land fragmentation, where a single farm has a number of parcels of land, is a common feature of agriculture in many countries, especially in developing countries. In Vietnam, land fragmentation is common, especially in the north. For the whole country, there are about 75 million parcels of land, an average of seven to eight plots per farm household. Such fragmentation can be seen to have negative and positive benefits for farm households and the community generally. Comparative statics analysis and analysis of survey data have led to the conclusion that small‐sized farms are likely to be more fragmented, and that fragmentation had a negative impact on crop productivity and increased family labour use and other money expenses. Policies which allow the appropriate opportunity cost of labour to be reflected at the farm level may provide appropriate incentives to trigger farm size change and land consolidation. Policies which tip the benefits in favour of fewer and larger plots, such as strong and effective research and development, an active extension system and strong administrative management, may also lead to land consolidation.     

Existence of a competitive equilibrium in the Lucas (1988) model without physical capital

This paper considers an endogenous growth model with human capital accumulation. It gives sufficient conditions and a necessary condition for the existence of a unique competitive equilibrium with externalities. These conditions are more stringent than those which prevail for the existence of an equilibrium defined as the solution to a fixed-point problem.     

OPTIMAL HIGH‐FREQUENCY TRADING IN A PRO RATA MICROSTRUCTURE WITH PREDICTIVE INFORMATION

We propose a framework to study optimal trading policies in a one‐tick pro rata limit order book, as typically arises in short‐term interest rate futures contracts. The high‐frequency trader chooses to post either market orders or limit orders, which are represented, respectively, by impulse controls and regular controls. We discuss the consequences of the two main features of this microstructure: first, the limit orders are only partially executed, and therefore she has no control on the executed quantity. Second, the high‐frequency trader faces the overtrading risk, which is the risk of large variations in her inventory. The consequences of this risk are investigated in the context of optimal liquidation. The optimal trading problem is studied by stochastic control and dynamic programming methods, and we provide the associated numerical resolution procedure and prove its convergence. We propose dimension reduction techniques in several cases of practical interest. We also detail a high‐frequency trading strategy in the case where a (predictive) directional information on the price is available. Each of the resulting strategies is illustrated by numerical tests.     

Achieving new product success via the synchronization of exploration and exploitation across multiple levels and functional areas

While ambidexterity has been identified as a critical prerequisite for new product success, synchronizing exploration and exploitation in practice represents a multifaceted enigma. Ambidexterity is not in reality limited to a single organizational level, or a specific functional area. Firms become ambidextrous when corporate-level exploratory and exploitative strategies interact with operational-level exploratory and exploitative capabilities across multiple functional areas. Data from a sample of technology-intensive industrial firms using a multi-informant design shows that operational-level exploratory and exploitative product innovation and marketing capabilities allow firms to implement corporate-level exploratory and exploitative strategies in the context of new product development (NPD). Further, the findings reveal that the integration of exploratory product innovation–exploratory marketing and exploitative product innovation–exploitative marketing is significant for the implementation of exploratory and exploitative strategies over deploying each capability in isolation. Finally, we show that the implementation of exploratory and exploitative strategies drives new product success through creating distinct positional advantages to customers in the form of both differentiation and cost efficiency. These positional advantages help to better explain the effects of exploratory and exploitative capabilities on new product market performance.