Brand name influence on brand perception

The impact of hotel names on the evaluation of the hotels by customers prior to their stay was investigated. In general, hotels were rated higher on attributes consistent with the semantic associations of the name than on inconsistent attributes. This name effect was somewhat reduced—but still strong—when actual feature information was given, when consumers were explicitly told that the hotels bearing different names had exactly the same features, when consumers were provided with testimonials from former hotel guests, when consumers were informed that the name had changed in the past or would change in the future, and when the actual features were in with the image evoked by the name. The results corroborate the widely accepted assertion that consumers use brand names as diagnostic and legitimate search attributes. Most notably, the findings imply that the effects are robust and resistant to elimination. Four hundred clients of a travel agency participated in this research. © 2007 Wiley Periodicals, Inc.     

Recursive contracts,lotteries and weakly concave Pareto sets

Marcet and Marimon (1994, revised 1998, revised 2011) developed a recursive saddle point method which can be used to solve dynamic contracting problems that include participation, enforcement and incentive constraints. Their method uses a recursive multiplier to capture implicit prior promises to the agent(s) that were made in order to satisfy earlier instances of these constraints. As a result, their method relies on the invertibility of the derivative of the Pareto frontier and cannot be applied to problems for which this frontier is not strictly concave. In this paper we show how one can extend their method to a weakly concave Pareto frontier by expanding the state space to include the realizations of an end of period lottery over the extreme points of a flat region of the Pareto frontier. With this expansion the basic insight of Marcet and Marimon goes through – one can make the problem recursive in the Lagrangian multiplier which yields significant computational advantages over the conventional approach of using utility as the state variable. The case of a weakly concave Pareto frontier arises naturally in applications where the principal?s choice set is not convex but where randomization is possible.     

Triggers of HR outsourcing decisions – an empirical analysis of German firms

This paper takes an explanatory approach to the triggers of Human Resource (HR) outsourcing decisions and evaluates them empirically. Our data show that many German firms have never explicitly considered outsourcing of HR functions. Obviously, explicit outsourcing decisions do not come into being automatically but have to be triggered. We analyze theoretically and empirically which triggers are relevant. In our definition, HR outsourcing includes a broad range of internal HR functions and the respective, externally procured personnel services (e.g., temporary agency work, payroll accounting, interim management, outplacement services, HR consulting, placement services and others).     

Industrial Production in Germany: Recovery Only Gradual

Original Papers

Industrial Production in Germany: Recovery Only Gradual     

Generic inefficiency of equilibria in the general equilibrium model with incomplete asset markets and infinite time

Summary. We consider a Lucas asset-pricing model with heterogeneous agents, exogenous labor income, and a finite number of exogenous shocks. Although agents are infinitely lived, endowments and dividends are time-invariant functions of the exogenous shock alone and are thus restricted to lie in a finite-dimensional space; genericity analysis can be conducted on sets of zero Lebesgue measure. When financial markets are incomplete, that is, there are fewer financial securities than shocks, we show that generically in individual endowments all competitive equilibria are Pareto inefficient. Received: November 22, 1999; revised version: March 4, 2002 RID="*" ID="*" We are grateful to an anonymous referee for very insightful comments on earlier drafts.     

Sustainability Management of Hotels: How Do Customers Respond in Online Reviews?

The purpose of this study was to investigate how guests respond to the sustainability efforts of sustainably managed hotels by discussing them in reviews posted online. Thus, an exploratory research design and the content analysis method were chosen for this study. The content analysis technique was used to analyze User Generated Content and to explore what attributes of sustainability are perceived as the most important by hotel guests in online reviews and whether they generate positive or negative feelings. An analysis of the reviews showed that hotel guests perceive sustainability positively: most indicators were discussed in a positive context, and reviews that contained sustainability attributes had higher guest ratings than other reviews. Explicit references to sustainability were found in only 6.8% of all customer comments. The most frequently encountered indicators in guest reviews were biodiversity, education and sustainable products. Customers mainly discuss attributes that have direct impacts on their experience or are observable at the hotel. Customers are likely to realize that a hotel’s commitment to sustainability can excuse the hotel for a suffered inconvenience. This finding implies that hoteliers should educate guests on their sustainability measures, as higher awareness may increase customer satisfaction.     

Competitive equilibria in semi-algebraic economies

This paper develops a method to compute the equilibrium correspondence for exchange economies with semi-algebraic preferences. Given a class of semi-algebraic exchange economies parameterized by individual endowments and possibly other exogenous variables such as preference parameters or asset payoffs, there exists a semi-algebraic correspondence that maps parameters to positive numbers such that for generic parameters each competitive equilibrium can be associated with an element of the correspondence and each endogenous variable (i.e. prices and consumptions) is a rational function of that value of the correspondence and the parameters.This correspondence can be characterized as zeros of a univariate polynomial equation that satisfy additional polynomial inequalities. This polynomial as well as the rational functions that determine equilibrium can be computed using versions of Buchberger's algorithm which is part of most computer algebra systems. The computation is exact whenever the input data (i.e. preference parameters etc.) are rational. Therefore, the result provides theoretical foundations for a systematic analysis of multiplicity in applied general equilibrium.