Liquidity risk and financial competition: Implications for asset prices and monetary policy

This paper studies the implications of banking competition for capital markets and monetary policy. In particular, I develop a two-sector monetary growth model in which a group of agents is exposed to liquidity shocks and money is essential. Banks insure depositors against such risk and invest in the economy's assets. In this setting, I compare an economy with a perfectly competitive banking sector to an economy with a fully concentrated financial sector. Unlike previous work, banks can have market power in both deposits and capital markets. Compared to a perfectly competitive financial sector, I demonstrate that a monopolistic banking system can have substantial adverse consequences on capital formation, assets prices, and the degree of risk sharing. Furthermore, multiple steady-states can emerge and the economy becomes subject to poverty traps. More importantly, market power in financial markets may overturn the Tobin effect present under a perfectly competitive financial sector. This necessarily happens in economies with high degrees of liquidity risk and low levels of capital formation.     

When Satisfied Consumers Do Not Return: Variety Seeking's Effect on Short‐ and Long‐Term Intentions

Even satisfied consumers frequently do not come back, which challenges loyalty theory and marketing practice. It is reasoned that variety‐seeking tendencies will significantly affect short‐term revisit intentions, whereas satisfaction and regret will mostly determine long‐term revisit intentions. Thus, the influence of satisfaction on loyalty is hypothesized to be critically dependent on the time perspective of the intentions, now or later, and variety seeking. A representative survey (N = 400) in eight Spanish cities supported these predictions. Multivariate moderated‐mediation analyses revealed that indeed the influence of satisfaction, regret, and variety seeking critically depends on the time perspective of the behavioral intentions.     

Symmetric Coalitional Binomial Semivalues

We introduce here a family of mixed coalitional values. They extend the binomial semivalues to games endowed with a coalition structure, satisfy the property of symmetry in the quotient game and the quotient game property, generalize the symmetric coalitional Banzhaf value introduced by Alonso and Fiestras and link and merge the Shapley value and the binomial semivalues. A computational procedure in terms of the multilinear extension of the original game is also provided and an application to political science is sketched.     

Factors enhancing the choice of higher resource commitment entry modes in international new ventures

The choice of entry mode in foreign markets is an important strategic decision with major consequences for the success of international new ventures (INVs). It is generally accepted that these firms choose relatively low-resource commitment entry modes to operate in foreign markets. Nevertheless, some researchers have suggested that higher resource commitment entry modes in foreign markets also seem to be competitive strategies for INVs. In this study, from a marketing/international entrepreneurship interface perspective and focusing on organizational issues, we center our attention on international market orientation as a neglected yet important factor in INVs’ choice of higher resource commitment entry modes in foreign markets. We suggest that an entrepreneurial orientation and the timing of international entry are important correlates to an international market orientation. We also suggest that the international learning effort of INVs through their international market orientation has a direct, positive impact on the resources these companies commit to their foreign markets through the use of higher resource commitment entry modes. Accordingly, the model proposes a positive effect of entrepreneurial orientation and early international entry on international market orientation which, in turn, is positively related to higher resource commitment entry modes. The hypotheses were tested on country-level data from Spain, using a structural equation model to analyze relationships between the latent variables.This study extends previous international entrepreneurship research, including insights on antecedents of international new ventures’ choice of resource commitment entry modes in foreign markets. The paper also goes further than previous international entrepreneurship research, by addressing the strategic consequences of rapid entry into foreign markets. Additionally, the results of this work encourage international entrepreneurs to look beyond the explicit value of experiential market knowledge to realize the potential value of international market orientation as an antecedent to higher resource commitment entry modes.     

No-arbitrage, state prices and trade in thin financial markets

We examine how non-competitiveness in financial markets affects the choice of asset portfolios and the determination of equilibrium prices. In our model, potential arbitrage is conducted by a few highly specialized institutional investors who recognize and estimate the impact of their trades on financial prices. We apply a model of economic equilibrium, based on Weretka (, 2007a), in which price effects are determined endogenously as part of the equilibrium concept. For the case in which markets allow for perfect insurance, we argue that the principle of no-arbitrage asset pricing is consistent with non-competitive behavior of the arbitragers and extend the fundamental theorem of asset pricing to the non-competitive setting.     

From objective to constituted risk: an alternative approach to safety in strategic technological innovation in the European Union

Safety is a legitimate means of limiting technological innovation in our societies. However, the potential socio-economic impact of curtailing techno-industrial progress on the grounds of safety means that risk governance policies tend to restrict the range of legitimate approaches to safety on the principle that it can only be discussed in the frame of an allegedly objective scientific representation of risk. In European risk governance, socio-economic factors such as the underlying innovation rationales and goals are not openly considered to be related to the constitution of safety, but tend largely to be treated as factors of subjective reaction towards risk and technology. This paper seeks to overcome that approach by proposing a ‘constitutive’ understanding of how risk and socio-economic factors and dynamics relate, focusing in particular on the ‘safe and responsible’ development of nanotechnology in the European Union (EU). I argue that risk is constituted according to socio-economic considerations, and that the controllability of the environmental and health risks of nanotechnology in the EU is assumed on principle in the very strong institutional commitment to the industrial exploitation of nanotechnology R&D. Using a constitutive approach, we may legitimately conceive a broader set of potential safety scenarios, while at the same time highlighting major obstacles to implementing more critical constitutions of techno-industrial risk in the framework of a highly competitive knowledge-based global economy.     

Geographical and cognitive proximity effects on innovation performance in SMEs: a way through knowledge acquisition

This study explores the relative influence of geographical and cognitive proximity to explain innovation performance. This paper deepens the controversy between the significance of both types of proximity, contributing to a better understand their interconnections. The study further analyzes to what extent knowledge acquisition provides a congruent explanation of the effectiveness of innovation in proximity contexts. The paper has tested a structural model based on a sample of 224 Spanish footwear firms. Footwear industry is a mature and traditional industry with a significant presence of the territorial agglomeration of firms all over Spain. Findings suggest both a direct and indirect effect of cognitive proximity on innovation performance. However, an excess of geographical proximity produces spatial lock-in, thus limiting the access to new knowledge and lowering innovations. By contrast, proximity in terms of goals and culture leads firms belonging to a territorial cluster to achieve knowledge acquisition resulting in relevant innovation. Findings suggest that although transferable valuable knowledge exists in clustered contexts firms should adopt a proactive behavior to have access common knowledge and in order to generate effective innovations.