Empirical determination of aggregate demand and supply curves: The example of the RWI Business Cycle Model

Macroeconometric models are often criticised for being too complex and difficult to read in theoretical terms. To overcome these difficulties, Hickman suggested the calculation of a model's implicit aggregate demand/supply (AD/AS) structure. The method helps to understand models and their main properties in theoretical terms and facilitates detailed model comparisons. This paper uses the AD/AS–IS/LM apparatus to analyse the simulation properties of the RWI (Rheinisch-Westfälisches Institut für Wirtschaftsforschung) Business Cycle Model, a medium-sized short-term macroeconometric model for Germany. The results confirm theoretical expectations for AD and AS elasticities and reveal particular reactions linked to peculiar model specifications such as an endogenous government sector. The results are also much in line with a previous study in a multi-country model context.     

Officers,playing cards,and sheep

The article presents some aspects of the history of Latin and, especially, Eulerian squares from the times even before Leonhard Euler (1707-1783) to their systematic use in the design of experiments by (Sir) Ronald Aylmer Fisher (1890-1962).     

Open-book accounting: Reason for failure of inter-firm cooperation?

Inter-firm accounting techniques such as open-book accounting (OBA) have been described as an important means for effectively managing costs in buyer–supplier relationships and for improving relationship quality. However, disclosing cost data also implies for the supplier the risk that the buyer uses the data during price negotiations to pressure the supplier's profit margin. To date, there is sparse empirical evidence addressing the extent to which cost-data disclosure does affect the supplier's perception of the exchange relationship. This study addresses this gap by investigating the impact of OBA on supplier relationship satisfaction. The findings indicate that OBA may negatively affect supplier relationship satisfaction and thus represents a potential risk to cooperation. The results further suggest that effective safeguards against opportunistic behavior, such as relational social norms, significantly attenuate the negative effect of OBA on supplier relationship satisfaction.     

The emotions of top managers and key persons in cross-border M&As: Evidence from a longitudinal case study

Building on prior research on emotions in M&A, this paper analyses the post-M&A emotions of top managers and key persons from the acquired company by examining what triggers emotions during the post-acquisition integration stage, and what the consequences of those emotions are. This study applies cognitive appraisal and affective event theories with empirical evidence based on a longitudinal, single case study of an Indian–Finnish acquisition. The main findings imply that M&As are very emotional for top managers and key persons. Our findings reveal that they experience a wide range of positive and negative emotions triggered by individual and company-level triggers. Interestingly various triggers can have different and opposite appraisal outcomes in the short and long-term. In addition, top managers and key persons are often restricted in the range of behavioural outcomes caused by emotions.     

Exploring technology readiness for mobile payment app users

ABSTRACT

The study aims to better understand the various technology readiness segments by assessing how their readiness relates to demographics variables and their adoption, attitude, ease-of-use, usefulness and continuance intention to use mobile payment apps using the technology readiness index. Using a convenience sample of 416 from a consumer panel, a two-step cluster analysis shared similarities with three of the original technology readiness segments (pioneers, paranoids and explorers) while the other two segments clustered together into a fourth segment, hesitant-sceptics. The results indicate that South African mobile users are ready to use mobile payment applications, with the ‘explorer’ emerging as the best segment to target due to optimism levels, while the hesitant-sceptic segment represent the key to unlocking the real potential value of mobile payment apps. Understanding different segments provides marketers with the opportunity to select viable segments and to customise strategies to increase uptake and continued use according to customer needs.     

The Interdependence of R&D Activity and Debt Financing of Young Firms

We investigate the interdependence of debt financing and R&D activities of young firms. Applying a bivariate Tobit model, we find that there is a positive interdependent relationship between the share of loan financing and R&D intensity. A higher share of loan financing allows for more R&D in young firms and, at the same time, a higher R&D intensity allows for a higher loan share. This result is mainly driven by start‐ups exhibiting high values of R&D intensity or leverage. Another remarkable result of our study is that the positive relationship between R&D and loan financing can only be detected if we consider that, first, the decisions on R&D and on loan financing are made simultaneously and, second, the decision on R&D impacts the decision on loan financing and vice versa.     

How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations

Marketing managers commonly employ complex price plans. Surprisingly, limited and conflicting evidence reports how customers perceive and react to complex prices. This study examines perceptions about price complexity and shows that customers tend to prefer simple prices. Two experimental studies show that perceived price complexity negatively affects customer perceptions of price fairness and influences product choice because customers negatively evaluate the transparency of the firm's pricing practices and infer higher total prices. Customers comparing alternate offerings may therefore prefer simple over complex prices, even when the latter are less expensive. Study results suggest limiting price plan variations positively affects customer inferences about transparency and fairness, and thus customer choice.