An alternative approach to discriminating multivariate populations and its applications to marketing research

A new method for discriminating among multivariate populations, called the Hausdorff procedure, is introduced to the marketing literature. Rules for classification are defined and a limited simulation study is conducted. For the simulation, both the level of collinearity among the discriminating variables and the level of overlap among the populations are varied. The results indicate that this new procedure is particularly suitable when there is either a high degree of collinearity among the predictor variables or considerable overlap of the populations being investigated. The Hausdorff procedure is also applied to two sets of consumer data. In each instance, it is found to be superior to linear discriminant analysis with respect to the percentage of correct classifications.     

Rubinstein Auctions: On Competition for Bargaining Partners

This paper analyzes the effect of competition for bargaining partners on the prices that prevail in thin markets, as well as how the matches are simultaneously determined. Three trading processes or bargaining procedures are described. In all the variants that we consider, except for one case of public offers, either there is no pure strategy subgame perfect equilibrium or such equilibria exhibit delay in reaching agreement.Journal of Economic LiteratureClassification Numbers: C72, D43.     

Reprint to: Infrastructure provision and macroeconomic performance

This paper studies the differences between private and government provision of infrastructure. Capital utilization decisions and their differential role in determining market prices for capital goods under the two regimes of infrastructure provision serve as a critical transmission mechanism for fiscal policy. A subsidy to private providers of infrastructure is preferable to direct government provision irrespective of how the subsidy or expenditure is financed. The case for private provision is much stronger in economies characterized by high levels of congestion. The choice between private and government provision also has a crucial effect on the design of optimal fiscal policy.     

Should executives go to jail over cybersecurity breaches?

The Consumer Data Protection Act, a new bill introduced by Senator Ron Wyden, is proposing “jail time of up to 20 years for executives who knowingly sign off on incorrect or inaccurate annual certifications of their companies’ data-security practices.” The bill also recommends that companies be fined “up to 4 percent of their annual revenue.” While the critics consider the penalties too harsh and severe, the proposed legislation reflects two key realities – a) active involvement and commitment of senior management is essential to achieving a high level of cybersecurity preparedness; and b) legislation and fear of severe penalties (such as Sarbanes-Oxley Act of 2002 and European Union’s General Data Protection Regulation) is often necessary to motivate desired organizational behavior. In an increasingly digital ecosystem characterized by high levels of electronic connectivity, vulnerability to cyberattacks is growing. Organizations are in a perpetual state of breach with rapidly expanding attack surfaces and evolving threat vectors. Protecting confidential data and related digital assets is becoming critical to survival and success. Senior management must come to terms with this new business reality and give strategic priority to cybersecurity preparedness and investments. Research finds active involvement of top management in cyber risk mitigation initiatives to be a critical success factor and best practice. The onus is also on senior management to create a high-performance security culture founded on three key cornerstones – commitment, preparedness, and discipline. They also must lead the charge in establishing a cybersecurity governance structure characterized by joint ownership, responsibility, and accountability.     

Impact of actual service provider failure on the satisfaction with aggregator

The purpose of the paper is to investigate the impact of the failure caused by the actual service provider on consumer satisfaction with the aggregator firm, where the aggregator firm works as a bridge between the consumers and the actual service providers using technology, resources, information etc., thus reducing the information search cost, process-related costs, and quality risks for the consumers. We have applied retrospective experience sampling to collect data and used structural equation modeling to validate the conceptual model of the study. We found that people consider the actual service provider’s failure as the aggregator firm’s responsibility when the attributional factors (control and stability) are strong. Moreover, when consumers perceive that the aggregator firm is responsible, they will ask for less punishment of the actual service provider and more monetary compensation. Additionally, severity of the failure increases the consumer’s recovery expectations. However, the sense of power of the consumers leads to increasing expectations of punishment of actual service provider and decreasing expectations of monetary compensation. Lastly, the actual monetary compensation or actual punishment of the service provider leads to higher level of satisfaction for the consumers. We discussed the implications of the results in the light of relationship management and service recovery design of aggregator firms.     

The dual nature of public goods and congestion: the role of fiscal policy revisited

Abstract The role of fiscal policy is examined when public goods provide both productive and utility services. In the presence of congestion, the consumption tax is shown to be distortionary. Optimal fiscal policy involves using consumption‐based instruments in conjunction with the income tax. An income tax‐financed increase in government spending dominates both lump‐sum and consumption tax‐financing. Replacing the lump‐sum tax with an income tax to finance a given level of spending dominates introducing an equivalent consumption tax. These results contrast sharply with the literature, where the consumption tax is generally viewed as the least distortionary source of public finance.     

Leadership and Business Ethics: Does It Matter? Implications for Management

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of 'corporate governance' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face.     

Factors Related to the Cognitive Moral Development of Business Students and Business Professionals in India and the United States: Nationality, Education, Sex and Gender

This research focuses on the similarities and differences in the cognitive moral development of business professionals and graduate business students in two countries, India and the United States. Factors that potentially influence cognitive moral development, namely, culture, education, sex and gender are analyzed and discussed. Implications for ethics education in graduate business schools and professional associations are considered. Future research on the cognitive moral development of graduate business students and business professionals is recommended.