On the design of optimal health insurance contracts under ex post moral hazard

We analyze the design of optimal medical insurance under ex post moral hazard, i.e., when illness severity cannot be observed by insurers and policyholders decide for themselves on their health expenditures. The trade-off between ex ante risk sharing and ex post incentive compatibility is analyzed in an optimal revelation mechanism under hidden information and risk aversion. The optimal contract provides partial insurance at the margin, with a deductible when insurers’ rates are affected by a positive loading, and it may also include an upper limit on coverage. The potential to audit the health state leads to an upper limit on out-of-pocket expenses.     

The Growth Barriers of Informal Sector Enterprises: Evidence from India

The present study investigates the growth barriers of informal sector enterprises in India. The empirical analysis is based on the National Sample Survey Organization's unit‐level data for three years, 2000–2001, 2005–6, and 2010–11. The results of the study reveal: proprietary and large firms survive and grow; enterprises managed by women are less likely to decline; inadequate power supply poses a severe growth obstacle to all categories of firms; and proprietary firms encounter capital shortage while large firms are constrained by the non‐availability of raw materials. We do not find evidence of sub‐contracting acting as an enabling factor in firm growth.     

Succeeding in the Big Middle through technology

Big Middle retailers serve the mass market composed of mainstream consumers and face competition from both other Big Middle retailers and specialized (niche) retailers that want a share of the Big Middle consumer market. How can Big Middle retailers leverage technology to strengthen their competitive position? The authors explore this question by offering a framework for characterizing the Big Middle and a consumer-based taxonomy for classifying technology strategies in the retailing arena. In particular, the authors emphasize the following key points: (1) most technological advancements in retailing in the twenty-first century will relate to information technology; (2) many technologies have the potential to both cut the cost of retailer operations and enhance service to customers; (3) the adoption of these technologies requires significant upfront investments; (4) successful retailers in the Big Middle are in the best position to adopt these technologies because of their deep pockets and because they can pass on part of the costs to their vendors; (5) Big Middle retailers must take a longer term view with respect to returns on their technology investments; and (6) Big Middle retailers should consider consumers’ reactions to these technologies and be cautious about “overengineering.” In this regard, this editorial points to several directions for further research in the realm of technology investments by retailers.     

Does manufacturer advertising suppress or stimulate retail price promotions? Analytical model and empirical analysis

Does manufacturer advertising for a brand stimulate or suppress retail price promotions? This study addresses this controversial issue. The authors develop an analytical model that shows that the relationship between manufacturer advertising and retail price promotion depends on the role of advertising. If advertising differentiates brands and suppresses consumer response to retail promotion, then the relationship is negative. But, if advertising is informative enough to increase consumer response to retail promotions, then the relationship is positive. A follow-up empirical analysis shows a strong positive relationship between category advertising expenditure and size of retail price discount, and between advertising and discount frequency. The finding supports the informative role of advertising in the context of retail price promotions. The implications of these findings and directions for future research are discussed.     

Global talent management by multinational enterprises post-COVID-19: The role of enterprise social networking and senior leadership

Multinational enterprises' (MNEs') workforce is made up of people from diverse backgrounds and different locations around the globe. The cross-border transfer of knowledge, skills, and best practices among MNE employees is important to maintain global standards and competitiveness. In the post-COVID-19 period, there is a greater need to exchange knowledge in the changing business environment. The purpose of this study is to examine the issues related to MNEs' global talent management, post-COVID-19. The study investigates the use of enterprise social networking applications for better knowledge exchange and tries to understand the moderating role of senior leadership team support in facilitating the usage of enterprise social networks for cross-border collaboration and talent management. After reviewing the literature and relevant theories, we developed a conceptual model, which is then validated using the SEM technique with 347 respondents from 12 MNEs. The study reveals the importance of using enterprise social networks for cross-border knowledge exchange in the post-COVID-19 period.     

Normative influence and masstige purchase intention: Facilitators,inhibitors, and the moderating effect of celebrity endorsement

Masstige marketing has gained considerable attention in the recent past as a theoretically significant and practically relevant concept. Masstige strategy encompasses all those activities directed to position the products for the masses, neither by offering drastic price reductions nor discounts. Rather its success depends on product innovation and promotion. Although it has been recognized as an important strategic construct, the nascent concept needs further investigation for better understanding. This research identifies significant gaps in the extant literature on fashion accessories masstige brands and intends to bridge them. The objective of the current study is to empirically investigate the factors that facilitate or inhibit masstige purchase intentions. Our study uncovers the role of normative influence in influencing the purchase intentions of a masstige fashion accessory brand, that is, Armani Exchange. Data were collected from 395 respondents, and structural equation modeling was applied to check the proposed hypotheses. The study's results revealed that conspicuous and social values play an important role as facilitators. In addition, the study highlighted that masstige brands need to overcome inhibitors like identity avoidance and deficit-value avoidance to develop masstige purchase intention. Moderation analysis highlighted the significant influence of celebrity endorsement in strengthening the facilitators and overcoming inhibitors associated with masstige purchase intention. The study's results can help marketers to position their masstige brands by adopting the right strategies that can be formulated by taking into account the influence of stimulus, facilitators, inhibitors, and a moderating variable examined in the study.