Concentric circles of limits to the rate of accumulation: an interpretation of Joan Robinson's theory of economic dynamics

In addition to her well-known contributions to the theory of capital, Joan Robinson provided, in her Accumulation of Capital and Essays in the Theory of Economic Growth, a theory about the determinants of the rate of growth. The growth rate was limited by entrepreneurs' animal spirits. Within that constraint, growth might be further limited by the inflation barrier, which could occur either because of a floor to real wages or because of full employment. This paper provides a series of simple dynamic models that illustrate these situations, drawing attention to this neglected aspect of her work and making it easier to compare her work with the monetary growth models produced by her neoclassical contemporaries.     

The cell phone effect on motor vehicle fatality rates: A Bayesian and classical econometric evaluation

This paper examines the potential effect of cell phones on motor vehicle fatality rates normalized for other driving related and socioeconomic factors. The model used is non-linear so as to address both life-taking and life-saving attributes of cell phones. The model is evaluated using classical methods along with Bayesian Extreme Bounds Analysis (EBA). The use of both classical and Bayesian methods diminishes the model and parameter uncertainties which afflict more conventional modeling methods which rely on only one of the two methods. The results indicate the presence of both life-taking and life-saving attributes of cell phones on motor vehicle fatality rates depending on the volume of cell phone subscribers in existence.     

A Note on Trading Stamp Strategy

A Special class of promotions where the consumer is invited to play a game, receive trading stamps or accept gifts has continually elicited reactions from economists, congressional investigators and certain consumer groups. Furthermore, many of these promotions are condemned by their originators, yet they persist! I submit that our ability to effectively treat the problem has been limited by a lack of theoretical understanding of the fundamental causes and features that underlie such promotions. This paper is an attempt to provide a general theory of these cases which I have titled the oligopolistic ‘lock-in’.

Government intervention may often be necessary for the dissolution of the ‘lock-in’, but while firms may wish to free themselves from its grip, unfavorable publicity from such intervention has historically forced them to defend the status quo. In such cases, an ounce of prevention is worth a pound of cure: if managers in industries where the ‘lock-in’ can exist understand the phenomenon, they can (hopefully) avoid its dilemma. Likewise, economists concerned with the public policy aspects can treat the causes rather than the symptoms.     

Product development with multiple partners: Strategies and conflicts in networks

This paper provides an insight into and discusses the variety of sources of conflict in linking multiple partners in a network to the product development process. Conflict issues are discussed in relation to focal company strategies for product development within networks. On the basis of three case studies representing three different strategic intentions and network situations, our findings suggest that the sources of conflict are related to the actors' definition and negotiation of the development task at hand. The study suggests that the ability to combine and find complementarities in the strategic intentions of the multiple participating actors is essential to accomplish innovation. The paper concludes that influential actors initiating or acceding to changes are crucial for reaching a positive outcome in joint product development.     

Why People Don't Ask: Understanding Initiation Behavior in International Negotiations

Negotiation is an interactive process that is important to all aspects of organizational success, a process that begins with communicating one's wants or needs. For many individuals, engaging others and asking for what one wants (i.e., initiating a negotiation) is a challenging task, made more difficult in an international context. Yet due to the integration of world markets, this is exactly the type of environment that many organizational representatives are facing with increasing regularity. This article offers an overview of the personal characteristics and situational factors that influence an individual initiating a negotiation (engaging a counterpart, making a request, and optimizing that request), with specific attention to seven cultural factors that must be understood to be most effective in international settings. The ways in which these cultural factors are likely to affect one's decision to engage a counterpart and style of delivery are illustrated for three countries: the United States, China, and Brazil. © 2012 Wiley Periodicals, Inc.     

Local trader profitability in futures markets: Liquidity and position taking profits

This study examines the profitability of local traders on floor‐traded futures markets. Using unique data from the period of floor trading on the Sydney Futures Exchange, local income is decomposed into liquidity and position‐taking profit components. Locals on the trading floor are found to make significant position‐taking profits. Moreover, the ability of locals on the floor to derive position‐taking profits is positively related to order‐flow related information, and negatively related to the presence of exogenous information, local liquidity profits and the length of a locals inventory cycle. Accordingly, this paper characterizes locals as active informed traders. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 30:1–24, 2010     

Research needs for assessing online value creation in complex consumer purchase process behavior

Consumers face considerable frustration when purchasing structurally and/or semantically complex high-involvement products online. Reliance on computer-mediated communications for their information needs may result in functional and emotional frustration from information overload and lack of personal trust. This paper proposes a responsive real-time information system as a proxy for a perceptive sales representative who assesses customer needs based on information exchanges and then offers appropriate responses. By tracking and analyzing a consumer's online activity, vendors can offer information relevant to the consumer's real-time needs, facilitating their purchase process. In essence, this is a real-time value co-creation process based on the consumer offering cues to vendors through their key strokes and mouse click activity. This allows for differentiated information offerings for inexperienced and more experienced consumers, creating value by dynamic information serving. Where appropriate value is created, consumers will experience less frustration and continue online, rather than possibly moving offline or to alternative vendors. In examining the bases of consumer information needs in complex purchases, this paper identifies the data required to enable a responsive dialog between vendors and consumers.