Rethinking shipments asymmetries

A modification of a well-known shipments test for geographic market definition may be useful in identifying antitrust markets. By recognizing the possible significance of a high LIFO value and a notably lower LOFI value, and searching for possible barriers to product entry that could explain the asymmetry, analysts can reduce the chances of adopting an overly broad geographic market. This is illustrated by comparing the results from applying the shipments test to those from residual demand estimations, and by reviewing the evidence and findings in several recent antitrust proceedings in light of the asymmetric shipments patterns they report.     

Harvesting the “Business Test Trip”: Converting Business Travelers to Holidaymakers

A destination has no chance of being chosen unless it is part of a tourist's early consideration set (Crompton & Ankomah, 1993 Crompton, J. and Ankomah, P. 1993. Choice set propositions in destination decisions. Annals of Tourism Research, 20(3): 461–476. [Crossref], [Web of Science ®] , [Google Scholar]), implying the tourist's awareness of the destination. Raising awareness for a destination is challenging, especially in times of global competition. We investigate a common, yet empirically untested, assumption that business travelers can be converted to holidaymakers at the same destination at a future point in time. Empirical results indicate that business travelers do use business trips to a new destination to assess the potential for future leisure travel. Marketing strategies which destinations could deploy to entice business travelers back as holidaymakers are discussed.     

On the Distribution of CBOE Option Trade Prices Occurring Between Consecutive Stock Trades

This paper examines the volume distribution of option trade prices that occurs when the underlying stock price remains constant. The width of these option trade price bands provides direct evidence on the law of one price and the redundancy of options assumed in many option models. We find that index option bands are narrower than equity option bands. Furthermore, for both equity and index options, puts have narrower bandwidths than calls. In general, option price bandwidth is narrow and can be explained by the minimum price movement allowed by the Chicago Board Options Exchanges (CBOE). This supports the single price law and the redundancy assumption. The existence of bid/ask quotes on the option does not materially affect the above results although it does alter the frequency of multiple option trade prices for a given underlying stock price. We note that over 53% of option trading volume occurs without bid/ask quotes on the CBOE compared to less than 15% a decade ago. Our results suggest that the effective bid/ask spread on options is probably no larger than the minimum price movements allowed by the CBOE. Furthermore, the need for the liquidity services of market makers may be declining if the decline in quoting activity stems from cross trading (i.e. trades not involving market makers).     

Thomas Carlyle on the use of numbers in economics

Thomas Carlyle’s criticism of economics goes far beyond his epithet, “Dismal Science.” One aspect of economics that attracted his attention was its use of numbers in both theories and empiricisms. Here is explored his attacks on economist’s use of arithmetic in explaining human behavior, and statistics in addressing the condition of the working class.     

Repositioning Global Staff Transfers: A Learning Perspective

In this article, we challenge the prevailing view that global staff transfers are a necessary cost of doing business globally by contending that such deployment is integral to successful strategic implementation. We use three scenarios—learning from failure, failure to learn, and lost opportunities—to illustrate how awareness of the consequences of decisions related to international staffing can facilitate their efficacy. Learning awareness therefore can lead to improved policies and outcomes for the management of global staff transfers and demonstrate the value HRM brings to the implementation process. © 2013 Wiley Periodicals, Inc.     

The Challenge of Electronic Markets for International Business Theory

We examine the extent to which the eclectic paradigm of international production, and its composite theories, can help explain the coming E-commerce revolution. Our findings are that the basic tenets of the paradigm appear to hold well, but the operational application of several of the constituent parts and the context in which they are being considered, need to be redefined in the light of some of the unique characteristics of Internet transport.     

Network analysis of a new export grouping scheme: The role of economic and non-economic relations

Export grouping schemes can be viewed as an attempt to manage network development. This article examines a new Australian export grouping scheme in terms of its role and impact on the industrial network of which it is a part. The role played by non-economic exchange relations as well as economic, buyer-seller, exchange relations are emphasised, including competitive and potential interfirm relations and the way informal interpersonal relations. Spawned initially by formal grouping processes, were found to play an important part in group functioning and in outcomes from group activities.