What consumers want and what they get from complaints directed at the place of purchase

A Danish survey with 1,003 respondents, reporting in detail on 278 cases of complaints to the place of purchase of a product or service, shows that consumers with a short education obtain as good results from complaining as do consumers with a longer education. They also have the same propensity to complain in case of dissatisfaction.The bias among complainers therefore seems to be associated with the fact that consumers with short education have a much smaller propensity to be dissatisfied.

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Was Verbraucher von Reklamationen im Geschäft erwarten und was sie tatsächlich erhalten

Zusammenfassung Der Beitrag berichtet über eine für Dänemark repräsentative Studie mit 1003 Befragten und 278 Fällen von Reklamationen bei Gütern oder Dienstleistungen. Dabei zeigt sich, daß Verbraucher mit niedrigerer Bildung ebenso gute Ergebnisse bei Reklamationen erzielen wie Verbraucher mit höherer Bildung. Tabelle 4 faßt die erwarteten und erzielten Ergebnisse in Form einer Kreuztabelle zusammen. Auf Grund dieser Daten können drei verschiedene Fallgruppen unterschieden werden.1. Fälle, wo die Reklamation zu dem erwarteten Ergebnis führte.2. Fälle, wo die Reklamation nicht zu dem erwarteten, aber auch zu einem Ergebnis führte.3. Fälle, wo die Reklamation ganz ohne Erfolg blieb.Bei den Gruppen 1. und 3. war der Anteil von Beschwerdeführern mit einer Schulbildung bis zu 9 Jahren 31% bzw. 32%.Tabelle 3 zeigt, daß die Bereitschaft zur Reklamation nicht von der Länge der Schulbildung abhängt, wenn ein Kauf zu subjektiver Unzufriedenheit geführt hat.Wie Tabelle 2 zeigt, liegt das Problem vielmehr darin, daß Verbraucher mit kürzerer Bildung in geringerem Ausmaße Unzufriedenheit empfinden als Verbraucher mit höherer Bildung.

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Preben Sander Kristensen is an Associate Professor at the Institute of Production, Aalborg University, Postbox 159, DK-9100 Aalborg, Denmark. Participants in the Danish CS/D project are C. S. Poulsen, H. Vestergaard, A. J. Wiis, and P. S. Kristensen.     

The State of Economic Analysis in Water Resources Planning

A bstract . The use of benefit-cost analysis in federal water resources planning is examined. In addition, its role in the decision-making process is assessed. An argument is made that its use might be more effective if government planners at the sub national level were better trained in economics. The costs of such investments in the quality of water resource planners are shown to be inconsequential with respect to the costs of inefficient projects. In addition, it is argued that investments in high quality analysts at the Washington, D.C.- level may be of less consequence because of the decentralized nature of the decision-making process.     

Bidding for the unemployed: An application of mechanism design to welfare-to-work programs

This paper applies the theory of mechanism design to welfare-to-work programs. When procuring welfare-to-work projects to employment service providers, governments face the problems of adverse selection (the winning provider is not the most efficient one) and moral hazard (the winning provider shirks in its responsibility to reintegrate unemployed people). We compare the constant-reward second-price auction with the socially optimal mechanism and show that the auction generates social welfare that is close to the optimal mechanism, while requiring less information and weaker commitment.     

Factors Affecting Global Inventory Prepositioning Locations in Humanitarian Operations—A Delphi Study

This article investigates the factors that are important to humanitarian organizations when determining locations for inventory prepositioning in preparation for emergencies—a critical decision faced by humanitarian managers. Current research in the sector is rich with mathematical models that focus on this decision, although these models have a limited scope in terms of decision factors. Through a Delphi study our article investigates, identifies, and orders a comprehensive set of factors that decision makers in the humanitarian sector take into consideration when determining where to preposition inventory on the global level. Through this process, 10 main factors are identified, with the top five factors being required: speed of emergency response, the availability and quality of infrastructure, the availability and quality of business support services, the cost of operating the facility, and the availability and quality of labor. We also include suggestions for facility location research based on the outcomes of our study.     

Short-term responses of Dutch vacationers to a sharp increase in transport costs

This paper investigates vacationers’ short-term responses to a sharp increase in transport costs. It aims to (1) acquire an understanding of the relative popularity of the different types of responses among vacationers and (2) explore whether there are distinct market segments of vacationers that respond differently to a sharp increase in transport costs. Data are obtained from a novel, tailor-made questionnaire which was done in the Netherlands in 2012. Results show that no single response is either very popular or unpopular. Furthermore, using latent class cluster analysis, four market segments (classes) of vacationers are identified that have markedly distinct response patterns. It was found that Age and Income explain class membership.     

The value of views and open space: Estimates from a hedonic pricing model for Ramsey County,Minnesota, USA

We examined how environmental amenities, particularly views and open space access, impact residential home sales prices in Ramsey County, MN using a hedonic pricing model. Home sale prices increase with closer proximity to parks, trails, lakes, and streams. Proximity to lakes produced the greatest impact on home sale value of these distance variables, followed by parks, trails, and streams. Increasing view areal extents as well as increasing the amount of water and grassy land covers in views also resulted in increased sale prices. Increased view richness in terms of the number of different land cover types in a view reduced home sale prices. These results illustrate the importance of these environmental amenities to single-family homeowners and can be used to inform land use planning and policy decisions aimed at their preservation.     

Unintended Consequences of Changing Accounting Standards: The Case of Fair Value Accounting and Mandatory Dividends

A growing body of literature investigates the interaction of changes in accounting standards with institutions such as investor protection laws and corporate governance mechanisms. We examine the unintended consequences of fair value accounting in determining mandated preferred dividends. We study the case of Russian energy conglomerate UES, which had a good corporate governance track record and a consistent dividend history. Following its adoption of fair value accounting, UES reported the highest quarterly profit in world corporate history, but it subsequently omitted dividends for all its shareholders. The case analysis suggests that the transitory nature of fair value adjustments and the interaction with the investment policy were important considerations in justifying the dividend omission. The reduction in preferred dividends was not offset by any capital gains, and led to a wealth transfer from preferred to ordinary shareholders. Thus, requiring the use of fair value accounting when determining the dividend distribution base can lead to unintended consequences and increase agency costs for minority shareholders.