On Ponzi schemes in infinite horizon collateralized economies with default penalties

We show, by means of an example, that in models where default is subject to both collateral repossession and utility punishments, opportunities for doing Ponzi schemes are not always ruled out and (refined) equilibria may fail to exist. This is true even if default penalties are moderate as defined in Páscoa and Seghir (Game Econ Behav 65:270–286, 2009). In our example, asset promises and default penalties are chosen such that, if an equilibrium does exist, agents never default on their promises. At the same time collateral bundles and utility functions are such that the full repayment of debts implies that the asset price should be strictly larger than the cost of collateral requirements. This is sufficient to induce agents to run Ponzi schemes and destroy equilibrium existence.     

“Should I stay or should I go?”—Why the future of global work may be less binary: Lessons on approaches to global crises from the experiences of expatriates during the COVID-19 pandemic

COVID-19 has significantly impacted expatriates, affecting their ability to work effectively and their personal and family lives. This study explores their experiences in different phases of the pandemic, and their perspectives on the future of international living in light of such global disruption. Involving over 600 expatriates in 48 countries, the research shows shifts in motivation and priorities as a result of the crisis and reveals how family (extended and immediate) topped expatriates' concerns. The study examines if and how support systems worked and looks at coping mechanisms, skills, traits, previous experience, and attitudes which participants found useful. A common theme was “falling between two stools”—where expatriates were ineligible for support in either their home country or in their host country. Others described being “pulled in different directions” or “torn by a dilemma” with pros and cons in either choice. The study contributes to the questions about the future of global work with results of the survey revealing changing norms for expatriation and global mobility raising the possibility of more nuanced approaches to global projects and less binary options for global professionals and their families.     

The Price-Quality Relationship—Revisited

Using price data collected in Indianapolis and Lafayette, Indiana, rank order correlations between price and quality were computed. These were compared to correlations based on price data obtained from the publications of consumer product testing organizations. It was found that price-quality correlations based on the price data furnished by consumer product testing organizations may not reflect price-quality correlations for specific markets. A second finding of the study suggests the existence of variability across store types with respect to price-quality correlations.     

Types and Amounts of Information Used by Efficient Consumers

This paper describes a research methodology which assesses the efficiency of consumer decision-making based on the types and amounts of informational cues used. A simple operational method is used to classify consumers into three levels of consumer efficiency based on how well they perform in assessing the optimal choice. The information chosen by perfectly efficient consumers, or those scoring at the maximum level of efficiency, is examined for indicators of optimal information seeking and decision-making techniques.     

Book of Intdernational Economics Affairs: MULTINATIONAL ENTERPRISES — A CONTINUING SAGA

AMERICAN MULTINATIONALS AND AMERICAN INTERESTS, by C. Fred Bergsten, Thomas Horst and Theodore H. Moran ALTERNATIVES TO THE MULTINATIONAL ENTERPRISE, by Mark Casson THE ECONOMICS OF MULTINATIONAL ENTERPRISE, by Neil Hood and Stephen Young     

Effect of watermarks as visual cues for guiding consumer choice: An experiment with restaurant menus

Priming can influence preferences. In this experiment, we extend this idea by using watermark visual primes. On a restaurant menu cart, primes related to the sea, countryside (or no prime) were used with alone diners in a restaurant. The results show that, compared to the control no-prime condition, primes related to the sea significantly increased the consumption of fish dishes whereas primes related to the countryside did not significantly increase the consumption of meat dishes.     

Market structure and demand-side substitutability of chained urban hotel segments

This study analyzes how the demand in hotel markets is divided amongst chained hotel segments. Hypotheses regarding consumers’ switching behavior due to changes in income levels and relative prices are tested using data from 25 major urban markets in the United States, encompassing segments ranging from luxury to economy over 43 quarters. The effects of differentiation and market concentration are also investigated in this context. The results suggest that leisure and individual consumers of the low-scale segments may be trading “up” to higher scales when their income increase, but that upscale segments’ corporate consumers are not necessarily trading “down” when Corporate Income fall. In addition, only low-scale segments appear to be substitutes to upscale segments, but the inverse seems not to be true. Also, properties in mid-range segments are found to be the only ones benefiting from a high market concentration, while low-scale properties turn out to be the ones gaining from differentiation through price.