The Role of Consumers' Trust in Online-Shopping

Many consumers are sceptical or suspicious about the functional mechanisms of electronic commerce, its intransparent processes and effects, and the quality of many products that are offered online. This paper analyses the role of consumer trust as a foundation for the diffusion and acceptance of electronic commerce. Starting from a functional perspective trust is seen as distinct but potentially coexisting mechanism for reducing the uncertainty and complexity of transactions and relationships in electronic markets. The analysis focuses on conditions of e-commerce transactions that are relevant for the formation of trust problems. Drawing on the theory of information two types of uncertainty are described: system-dependent and transaction-specific uncertainty. Finally different activities and instruments are described and categorized that Internet firms can use to establish and maintain trust.     

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Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State,USA

In Washington State, small forest landowners (SFLO) play an important role in maintaining forest cover on the landscape as well as associated ecosystem services. This paper examines landowner preferences for the attributes of working forest conservation contracts (WFCC) using a choice experiment. The attributes examined are contract duration (from 10 years to perpetuity), forest management requirements, and the extent of forestland covered under the contract. We find that contract attributes are valued very differently depending on landowner objectives and harvesting behavior. Landowner characteristics and forestland spatial characteristics including distances to development and large public forestlands were found to significantly influence the likelihood of contract acceptance. While a significant portion of preference heterogeneity remains unobserved, we identify several key sources of landowner preference heterogeneity which allows for a better understanding of which landowners are likely to enroll in voluntary forest conservation contracts and may have implications for improved targeting of contracts.     

Investment in vintage capital

We study an economy in which firms use labor and various vintages of capital in a CES production function for the final good. We explicitly solve for the investment in capital of a given vintage as a function of its age, and for the resulting stocks of capital. We show that for reasonable parameter values, inverted-U-shaped dynamics of investment and S-shaped dynamics for capital arise in equilibrium. We view the model as an explanation of intra-firm adoption lags, i.e., the observation that firms adopt innovations over time and not instantaneously.     

Drug Policy‐making in Metropolitan Areas: Urban Conflicts and Governance

This article retraces the emergence and shows the implications of current regulative frameworks in the field of urban drug policy. Framed by an analytical perspective that is based on the concept of urban governance, the article focuses on the processes by which cooperation and coordination between various conflicting governmental and non‐governmental agencies are achieved to address drug‐related problems in the major agglomerations of Switzerland, as well as in the metropolitan areas of Amsterdam, Glasgow and Frankfurt am Main. In the first part, it is shown that these problems are structured and debated along a conflict between advocates of the public‐health approach and those of the public‐order approach in the field of drug policy, as well as, to a lesser extent, a conflict between core cities and fringe municipalities about spillover effects related to the provision of services for users of illegal drugs. It is argued that this stems from a general tension between the goals of an attractiveness policy aimed at enhancing local economic development, and the necessities of social policy needed to address urban social problems. The second part examines the emergence of mechanisms of governance aimed at addressing drug‐related urban problems. It is argued that a ‘social public order’ regime emerged to regulate drug‐related urban problems, controlling urban practices of drug users by a combination of police and social work. In addition, it is held that in Switzerland, where social policy is traditionally confined to municipalities, these mechanisms of governance contributed to the emergence of metropolitan regions as new territorial actors in the field of drug policy. Cet article retrace l'apparition et les implications des cadres régulateurs actuels dans le domaine de la politique urbaine contre la drogue. Dans une perspective analytique fondée sur le concept de gouvernance urbaine, il s'attache aux processus qui permettent coopération et coordination entre divers organismes antagonistes, gouvernementaux ou non, pour traiter des problèmes liés à la drogue dans les principales agglomérations suisses, ainsi que dans les zones métropolitaines d'Amsterdam, Glasgow et Francfort‐sur‐le‐Main. La première partie démontre que ces questions sont organisées et discutées au sein d'une opposition entre partisans de l'approche de santé publique et ceux de l'ordre public en matière de politique de lutte contre la drogue, ainsi que, dans une moindre mesure, au sein d'un conflit entre les villes centrales et les municipalités satellites sur les retombées des services mis en place pour les consommateurs de drogues; cette situation résulte d'une tension globale entre les objectifs d'une politique d'attraction visant à favoriser le developpement économique local, et les nécessités d'une politique sociale obligée de traiter les problèmes urbains. La deuxième partie étudie l'émergence de mécanismes de gouvernance en réponse aux problèmes urbains liés à la drogue; ainsi, un régime ‘d'ordre public social’ a vu le jour, les pratiques urbaines des consommateurs de drogue étant sous le contrôle combiné de la police et des travailleurs sociaux. De plus, en Suisse où la politique sociale est par tradition du ressort des municipalités, certaines zones métropolitaines sont devenues, grâce à ces mécanismes de gouvernance, de nouveaux acteurs territoriaux de la politique publique de lutte contre la drogue.     

Social support among heterogeneous partners: an experimental test

This paper studies how dyadic social support is affected by heterogeneity of the partners. We distinguish heterogeneity with respect to three parameters the likelihood of needing support; the benefits from receiving support; and the costs of providing support. Hypotheses are based on a game-theoretic analysis of an iterated support game. First, we predict that heterogeneity in one of the parameters hampers social support. Second, we predict that under heterogeneity with respect to two of the parameters, support is most likely if there is a specific heterogeneous distribution such that heterogeneity in one parameter ‘compensates’ for heterogeneity in the other parameter. If there is no compensation social support is even more hampered. The hypotheses have been tested by experimental data with a mixed within-subject, between-subject design. The data gives support to the hypotheses.     

The antecedents of SME innovativeness in an emerging transition economy

Understanding forces that contribute to the success of small and medium enterprises (SMEs) is very important, as these enterprises are vital for both developed and developing economies. Since innovativeness is among the most important means through which such businesses contribute to economic growth, numerous research studies were conducted to determine which factors positively impact SME's innovative efforts. This is an even more important issue for developing economies, where SMEs are often faced with inadequate infrastructure. Since there is a lack of studies on SME innovation in developing economies, often policy in such countries is based on findings from developed countries.In this paper, we explore factors that drive innovation activities in SMEs in a small emerging transition economy (Croatia), and compare it with findings from developed economies. In addition to factors used in most previous studies, we consider market scope, firm's market orientation and presence of strategic, managerial and marketing changes. We find that most factors that were found to be important in developed economies are important in developing economies as well. In addition to that, market scope was discovered to be a very important factor in both product and process innovation. Implementing corporate changes has positive impact on radical product innovation while implementing new organizational structures has positive effect on incremental innovation. When investigating determinants of product innovation, we distinguish new products of low novelty from new products of high novelty, and show that they need to be supported by different policies. To gain additional insight in innovation efforts, we examine obstacles to innovation. We find that firms that report facing obstacles are not less likely to innovate less, which suggests that innovators are able to work around obstacles without damaging effects to innovation. This study is based on a postal survey of 448 SMEs in Croatia, which was performed in 2004.