Fast food,ads, and taste in a Russian child’s mind

Research demonstrates that brands can influence children’s food preferences and potentially contribute to unhealthy consumption patterns. This article extends this line of research by investigating the complex and interacting effects of food brand marketing on experienced taste. The empirical field in a remote Russian town enabled the assessment of branding effects when entering a newly established market. Examining the combination of various advertisement features with emotional brand elicitation, we derive hypotheses about the interplay of brands and advertisement components linked to the perceived taste of a fast food meal. In Novosibirsk, Russia, 778 children and adolescents aged 10–18 years were exposed to fast food advertisements with real and imaginary brand logos and varying advertising claims. The advertisements consisted of a warning, an exaggerated credence claim, or both. A subsequently offered fast food meal—a portion of French fries—was experimentally varied and prepared to be either healthier but less tasty and unsalted, or less healthy but tastier and salted. The findings verify strong and positive brand effects on children’s taste satisfaction. Warnings in advertisements “worked” only for novel fast food brands by negatively affecting taste satisfaction, but increased taste satisfaction when applied in advertisements for established brands. Single credence claims did not improve the taste experience, but counteracted the negative effects of warnings for novel brands. Finally, the established brand influenced taste satisfaction positively when the fries were saltier. The findings reveal various opportunities for fast food marketing to artificially create taste satisfaction for potentially unhealthy food. Public health strategies that focus on advertising claim restrictions should be reconsidered in the context of possible evasion strategies of the food industry and counter‐effects of warnings among strong fast food brands.     

Das Mindestlohngesetz — Hoffnungen und Befürchtungen

The German government plans to introduce a minimum wage from 2015. This must be understood as a response to the decline in collective bargaining coverage and the marked increase in employment in the low-wage sector. The authors discuss how many workers are affected by this new regulation and whether the minimum wage is too high in relation to the average wage of workers (Kaitz index). They assume that the introduction of a minimum wage in Germany can have a number of effects. It is not possible to forecast all the reactions and behaviour of market participants to handle higher wages and goods prices. Some authors warn that these measures are significant labour market interventions that could have adverse employment effects. They recommend allowing more exemptions from the minimum wage law than intended by the government, especially for young employees and student apprentices. Other authors hope that minimum wages would help to strengthen collective bargaining and stabilise wages. Some authors emphasise that there should be a careful evaluation of the economic effects by scientists.     

Energy Informatics

Due to the increasing importance of producing and consuming energy more sustainably, Energy Informatics (EI) has evolved into a thriving research area within the CS/IS community. The article attempts to characterize this young and dynamic field of research by describing current EI research topics and methods and provides an outlook of how the field might evolve in the future. It is shown that two general research questions have received the most attention so far and are likely to dominate the EI research agenda in the coming years: How to leverage information and communication technology (ICT) to (1) improve energy efficiency, and (2) to integrate decentralized renewable energy sources into the power grid. Selected EI streams are reviewed, highlighting how the respective research questions are broken down into specific research projects and how EI researchers have made contributions based on their individual academic background.     

Ich fühle,also bin ich — Markenemotionen machen den Unterschied

Marken l?sen Gefühle bei den Konsumenten aus. Eine Studie zeigt: Starke Marken profitieren von den mit ihnen verknüpften positiven Emotionen, schwache Marken hingegen k?nnen sogar negative Gefühle erzeugen. Es gilt also, Marken „positiv aufzuladen“. Denn st?rkere Markenbindung und gesteigerte Markenbegehrlichkeit wirken sich letztendlich auch positiv auf die Kaufentscheidung der Verbraucher aus.     

Exploring consumer knowledge structures using associative network analysis

This paper offers a new perspective on consumer knowledge analysis that combines Human Associative Memory (HAM) models from cognitive psychology with network analytic approaches in order to gain deeper insights into consumers” mental representations, such as brand images. An illustrative case study compares the associative networks of a manufacturer brand with a retail brand and is used to demonstrate the application and interpretation of various network measures. Network analysis is conducted on three levels: Node‐level analysis yields insights about salient brand image components that can be affected through short‐term marketing activities. Group‐level analysis is concerned with brand image dimensions that characterize a brand and can be strategically influenced in the medium term. Finally, network‐level analysis examines the network structure as a whole, drawing parallels to brand imagery, which needs to be managed over the long term. Management implications are derived and suggestions for further research are provided. © 2010 Wiley Periodicals, Inc.     

The Term Structure of Implied Forward Volatility: Recovery and Informational Content in the Corn Options Market

Using a flexible method, we develop the term structure of volatility implied by corn futures options with differing maturities, and evaluate its ability to predict subsequent realized price volatility. The implied forward volatilities anticipate realized volatility well. For the nearby interval, the implied forward volatilities provide unbiased forecasts, and are superior to forecasts based on historical volatilities. For more distant intervals, early-year options predict the direction and magnitude of future volatility changes about as well as a three-year moving average and better than a naïve forecast. However, later-year options display less forecast power in part due to reduced trading activity.     

Fair value and audit fees

This paper investigates the effect of fair value reporting and its attributes on audit fees. We use as our primary sample the European real estate industry around mandatory IFRS adoption (under which reporting of property fair values becomes compulsory), due to its unique operating and reporting characteristics. We document lower audit fees for firms reporting property assets at fair value relative to those employing depreciated cost—a difference that appears driven, in part, by impairment tests that occur only under depreciated cost. We further find that audit fees are decreasing in firms’ exposure to fair value and increasing both in the complexity of the fair value estimation and for recognition (versus only disclosure) of fair values. We corroborate our findings in two alternative settings: contrasting UK and US real estate firms and using UK investment trusts. Overall, the results suggest that fair values can lead to lower monitoring costs; however, any reductions in audit fees will vary with salient characteristics of the fair value reporting, including the difficulty to measure and the treatment within the financial statements.     

Mean-variance hedging for continuous processes: New proofs and examples

Let be a special semimartingale of the form and denote by the mean-variance tradeoff process of . Let be the space of predictable processes for which the stochastic integral is a square-integrable semimartingale. For a given constant and a given square-integrable random variable , the mean-variance optimal hedging strategy by definition minimizes the distance in between and the space . In financial terms, provides an approximation of the contingent claim by means of a self-financing trading strategy with minimal global risk. Assuming that is bounded and continuous, we first give a simple new proof of the closedness of in and of the existence of the F?llmer-Schweizer decomposition. If moreover is continuous and satisfies an additional condition, we can describe the mean-variance optimal strategy in feedback form, and we provide several examples where it can be computed explicitly. The additional condition states that the minimal and the variance-optimal martingale measures for should coincide. We provide examples where this assumption is satisfied, but we also show that it will typically fail if is not deterministic and includes exogenous randomness which is not induced by .     

Financial market equilibria with cumulative prospect theory

The paper first shows that financial market equilibria need not to exist if agents possess cumulative prospect theory preferences with piecewise-power value functions. This is due to the boundary behavior of the cumulative prospect theory value function, which might cause an infinite short-selling problem. But even when a non-negativity constraint on final wealth is added, non-existence can occur due to the non-convexity of CPT preferences, which might cause discontinuities in the agents’ demand functions. This latter observation also implies that concavification arguments which has been used in portfolio allocation problems with CPT preferences do not apply to our general equilibrium setting with finite many agents. Existence of equilibria is established when non-negativity constraints on final wealth are imposed and there is a continuum of agents in the market. However, if the original prospect theory is used instead of cumulative prospect theory, then other discontinuity problems can cause non-existence of market equilibria even in this case.