Core-equivalence for the Nash bargaining solution

Summary. Core equivalence and shrinking of the core results are well known for economies. The present paper establishes counterparts for bargaining economies, a specific class of production economies (finite and infinite) representing standard two-person bargaining games and their continuum counterparts as coalition production economies. Thereby we get core equivalence of the Nash solution. The results reconfirm the Walrasian approach to Nash bargaining of Trockel (1996). Moreover we establish the same speed of convergence as is known from Debreu (1975) and Grodal (1975) for replicated pure exchange economies and for regular purely competitive sequences of economies, respectively.Received: 13 June 2003, Revised: 13 January 2004, JEL Classification Numbers: C71, C78, D51.This article is dedicated to Birgit Grodal, a friend since 30 years.Financial support of the DFG under grant #444 USA 111/2/03 is gratefully acknowledged.     

Long Memory In Futures Prices

This paper tests for fractional roots in the futures prices for selected commodities, foreign currencies, and stock indexes. The fractional testing method is the spectral regression method suggested by Geweke and Porter-Hudak (1983). The empirical results suggest the presence of a fractional exponent in the differencing process for several commodity and foreign currency futures prices. The returns series for these commodities and currencies exhibit long range positive dependence. However, differencing of exact order one is sufficient for the stock index futures prices. Implications are drawn concerning theoretical and econometric modeling and price forecasting.     

World Interest Shocks, Capital, and the Current Account

Macroeconomic performance in many developing countries is influenced by international credit conditions. This paper considers a developing economy that faces an upward-sloping supply function of debt. It analyzes how a particular foreign shock, a world interest shock, influences such key macroeconomic variables as output, investment, the current account, and the terms of trade in both short-run and steady-state equilibrium. An intertemporal optimizing model is used to study these issues. This approach permits characterization of the intertemporal adjustment of the indebted economy, and shows that a world interest shock lowers overall economic welfare.     

The influence of cause marketing associations on product and cause brand value

• The purpose of the study presented in this paper is to add to our understanding of the added value, both monetary and non‐monetary, to a brand when supporting a cause in a cause marketing ad. The findings show that consumers do not perceive the brand to be worth more if it was shown to be supporting a cause. The study also failed to show a significant improvement in consumer brand attitudes for brands featured in cause marketing ads. However, there was an attitude improvement for the cause. Product type and consumer dispositional variables were also examined.
• In summary, this study calls into question the value brands derive from being paired with a cause. This study discusses productive areas of future research and managerial implications.

Copyright © 2008 John Wiley & Sons, Ltd.     

Long-Run Purchasing Power Parity with Asymmetric Adjustment

Tests of purchasing power parity (PPP) that use panel data are more supportive of the theory than are bilateral tests. The article uses threshold cointegration to explore long-run PPP. Using data from the post-Bretton Woods period, we show that cointegration with threshold adjustment holds for a number of European countries on a bilateral basis. Focusing on France and Germany as base countries, we show that the error-correction model has important nonlinear characteristics in that prices and the exchange rate have markedly different adjustment patterns for positive gaps from PPP than negative gaps.     

Potential cost savings of frequent flyer miles for business travel

The mileage redemption strategy is a procedure used by many business firms to reduce air travel costs, in which the frequent flyer miles of traveling employees accumulated during business trips are applied to their future business trips to obtain “free” air tickets. This paper presents a framework that investigates how the frequent flyer miles can be used in the most effective way to reduce air travel costs by those firms that are either using the mileage redemption strategy or considering the use of the strategy. The framework can be implemented quite easily by a spreadsheet software such as Microsoft Excel.     

PSM system upgrade in response to an Occupational Safety and Health Administration NEP inspection

This article presents a brief analysis of the Occupational Safety and Health Administration (OSHA) Petroleum Refinery Process Safety Management National Emphasis Program (NEP) citation results as of early 2009. It includes trends distilled from the OSHA inspections performed to date. Recommendations for preparing for PSM NEP level inspections are provided. A proven approach to designing and implementing an upgrade project for OSHA process safety management systems and EPA risk management program is described. The model presented can be targeted to a facility's NEP specific citations or used for a general PSM system effectiveness upgrade. This article includes recommendations for improving PSM as a result of an NEP inspection. The recommendations are for the PSM elements that routinely have major OSHA citations; that is: Operating Procedures, Mechanical Integrity, Process Hazards Analysis, Process Safety Information, Management of Change, and Incident Investigations. © 2009 American Institute of Chemical Engineers Process Saf Prog 2009