Behavioral determinants of supply chain integration and coexistence

Economic theory considers physical production characteristics and related property rights as key determinants of the organization of an industry. Yet, we frequently observe coexisting governance modes within industries and firms, even when the transaction attributes of a commodity are homogenous. We test whether risk and time preferences, price expectations, and trust in supply chain types can explain variations and coexistence in governance. Specifically, we experimentally elicit economic preferences of forest managers in the Swiss wood sector. We find that all behavioral dimensions are related to the choice of sales channel. Most importantly, trust and expectations are key determinants in transferring property rights, while risk aversion, patience, and ownership structure explain the existence of plural forms at the firm level.     

Random regret minimization for consumer choice modeling: Assessment of empirical evidence

This paper introduces to the field of marketing a regret-based discrete choice model for the analysis of multi-attribute consumer choices from multinomial choice sets. This random regret minimization (RRM) model, which has recently been introduced in the field of transport, forms a regret-based counterpart of the canonical random utility maximization (RUM) paradigm. This paper assesses empirical results based on 43 comparisons reported in peer-reviewed journal articles and book chapters, with the aim of finding out to what extent, when, and how RRM can form a viable addition to the consumer choice modeler's toolkit. The paper shows that RRM and hybrid RRM–RUM models outperform RUM counterparts in a majority of cases, in terms of model fit and predictive ability. Although differences in performance are quite small, the two paradigms often result in markedly different managerial implications due to considerable differences in, for example, market share forecasts.     

Analysis of Consumer Preferences for Quality and Safety Attributes in Artisanal Fruit Juices in Kenya

This study used choice experiment survey data from a random sample of 374 respondents to analyze consumer preferences for quality and safety attributes of artisanal fruit juices in Kenya. Results show that consumers had a positive and significant preference for single fruit juices compared to fruit mixtures, private rather than public inspection of the juices, traceability of fruit origin, and vendor’s health. Additives such as colorants, flavors, and preservatives were not preferred. Consumers were willing to pay premiums of up to 200% for artisanal juices that contain single fruits, lack additives, and are inspected by private agencies. These insights should be incorporated in ensuring that artisanal fruit juice designs comply with food quality and safety requirements. Further, there is a need to license and regulate the artisanal juice preparation and handling and to provide training to the handlers on safety and quality requirements.     

Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall

In August 2010, more than half a billion eggs were recalled in the U.S. because of a Salmonella outbreak. This study examines the effect of the recall with a unique pair of auction experiments investigating willingness to pay (WTP) for conventional and organic eggs, one conducted shortly before and one right after the recall with the same participants. In addition to the before and after bids, participants bid again after a negative information or balanced information treatment about the event. Accompanying surveys showed consumers had a high level of awareness of the recall but less knowledge of specific details, and viewed information on egg farm conditions as very important in their WTP. While there were no significant before and after differences, WTP for organic eggs significantly increased in the negative information treatment, and balanced information had a positive effect on consumer WTP for conventional eggs.     

CORPORATE SOCIAL RESPONSIBILITY: A MICROECONOMIC REVIEW OF THE LITERATURE

This paper provides a review of the theoretical and empirical literature on Corporate Social Responsibility (CSR). Depending on whether an individual can be considered as selfish, or whether she has also social preferences, motives for CSR, can be explained in different ways. Furthermore, we explicitly highlight the influence of different Corporate Governance System on CSR as well as the relationship between firms' size and social commitment. Because it is difficult to distinguish between different theories in empirical studies, we argue that an experimental approach might be suitable to test theories of CSR.     

Food preferences as a proxy for adventurousness

Food preferences have been demonstrated to be a proxy measure for adventurousness, in general. This study demonstrates that a single variable of food preferences unveils the four dimensions of adventurousness that are applicable in a general tourism context. The findings suggest that adding this simple semantic differential question to visitor surveys can be a powerful tool to evaluate the critical factor of adventurousness in tourism.     

The moderating role of demographic variables on customer expectations in airport retail patronage intentions of travellers

The international airport retail business is expanding annually, yet most research into traveller’s experience with the aviation industry have centred on aeronautical features. The study gathered information that would guide the understanding of airport customer retail expectations. Specifically, the study examines the effects of product-relevant factors, market-relevant factors, and perceived service quality on retail patronage intentions, taking into account the moderating role of demographic variables. The purposive sample of three hundred and thirty (330) travellers that were selected at the Kotoka International Airport Terminal 1 and 2 (KIA T1&2) in Accra, the capital of Ghana. The findings show that product-relevant factors, market-relevant factors and overall service quality significantly influence airport retail patronage intention. The effect demographic variables was noticeable among older and high-income consumers. Building on previous studies, we find that product-relevant factors, market-relevant factors, and perceived service quality function as viable signals that drives customer expectations.     

The not-so-generalised effects of the Generalized System of Preferences

We use an empirical gravity equation to study how non-reciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from non-reciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute.     

Can media drive the electorate? The impact of media coverage on voting intentions

A growing literature uses media data to explain perception and behaviour in the economic and political context. In this paper, we investigate how media coverage affects political preferences, namely voting intention. For our empirical analysis, we merge 14 years of human-coded data obtained from leading media in Germany with results of the comprehensive German Politbarometer survey from February 1998 through December 2012. In contrast to the existing literature, we do not utilize access to certain media outlets, but use the tonality of articles and newscasts on political parties and politicians based on human coded media data. To account for endogeneity, we employ instrumental variable probit estimations. In addition, we control for a multitude of (internal) personal characteristics, such as age, and gender, as well as for (external) macroeconomic variables, such as business climate, unemployment, and inflation. The results show that media coverage of a political party has a positive and significant effect on the voting intention for this party. When media outlets cover a political party more positively, the electorate has a greater tendency to vote for it. Hence, we conclude that the electoral success or failure of political parties is at least partially caused by the media coverage on them. This hints on the special responsibility of media in democracies.