Market Structure and Innovation: A Survey of the Last Twenty Years

A survey of the research on the relationship between market structure and innovation is given. Starting in 1975, the emphasis is on the last two decades, as well as on the most recent developments. Especially on the theoretical front, many important insights have been drawn. These can be applied to antitrust enforcement, or provide the microfoundations for models of economic growth. On the empirical front, research lagged far behind theory. This recently changed with the so called bounds approach which is discussed as a matter of looking into future developments in this area.     

Testing a Model of Behavioral Intentions in the Republic of Macedonia: Differences Between the Private and the Public Sectors

In this study, we developed a model of unethical behavior intentions, collected data from managers of the private (n = 208) and the public (n = 307) sectors in the Republic of Macedonia, and tested our model across these two sectors. Results suggested that for both sectors, unethical behavior intentions were not related to the love of money and corporate ethical values, whereas irritation was negatively related to life satisfaction. Moreover, corporate ethical values were related to life satisfaction for the private sector only, whereas the love of money and unethical behavior intentions were related to irritation for the public sector only. Managers in the private sector had higher corporate ethical values, lower unethical behavior intentions, lower irritation, and higher life satisfaction than those in the public sector. There was no difference in the love of money. There were more bad apples in the public sector (34.85%) than in the private sector (23.56%). The strongest factor of unethical behavior intentions in the private and the public sectors␣was theft and corruption, respectively. Finally, for the culture-free (etic) model, the love of money was positively related to irritation. Corporate ethical values had a positive “double-whammy” effect: reducing irritation and enhancing life satisfaction. Unethical behavior intentions were positively related to irritation (a mediator), which was negatively related to life satisfaction. Our theory provides new insights regarding doing business in the Republic of Macedonia.

Measurement of Angler Catch-Related Attitudes: An Assessment of Model Structure and Metric Invariance

Catch-related attitudes (CRA) are of particular interest to researchers studying the behavior of recreational anglers. This study assessed factorial structure and invariance of two measurement models of CRA using data from a statewide survey of licensed Texas anglers and a follow-up survey of catfish anglers. We determined that a 4-construct model of CRA provided better fit to the data than a 3-construct model, and was configural and metric invariant across gender, ethnic, and angling context groups. While further scale refinement is needed, our results indicate the current model provides unbiased measurement of CRA across a variety of groups and contexts.     

A temporal analysis of behavioural brand loyalty among urban Chinese consumers

Abstract

Chinese marketing is evolving, and this is having a dramatic influence on the incomes and spending patterns of consumers. Set against these longer-run trends, the contribution of this paper is to examine the year-on-year persistence of brand purchasing and behavioural brand loyalty in packaged goods markets in China. Revealed preference data for two product categories (toothpaste and soy sauce) in two contrasting cities (Shanghai and Xi'an) are analysed, with particular attention being paid to whether brand purchasing and behavioural brand loyalty are invariant over a five-year period. Conceptually, the NBD-Dirichlet model of brand choice and purchase incidence is employed. Analysis shows that patterns found in the Chinese data are quite similar to those reported previously for Western markets, with invariant results over time – notwithstanding supply-side and demand-side changes over the study period. In particular, the double jeopardy effect and multi-brand loyalty are consistently observed in the toothpaste and soy-sauce markets in both cities over the full five-year period. Results distinct to the Chinese market are also identified: exclusive brand loyalty appears to be declining in favour of multi-brand loyalty, and there are between-city differences in the magnitude of this decline.     

The invariance principle in baseball: new evidence

This article considers the change in revenue sharing in Major League Baseball that occurred prior to the 2007 season and its effects on parity via its effects on marginal revenues. Based on the results from an empirical specification for team revenue, we find evidence that the reduction in revenue sharing increased marginal revenue by more for large market clubs than for small market clubs, despite holding constant other differences in how small and large market club revenues are determined. The upshot of this result is that the modest reduction in revenue sharing could have worsened league parity by 11 to 17 points in winning percentage between small and large market clubs, although other factors affect parity as well. The well-known invariance principle in the economics of sport literature does not appear to hold; however, the current consensus of theoretical models is not confirmed.     

Dilatation monotone risk measures are law invariant

We prove that on an atomless probability space, every dilatation monotone convex risk measure is law invariant. This result, combined with the known ones, shows the equivalence between dilatation monotonicity and important properties of convex risk measures such as law invariance and second-order stochastic monotonicity. We would like to thank Johannes Leitner for helpful discussions. The second author made contributions to this paper while being affiliated to Heriot-Watt University and would like to express special thanks to Mark Owen, whose project (EPSRC grant no. GR/S80202/01) supported this research.