Revising price history: consumer price index for Norway 1492–2018

ABSTRACT

The paper presents a new combined annual cost of living and consumer price index for Norway covering 1492–2018, indicating that Norwegian price history has to be revised. The new historical price index is constructed on a significantly richer data material, which also makes it cover a longer period of price history than the existing one. This is made possible by the compilation of quantitative data from numerous sources, mostly originating from the eighteenth, nineteenth and early twentieth centuries, with grain prices stretching back to 1492. The new combined cost of living and consumer price index is constructed by a Laspeyres approach with shifting baskets for commodities and expenditure groups.

The index makes it possible to follow annual inflation and deflation in Norway for a period of 526 years. When comparing to existing indices, the new series reveals that revisions are needed in Norwegian price history. These make the historical price development more in line with those of the neighbouring countries and more in line with the pattern of wholesale prices.     

Pathways to Success in M&A

For many if not most publicly traded companies, acquisition capabilities remain a critical component of sustainable longterm growth and profitability. And even as investors press companies to return excess capital through dividends and stock buybacks, the market continues to assign premium valuations to companies that earn above-average returns through a combination of internal investment and judicious acquisition spending.
This article begins by describing major challenges facing acquirers in the current business and regulatory environment. Then, after showing how M&A can be used to address strategic goals, the authors identify key elements in the M&A strategies of three highly successful companies: General Electric, Danaher, and Illinois Tool Works.     

Diamonds Are a Rebel's Best Friend

Many countries that produce rough diamonds have experienced a highly adverse pattern of economic development. In this article, we propose that the primary reason for the negative impact is that diamonds easily become the prize in predatory struggles between loot‐seeking rebels and more or less kleptocratic governments. In weakly institutionalised countries like Angola, the Democratic Republic of Congo and Sierra Leone, this theory works well, but it does not explain the impressive growth record of diamond‐rich Botswana and Namibia. For a deeper understanding of these countries’ success, we point at the crucial differences between kimberlite and alluvial mining and the effect of having the world‐leading firm De Beers as a partner. Indeed, we argue that in countries like Angola, diamonds can never be a major vehicle for sustained growth, although the ongoing Kimberley process for eliminating conflict diamonds probably has contributed to making several African countries more stable.     

When to accept a sequence of gambles

When is a sequence of gambles, which is initially rejected eventually accepted? The eventual acceptance is defined as a pair property between the utility function and the sequences of gambles. A sequence of gambles is accepted when the gambles follow a large deviation principle and the utility function is non-satiated and bounded from below in a certain way. The number of gambles required for acceptance is computed.     

The integration of microcomputers in marketing research and decision making

This paper focuses on the integrative and pervasive use of microcomputers in marketing research and managerial decision making. The marketing research process is conceptualized as consisting of six phases. At each phase, microcomputer applications and illustrative software are identified as implications for the practice of marketing research discussed. Next the paper illustrates the use of microcomputers in selected application areas such as market segmentation, sales forecasting, new product development, pricing and decision support and expert systems. Guidelines for the selection of microcomputer software in specific situations are provided. The paper concludes with some observations on the future applications of microcomputers in marketing research and decision making.     

Asset Specificity and Vertical Integration

Asset specificity is usually considered to be an argument for vertical integration. The main idea is that specificity induces opportunistic behavior, and that vertical integration reduces the cost of preventing opportunism. In this paper I show that asset specificity can be an argument for non‐integration. In a repeated‐game model of self‐enforcing relational contracts, it is shown that when parties are non‐integrated, increasing degrees of asset specificity make it possible to design relational contracts with higher‐powered incentives.     

Pay Comparability Across and Within UK Boards: An Empirical Analysis of the Cash Pay Awards to CEOs and Other Board Members

Drawing on the literature on social comparison and equity theories, this paper analyses the determinants of, and the relationships between, the cash pay awards of CEOs and other board members for a sample of large UK companies over the period 1992–95. Our results suggest that external labour market and internal (i.e., within board) pay comparisons are important in explaining both CEO and other directors' pay awards. In the case of CEOs, however, there is evidence of an asymmetric adjustment to prior period pay anomalies, whereby the pay of the relatively underpaid executives displays significantly greater sensitivity to external market comparison pay levels. This asymmetric adjustment process results in a 'bidding-up' of average CEO pay relative to other board members over the four year period investigated.     

The economic costs of biological predation

This paper developes a bioeconomic model to analyse the economic losses from the reduced harvesting of prey species resulting from an increase in the stock of a natural predator. Examples of large mammals creating economic damage are whales and African elephants. The economic losses depend critically on the actual management of the prey stock, although the three measures we develop are equal when the stock is managed so as to maximize the sustained economic rent from the prey species. Predation losses are illustrated by the case of the Northeastern Atlantic Minke whale, where the estimate of the average predation cost per whale in 1991–1992 is between $US 1780 and $US 2370, using Norwegian cost and earnings data. A ten percent stock increase is estimated to cause a loss of almost $US 19 million to the fishers of the prey species. If half of this cost were assigned to Norway it would be equivalent to 2.8 and 6.7 percent of the gross profits of the Norwegian cod and herring fisheries, respectively.     

Internet-Based Relationship Marketing: A Sub-Saharan African Perspective

Establishing, maintaining, and enhancing relationships over the Internet have progressively gained global attention. Nevertheless, the dawn of this modernization draws many theoretical debates and practical concerns, some of which have received little research attention, especially within the Sub-Saharan region of Africa. On this premise, we explored the contemporary practice, challenges, and benefits of Internet-based relationship marketing (RM) within the Ghanaian telecommunication industry. Expert interviews with 12 employees from four telecommunication firms elicited a wealth of experiential data analyzed thematically to understand the practice, challenges, and emerging benefits of Internet-based RM. Our findings suggest that issues of privacy concerns, erosion of face-to-face communication, and the tendency of unsolicited communication do not necessarily militate Internet-based RM within the Ghanaian telecommunication industry. We also identified emerging benefits, including online “virality,” a discovery environment, and improved firm reputation. We suggest enhancing online personalization through empathy, creating value with analytic information and managerial openness, and supporting enhanced knowledge development within the area. Directions for future studies include the possibility of comparative studies across service industries and examining the role of content marketing in Internet-based relationships. The challenge of exploring Internet-based RM was similar to hitting a moving target, as the use of the Internet for relationship marketing activities is constantly evolving. Additionally, our findings and conclusion are confined to the knowledge contribution of the experts interviewed. As one of the few studies within the Sub-Saharan region, we expand contributions from the Sub-Saharan domain. The findings of this study also bring to light new insights for establishing, maintaining, and enhancing Internet-based relationships.     

The Multiplicity of Performance Management Systems: Heterogeneity in Multinational Corporations and Management Sense‐Making

This field study examines the workings of multiple performance measurement systems (PMSs) used within and between a division and Headquarters (HQ) of a large European corporation. We explore how multiple PMSs arose within the multinational corporation. We first provide a first‐order analysis which explains how managers make sense of the multiplicity and show how an organization's PMSs may be subject to competing processes for control that result in varied systems, all seemingly functioning, but with different rationales and effects. We then provide a second‐order analysis based on a sense‐making perspective that highlights the importance of retrospective understandings of the organization's history and the importance of various legitimacy expectations to different parts of the multinational. Finally, we emphasize the role of social skill in sense‐making that enables the persistence of multiple systems and the absence of overt tensions and conflict within organizations.