Growth, Inequality, and Well-Being: Intertemporal and Global Comparisons

We use several well-being measures that combine average incomewith a measure of inequality to undertake intertemporal andglobal comparisons of wellbeing. The conclusions emerging fromthe intertemporal analysis are that the impact of these measureson temporal trends in well-being is relatively small on average,but changing across the decades. In particular, it suggeststhat changes in well-being were understated in the 1960s and1970s and overstated in the 1980s and 1990s. Our global analysiscovering ca. 81 per cent of the world's population demonstratesthat global well-being is at least 50 per cent smaller thanworld per capita income if the unequal income distribution isalso factored in. Conversely, growth in world well-being hasbeen larger than world income growth between 1970–1998.Since the inclusion of inequality has an important impact onwell-being comparisons, it is of great importance to generatemore consistent and intertemporally as well as internationallycomparable data on inequality. (JEL I31, D63)     

The role of destination personality fit in destination branding: Antecedents and outcomes

Drawing from fit research in strategic management, this study develops and investigates a model predicting destination attitude and (re)visit intention. The study introduces the concept of destination personality fit on the basis of how well consumer perceptions of a tourist destination's brand personality fits that of what the destination brand manager wishes to convey. A model incorporating destination advertising awareness as an antecedent of destination personality and consumer‐manager destination personality fit is tested on international consumers with the destination personality of Switzerland as the study setting. Structural equation modeling results reveal that destination advertising awareness does indeed relate positively to both stronger perceived destination personality and destination personality fit in consumers’ minds. Interestingly, the subsequent destination personality–destination attitude relationship is moderated by consumer–manager destination personality fit in such a way that the link grows stronger in cases where fit is high. The results have important implications for destination brand managers in that they reinforce the importance of strong and distinct destination personalities. The findings also show the importance of actively communicating the destination brand to consumers since the positive outcomes of a strong destination personality increase in magnitude when successfully communicated, and the vision of the destination brand manager has been adopted by the consumer.     

What drives the effectiveness of industrial clusters? Exploring the impact of contextual,structural and functioning determinants

This study examines how contextual, structural and functioning characteristics of industrial clusters influence their effectiveness. We develop a conceptual framework that identifies potential influencing factors, validate the factors statistically, and estimate the factors’ impact on cluster effectiveness. Our results show that among the important determinants of cluster effectiveness are long-term planning security and procedural trust among the cooperating firms (contextual conditions), formalized rules and sustainable structures (structural elements), and clear goals and tasks (functioning characteristics). However, the results also reveal that some determinants assessed as important in the literature do not seem to have a positive impact on effectiveness. Our results not only modify general assumptions in cluster research concerning the drivers of cluster effectiveness, but also assist firms and policy-makers in conceptualizing successful new clusters.     

The Importance of taste in experimental auctions: consumers’ valuation of calorie and sweetener labeling of soft drinks

A majority of purchases that consumers make are classified as repeat purchases. One of the main reasons why consumers make repeat food purchases is the food's taste. Therefore, we examined the importance of including taste testing in nonhypothetical experimental auctions. Specifically, we used two experiments to determine consumers’ willingness to pay for soft drinks labeled with different calorie and sweetener information. In Experiment 1, participants tasted the soft drinks prior to the bidding rounds. In Experiment 2, participants did not taste the soft drinks prior to the bidding rounds. Bidding behavior for the soft drinks was significantly different between Experiment 1 and Experiment 2. Results suggest that including taste testing in the design of experimental auctions is important to accurately capture consumers’ willingness to pay for foods that are purchased repeatedly. Results also imply that policies aimed at combating obesity by making the calorie content of foods more visible may not produce desired outcomes.     

Addictive buying in West Germany: An empirical study

Subsequent to a previous article in JCP (Scherhorn, 1990) outlining a theoretical approach to addictive buying, the authors report on the results of their empirical study of addictive buyers in West Germany. The study indicates that addictive buying is clearly one kind of addiction which may be substituted by other addictions, may take the place of another addiction, or even alternate with other forms of addiction. At the same time, there is substantial evidence that there are special key experiences to which the propensity to addictive buying can be traced. Addictive buyers have been subjected to a specific form of distortion of autonomy: They have felt that for parents, relatives, or neighbours, material goods (money, property, consumer goods) seemed to be more relevant and more important than they themselves. Thus, they have acquired a strong predisposition for using consumer goods as a favourite means of compensating for the lack of self-esteem from which they suffer. This predisposition, however, is reinforced by the fact that consumption and buying increasingly take on the role of a socially favoured means of compensation.     

Career concerns incentives: An experimental test

Holmström’s [Holmström, B., 1982/1999. Managerial incentive problems: a dynamic perspective. Review of Economic Studies 66, 169–182. Originally published in: Essays in Economics and Management in Honour of Lars Wahlbeck, Helsinki] career concerns model has become a workhorse for analyzing agency issues in many fields. The underlying signal jamming argument requires players to use information in a Bayesian way, which is difficult to directly test with field data: typically little is known about the information that individuals base their decisions on. Our laboratory experiment provides prima facie evidence: (i) the signal jamming mechanism successfully creates incentives on the labor supply side; (ii) decision errors take time to decrease; (iii) while subjects’ average beliefs are remarkably consistent with play, a mild winner’s curse arises on the labor demand side.     

Karl-Erik Wärneryd: Stock-market psychology: How people value and trade stocks

Journal of Consumer Policy -