Why Do We Care What Others Pay? The Effect of Other Consumers’ Prices on Inferences of Seller (Dis)Respect and Perceptions of Deservingness Violation

Comparisons to other consumers have been identified as particularly meaningful in shaping price fairness judgments, but why they should be so is not clear. The current work argues that fairness judgments reflect both the extent to which consumers receive what they believe they deserve and inferences about seller respect. We suggest that comparisons to consumers paying lower prices are a particularly potent source of unfairness because they highlight the violation of deservingness and readily communicate information about sellers’ opinions of consumers. Three experiments investigate these ideas. Implications for fairness theory and marketing are discussed.     

Environmental Change, Leadership Succession and Incrementalism in Local Government

A theoretical model of strategic budgetary choices in local government is developed and tested. The model assumes that expenditure decisions are a function of changes in environmental circumstances and the characteristics of local leaders. Environmental change is operationalized through measures of workload, munificence and regulatory controls. Leadership succession is defined as the turnover in managerial and political élites. These environmental and leadership variables are included in a multivariate statistical model of budgetary incrementalism. The model is tested on the spending decisions of 402 English local authorities from 1981 to 1996. The empirical results suggest that the extent of budgetary change is influenced strongly by environmental change but weakly by leadership succession. Furthermore, environmental constraints became tighter during the study period. The characteristics of public sector organizations that impose limits on the strategic choices of new leaders are identified.     

Elections with platform and valence competition

We study a game in which candidates first choose platforms and then invest in costly valences (e.g., engage in campaign spending). The marginal return to valence depends on platform polarization—the closer platforms are, the more valence affects the election outcome. Consequently, candidates without policy preferences choose divergent platforms to soften valence competition. Moreover, exogenous increases in incentives for valence accumulation lead to both increased valence and increased polarization—the latter because candidates seek to avoid the costs of extra valence. As a result, the increase in valence is smaller than it would have been with exogenous platforms. Finally, the model highlights the overlooked substantive importance of common modeling assumptions. Changing the source of uncertainty in our model from noise around the median voter's ideal point to a shock to one candidate's valence (as is common in the literature) leads to complete platform convergence for all parameter values.     

Bamyan: Whose Heritage Was It and What Should We Do About It?

The destruction for ostensibly ideological reasons of the Buddhist statues at Bamyan in Afghanistan by the Taliban (whether or not inspired by Al-Qaeda) raises a number of wider issues. Apart from the problems of minority, dissonant and enclave heritage, there is the question, 'how can relics of the past that are valued in different ways by local, national and international claimants be managed in a way that satisfies all parties?' The idea of world heritage, and its manifestation in international tourism, may conflict with heritage used for local or national purposes. One, if not the most important, actor in this arena, UNESCO, is evaluated on the basis of its goals and efficiency in saving the heritage of mankind in the recent past. The dilemmas inherent in the concept of world heritage and possible solutions for its management are outlined.     

Modelling Regional House Prices in the UK

Maximum likelihood cointegration methods are used to analyse the determinants of house prices in each of the eleven regions of the UK. Broad similarities in the structure of house price equations are found across regions in England and Wales (but not Scotland or Northern Ireland), indicating that the source of differences in English and Welsh regional house prices should probably be sought in different regional incomes, opportunity costs, and housing starts. Tests of spatial dependence in regional house prices cast doubt on the well-known 'ripple effect' hypothesis.     

Risking the self: the impact of self-esteem on negative word-of-mouth behavior

Negative word-of-mouth is a pervasive and persuasive force on consumers, yet little is known about the characteristics of the people who decide to share, or not to share, this information. We examine the impact of consumer trait self-esteem on tendencies to share negative word-of-mouth. Prior work has shown that consumer self-esteem moderates the likelihood of sharing positive word-of-mouth, yet extending this theory to negative word-of-mouth behavior results in conflicting predictions. This paper addresses these contradictions by adopting a two-dimensional view of self-esteem (self-liking and self-competence). We suggest that these dimensions will have opposing effects on the sharing of negative word-of-mouth. Two studies show that individuals high in self-competence are less willing to share negative word-of-mouth, whereas individuals high in self-liking are more willing to do so—results that would be disguised by treating self-esteem as a single-dimension construct.     

Competition in the political arena and local government performance

Competition reduces rent extraction in private-sector firms. In this article, we empirically assess whether it similarly disciplines politicians by evaluating local-level governments’ performance in Flanders. The results indicate that electoral competition – measured via the number of parties competing in elections – significantly positively affects the productive efficiency of municipal policy. Intertemporal competition – measured as the volatility of election outcomes over time – has a similar, but weaker, positive effect. These beneficial effects are mitigated by the fact that competition may lead to more fragmented governments, which is shown to work against their productive efficiency. Overall, though, the beneficial effects outweigh the unfavourable ones in our sample.     

Customers' perceptions of the saleswoman: A study of personality,task and evaluative attributes by respondent location and gender

Customer perceptions of the woman salesperson were obtained and analyzed for urban and rural locations and for male and female buyers. The results showed positive attitudes towards the saleswoman but these differed by location and sex. Implications for the increased use of women salespeople suggest that they should be tailored to specific markets and sex of the buyer.     

How Good are Small Firms are Predicting Employment?

This paper utilises some data from an interview survey of very small firms in the North of England to examine the relationship between actual and forecast employment in small firms over a twelve month period. The paper first provides some summary statistics on actual and forecast employment for the survey firms over the reference period. It then looks at how successful the firms are in their short term forecasts, and finds that there is systematic over-estimation. The causes of the systematic forecast error are investigated. It is suggested, tentatively, that the firms may in some way be incorrectly interpreting the information embodied in their own employment figures when making their forecasts. The paper concludes with a brief review of the results and possible policy implications. Avenues for future work are also proposed.     

Escaping the rural energy dilemma: A process for matching technologies to local needs and resources

This paper provides a five-step process for matching decentralized energy systems with energy needs and local resources in rural areas for developing countries. This process is designed to assist planners in selecting technologies for those locations where economic development and personal survival are threatened by the rising costs and growing scarcity of traditional and fossil fuels. Analytic tools are given for each of the five steps of the process, as well as the information needed in each phase of a project. Twelve criteria are presented to characterize both the energy need and the technologies. Three of these criteria are used to facilitate preliminary technology screening, while the others address site-specific temporal, climatic, economic, social, cultural and environmental considerations of the energy need and the technological alternatives. To illustrate the process, eight decentralized energy options are characterized and examined for their fit with a set of four basic human needs.