Mixed duopoly, cross-ownership and partial privatization

This paper investigates the effects of cross-ownership on optimal privatization, and vice-versa, in mixed duopoly. It shows that cross-ownership is profitable to the private firm only if the level of privatization of the public firm is sufficiently high. In equilibrium, cross-ownership does not take place even if there is partial privatization. However, the possibility of cross-ownership significantly limits the socially optimal level of privatization in most of the situations. Moreover, it demonstrates that full nationalization is socially optimal, in case of sufficiently convex identical cost functions and homogeneous goods. These results have strong implications to both divestment and competition policies.     

Analyzing Customers' Switching Intentions in the Telecom Sector

ABSTRACT

Mobile Number Portability (MNP) has not only affected customers' behavioral patterns, but also increased competition among telecom operators. Against this backdrop, the study examines the relationship between customers' switching intentions and attitude towards MNP, customer loyalty, and switching barriers. It also investigates the impact of these intentions on actual switching or staying behavior of customers. Data were collected from a sample of 260 telecom customers comprising university students. Findings reveal that customers' switching intentions would largely depend upon switching barriers perceived by them. Switching intentions predict both actual staying and switching behavior. Our understanding of switching barriers is limited to those involved in switching from a current service provider to a new service provider. Future research can examine the barriers associated with returning to the original provider and the effect on the decision to leave in the first place, especially in the case of contractual agreements such as BSNL. The present study will help practitioners and telecom service providers in understanding the factors affecting customers' switching intentions to prevent switching.     

Contributions to the exchequer funds by state level public sector enterprises: does political alignment matter?

Regular payments or contributions to states’ exchequer funds are mandated for state level public sector enterprises (SLPEs) in most states in India. However, in the absence of a regular mechanism to ensure timely payments, the contributions are abysmally poor. In most SLPEs, the situation is driven by the presence of soft budget constraints and strong financial support from the state governments. The current study analyses the effect of political factors on the contribution that SLPEs make to the state governments’ exchequer funds. Using different econometric methods, the study finds that SLPEs located in assembly constituencies that are politically aligned with the state government, make frequent and larger contributions to the exchequer funds. Surprisingly, the subsidies provided to the SLPEs by state governments are not driven by political alignment between the state government and the constituency where the enterprise is located. In fact, subsidies compensate for the contributions to the extent that there is no effect of political alignment on net contributions (contributions–subsidies) by SLPEs to state governments. Finally, political alignment has a strong influence on the relative share of contributions made by SLPEs to state governments vis-à-vis the centre. These results are robust across different model specifications.     

Second‐hand clothing consumption: a cross‐cultural comparison between American and Chinese young consumers

There has been an enormous increase in the economic power and global scope of the second‐hand clothing trade since the early 1990s. Young consumers are a major driver behind the growth of the second‐hand clothing industry in the US. While the stigma of buying second‐hand clothing is fading in the western countries, little is known about second‐hand clothing consumption in the Asian countries. The purpose of this study is to empirically investigate young consumers' behaviours towards second‐hand clothing from a cross‐cultural perspective in the US and Chinese contexts. Results of this study indicated significant differences in young consumers' second‐hand clothing consumption behaviour between the two countries in the following aspects: past purchase experience, perceived values and concerns, perceived subjective norm and future purchase intention.     

Does women’s participation in agricultural technology adoption decisions affect the adoption of climate‐smart agriculture? Insights from Indo‐Gangetic Plains of India

Increased participation of women in the agricultural technology adoption decision by farm households is one of the key indicators of gender empowerment in the agricultural sector. This study examines whether women’s participation in the household decision to adopt agricultural technology affects the adoption of climate‐smart agriculture (CSA), using data collected from 1,267 farm households from two Indian states of Bihar and Haryana. When we considered the sex of the household head (using a dummy variable for male‐headed vs female‐headed household) as a basis of analyzing the role of gender in the adoption of CSA, we found that women in Haryana had no role in the adoption of CSA. On the contrary, when we considered women’s participation in technology adoption decisions as a basis of gender analysis, we found that women’s participation in technology adoption decisions in Haryana is much higher as compared to Bihar. Consequently, the likelihood to adopt CSA is higher in Haryana than in Bihar. We also found that wealth, training, and access to extension and market positively influenced CSA adoption. Qualitative analysis shows that women farmers prioritize family food security rather than farm income, and therefore, they are more likely to focus on CSA to ensure food security.