Pricing, learning, and strategic behavior in a single-sale model

Summary. We analyze an infinite horizon model where a seller who owns an indivisible unit of a good for sale has incomplete information about the state of the world that determines not only the demand she faces but also her own valuation for the good. Over time, she randomly meets potential buyers who may have incentives to manipulate her learning process strategically. We show that i) the seller's incentives to post a high price and to experiment are not necessarily monotonic in the information conveyed by a buyer's rejection; and ii) as the discount factors tend to one, there are equilibria where the seller always ends up selling the good at an ex-post individually rational price. Received: January 6, 1999; revised version: July 15, 2000     

The Value of Customer Cocreated Knowledge during the Innovation Process

Customer cocreation during the innovation process has recently been suggested to be a major source for firms' competitive advantage. Hereby, customers actively engage in a firm's innovation process and take over innovation activities traditionally performed by a firm's employees. Despite its suggested importance, previous research has revealed contradictory findings regarding its impact, the nature of involved customers, and the channels of communication that enable cocreation. To provide a more fine‐grained picture, customer cocreated knowledge is first delineated into its key value dimensions of relevance, novelty, and costs, and then their impact on various innovation outcomes is investigated. Next, the study examines the antecedent role of customer determinants; that is, lead user characteristics and customer–firm closeness, on these knowledge value dimensions. Finally, we explore how these effects are moderated by the type of communication channel used. An empirical validation of the conceptual model is performed by means of survey data from 126 customer cocreation projects. The data analysis indicates that customer cocreation is most successful for the creation of highly relevant but moderately novel knowledge. Cocreation with customers who are closely related to the innovating firm results in more highly relevant knowledge at a low cost. Yet, cocreation with lead users produces novel and relevant knowledge. These effects are contingent on the richness and reach of the communication channels enabling cocreation. Overall, the findings shed light on opportunities and limitations of customer cocreation for innovation and reconcile determinants originating in relationship marketing and innovation management. At the same time, managers obtain recommendations for selecting customers and communication channels to enhance the success of their customer cocreation initiatives.     

Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program

We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.     

Development of an inclined plate jet reactor system

A new design combines reaction or extraction and separation in one unit. Here are practical working details.     

Impact of BSE on Beef Purchases in Alberta and Ontario Quick-Serve Restaurants

This analysis employed a highly disaggregated household data set of Alberta and Ontario fast food purchases from May 2000 to May 2005. A double-hurdle count data model allowed tests of the hypotheses that frequency of Bovine spongiform encephalopathy ( BSE) media coverage affected neither a household's monthly probability of purchasing a beef entree, nor the household's monthly quantity of beef entrees purchased. Ontario consumers were more likely to stop purchasing beef entrees immediately following a surge in BSE media coverage, but those who did buy beef entrees maintained stable quantity levels. BSE media coverage did not systematically affect fast food purchases among Alberta consumers .
Dans la présente analyse, nous avons utilisé un ensemble de données fortement désagrégées sur les achats de repas–minute effectués par des ménages de l'Alberta et de l'Ontario, entre mai 2000 et mai 2005. Un modèle de comptage à deux étapes (double hurdle count data model) a permis de vérifier les hypothèses selon lesquelles la concentration de la couverture médiatique de la crise de l'ESB n'influence pas la probabilité mensuelle d'un ménage d'acheter des repas–minute de bœuf ni la quantité mensuelle de repas–minute de bœuf achetés par un ménage. Les consommateurs ontariens étaient plus susceptibles de cesser d'acheter des repas–minute de bœuf immédiatement après une poussée de la couverture médiatique de la crise de l'ESB, mais ceux qui achetaient des repas–minute de bœuf ont maintenu les quantités achetées. La couverture médiatique de la crise de l'ESB n'a pas systématiquement influencé les achats de repas–minute chez les consommateurs albertains .     

Outward FDI and Home Country Exports: Theoretical Approaches and Empirical Evidence

This article reviews the growing body of literature that empirically analyzes the impact of outward FDI on home country exports. Focusing the analysis on the various types of studies and identifying the methods used and the countries analyzed, this study allows us to identify gaps in the literature and make suggestions for future research. Future research efforts should focus on more disaggregated data, particularly at the firm and product levels, and adopt a multilateral approach, which is essential for a complete analysis of the relationship between FDI and exports.     

Shutting up shop: understanding the international exit process in retailing

Internationalisation is a much-studied phenomenon. Exit from international markets has been less analysed. Where it has been studied, most work has been on motives and causes, with relatively little on processes. This article explores the process of international exit in a retail context. It examines the run-up to, announcement of and fall-out from the decision by Marks and Spencer (one of Britain's leading retailers) to close its French stores. The article concludes that understanding the process of market exit is at least as important both for theoretical and practical reasons as understanding the decision to exit or divest. Further research needs to be undertaken on market exit and the processes involved, in order to contribute further to the theory and practice of internationalisation.