Pricing in Segmented Markets, Arbitrage Barriers, and the Law of One Price: Evidence from the European Car Market

The paper uses micro‐level price data from the European car market to examine why there are deviations from the law of one price. The absolute law of one price is strongly rejected, but there is convergence to its relative version. Two sets of explanations are considered: (i) price‐setting in segmented markets, and (ii) arbitrage barriers. Overall, the determinants of arbitrage costs have more explanatory power. The single most important factor is the distance between markets. Evidence for Belgium and Luxembourg suggests that a single currency lowers price differences significantly.     

BUILDING CARS TO CUSTOMER ORDER — WHAT DOES IT MEAN FOR INBOUND LOGISTICS OPERATIONS?

The automotive industry is undergoing a strategic transition. Cost pressure from rising stock levels in the market and increasing incentives needed to sell these vehicles are forcing vehicle manufacturers to rethink their prevalent “stock‐push” approach, building vehicles against a forecast and selling from stock, in favor of a stock‐less “build‐to‐order” order fulfillment strategy. More responsive order fulfillment at the vehicle manufacturer level however will not only require flexible and responsive component supply, but will also have wide ramifications for the logistics operations. Based on three case studies of major inbound logistics operations, this exploratory study assesses their ability to support such a build‐to‐order approach, as well as the potential implications of such transition. The paper concludes with a set of general strategies for how these implications could be mitigated.     

Systematic review of sourcing and 3D printing: make-or-buy decisions in industrial buyer–supplier relationships

Management Review Quarterly - Additive manufacturing (AM) is regarded as a technology that has transformative and disruptive potential in nearly all industries. However, AM is not only about new...     

Representation and Educational Background of European Economists in Top Journals of Economics

We assess the contribution of European authors to 10 topjournals of economics from 1980 to 1998. Despite efforts on the European Union and national levels topromote academic excellence, European authors still play a minor role in top journals. Examining the development overtime we find little evidence for an increasing share of European contributions. Particular attention has been paidto the educational background of European authors. There is still a segmentation of academic education alonglanguage barriers in continental Europe. However, a considerable proportion of European authors has received a PhD from the US.     

Delegation and strategic incentives for managers in contests

Owners usually want their managers to maximize profits. As the literature on strategic delegation has shown it may be beneficial to owners to put a positive weight on sales in the optimal linear incentive scheme for managers to make them behave more aggressively in the market. This paper shows that if the competition between the managers can be characterized as a contest, owners may induce their managers to maximize sales. Moreover, there is a first‐mover advantage for owners when choosing their incentive schemes. If delegation is endogenous the type of contest will determine whether all owners delegate their decisions to managers or not. Copyright © 2002 John Wiley & Sons, Ltd.     

What about Passive Innovation Resistance? Investigating Adoption‐Related Behavior from a Resistance Perspective

Adoption literature has been dominated by a novelty‐seeking paradigm, whereas resistance to innovation has received considerably less attention as a means to explain and predict adoption‐related behavior. The lack of a good metric to assess consumers' predisposition to resist innovations has prevented the establishment of a common ground for empirical research and thus hampered progress to date. This paper develops and empirically validates a scale to measure individual differences in consumers' predisposition to resist innovations (hereafter, passive innovation resistance, or PIR). The proposed instrument entails a personality‐specific and situation‐specific measure that assesses individual differences in consumers' predisposition to resist innovations, emerging from their inclination to resist changes and exhibit status quo satisfaction. The scale represents a measure of the generic tendency to resist innovations and thus captures the notion of a general disposition to act in a consistent way in various situations. The results of multiple studies show that the PIR scale has good psychometric properties, and its relationships with other constructs conform to theoretical expectations. Furthermore, the PIR scale explains and predicts adoption‐related behaviors beyond the variance accounted for by traditionally investigated constructs such as innate innovativeness, big‐five personality dimensions, or demographic variables. These results clearly reveal the importance of PIR for determining adoption‐related behavior but contest a conceptualization of constructs that tap only novelty seeking at a high level as the direct antecedent of adoption. Research that attempts to explain and predict adoption‐related behavior can benefit from taking a resistance perspective as well.