Random Advertising and Monopolistic Price Dispersion

We investigate the role of price advertising in a market where consumers are imperfectly informed about prices. We consider a monopolist whose demand depends on price and advertising expenditure. This demand function is derived from optimizing behavior of consumers. Uninformed consumers may pay a cost to visit the seller and obtain price information. Advertising enables the monopolist to increase the number of informed consumers. In equilibrium the uninformed consumers form rational price expectations, and the seller necessarily adopts a random pricing and advertising strategy.     

Analysis of cointegrated VARMA processes

VARMA (vector autoregressive moving average) processes are proposed for modelling cointegrated variables. For this purpose the echelon form is combined with the error correction form. Procedures for estimating the Kronecker indices which characterize the echelon form and for specifying the cointegration rank are discussed. The asymptotic distribution of the coefficient estimators is given. An example based o n US macroeconomic data illustrates the procedure and demonstrates its feasibility in practice.     

The competitive solution and the health care problems of today

Mark Pauly claims that a "competitive" health care system will solve the health care cost crisis. This article examines how well the competitive solution deals with the five central problems of the health care system: (1) almost universal lack of adequate health insurance for nursing homes and home care; (2) Medicaid's penurious approach to payment for health services for the poor; (3) the emergence of a dual health care system, especially for children; (4) the entrenched waste and inefficiency of the health care system; and (5) consumers' inability to judge the quality of health care. The competitive solution does not eliminate any of these problems--and may not even improve some of them.     

Immigration and the Trade of Provinces

A link between immigration, imports, and exports has been found by a number of papers that have used the gravity equation to analyze bilateral trade patterns. We discuss what this research implies about the mechanisms through which immigrants expand trade and identify strengths and weakness of the various approaches. This paper also contributes to this literature by estimating immigrant effects for Canada using cross‐province variation in international trade and immigration patterns. We derive an alternative functional form capturing the relationship between immigration and trade based on the proposition that immigrants use their connections and superior 'market intelligence' to exploit trade opportunities that non‐immigrants do not access. We find that the average new immigrant expands exports to his/her native country by $312 and expands imports by $944.     

Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market

This study analyses the effect of trade and migration on wages and labour marketmobility. We estimate wage growth equations and a multinomial logit mobilityequation on an individual data set ranging from 1991 to 1994. We find substantialdifferences in the reactions of white and blue-collar workers wages and mobilityto trade and migration. In Austria exports have a positive and imports a negativeimpact on wage growth only for blue-collar workers. Migrants also reduce onlyblue-collar workers wage growth. Our results indicate that higher imports and aninflow of migrants reduce sectoral mobility of all types workers. The risk of beingout of work by contrast is increased by migration and imports only for blue-collarworkers, but reduced by exports for all types of workers. In general our results suggestenlargement of the EU would have only small effects on the Austrian labour market.     

Value and exchange: Two windows for economic theorizing

This essay introduces a symposium on value and exchange as alternative organizing concepts for the pursuit of economic theorizing. These concepts pertain to two distinct conceptual windows through which economic phenomena can be examined. The immediate inspiration for this symposium was the articulation of Kohn (2004) of the distinction, a distinction that, in turn, was central to the articulation of Buchanan (1964). Furthermore, this distinction is central to the divergent orientations toward economic theorizing that were set forth in the early 1870s by Carl Menger (1971) and Léon Walras (1874).     

Involving suppliers in product development: Insights from R&D directors and project managers

While there is increasing evidence that involving suppliers in new product development (NPD) is important, and for many firms even inevitable, there is also evidence that not all such efforts are successful. Firms aiming at implementing this strategy effectively have to pay close attention to several contingency factors on the organizational level and properly manage supplier involvement on the project level. The exploratory case study research underlying this article explores key issues to be considered when involving suppliers in NPD and the counter measures they can take. Our research shows that companies differentiate between so-called “know-how” and “capacity” projects, and that they manage them differently. Furthermore, this research shows that firms outside the automotive and high-tech manufacturing industries are likely to intensify supplier involvement in the future.     

A comprehensive look at luxury brand marketing research from 2000 to 2016: a bibliometric study and content analysis

The purpose of this study is to examine how scholarly research on luxury brand marketing has evolved in the twenty-first century. This literature review focuses on 242 articles related to luxury marketing. The contributions of these articles are thoroughly analyzed, combining qualitative interpretations with bibliometric citation analysis that uses a social network of referrals. This study identifies the most influential universities, research outlets, and scholars in the recent evolution of luxury marketing research. The study also identifies current and future research streams, geographic scope, and underlying research methodologies, and it reveals the most frequently used theories and prominent constructs in luxury marketing research. There are few studies that have examined the literature review of the luxury marketing discipline. No previous research has investigated luxury branding by means of a bibliometric analysis and qualitative assessment within such a large scope. Building on the results of this analysis, researchers can target their studies precisely and, thus, increase the contributions of their empirical research.