{"title":"Narratives and Chinese Whispers: Ideas and Knowledge in Bubbles, Diffusion of Technology and Policy Transmission","authors":"B. Markey-Towler","doi":"10.2139/ssrn.2912739","DOIUrl":"https://doi.org/10.2139/ssrn.2912739","url":null,"abstract":"In this paper we shall make use of a new theory of economic systems as networks formed by individuals acting on the basis of their psychology and social position (Markey-Towler, 2016) to obtain a new vision of the diffusion of behavioural change and the role of narratives (Shiller, 2017) therein. This vision is obtained by making use of the “Chinese Whispers” theorem which identifies necessary and sufficient conditions for diffusion in economic systems so conceived, and the “Made to Stick” theorem which elaborates the likelihood of ideas and narratives being incorporated into individual worldviews (Markey-Towler, 2016) whence they may influence behaviour. The diffusion of behavioural change supported by the spread of ideas is related to the emergence of bubbles, herd behaviour the uptake of technology and the effect of policy changes. The vision of these phenomena presented here is unique in that it places human psychology and the role of ideas therein at the core of a systematic model of group dynamics. A major, practical improvement for policymakers and entrepreneurs alike arrived at thus is the understanding offered of the limits of the diffusion of behavioural change as well as the extent and the manner in which this is determined by non-substitutability as much as by the network structure of the socioeconomic system. This builds on the work of Michelle Baddeley (2010); Baddeley (2013); Baddeley (2015) and constitutes an improvement on purely mechanistic models of network contagion (Newman, 2003; Gai et al., 2010; Gai et al., 2011; Giansante et al., 2012; Markose et al., 2012; Markose, 2013; Ghedini et al., 2014; Jackson et al., 2014; Acemoglu et al., 2015) as well as models of population dynamics based on predator-prey or epidemiological models (Kermack et al., 1927; Page et al., 2002; Munz et al., 2009; Foster, 2005; Haas, 2015; Klarl, 2014) which tend to obscure the role of human psychology in the diffusion of behavioural change.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"186 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122052879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Market Size, Franchisee’s Marketing Activity, and Two Royalty Structures as Incentive Schemes: Margin-Based Royalty Versus Sales-Based Royalty","authors":"Dongjoon Lee, Yong-hoon Choi, SangHeon Han","doi":"10.2139/ssrn.1863799","DOIUrl":"https://doi.org/10.2139/ssrn.1863799","url":null,"abstract":"This paper studies the two royalty structures: Sales-based Royalty (SBR) and Margin-based Royalty (MBR). From the standpoint of a franchisor, if it is necessary for a franchisee to engage in a marketing activity, the SBR grants a more high-powered incentive scheme to the franchisee than the MBR does. On the other hand, the latter plays a role in alleviating the double markup problem. This paper analyzes how the optimal royalty structures will change according to market size. It is shown that when the market size is large, the franchisor should choose the SBR structure in order to provide its franchisee the high-powered incentive scheme. Consequently, if the market size is small, the franchisor should implement the MBR structure to alleviate the double marginalization problem. This study also shows that the franchisee’s marketing activity level under the SBR is always larger than that under the MBR, regardless of the market size.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126950139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competitor Identification and Analysis - How Do You Do Yours?","authors":"S. Banahene","doi":"10.2139/ssrn.1653884","DOIUrl":"https://doi.org/10.2139/ssrn.1653884","url":null,"abstract":"Firms do not merely have to be good at meeting the needs of customers; it has to be better than competitors. Just as customers need to be analysed and understood, so do competitors. Competitor identification and analysis have taken on greater importance in the planning activities of firms, primarily because of the global economic crisis that have characterized many industries. This has compelled many firms to grow only by beating others. Indeed, firms that focus on competitor’s actions have been found to achieve better business performance than those who pay less attention to their competitors [Noble, C et al, 2002].However, undertaking competitor identification and analysis that add value to corporate wealth has been a difficult task for many managers. Managerial myopia in identifying competitive threats and opportunities is a well recognized phenomenon [Levitt, 1960, Zajar and Bazerman, 1991]. The insufficient understanding may arise from substitutability on the supply side only or on the demand side. Indeed, managers who focus only on the product arena in scanning their competitive environment may fail to notice threats and opportunities that are developing due to global growth in wealth, technology, available range of products [goods and services] that can offer better solutions customers need and the latent capabilities of all firms operating in the market.The purpose of this paper is to provide an insight from the field of strategic management in general and marketing in particular to identify competitors based on segment needs served and geographic location operated on one hand, and the comparative market-based resources of competing firms. This has help to define competitors to be primary, secondary and tertiary.Furthermore, a user friendly competitor analysis has been done by using the value chain analysis to address the information needs in competitor analysis. This has helped to create the needed analysis processes and practices to achieve valued competitor analysis.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116387818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Determinants of Profits: Modern and Indian Views","authors":"Chendrayan Chendroyaperumal","doi":"10.2139/ssrn.1423407","DOIUrl":"https://doi.org/10.2139/ssrn.1423407","url":null,"abstract":"Profit is the most popular term in the world and it even divided the mankind into two groups namely profit-driven capitalists and the non-profit welfare driven socialists. It can even be said that the whole world is driven by profit and not by the mankind. The economic literature defined profit variously and identified the determinants of profits as monopoly power or monopoly conditions of market, business power, entrepreneurial service or functions, the difference between ex-post returns over the ex-ante returns, the residue, the difference between revenue and costs, due to efficiency, innovation, uncertainty, inflation, changes in the economy, wrong value system, wages, etc. This paper attempts to present the determinants or rather obstructions to profit, a profit model, implications for corporate social responsibility and a corporate social responsibility index of public welfare based on an Indian Management Thought – The Arthasastra claimed to date from 321-296 BC. Yet they seem to be relevant to the word even today.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114683488","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Austrian Economics and the Study of Entrepreneurship: Concepts and Contributions","authors":"Henrik Berglund","doi":"10.2139/ssrn.1353902","DOIUrl":"https://doi.org/10.2139/ssrn.1353902","url":null,"abstract":"Entrepreneurship researcher’s growing interest in Austrian economics has not been matched by systematic efforts to tease out and incorporate this tradition's basic ideas. To remedy this situation, this paper introduces the Austrian market-process tradition and also compares it to the equilibrium-focused neoclassical tradition. Taking this contrast as point of departure, we reexamine three central questions in the field of entrepreneurship studies: Who is an entrepreneur?, What is an opportunity?, and What is the role of planning? Based on the answers to these specific questions, the paper concludes with a broader discussion of how Austrian concepts can contribute to the theoretical and methodological development of entrepreneurship studies writ large.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"88 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116069508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"India's Bond Market - Developments and Challenges Ahead","authors":"S. Wells, L. Schou-Zibell","doi":"10.2139/ssrn.1328192","DOIUrl":"https://doi.org/10.2139/ssrn.1328192","url":null,"abstract":"While India boasts a world-class equity market and increasingly important bank assets, its bond market has not kept up. The government bond market remains illiquid. The corporate bond market, in addition, remains restrictive to participants and largely arbitrage-driven. Securitization, which once had the jump on other Asian markets, has failed to take off. To meet the needs of its firms and investors, the bond market must therefore evolve. This will mean creating new market sectors such as exchange-traded interest rate and foreign exchange derivatives contracts. It will mean relaxing exchange restrictions, easing investment mandates on contractual savings institutions, reforming the stamp duty tax, and revamping disclosure requirements for corporate public offers. This paper reviews the development and outlook of the Indian bond market. It looks at the market participants - including life insurance, pension funds, mutual funds and foreign investors - and it discusses the importance to development of learning from the innovations and experiences of others.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"129 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116692646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economics of Payment Card Fee Structure: What is the Optimal Balance between Merchant Fee and Payment Card Rewards?","authors":"Fumiko Hayashi","doi":"10.2139/ssrn.1335264","DOIUrl":"https://doi.org/10.2139/ssrn.1335264","url":null,"abstract":"This paper theoretically considers the optimal balance between the merchant fee and the cardholder fee (rewards) from both efficiency and equity perspectives. First, the paper constructs the models that can be used by the U.S. policymakers. Because theoretical results are very sensitive to the assumptions of the models, it is important to construct models that reflect the reality of the market. Second, the most efficient fee structure and product price are considered under the various combinations of the assumptions. And finally, the paper considers welfare consequences of the most efficient fee structure. ; Also issued as a Payments System Research Working Paper.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"4624 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126157017","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Local Responses to Globalization in China: A Territorial Restructuring Process Perspective","authors":"Shiuh‐Shen Chien","doi":"10.1111/j.1468-0106.2008.00414.x","DOIUrl":"https://doi.org/10.1111/j.1468-0106.2008.00414.x","url":null,"abstract":"This paper argues that the formation and transformation of local entrepreneurial governances can be understood as a process of local responses to challenges presented by global economic restructuring. Two kinds of local responses are theoretically identified. At the structure level, local entrepreneurial governances happen when places are embedded in the situation of competition between cities and regions. At the agent level, the emergence of local entrepreneurial governances requires local actors who pursue their own political and economic interests. The theoretical framework, what I term territorial restructuring process, is empirically explained by the context of the West and China.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"2014 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123782265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Adam Smith's System of Natural Liberty: Competition, Contestability and Market Process","authors":"M. E. Bradley","doi":"10.2139/ssrn.1021305","DOIUrl":"https://doi.org/10.2139/ssrn.1021305","url":null,"abstract":"In this article, I argue that Adam Smith’s system of perfect liberty contains some of the seeds of perfect competition, but that the modern perfectly competitive model differs from Smith’s perfect liberty in some important respects—in particular, the role of active competition among firms and the role of the entrepreneur. The article examines the analytical linkages between Smith’s system of liberty and three strands of modern economic theory—neoclassical perfect competition, contestable market theory and the Austrian analysis of market process.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123008595","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lost in Transmission? Stock Market Impacts of the 2006 European Gas Crisis","authors":"Ulrich Oberndorfer, Dirk Ulbricht, Janina Ketterer","doi":"10.2139/ssrn.967338","DOIUrl":"https://doi.org/10.2139/ssrn.967338","url":null,"abstract":"Around the turn of the year 2005/2006, the Russian freezing of natural gas exports to the Ukraine led to a European gas crisis. Using event study techniques, we first investigate whether the Russian suspension of gas deliveries, the announcement of this suspension as well as its withdrawal had an effect on unsystematic volatility of European energy stocks. Second, we measure event effects on stock returns, taking volatility (GARCH effects) and especially possible firm-specific, event-induced volatility into account. We get – at a first glance – counterintuitive results suggesting that the definite announcement of the crisis and therefore a rise of Western Europe’s energy risk tended to increase market expectations with respect to energy-related firms. In contrast, market uncertainty increased the day when Russia reopened its valves. One reason for these findings could be windfall profits of energy-related companies due to increasing resource and electricity prices. The existence of event-induced volatility at a between-firm level confirms the choice of our flexible abnormal returns methodology.","PeriodicalId":229605,"journal":{"name":"ERPN: Market Structure (Microeconomic) (Sub-Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123883032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}