{"title":"Consumer Inventory and Demand for Storable Goods: New Evidence from a Consumer Survey","authors":"Kazuko Kano","doi":"10.1111/jere.12191","DOIUrl":"10.1111/jere.12191","url":null,"abstract":"<p>In this study, I provide new evidence on consumer inventory from a unique survey on the purchase and inventory of a storable product. I confirm that the predictions regarding the correlations between the key variables of purchase probability, purchase quantity and inventory derived from the standard dynamic models of consumer inventory are consistent with the data. Furthermore, I find that the amount of daily consumption varies within a household across time and depends on inventory holding. The evidence does not conform to a constant consumption rate, which studies often assume for tractability.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12191","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76553731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Frequency versus Depth: How Changing the Temporal Process of Promotions Impacts Demand for a Storable Good","authors":"Matthew Osborne","doi":"10.1111/jere.12190","DOIUrl":"10.1111/jere.12190","url":null,"abstract":"<p>Is changing the frequency at which promotions are offered more or less effective at increasing quantity and revenue than changing promotional depth? To answer this question, a forward-looking dynamic structural model of consumer stockpiling behaviour is estimated using scanner data for a storable product category. Counterfactual simulations from the model imply that although increasing promotional frequency and depth are both effective tools for increasing quantity sold and revenue, increasing the depth of discounts is a more effective strategy per dollar spent on promotions. Increasing depth while decreasing frequency is even more effective than increasing depth on its own.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12190","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133604213","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bridging Marketing and Economics: Introduction to Special Issue","authors":"Susumu Imai, Yuka Ohno","doi":"10.1111/jere.12192","DOIUrl":"10.1111/jere.12192","url":null,"abstract":"","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12192","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116922882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Experiments on lotteries for shrouded and bundled goods: Investigating the economics of fukubukuro","authors":"Chaikal Nuryakin, Alistair Munro","doi":"10.1111/jere.12194","DOIUrl":"10.1111/jere.12194","url":null,"abstract":"<p><i>Fukubukuro</i> (or lucky bag) is a familiar institution in Japan and elsewhere in which the exact contents of a New Year sales item are hidden from the consumer before purchase. Motivated by the fukubukuro example and the lack of evidence on risk attitudes in lotteries involving goods, we conduct a laboratory experiment in which the outcomes are bundled or unbundled goods. The implied gains to a monopoly seller for marketing goods in lottery form rather than separately are only clearly positive for lotteries where there is a higher probability of obtaining the more highly valued good.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12194","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129251878","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Identification of Dynamic Models of Rewards Programme","authors":"Andrew T. Ching, Masakazu Ishihara","doi":"10.1111/jere.12188","DOIUrl":"10.1111/jere.12188","url":null,"abstract":"<p>“Frequent-buyer” rewards programmes are commonly used by companies as a marketing tool to compete for market share. They provide a unique environment for studying consumers’ forward-looking behaviour. The consumer's problem on accumulating reward points can be formulated as a stationary infinite horizon discrete choice dynamic programming model. We show that the parameters of this model, including the discount factor, are well-identified. In particular, it is possible to identify state-dependent discount factors (i.e. discount factors can vary with the number of reward points). We discuss how this identification result is related to the goal-gradient hypothesis studied in the consumer psychology literature.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12188","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80538868","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Brand Loyalty and Generic Entry: Why do Brand-Name Drug Companies Launch Their Own Generics?","authors":"Yunyun Wan","doi":"10.1111/jere.12189","DOIUrl":"10.1111/jere.12189","url":null,"abstract":"<p>Facing generic competition, brand-name drug companies sometimes launch their own generics called “authorised generics” (AGs) through a third-party entity. If that strategy works, an AG should be launched for every branded drug that comes off patent. This, however, contradicts the fact that only a small proportion of branded drugs have had AGs. To explain this puzzle, I develop a two-period model in which a brand-name drug company exploits its name brand before generic entry. The model predicts that the brand-name company launches an AG only when brand loyalty is sufficiently weak.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12189","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115021098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Strategic Product Line Choice under Asymmetric Demand Structure","authors":"Levent Kutlu, Alper Nakkas","doi":"10.1111/jere.12186","DOIUrl":"10.1111/jere.12186","url":null,"abstract":"<p>We examine strategic product line choices of manufacturers in a stylised duopoly model where products have asymmetric and interdependent market conditions. We characterise the optimal product line decisions and show that manufacturers always prefer to have head-to-head competition (and never segment markets) when product line setup cost is small relative to profitability of the products. When setup costs are high, symmetric manufacturers may prefer to have asymmetric product lines or market segmentation. We show that high setup costs lead to the market segmentation outcome only if there is no significant market size difference and the level of product substitutability is moderate.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12186","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132433930","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hugo Ferrer-Pérez, María-Isabel Ayuda, Antonio Aznar
{"title":"Improving the Performance of a Long-Run Variance Ratio Test for a Unit Root","authors":"Hugo Ferrer-Pérez, María-Isabel Ayuda, Antonio Aznar","doi":"10.1111/jere.12185","DOIUrl":"10.1111/jere.12185","url":null,"abstract":"<p>Cai and Shintani (2006, <i>Econometric Theory</i>, 22, 347–372) considered the impact of introducing an inconsistent long-run variance estimator when constructing a class of kernel-based ratio tests for testing non-stationarity in the series. They found that the quotient of two estimators with different rates of convergence under the null and the alternative hypotheses may lead to a test having an interesting size and power trade-off. This paper develops modified versions of this test, presents new asymptotic results and tabulates critical values. The finite sample performance is explored through Monte Carlo simulations. The results show that the modifications proposed lead to more powerful unit root tests.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12185","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122126625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Empirical Analysis of Brands: A Survey","authors":"Hitoshi Hayakawa, Susumu Imai, Kazuko Nakata","doi":"10.1111/jere.12187","DOIUrl":"10.1111/jere.12187","url":null,"abstract":"<p>In this paper, we survey the empirical analysis of brands. The difficulty in this area of research is that even though a brand is easily identifiable, its economic roles are not directly observable. We first discuss methods where the effect of a brand is measured as the unobservable component of sales or price of a product, which researchers recover as a residual of the sales or price regression. We then describe the approaches to estimate the various roles of brands, such as providing information and increasing the utility of consumption. Finally, we provide examples of research that highlight the role of brands in exploiting the irrationality of consumers for profit.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2018-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12187","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124445746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}