Silvia Fabiani, Claire Suzanne Loupias, Fernando Manuel Monteiro Martins, and Roberto Sabbatini (eds)
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780195309287
- eISBN:
- 9780199783939
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195309287.001.0001
- Subject:
- Economics and Finance, Econometrics
Theoretical research undertaken over the last decades showed that the nature of nominal rigidities plays a key role in determining the effects of different shocks on the economy. This research has ...
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Theoretical research undertaken over the last decades showed that the nature of nominal rigidities plays a key role in determining the effects of different shocks on the economy. This research has made clear that a thorough understanding of the extent and causes of the sluggish adjustment of nominal prices is crucial to the design and conduct of monetary policy. This book presents the main results of a research program undertaken by the Eurosystem central banks on price setting decisions by firms in the euro area. Its objective is to deepen our understanding of the behavioral mechanisms driving agents' pricing decisions, adopting a methodological approach—asking firms directly about how they set the price of their output (their pricing strategies) and why (the rationale of these strategies)—that is particularly well suited for the purpose at hand. The book also compares results for the euro area to similar analyses for other countries and summarizes the main findings of studies based on individual quantitative micro data on consumer and producer prices carried out for most euro area countries. Finally, the book explores the monetary policy implications of the main findings.Less
Theoretical research undertaken over the last decades showed that the nature of nominal rigidities plays a key role in determining the effects of different shocks on the economy. This research has made clear that a thorough understanding of the extent and causes of the sluggish adjustment of nominal prices is crucial to the design and conduct of monetary policy. This book presents the main results of a research program undertaken by the Eurosystem central banks on price setting decisions by firms in the euro area. Its objective is to deepen our understanding of the behavioral mechanisms driving agents' pricing decisions, adopting a methodological approach—asking firms directly about how they set the price of their output (their pricing strategies) and why (the rationale of these strategies)—that is particularly well suited for the purpose at hand. The book also compares results for the euro area to similar analyses for other countries and summarizes the main findings of studies based on individual quantitative micro data on consumer and producer prices carried out for most euro area countries. Finally, the book explores the monetary policy implications of the main findings.
Alok Kumar and Sushanta K. Chatterjee
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198082279
- eISBN:
- 9780199082063
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198082279.003.0016
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Protection of consumers’ interest is one of the key objectives of the Electricity Act, 2003 and it has been explicitly articulated in the preamble of the Act. The chapter explains in brief the ...
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Protection of consumers’ interest is one of the key objectives of the Electricity Act, 2003 and it has been explicitly articulated in the preamble of the Act. The chapter explains in brief the provisions of the Electricity Act and the policy regarding protection of consumers’ interest, for instance, universal service obligation, grievance handling mechanism, standards of performance, and consumer advocacy. Judicial pronouncements have also been relied upon to explain the context of some of these important provisions of the law and the policy.Less
Protection of consumers’ interest is one of the key objectives of the Electricity Act, 2003 and it has been explicitly articulated in the preamble of the Act. The chapter explains in brief the provisions of the Electricity Act and the policy regarding protection of consumers’ interest, for instance, universal service obligation, grievance handling mechanism, standards of performance, and consumer advocacy. Judicial pronouncements have also been relied upon to explain the context of some of these important provisions of the law and the policy.
Robert Pitofsky
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780195372823
- eISBN:
- 9780199871773
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195372823.003.0001
- Subject:
- Economics and Finance, Behavioural Economics
This chapter presents four papers from some of the most eminent people in the antitrust field. It analyzes “barriers to entry” from a practical rather than theoretical point of view, and concludes ...
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This chapter presents four papers from some of the most eminent people in the antitrust field. It analyzes “barriers to entry” from a practical rather than theoretical point of view, and concludes that conservatives seem to be generous in allowing entrenched dominant firms to rely on a variety of coercion and intimidation tactics. It notes a wide-spread sense of “something gone wrong” with today's antitrust enforcement, in particular a growing sense of too much emphasis on over-simplified economic models. The chapter then provides a full and fair historic review of Warren Court excesses, and the Chicago School's remarkable influence in reversing some trends that most would ridicule today. It gives examples of areas where the Chicago School has not prevailed because of unrealistic economic approaches. It then emphasizes the complexity of evaluating the successes and failures of the Chicago School, noting examples of each kind of outcome. Finally, the chapter notes that many changes over the last half century, for better or worse, are the result of a variety of influences—not just fashions of economic analysis. It concludes that there are significant areas where extreme applications of conservative economic thought have “overshot the mark” and expresses concern that any such academic influences may lead to under-enforcement.Less
This chapter presents four papers from some of the most eminent people in the antitrust field. It analyzes “barriers to entry” from a practical rather than theoretical point of view, and concludes that conservatives seem to be generous in allowing entrenched dominant firms to rely on a variety of coercion and intimidation tactics. It notes a wide-spread sense of “something gone wrong” with today's antitrust enforcement, in particular a growing sense of too much emphasis on over-simplified economic models. The chapter then provides a full and fair historic review of Warren Court excesses, and the Chicago School's remarkable influence in reversing some trends that most would ridicule today. It gives examples of areas where the Chicago School has not prevailed because of unrealistic economic approaches. It then emphasizes the complexity of evaluating the successes and failures of the Chicago School, noting examples of each kind of outcome. Finally, the chapter notes that many changes over the last half century, for better or worse, are the result of a variety of influences—not just fashions of economic analysis. It concludes that there are significant areas where extreme applications of conservative economic thought have “overshot the mark” and expresses concern that any such academic influences may lead to under-enforcement.
Andrew Bell
- Published in print:
- 2004
- Published Online:
- September 2007
- ISBN:
- 9780199242344
- eISBN:
- 9780191714092
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199242344.003.0007
- Subject:
- Classical Studies, European History: BCE to 500CE
This chapter argues that it is often a refrain of contemporary political critique that style seems to overshadow substance in republics or democracies. But perhaps it has always been like that. If to ...
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This chapter argues that it is often a refrain of contemporary political critique that style seems to overshadow substance in republics or democracies. But perhaps it has always been like that. If to be a Greek or Roman citizen was in some measure to have dignity in being a political consumer entitled to expect a good spectacle, then the study of classical politics has the power to offer insight into habits of consumption and affection, scrutiny and judgement. If rhetorics of visibility fix the models and memories of individual power, then we may all wonder at the capacity of even the humble to realize power in their cheers or jeers; and so enjoy liberal dignity.Less
This chapter argues that it is often a refrain of contemporary political critique that style seems to overshadow substance in republics or democracies. But perhaps it has always been like that. If to be a Greek or Roman citizen was in some measure to have dignity in being a political consumer entitled to expect a good spectacle, then the study of classical politics has the power to offer insight into habits of consumption and affection, scrutiny and judgement. If rhetorics of visibility fix the models and memories of individual power, then we may all wonder at the capacity of even the humble to realize power in their cheers or jeers; and so enjoy liberal dignity.
W. M. Gorman
C. Blackorby and A. F. Shorrocks (eds)
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198285212
- eISBN:
- 9780191596322
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285213.001.0001
- Subject:
- Economics and Finance, Microeconomics
W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of consumer demand ...
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W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of consumer demand are recognized as fundamental contributions to economic theory. Many of his unpublished papers have achieved similar status as privately circulated classics. This volume brings together, for the first time, all Gorman's important work on aggregation across commodities and agents, including separability, budgeting, representative agents, and the construction of capital and labour aggregates; much of this has never been published before. The 26 chapters are arranged in two parts: I. Separability and budgeting, and II. Aggregation across agents and firms. Each chapter (except the first) is preceded by an editorial introduction describing its origin and place within the literature, as well as the main results themselves. The book is of interest to academic economists interested in the foundations of consumer and producer theory, and in the interface between microeconomics and macroeconomics. A second volume of works, Modelling and Methodology, covers topics on duality, demand, trade, and welfare.Less
W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of consumer demand are recognized as fundamental contributions to economic theory. Many of his unpublished papers have achieved similar status as privately circulated classics. This volume brings together, for the first time, all Gorman's important work on aggregation across commodities and agents, including separability, budgeting, representative agents, and the construction of capital and labour aggregates; much of this has never been published before. The 26 chapters are arranged in two parts: I. Separability and budgeting, and II. Aggregation across agents and firms. Each chapter (except the first) is preceded by an editorial introduction describing its origin and place within the literature, as well as the main results themselves. The book is of interest to academic economists interested in the foundations of consumer and producer theory, and in the interface between microeconomics and macroeconomics. A second volume of works, Modelling and Methodology, covers topics on duality, demand, trade, and welfare.
Paul Weirich (ed.)
- Published in print:
- 2008
- Published Online:
- January 2008
- ISBN:
- 9780195326864
- eISBN:
- 9780199870325
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195326864.001.0001
- Subject:
- Philosophy, Moral Philosophy
Many countries, such as countries in the European Union, require that food labels announce genetically modified (GM) ingredients. The United States does not require such labeling. Which labeling ...
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Many countries, such as countries in the European Union, require that food labels announce genetically modified (GM) ingredients. The United States does not require such labeling. Which labeling policy is best? An answer must explore a complex web of topics including the science of genetic modification, the benefits of agbiotechnology, and labeling's effects on commerce. This book surveys various labeling policies and the cases for them. It is the first comprehensive, interdisciplinary treatment of the debate about labeling genetically modified food.When polled, consumers say that they want to know whether their food contains GM ingredients, just as many want to know whether their food is natural or organic. Informing consumers is a major motivation for labeling. Consumers who want GM-free products will pay a premium to support voluntary labeling. Labeling need not be mandatory.GM foods are tested to ensure safety and have been on the market for more than a decade. Still, many consumers, including some with food allergies, want to be cautious. Also, despite tests for environmental impact, some consumers may worry that GM crops will adversely effect the environment.GM food currently on the market comes primarily from plants. Meat and dairy products from GM animals are under development. These new foods make the welfare of animals an issue relevant to the debate about labeling. Labeling gives consumers an important voice concerning biotechnology's application to food production.Less
Many countries, such as countries in the European Union, require that food labels announce genetically modified (GM) ingredients. The United States does not require such labeling. Which labeling policy is best? An answer must explore a complex web of topics including the science of genetic modification, the benefits of agbiotechnology, and labeling's effects on commerce. This book surveys various labeling policies and the cases for them. It is the first comprehensive, interdisciplinary treatment of the debate about labeling genetically modified food.
When polled, consumers say that they want to know whether their food contains GM ingredients, just as many want to know whether their food is natural or organic. Informing consumers is a major motivation for labeling. Consumers who want GM-free products will pay a premium to support voluntary labeling. Labeling need not be mandatory.
GM foods are tested to ensure safety and have been on the market for more than a decade. Still, many consumers, including some with food allergies, want to be cautious. Also, despite tests for environmental impact, some consumers may worry that GM crops will adversely effect the environment.
GM food currently on the market comes primarily from plants. Meat and dairy products from GM animals are under development. These new foods make the welfare of animals an issue relevant to the debate about labeling. Labeling gives consumers an important voice concerning biotechnology's application to food production.
W. M. Gorman
C. Blackorby and A. F. Shorrocks (eds)
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198285212
- eISBN:
- 9780191596322
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285213.003.0022
- Subject:
- Economics and Finance, Microeconomics
The following paper has been constructed from handwritten notes, probably dating from 1976, which contain only an introduction, the beginning of a proof, and a conclusion; the proof of the main ...
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The following paper has been constructed from handwritten notes, probably dating from 1976, which contain only an introduction, the beginning of a proof, and a conclusion; the proof of the main result is missing, although a straightforward application of the main result of Sect. 2 of ’More measures for fixed factors’ (Ch. 21) fills this gap. The problem of the representative consumer is one posed and solved by Muellbauer (1976), but it had already been addressed by Gorman in 1953, when it was conceived of in either of two equivalent ways: either the representative consumer replicates average demand with average total income or it replicates total demand with total income. Muellbauer suggested looking for a representative consumer, the proportional breakdown of whose consumption mirrors that of society as a whole, and who replicates the shares demanded, but not necessarily the levels; furthermore, he permitted the utility level of the representative agent to depend upon prices, as well as upon the incomes of all members of the society. Gorman follows the general lines of Muellbauer's treatment, showing that the solution he gets is not quite the general one, and that this has misled him into believing that his central result is not a direct generalization of that in Gorman (1953). He also discusses the ideas of the ’representative consumer’ underlying the two analyses.Less
The following paper has been constructed from handwritten notes, probably dating from 1976, which contain only an introduction, the beginning of a proof, and a conclusion; the proof of the main result is missing, although a straightforward application of the main result of Sect. 2 of ’More measures for fixed factors’ (Ch. 21) fills this gap. The problem of the representative consumer is one posed and solved by Muellbauer (1976), but it had already been addressed by Gorman in 1953, when it was conceived of in either of two equivalent ways: either the representative consumer replicates average demand with average total income or it replicates total demand with total income. Muellbauer suggested looking for a representative consumer, the proportional breakdown of whose consumption mirrors that of society as a whole, and who replicates the shares demanded, but not necessarily the levels; furthermore, he permitted the utility level of the representative agent to depend upon prices, as well as upon the incomes of all members of the society. Gorman follows the general lines of Muellbauer's treatment, showing that the solution he gets is not quite the general one, and that this has misled him into believing that his central result is not a direct generalization of that in Gorman (1953). He also discusses the ideas of the ’representative consumer’ underlying the two analyses.
David A. Nadler and Michael L. Tushman
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780195099171
- eISBN:
- 9780199854868
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195099171.001.0001
- Subject:
- Business and Management, Organization Studies
If the defining goal of modern-day business can be isolated to just one item, it would be the search for competitive advantage. Competition is more intense than ever—technological innovation, ...
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If the defining goal of modern-day business can be isolated to just one item, it would be the search for competitive advantage. Competition is more intense than ever—technological innovation, consumer expectations, and government deregulation all combine to create more opportunities for new competitors to change the basic rules of the game. At the same time, most of the old reliable sources of competitive advantage are drying up: the strategies employed by GM, IBM, and AT&T to maintain their positions of dominance in the 1960s and 70s are now obsolete. The authors of this book argue that the last remaining source of truly sustainable competitive advantage lies in “organizational capabilities”: the unique ways each organization structures its work and motivates its people to achieve clearly articulated strategic objectives. The book argues that managers must understand the concepts and learn the skills involved in designing their organization to exploit their inherent strengths. All the reengineering, restructuring, and downsizing in the world will merely destabilize a company if the change doesn't address the fundamental patterns of performance—and if the change doesn't recognize the unique core competencies of that company. The authors draw upon specific cases to illustrate the design process in practice, and they provide a set of tools for using strategic organization design to gain competitive advantage. They present a design process, explore key decisions managers face, and list the guiding principles for incorporating the design function as a continuing and integral process.Less
If the defining goal of modern-day business can be isolated to just one item, it would be the search for competitive advantage. Competition is more intense than ever—technological innovation, consumer expectations, and government deregulation all combine to create more opportunities for new competitors to change the basic rules of the game. At the same time, most of the old reliable sources of competitive advantage are drying up: the strategies employed by GM, IBM, and AT&T to maintain their positions of dominance in the 1960s and 70s are now obsolete. The authors of this book argue that the last remaining source of truly sustainable competitive advantage lies in “organizational capabilities”: the unique ways each organization structures its work and motivates its people to achieve clearly articulated strategic objectives. The book argues that managers must understand the concepts and learn the skills involved in designing their organization to exploit their inherent strengths. All the reengineering, restructuring, and downsizing in the world will merely destabilize a company if the change doesn't address the fundamental patterns of performance—and if the change doesn't recognize the unique core competencies of that company. The authors draw upon specific cases to illustrate the design process in practice, and they provide a set of tools for using strategic organization design to gain competitive advantage. They present a design process, explore key decisions managers face, and list the guiding principles for incorporating the design function as a continuing and integral process.
Paul Stoneman
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199572489
- eISBN:
- 9780191722257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572489.003.0008
- Subject:
- Business and Management, Innovation
This chapter considers alternative models of the demand for (diffusion of) soft innovations. From the several models, the list of factors shown to be important in the innovation process includes the ...
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This chapter considers alternative models of the demand for (diffusion of) soft innovations. From the several models, the list of factors shown to be important in the innovation process includes the level and, particularly, changes in costs of generating and developing innovations, fixed costs of production, variable production costs, the number of suppliers, the allocation of buyers' preferences, buyers' knowledge bases, buyers price, and technology expectations and the nature of the product. The theoretical analysis in Chapters 7 and 8 also jointly shows that there is no guarantee that free markets will produce a welfare optimal outcome. The outcome may involve either too much or too little variety and innovation. The market failure thus identified can come from a number of sources. One general source is that there are positive or negative externalities in the market that drive a wedge between private and social incentives. Other factors such as creative destruction effects and the standing on shoulders effects also have a role to play.Less
This chapter considers alternative models of the demand for (diffusion of) soft innovations. From the several models, the list of factors shown to be important in the innovation process includes the level and, particularly, changes in costs of generating and developing innovations, fixed costs of production, variable production costs, the number of suppliers, the allocation of buyers' preferences, buyers' knowledge bases, buyers price, and technology expectations and the nature of the product. The theoretical analysis in Chapters 7 and 8 also jointly shows that there is no guarantee that free markets will produce a welfare optimal outcome. The outcome may involve either too much or too little variety and innovation. The market failure thus identified can come from a number of sources. One general source is that there are positive or negative externalities in the market that drive a wedge between private and social incentives. Other factors such as creative destruction effects and the standing on shoulders effects also have a role to play.
Joel Mokyr
- Published in print:
- 1992
- Published Online:
- October 2011
- ISBN:
- 9780195074772
- eISBN:
- 9780199854981
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195074772.003.0012
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter discusses the search for the causes of technological progress. It observes that, in the past ten years, a veritable revolution has occurred in a wide variety of fields, from genetic ...
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This chapter discusses the search for the causes of technological progress. It observes that, in the past ten years, a veritable revolution has occurred in a wide variety of fields, from genetic engineering to consumer electronics. The chapter notes that the essence of technological progress is its unpredictability, and that nothing in the historical record seems to indicate that the creation of new technological opportunities—as opposed to their exploitation—is subject to diminishing returns, fatigue, old age, or exhaustion. It opines that if Cardwell's Law can be extrapolated into the future, no single society should expect to be on the cutting edge of technology forever. As Schumpeter stressed, the enemy of technological progress was not the lack of useful new ideas, but the social forces that, for one reason or another, tried to preserve the status quo.Less
This chapter discusses the search for the causes of technological progress. It observes that, in the past ten years, a veritable revolution has occurred in a wide variety of fields, from genetic engineering to consumer electronics. The chapter notes that the essence of technological progress is its unpredictability, and that nothing in the historical record seems to indicate that the creation of new technological opportunities—as opposed to their exploitation—is subject to diminishing returns, fatigue, old age, or exhaustion. It opines that if Cardwell's Law can be extrapolated into the future, no single society should expect to be on the cutting edge of technology forever. As Schumpeter stressed, the enemy of technological progress was not the lack of useful new ideas, but the social forces that, for one reason or another, tried to preserve the status quo.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0011
- Subject:
- Business and Management, Marketing
This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows ...
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This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows that these behavioral theories have important implications for marketing-finance fusion and human resource management. Specifically, they lead to different market implications for new product pricing, pricing over the business cycle, choosing optimal dividend policy, designing bonus plans, and choosing optimal Customer Relationship Management (CRM) strategies.Less
This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows that these behavioral theories have important implications for marketing-finance fusion and human resource management. Specifically, they lead to different market implications for new product pricing, pricing over the business cycle, choosing optimal dividend policy, designing bonus plans, and choosing optimal Customer Relationship Management (CRM) strategies.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0016
- Subject:
- Business and Management, Marketing
This chapter shows how the firm should design sales force compensation plans to maximize its performance. It distinguishes whether or not the firm can observe the salesperson's effort. It shows how ...
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This chapter shows how the firm should design sales force compensation plans to maximize its performance. It distinguishes whether or not the firm can observe the salesperson's effort. It shows how marketing-finance fusion allows the firm to design compensation plans based on such factors as the firm's cost structure, cost and demand uncertainty, consumer satisfaction, the firm's cost of capital, and whether or not the firm delegates price-setting or sales call policy to the salesperson. It shows how the sales force compensation plan should allow for multiperiod effects and the impact of Internet advertising. In particular, it distinguishes different scenarios (e.g., whether Internet advertising and conventional advertising are substitutes or complements).Less
This chapter shows how the firm should design sales force compensation plans to maximize its performance. It distinguishes whether or not the firm can observe the salesperson's effort. It shows how marketing-finance fusion allows the firm to design compensation plans based on such factors as the firm's cost structure, cost and demand uncertainty, consumer satisfaction, the firm's cost of capital, and whether or not the firm delegates price-setting or sales call policy to the salesperson. It shows how the sales force compensation plan should allow for multiperiod effects and the impact of Internet advertising. In particular, it distinguishes different scenarios (e.g., whether Internet advertising and conventional advertising are substitutes or complements).
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0003
- Subject:
- Business and Management, Marketing
This chapter provides an analytical approach for defining the market. It shows the importance of explicitly evaluating consumer perceptions and perceived product benefits when defining the boundaries ...
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This chapter provides an analytical approach for defining the market. It shows the importance of explicitly evaluating consumer perceptions and perceived product benefits when defining the boundaries of an industry. In particular, it discusses the implications of market definition for measuring managerial performance, designing managerial incentive plans, choosing organizational structure, and optimizing resource allocation.Less
This chapter provides an analytical approach for defining the market. It shows the importance of explicitly evaluating consumer perceptions and perceived product benefits when defining the boundaries of an industry. In particular, it discusses the implications of market definition for measuring managerial performance, designing managerial incentive plans, choosing organizational structure, and optimizing resource allocation.
Craig T. Borowiak
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199778256
- eISBN:
- 9780199919086
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199778256.003.0005
- Subject:
- Political Science, Political Theory, International Relations and Politics
This chapter critically examines the prospect that competitive markets might serve as an alternative to democratic accountability. It identifies ways that market globalization has undermined ...
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This chapter critically examines the prospect that competitive markets might serve as an alternative to democratic accountability. It identifies ways that market globalization has undermined conventional democratic accountability relations. It then outlines the basic parameters of the market accountability concept, paying particular attention to the notion of “exit” (typically opposed to “voice”). The chapter critiques arguments about the superior information-processing faculties of markets, as well as arguments about markets’ freedom-enhancing implications. Markets generate externalities and can have dislocating effects on the environment and society for which they are unable to account adequately. Due to its reliance upon unequal market power, market accountability can also reinforce relations of dominance and exploitation, while undermining democratic capabilities and political forms of agency. The chapter does, however, identify countervailing trends, including efforts to politicize market accountability through activist consumer movements. Despite their ambitions, these consumer-citizen initiatives still rely upon asymmetrical power structures of economic inequality they ultimately cannot substitute for political forms of democratic accountability.Less
This chapter critically examines the prospect that competitive markets might serve as an alternative to democratic accountability. It identifies ways that market globalization has undermined conventional democratic accountability relations. It then outlines the basic parameters of the market accountability concept, paying particular attention to the notion of “exit” (typically opposed to “voice”). The chapter critiques arguments about the superior information-processing faculties of markets, as well as arguments about markets’ freedom-enhancing implications. Markets generate externalities and can have dislocating effects on the environment and society for which they are unable to account adequately. Due to its reliance upon unequal market power, market accountability can also reinforce relations of dominance and exploitation, while undermining democratic capabilities and political forms of agency. The chapter does, however, identify countervailing trends, including efforts to politicize market accountability through activist consumer movements. Despite their ambitions, these consumer-citizen initiatives still rely upon asymmetrical power structures of economic inequality they ultimately cannot substitute for political forms of democratic accountability.
David Vogel
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691124162
- eISBN:
- 9781400842568
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691124162.001.0001
- Subject:
- Political Science, Public Policy
This book examines the politics of consumer and environmental risk regulation in the United States and Europe over the last five decades, explaining why America and Europe have often regulated a wide ...
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This book examines the politics of consumer and environmental risk regulation in the United States and Europe over the last five decades, explaining why America and Europe have often regulated a wide range of similar risks differently. It finds that between 1960 and 1990, American health, safety, and environmental regulations were more stringent, risk averse, comprehensive, and innovative than those adopted in Europe. But since around 1990 global regulatory leadership has shifted to Europe. What explains this striking reversal? This book takes an in-depth, comparative look at European and American policies toward a range of consumer and environmental risks, including vehicle air pollution, ozone depletion, climate change, beef and milk hormones, genetically modified agriculture, antibiotics in animal feed, pesticides, cosmetic safety, and hazardous substances in electronic products. The book traces how concerns over such risks—and pressure on political leaders to do something about them—have risen among the European public but declined among Americans. The book explores how policymakers in Europe have grown supportive of more stringent regulations while those in the United States have become sharply polarized along partisan lines. And as European policymakers have grown more willing to regulate risks on precautionary grounds, increasingly skeptical American policymakers have called for higher levels of scientific certainty before imposing additional regulatory controls on business.Less
This book examines the politics of consumer and environmental risk regulation in the United States and Europe over the last five decades, explaining why America and Europe have often regulated a wide range of similar risks differently. It finds that between 1960 and 1990, American health, safety, and environmental regulations were more stringent, risk averse, comprehensive, and innovative than those adopted in Europe. But since around 1990 global regulatory leadership has shifted to Europe. What explains this striking reversal? This book takes an in-depth, comparative look at European and American policies toward a range of consumer and environmental risks, including vehicle air pollution, ozone depletion, climate change, beef and milk hormones, genetically modified agriculture, antibiotics in animal feed, pesticides, cosmetic safety, and hazardous substances in electronic products. The book traces how concerns over such risks—and pressure on political leaders to do something about them—have risen among the European public but declined among Americans. The book explores how policymakers in Europe have grown supportive of more stringent regulations while those in the United States have become sharply polarized along partisan lines. And as European policymakers have grown more willing to regulate risks on precautionary grounds, increasingly skeptical American policymakers have called for higher levels of scientific certainty before imposing additional regulatory controls on business.
Ran Spiegler
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780195398717
- eISBN:
- 9780199896790
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195398717.001.0001
- Subject:
- Economics and Finance, Behavioural Economics
This book synthesizes recent developments in the theory of Industrial Organization, incorporating aspects of consumer psychology that are absent from the standard model of rational choice. The book ...
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This book synthesizes recent developments in the theory of Industrial Organization, incorporating aspects of consumer psychology that are absent from the standard model of rational choice. The book analyzes three classes of market models in which profit-maximizing firms interact with boundedly rational consumers, each capturing a different aspect of bounded consumer rationality: dynamically inconsistent preferences and biased beliefs regarding future preferences, limited ability to understand price complexity, and reference-dependent choice. These models address questions such as: Can we explain observed pricing, marketing and product differentiation strategies as equilibrium responses consumers' bounded rationality? Do market forces protect boundedly rational consumers from being exploited by firms? What is the role of market regulation and consumer protection policies in this regard? How do firms discriminate between consumers according to differences in their rationality? The book is meant to serve as a textbook for graduate courses in microeconomic theory, industrial organization or behavioral economics.Less
This book synthesizes recent developments in the theory of Industrial Organization, incorporating aspects of consumer psychology that are absent from the standard model of rational choice. The book analyzes three classes of market models in which profit-maximizing firms interact with boundedly rational consumers, each capturing a different aspect of bounded consumer rationality: dynamically inconsistent preferences and biased beliefs regarding future preferences, limited ability to understand price complexity, and reference-dependent choice. These models address questions such as: Can we explain observed pricing, marketing and product differentiation strategies as equilibrium responses consumers' bounded rationality? Do market forces protect boundedly rational consumers from being exploited by firms? What is the role of market regulation and consumer protection policies in this regard? How do firms discriminate between consumers according to differences in their rationality? The book is meant to serve as a textbook for graduate courses in microeconomic theory, industrial organization or behavioral economics.
Kevin S. McCann
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691134178
- eISBN:
- 9781400840687
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691134178.003.0005
- Subject:
- Biology, Ecology
This chapter examines the dynamics of consumer–resource interaction, one of the fundamental building blocks of food webs. In particular, it considers how consumer–resource systems that are ...
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This chapter examines the dynamics of consumer–resource interaction, one of the fundamental building blocks of food webs. In particular, it considers how consumer–resource systems that are nonexcitable and excitable respond to changes in interaction strength. The chapter begins with a discussion of two classes of interaction-strength metrics: the first focuses on instantaneous rates of change in one species with respect to another species; the second follows the longer-term influence of the removal of (or change in) one species on the density of another focal species. Continuous consumer–resource models are then described, after which two underlying mechanisms that are behind the stabilization of consumer–resource interactions are analyzed. The chapter concludes with a review of microcosm experiments and empirical data that show consistency with the proposed consumer–resource theory.Less
This chapter examines the dynamics of consumer–resource interaction, one of the fundamental building blocks of food webs. In particular, it considers how consumer–resource systems that are nonexcitable and excitable respond to changes in interaction strength. The chapter begins with a discussion of two classes of interaction-strength metrics: the first focuses on instantaneous rates of change in one species with respect to another species; the second follows the longer-term influence of the removal of (or change in) one species on the density of another focal species. Continuous consumer–resource models are then described, after which two underlying mechanisms that are behind the stabilization of consumer–resource interactions are analyzed. The chapter concludes with a review of microcosm experiments and empirical data that show consistency with the proposed consumer–resource theory.
David Miller
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198278641
- eISBN:
- 9780191599903
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198278640.003.0006
- Subject:
- Political Science, Political Theory
Economic markets are often defended on the grounds that they are the most effective mechanism we have for satisfying the desires of consumers. This defence can apparently be undercut by pointing out ...
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Economic markets are often defended on the grounds that they are the most effective mechanism we have for satisfying the desires of consumers. This defence can apparently be undercut by pointing out that markets often generate the desires that they then proceed to fulfil. The chapter explores different ways in which people's wants can be less than optimal from the point of view of their welfare, and concludes that attempts to intervene politically to prevent this happening are unlikely to succeed. The claim that production should respond to needs rather than wants is also considered.Less
Economic markets are often defended on the grounds that they are the most effective mechanism we have for satisfying the desires of consumers. This defence can apparently be undercut by pointing out that markets often generate the desires that they then proceed to fulfil. The chapter explores different ways in which people's wants can be less than optimal from the point of view of their welfare, and concludes that attempts to intervene politically to prevent this happening are unlikely to succeed. The claim that production should respond to needs rather than wants is also considered.
Bar-Gill Oren
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199663361
- eISBN:
- 9780191751660
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199663361.003.0001
- Subject:
- Law, Company and Commercial Law
This introductory chapter first sets out the book's main focus, namely consumer contracts. It traces design features common among multiple types of consumer contracts and explores and explains the ...
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This introductory chapter first sets out the book's main focus, namely consumer contracts. It traces design features common among multiple types of consumer contracts and explores and explains the forces responsible for these design features. The discussion then turns to market forces and consumer psychology, social costs of the behavioural market failure, and toward more effective disclosure mandates.Less
This introductory chapter first sets out the book's main focus, namely consumer contracts. It traces design features common among multiple types of consumer contracts and explores and explains the forces responsible for these design features. The discussion then turns to market forces and consumer psychology, social costs of the behavioural market failure, and toward more effective disclosure mandates.
Coopey Richard, Sean O‘Connell, and Dilwyn Porter
- Published in print:
- 2005
- Published Online:
- September 2007
- ISBN:
- 9780198296508
- eISBN:
- 9780191716638
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296508.003.0004
- Subject:
- Business and Management, Business History
This chapter explores the role of the spare-time agent, from the watch club organizer of the late 19th century through to the working housewife and mother a century later. By the end of the 1930s, ...
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This chapter explores the role of the spare-time agent, from the watch club organizer of the late 19th century through to the working housewife and mother a century later. By the end of the 1930s, mail order retailing had begun to deal directly with the women who held the purse strings in working-class families. Agency mail order only became a significant retail phenomenon when it tapped into the rhythms of working-class women's lives. This was made possible by the creation of systems that allowed for simple credit transactions, founded upon the payment of small weekly sums out of the limited disposable income available in the majority of early 20th-century households. Equally important, the catalogues and payments were administrated by family, friends, or neighbours, who were approachable and understood both the needs and credit limitations of their customers.Less
This chapter explores the role of the spare-time agent, from the watch club organizer of the late 19th century through to the working housewife and mother a century later. By the end of the 1930s, mail order retailing had begun to deal directly with the women who held the purse strings in working-class families. Agency mail order only became a significant retail phenomenon when it tapped into the rhythms of working-class women's lives. This was made possible by the creation of systems that allowed for simple credit transactions, founded upon the payment of small weekly sums out of the limited disposable income available in the majority of early 20th-century households. Equally important, the catalogues and payments were administrated by family, friends, or neighbours, who were approachable and understood both the needs and credit limitations of their customers.
