Search Results

This chapter shows how the firm should coordinate its advertising decisions with the other elements of the marketing mix such as price and promotion, especially when demand is uncertain. It shows how the firm should vary its advertising spending over the product life cycle and the business cycle. In particular, it shows how marketing-finance fusion allows the firm to maximize its long-run performance under uncertainty.

The evolution of the electricity industry in India has been supply oriented. Demand Side measures have been elaborated in detail in the Energy Conservation Act of 2001. The Energy Conservation together with the Electricity Act, 2003 provides the relevant statutory framework in this regard. The chapter explains this framework and also goes on to elaborate policy provision in this regard. Regulatory initiatives taken so far in this context, have also been touched upon. The chapter concludes by highlighting the future prospects on the Demand side Management.

The theories about price-formation in competitive markets, that were available to economists at the time when Keynes was writing, had been the work of the so-called ‘neo-classics’ between 1870 and 1900. All accepted the distinction, that had come down from Adam Smith, between market value and ‘natural’ or normal value, natural value depending on cost of production, market value on supply and demand. Market value would ‘tend’ towards natural value by adjustment of supply. It was accordingly held, for nearly a century after Smith, that natural values were the only values that required attention. The whole of Ricardo's system, to take the most important example, runs in terms of natural values. The chief thing which happened at the ‘marginal revolution’ of Jevons and his contemporaries was a shift of attention to market values. They were determined, it was accepted, by supply and demand. This chapter addresses the question of just how market worked.

An exploration is made of how the environmental justice movement in the United States has taken on some of the communicative and participatory demands and practices of critical pluralism. The movement has been critical of the communicative methods of the mainstream – the top-down organizational structure and its one-way nature of communication, and the lack of attention to issues of public participation in policy-making – and issues of communication have been a central focus in the development and demands of environmental justice. Accepting the diversity and the situated experiences of individuals and cultures has fostered the use of, and demand for, a variety of innovative communicative processes. Internally, the movement has attempted to employ more open discursive processes, paying particular attention to communication within and across diverse groups. Externally, the movement has made demands with regard to issues of communication and more discursive and participatory policy-making on government agencies, particularly the US Environmental Protection Agency (EPA).

This chapter examines societal demand for infrastructure resources. It aims to identify and evaluate infrastructural resources functionally from a systems perspective and to understand better how individuals who obtain access to infrastructure resources both realize and create social value. It identifies and examines three economic criteria common to traditional infrastructure, such as transportation systems and telecommunications networks; and nontraditional infrastructure, such as the atmosphere and basic research. It develops a typology of different infrastructure (commercial, public, social, and mixed infrastructure) based on the types of systems dependent on the infrastructural resource and the distribution of productive activities it facilitates. It also discusses how both the resource set delineated by the three criteria and the subsets delineated by the typology are dependent on demand, and how resources may evolve into or out of the set or subsets. Throughout, the chapter explains how different types of demand-side market failures arise when spillovers from public or social goods are prevalent.

This chapter shows how the firm should determine compensation for its managers. It distinguishes between ownership structures (i.e., whether the firm is privately or publicly held), the length of the planning horizons for the owners and managers of the firm, whether the firm is multidivisional or not, whether the firm sells one or multiple products, and how Wall Street's expectations affect decision making by managers. In particular, it shows how marketing-finance fusion allows senior management and the finance department to determine managerial compensation plans in the multiproduct or multidivisional firm.

This chapter examines the conditions under which firms should pursue market share as a goal. Specifically, it focuses on the factors that determine revenue- and volume-based market share, including cost dynamics, demand dynamics, competitive reaction, cost and technological uncertainty, process innovations, and demand uncertainty. In particular, it shows how the firm can use this information to coordinate its marketing, finance, and production decisions.

Income distribution models can be incorporated in all kinds of data-based economic macro-models. This chapter shows how this may be accomplished in long- and short-term econometric models. An introduction to SAM-based models is also given.

Some scholars and policy makers claim that an expansive, proprietary copyright not only imposes merely trivial speech burdens but, indeed, represents the best means for resolving the tension between copyright and free speech. As Paul Goldstein forcefully puts it: to extend copyright “into every corner where consumers derive value from literary and artistic works” is the “best prescription for connecting authors to their audiences.”A broad, proprietary copyright, Goldstein argues, would thus “promote political as well as cultural diversity, ensuring a plenitude of voices, all with the chance to be heard.” This chapter takes on that “propertarian” counter‐argument. It demonstrates that broad copyrights do not, in fact, facilitate expressive diversity. It does so on the basis of copyright economics and by distinguishing between product differentiation and expressive diversity.

This chapter examines the effect of wage levels at the low end of the labor market on employment. The focus is on low-end service jobs. These have been a major source of employment growth in many of the countries that have achieved rising employment rates during the past several decades. Because productivity in these jobs tends to be low and difficult to increase, the question is whether relatively high wages will substantially reduce employer demand for labor. Within the United States, this has been the key question at issue in the recurring debate over whether, and to what degree, the statutory minimum wage should be increased.

One of the central causes of change in the welfare state has been the changing economic role and employment behaviour of women, especially of married women. Factors related to gender are the key to explaining labour‐market variation among developed countries. In explaining how women's presence has transformed labour markets in 23 OECD countries, the chapter draws on a wide range of possible factors, including policy packages, historical trends, and cultural norms about the family and women's roles. The analysis is based on a three‐fold model that includes supply, demand, and country‐specific contextual factors.

After demolishing metaphysical notions of moral behavior, John Mackie's Inventing Right and Wrong argues that the way forward is through the study of anthropology and game theory. This chapter begins a review of the basic ideas of game theory by explaining both the rational and the evolutionary interpretation of Nash equilibria in various games, including the Prisoners' Dilemma, the Stag Hunt Game, the Ultimatum Game, the Centipede Game, and the Nash Demand Game.