nep-mkt New Economics Papers
on Marketing
Issue of 2007‒05‒04
five papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Wholesale Price Discrimination and Parallel Imports By Ganslandt, Mattias; Maskus, Keith E.
  2. Strategic Advertisement with Externalities: A New Dynamic Approach By R. Joosten
  3. Intra-alliance performance, control rights, and today's split of tomorrow's value By Adegbesan, Tunji; Higgins, Matthew J.
  4. The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer By Bernd Frick; Robert Simmons
  5. New market segments: migrants and financial innovation By Luisa Anderloni; Daniela Vandone

  1. By: Ganslandt, Mattias (University of Colorado); Maskus, Keith E. (University of Colorado)
    Abstract: We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail prices toward convergence as transportation costs fall. However, these retail prices could be higher than those induced without restrictions on prices charged to distributors. Thus, the competition policy may not be optimal for consumer welfare.
    Keywords: Vertical Restraints; Parallel Imports; Market Integration; Price Discrimination; Competition Policy
    JEL: F15 K21 L14
    Date: 2007–04–13
  2. By: R. Joosten
    Abstract: We model and analyze strategic interaction over time in a duopolis-tic market. Each period the firms independently and simultaneously choose whether to advertise or not. Advertising increases the own immediate sales, but may also cause an externality, e.g., increase or decrease the immediate sales of the other firm ceteris paribus. There exists also an effect of past advertisement efforts on current sales. The 'market potential' of each firm is determined by its own but also by its opponent's past efforts. A higher effort of either firm leads to an increase of the market potential, however the impact of the own past efforts is always stronger than the impact of the opponent's past efforts. How much of the market potential materializes as immediate sales, then depends on the current advertisement decisions. We determine feasible rewards and (subgame perfect) equilibria for the limiting average reward criterion using methods inspired by the repeated-games literature. Uniqueness of equilibrium is by no means guaranteed, but Pareto efficiency may serve very well as a refinement criterion for wide ranges of the advertisement costs.
    Keywords: advertising, externalities, average rewards, equilibria Length 21 pages
    JEL: C72 C73 L13 M31 M37
    Date: 2007–04
  3. By: Adegbesan, Tunji (IESE Business School); Higgins, Matthew J. (Georgia Institute of Technology)
    Abstract: Although the differential benefits reaped by individual partners are a major determinant of the performance impact of strategic alliances, previous analysis has faced methodological challenges. In response we propose a measure for relative value appropriation and an explicit theoretical framework for predicting its variation in terms of relative bargaining position. With a sample of 180 biotechnology R&D alliances, we are thus able to explain variation in value appropriation across partner types as well as individual partners of each type.
    Keywords: Alliance performance; strategic alliances; value appropriation; bargaining position; factor markets;
    Date: 2007–01–10
  4. By: Bernd Frick (Witten/Herdecke University); Robert Simmons (Lancaster University)
    Abstract: Although a considerable literature exists on determinants of managerial compensation, much of it focussing on the role of incentives, there is much less known about the im-pact of managerial remuneration and quality upon attainment of organizational goals. In this paper we use a novel panel data set from the German premier soccer league (Bundesliga) as a case to show how variations in managerial compensation impact posi-tively upon organizational (team) success. This positive impact is revealed using sto-chastic frontier production function estimation. Given a particular amount of spending on players relative to the rest of the Bundesliga, a team that hires a better quality coach can expect to achieve a higher points score by reducing technical inefficiency. However, our results also suggest that the market for head coaches may be allocatively inefficient in that coaches are paid below their marginal revenue products.
    Keywords: head coaches, soccer, efficiency, stochastic frontier analysis
    JEL: J44 L83 M50
    Date: 2007–04
  5. By: Luisa Anderloni (Department of Economics, Business and Statistics - University of Milan); Daniela Vandone (Department of Economics, Business and Statistics - University of Milan)
    Abstract: This paper analyses migrants' financial behaviour and financial services demand and investigates supply policies that banks can adopt in order to satisfy their specific financial needs. On the demand side we draw a theoretical framework about migrants' life cycle and financial needs to identify the sequence of temporal phases that usually characterize migrants' demand for financial products and services. Adopting this perspective, we consider the relationship among phases and goals of migratory project, priority of basic needs and resulting prioritisation of intervention by social and governmental institutions, structure of banking markets and "bancarisation" of the native population. On the supply side, we identify which features the supply of financial services and products should have in order to satisfy migrants' financial needs during their life cycle; banks should consider the "life value" of these new citizens and start up relationships in the expectation that they will become profitable customers in the medium-long run. In particular, we focus on three main groups of financial services, remittances, mortgages and pension schemes, because at present they are the most significant drivers for financial innovation. We also focus on banking experiences from different countries to identify the best practices to address migrants' financial needs.
    Keywords: Financial innovation, banking markets segmentation, financial inclusion, remittances,
    Date: 2006–11–17

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