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1 – 4 of 4David J. Teece and Henry J. Kahwaty
The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is…
Abstract
The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.
An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.
Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.
The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.
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Zhaoying Lu and Hisashi Tanizaki
This study aims to investigate how the gold return and its volatility respond to the COVID-19 pandemic.
Abstract
Purpose
This study aims to investigate how the gold return and its volatility respond to the COVID-19 pandemic.
Design/methodology/approach
Stochastic volatility (SV) models are conducted to examine the response of gold to the number of new confirmed cases and deaths.
Findings
The results indicate that an increase in the change rate of the number of COVID-19 infections or fatalities leads to heightened volatility in gold prices. Moreover, the results suggest that gold volatility is more sensitive to the impacts from high-income countries than by those from middle- and low-income countries. In addition, the asymmetric effect is detected in the gold price volatility, which is contrary to the typical asymmetric effect seen in the stock market. Furthermore, the results remain robust after accounting for the US dollar and the volatility index in relation to gold returns.
Practical implications
This study presents whether and to what extent gold is incorporated in the information related to the number of COVID-19 cases and deaths.
Originality/value
This study augments the existing literature by exploring how the number of COVID-19 infections and fatalities influences gold prices. In addition, it examines the day-of-the-week and asymmetric effects that may contribute to the volatility of gold prices. To the best of the authors’ knowledge, the evolution of gold has not yet been investigated using SV models.
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Richard Robertson, Athanasios Petsakos, Chun Song, Nicola Cenacchi and Elisabetta Gotor
The choice of crops to produce at a location depends to a large degree on the climate. As the climate changes and food demand evolves, farmers may need to produce a different mix…
Abstract
Purpose
The choice of crops to produce at a location depends to a large degree on the climate. As the climate changes and food demand evolves, farmers may need to produce a different mix of crops. This study assesses how much cropland may be subject to such upheavals at the global scale, and then focuses on China as a case study to examine how spatial heterogeneity informs different contexts for adaptation within a country.
Design/methodology/approach
A global agricultural economic model is linked to a cropland allocation algorithm to generate maps of cropland distribution under historical and future conditions. The mix of crops at each location is examined to determine whether it is likely to experience a major shift.
Findings
Two-thirds of rainfed cropland and half of irrigated cropland are likely to experience substantial upheaval of some kind.
Originality/value
This analysis helps establish a global context for the local changes that producers might face under future climate and socioeconomic changes. The scale of the challenge means that the agricultural sector needs to prepare for these widespread and diverse upheavals.
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Todd Morgan, Wesley Friske, Marko Kohtamäki and Paul Mills
This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of…
Abstract
Purpose
This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of manufacturing firms. Additionally, the paper examines CRM technology usage to understand how it impacts new service performance both individually and jointly with customer participation in NSD.
Design/methodology/approach
This study is a survey of 216 manufacturing managers who are overseeing the development of new services at their organizations. For the analysis, structural equation modeling is used with Amos 22.0. Measures of all latent variables in the analysis pass the traditional tests for reliability, convergent validity and discriminant validity. Furthermore, the results of a common latent factor test for common method variance and Harman’s one-factor test indicate that common method bias is not a source of endogeneity in the model.
Findings
Customer participation has a positive effect on NSD performance. CRM technology usage also has a positive effect on NSD performance. The effect of customer participation on NSD performance is enhanced by CRM technology. The results of a post hoc analysis suggest that the usage of CRM technology has the most benefit for managing the technical aspects of customer participation.
Research limitations/implications
This study has methodological limitations that may impact the generalizability of results. For instance, it is based on cross-sectional self-reported survey data, which is more subjective than longitudinal secondary data. Survey research lacks the depth and nuance of qualitative research designs, which are commonly employed to study NSD. In addition, this study focuses on large US manufacturing firms. The authors do not include small firms or international organizations in the sample. Despite these limitations, they believe the findings can provide significant contributions to the NSD literature.
Practical implications
Although prior research has shown that customer participation and CRM technology can individually influence new product development (NPD) performance, the results indicate they are equally effective factors in the development of new services. Furthermore, the authors show that customer participation can be enhanced via the use of CRM technologies. The interaction is more pronounced within the technical aspects of NSD.
Originality/value
This study contributes to the NSD literature, and it also has implications for managers leading NSD efforts in traditional tangible-product industries. The findings provide additional evidence that customer participation is an effective NSD strategy for manufacturing firms (Morgan et al., 2019). Furthermore, CRM technology is integral to NSD performance. CRM technology not only has a direct effect on NSD performance, but the interaction term of customer participation by CRM technology also has a positive effect on NSD performance.
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