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The imposition and social welfare consequences of maximum resale price fixing are analyzed when there is successive monopoly and a non-contractible service is provided…
The imposition and social welfare consequences of maximum resale price fixing are analyzed when there is successive monopoly and a non-contractible service is provided downstream. An elasticity condition that weighs maximum resale price fixing's opposing effects on quantity, through the effects on final price and service provision, determines whether it is adopted. Wholesale price is increased along with the practice of resale price fixing, and the net effects on quantity and social welfare are ambiguous. This points to an output test and a rule of reason in the antitrust evaluation of this practice, consistent with the Supreme Court's overruling of Albrecht.
In United States v. United Shoe Machinery Corp., United Shoe Machinery (USM) was found guilty of illegal monopolization due to its leasing practices. Existing scholarship on this case largely focuses on the issue of leasing versus selling. In this article, we provide a more comprehensive analysis of this important decision. In addition, we examine USM’s antitrust experience before and after the famous 1953 case. We find that USM’s business practices were largely procompetitive and, therefore, did not warrant condemnation.
This paper reviews and analyzes the literature on agency theory in terms of the nature of the problem and its implications for management. Finance theory posits that the goal of economic organizations is to maximize stockholders' wealth. Attaining this goal was not an issue when owners were also managers. But since World War II corporate ownership world‐wide has become increasingly diffused. By 1969 only 15% of the largest U.S. non‐financial institutions were owned by their managers. This change raises the issue of the relationships between owners and managers. To what extent do managers act on their own behalf rather than the owners as prescribed by finance theory? Several studies indicate that managers substitute their own interests in place of the shareholders. This is possible because managers possess more information about the firm, control the election procedure to the Board of Directors, and the shareholders are widely dispersed. This phenomenon is called an agency problem. According to Jensen and Meckling an “agency problem” exists when managers own less than 100% of the firm. With less than 100 per cent ownership, managers can shift part of the cost associated with decisions made in their own interest. Clearly these conditions are common in major corporations of the world where global markets require raising large amounts of capital for the research, development, and production facilities required to remain competitive.
This study analyzes the variability of rates of return for 11,772 U.S. commercial banks from 1979 through 1985. The objective is to determine whether variability that is…
This study analyzes the variability of rates of return for 11,772 U.S. commercial banks from 1979 through 1985. The objective is to determine whether variability that is not explained by exogenous variables can be explained by prospect theory. Below target, strong correlations are shown, consistent with prospect theory. When regression analysis is applied, the results are confirmed.
High‐technology markets are characterized by rapid evolution that alters the emphasis existing in some traditional marketing decisions. This article examines the nature of…
High‐technology markets are characterized by rapid evolution that alters the emphasis existing in some traditional marketing decisions. This article examines the nature of these markets and suggests certain factors for special consideration in the pricing decision. First, it relates the economic, technological, and competitive factors that affect the firm's objectives. Then, it examines these factors and offers alternative strategies in view of high‐technology dynamics.
Professor Milton Leontiades teasingly reminds us of Thomas Huxley's quip about tragedy in science being the slaying of a beautiful hypothesis by an ugly fact. One of the favorite beautiful hypotheses of business and economics is that diversification—especially unrelated diversification—is bad. Specialization, on the other hand, is supposed to be good. For a list of arguments that could shake your blind adherence to this theory, see box, “Six Myths About Diversification” (Page 29). Professor Leontiades makes a strong case for nonspecialized diversification. If the thought of maneuvering your firm away from its core activity sounds like heresy, read on. He even provides you with guidelines for committing diversification heresy the tight way. Didn't we learn in the 70s and 80s that it was disastrous to stray from your core business? Here's the contrarian argument from Myth Management: An Examination of Corporate Diversification as Fact and Theory.
In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This…
In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of material poses problems for the researcher in management studies — and, of course, for the librarian: uncovering what has been written in any one area is not an easy task. This volume aims to help the librarian and the researcher overcome some of the immediate problems of identification of material. It is an annotated bibliography of management, drawing on the wide variety of literature produced by MCB University Press. Over the last four years, MCB University Press has produced an extensive range of books and serial publications covering most of the established and many of the developing areas of management. This volume, in conjunction with Volume I, provides a guide to all the material published so far.
Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption…
Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.
Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.
TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.
The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.