Reaching social consensus family budgets: The Spanish case

The study of family budgets has been traditionally used to analyse consumers’ behaviour and estimate cost-of-living since the end of 19th century. Generally speaking, the computation of the budgets has been based on two different methodologies, the prescriptive and the descriptive method. Both present several drawbacks like the comparison among different areas, family types and over time. This paper proposes a new methodology for reaching family budgets, namely social consensus family budgets, to overcome such problems and examine the main features of the novel approach. The suggested method uses the minimization of the differences with respect to the consumer’s preferences to obtain a solution that summarizes single behaviour into a social preference. This approach is especially conceived for preferences on possibly related-expenditure groups. In addition, several algorithms are introduced to compute the social family budgets. Finally, the contribution includes the Spanish case as an example of reaching some social consensus family budgets in order to show the operational character and intuitive interpretation of the proposal approach.Este trabajo forma parte del proyecto de investigación con financiación nacional: MEC-FEDER Grant ECO2016-77900-

An Integrated Multi-Criteria System to Assess Sustainable Energy Options: An Application of the Promethee Method

The planning and appraisal of sustainable energy projects involve rather complex tasks. This is due to the fact that the decision making process is the closing link in the process of analysing and handling different types of information: environmental, technical economic and social. Such information can play a strategic role in steering the decision maker towards one choice instead of another. Some of these variables (technical and economic) can be handled fairly easily by numerical models whilst others, particularly ones relating to environmental impacts, may only be adjudicated qualitatively (subjective or not). In many cases therefore, traditional evaluation methods such as cost-benefit analysis and the main economic and financial indicators (NPV, ROI, IRR etc.) are unable to deal with all the components involved in an environmentally valid energy project. Multi-criteria methods provide a flexible tool that is able to handle and bring together a wide range of variables appraised in different ways and thus offer valid assistance to the decision maker in mapping out the problem. This paper sets out the application of a multi-criteria method (PROMETHEE developed by J.P. Brans et al. 1986) to a real life case that is in tune with the objectives of sustainable development.Renewable energy, Multicriteria, Sustainable devolopment

A Novel Approach to Incubator Evaluations: The PROMETHEE Outranking Procedures

Considerable public resources are devoted to the establishment and operation of business incubators (BIs), which are seen as catalysts for the promotion of entrepreneurship, innovation activities and regional development. Despite the vast amount of research that has focused on the outcomes or effectiveness of incubator initiatives and how to measure incubator performance, there is still little understanding of how to determine incubators that are more effective than others. Based on data from 410 graduate firms, this paper applies the multi-criteria outranking technique PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluation) and compares the long-term effectiveness of five technology-oriented BIs in Germany. This is the first time that outranking procedures are used in incubator evaluations. In particular, we investigate whether PROMETHEE is a well-suited methodological approach for the evaluation and comparisons in the specific context of business incubation.business incubators, evaluation, performance measures, PROMETHEE, Outranking

Comparative Risk Aversion: A Formal Approach with Applications to Saving Behaviors

We consider a formal approach to comparative risk aversion and applies it to intertemporal choice models. This allows us to ask whether standard classes of utility functions, such as those inspired by Kihlstrom and Mirman [15], Selden [26], Epstein and Zin [9] and Quiggin [24] are well-ordered in terms of risk aversion. Moreover, opting for this model-free approach allows us to establish new general results on the impact of risk aversion on savings behaviors. In particular, we show that risk aversion enhances precautionary savings, clarifying the link that exists between the notions of prudence and risk aversion.Risk aversion, Savings behaviors, Precautionary savings

The Value of “Bespoke”: Demand Learning, Preference Learning, and Customer Behavior

“Bespoke,” or mass customization strategy, combines demand learning and preference learning. We develop an analytical framework to study the economic value of bespoke systems and investigate the interaction between demand learning and preference learning. We find that it is possible for demand learning and preference learning to be either complements or substitutes, depending on the customization cost and the demand uncertainty profile. They are generally complements when the personalization cost is low and the probability of having high demand is large. Contrary to usual belief, we show that higher demand uncertainty does not necessarily yield more complementarity benefits. Our numerical study shows that the complementarity benefit becomes weaker when customers are more strategic. Interestingly, the substitute loss can occur when the personalization cost is small and the probability of having high demand is large, when customers are strategic.postprin

Video killed the radio star? Online music videos and digital music sales

Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement effect). We study this trade-o_ in the market for digital music where consumers can sample the quality of songs by watching free music videos online. Identification comes from a natural experiment in Germany, where virtually all videos that contain music are blocked on a popular video platform due to a legal dispute with representatives of the rights-holders. We show that promotional and displacement effects cancel out in the sales performance of individual songs, whereas online music videos trigger sales of albums

The Role and Extent of Economic Rent in Distribution Contracts.

This dissertation is composed of five chapters that investigate the extent and role of economic rent in distribution contracts between manufacturers and dealers. Manufacturers often devise contractual mechanisms that enable downstream dealers to earn economic rent. One such mechanism is the two-stage ordering process with quantity discounts used by MNCs and local enterprises operating in China and elsewhere. Chapter 2 shows how, in theory, this ordering process enables manufacturers to determine indirectly the outcomes of downstream competition to be either Bertrand or Cournot, which in turn affects the economic rent earned by their dealers. In Chapter 3, I match the results of my theoretical model to the longitudinal data obtained from a leading Chinese manufacturer of a key computer accessory. I use the data to estimate unobserved final prices and thus the economic rent earned by each of its sixty dealers over a one-year period. I show empirically that the two-stage ordering process of this manufacturer leaves economic rent with its heterogeneous group of dealers. Chapter 4 looks at the role of economic rent, in conjunction with manufacturer’s supervisory effort, in enforcing desired yet non-contractible dealer marketing effort. Based on the institutional arrangements adopted by the computer accessory manufacturer, I find that the size of downstream economic rent and the manufacturer’s supervision intensity are used as complementary control instruments to induce non-contractible dealer marketing effort.Ph.D.Business AdministrationUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/60667/1/hofulo_1.pd

Advance Selling in the Presence of Experienced Consumers

The advance selling strategy is implemented when a firm offers consumers the opportunity to order its product in advance of the regular selling season. Advance selling reduces uncertainty for both the firm and the buyer and enables the firm to update its forecast of future demand. The distinctive feature of the present theoretical study of advance selling is that we divide consumers into two groups, experienced and inexperienced. Experienced consumers know their valuations of the product in advance. The presence of experienced consumers yields new insights. Specifically, pre-orders from experienced consumers lead to a more precise forecast of future demand by the firm. We show that the firm will always adopt advance selling and that the optimal pre-order price may or may not be at a discount to the regular selling price.advance selling, the Newsvendor Problem, demand uncertainty, experienced consumers, inexperienced consumers.

Comparative Risk Aversion: A Formal Approach with Applications to Saving Behaviors

We consider a formal approach to comparative risk aversion and applies it to intertemporal choice models. This allows us to ask whether standard classes of utility functions, such as those inspired by Kihlstrom and Mirman [15], Selden [26], Epstein and Zin [9] and Quiggin [24] are well-ordered in terms of risk aversion. Moreover, opting for this model-free approach allows us to establish new general results on the impact of risk aversion on savings behaviors. In particular, we show that risk aversion enhances precautionary savings, clarifying the link that exists between the notions of prudence and risk aversion