Do negative headlines really undermine the credibility of a quality label? A quasi-natural experiment

In 2013, Stiftung Warentest tested hazelnut chocolate for their leading magazine, called Test. Stiftung Warentest is one of the most important consumer organizations in Germany. Ritter Sport is a high-quality producer of chocolate in Germany. Their hazelnut chocolate did not pass the test. It was given the grade of unsatisfactory. Stiftung Warentest accused Ritter Sport of labelling an artificial flavouring as a natural flavouring. Ritter Sport rejected the accusation. They went to court and won the trial. Stiftung Warentest had to withdraw the issue in question of Test magazine. This affair was all over the media in January of 2014. Using the Ritter Sport versus Stiftung Warentest case, we analyse whether negative headlines really undermine the credibility of a quality label by examining Stiftung Warentest and their quality label, also called Test. In addition, we examine what can be done to restore or, more generally, increase the credibility of a quality label. Based on a quasi-natural experiment, we find that the negative headlines on Stiftung Warentest have undermined the credibility of the Test label. We also find that the credibility of the Test label can be increased by providing reference values to the tests, strengthening the independence of Stiftung Warentest, and using laboratory methods in the tests. For the most part, the same holds true for any quality label

The Role of Managerial Work in Market Performance: A Monopoly Model with Team Production

A monopolist is treated as a nexus of contracts with team production. It has one ownermanager. The owner-manager is the employer of two employees. A team production problem is present if the employer is a “managerial lemon”. If the team production problem is solved, the employer is a “managerial hotshot”. Both a managerial hotshot and a managerial lemon are found to make profit. Managerial slack can therefore exist in our monopoly market. In the case of a managerial lemon, the profit level is lower. However, the employees’ utility level is higher. Whereas the employer has an incentive to improve management capability in principle, the employees have an incentive to keep management capability low. Moreover, the cost of improving management capability may be prohibitively high. Managerial slack can therefore persist. The predicted behavior of the monopolist is grounded in individual behavior under the assumption of utility maximization

Do Negative Headlines Really Undermine the Credibility of a Quality Label? A Quasi-Natural Experiment

In 2013, Stiftung Warentest tested hazelnut chocolate for their leading magazine, called Test. Stiftung Warentest is one of the most important consumer organizations in Germany. Ritter Sport is a high-quality producer of chocolate in Germany. Their hazelnut chocolate did not pass the test. It was given the grade of unsatisfactory. Stiftung Warentest accused Ritter Sport of labelling an artificial flavouring as a natural flavouring. Ritter Sport rejected the accusation. They went to court and won the trial. Stiftung Warentest had to withdraw the issue in question of Test magazine. This affair was all over the media in January of 2014. Using the Ritter Sport versus Stiftung Warentest case, we analyse whether negative headlines really undermine the credibility of a quality label by examining Stiftung Warentest and their quality label, also called Test. In addition, we examine what can be done to restore or, more generally, increase the credibility of a quality label. Based on a quasi-natural experiment, we find that the negative headlines on Stiftung Warentest have undermined the credibility of the Test label. We also find that the credibility of the Test label can be increased by providing reference values to the tests, strengthening the independence of Stiftung Warentest, and using laboratory methods in the tests. For the most part, the same holds true for any quality label

Is a “Firm” a Firm? A Stackelberg Experiment

Industrial organization is mainly concerned with the behavior of large firms. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The main approach relies on framing: Call individuals “firms”! This experimental approach is not in line with modern industrial organization, according to which a firm’s market behavior is also determined by its organizational structure. In this paper, a Stackelberg experiment is considered in order to answer the question whether framing individual decision making as organizational decision making or implementing an organizational structure is more effective in generating profit-maximizing behavior. Firms are either represented by individuals or by teams. I find that teams’ quantity choices are more in line with the assumption of profit maximization than individuals’ choices. Compared to individuals, teams appear to be less inequality averse

Der Coupon-Handelsansatz als Modell für eine subjektbezogene Finanzierung der Kinderbetreuung

Improving child care and pre-school education is one of the challenging duties of public authorities in Germany. Given the public resources spent on nursery schools, the quantity as well as the quality of early childhood education in Germany is comparatively low. We think that inefficiency is caused by the prevalent object-based financing structure. In this article we present a model for a subject-based financing structure with tradable coupons. The model shows that by introducing tradable coupons a more efficient allocation of resources is possible. Further, the model indicates that tradable coupons also improve the quality of early childhood education.D40, D61

Warum der Sieg von Ritter Sport über Stiftung Warentest ein Pyrrhussieg ist

Für ihr Dezember-Heft 2013 testete Stiftung Warentest unter anderem Nuss-Schokoladen. Die Voll-Nuss-Schokolade von Ritter Sport erhielt die Note „mangelhaft“. Stiftung Warentest begründete die mangel-hafte Note nicht mit schlechter Qualität, sondern mit irreführender Etikettierung. Der Vorwurf lautete, Ritter Sport hätte ein künstliches Aroma als natürliches Aroma bezeichnet. Ritter Sport bestritt dies und siegte am 13. Januar 2014 vor Gericht. Wir argumentieren, dass der Sieg von Ritter Sport über Stiftung Warentest ein Pyrrhussieg ist: sowohl für die Ernährungswirtschaft als auch für den Endverbraucher. Das Testsiegel nahm Schaden. Daraus ergibt sich ein Informationsverlust. Produzenten guter Qualität haben es jetzt schwerer. Endverbraucher mit Qualitätsbewusstsein büßen jetzt Nutzen ein

Cournot or Stackelberg competition? A survey on experimental evidence

In this survey, I look into experimental studies on duopolistic quantity competition with homogeneous products and duopolistic price competition with heterogeneous products. The focus is on the sequence of competition. That is, I summarize and analyze experimental studies checking Cournot competition against Stackelberg competition. I find that while Stackelberg equilibrium outcomes are seldom under quantity competition, under price competition, the Stackelberg equilibrium prediction seems to be more appropriate. However, after discussing the experimental setups, I conclude that some methodological problems are present. Moreover, I make recommendations for further research

Cournot or Stackelberg Competition? A Survey of Experimental Research

In this paper, I survey experimental studies on duopolistic quantity competition with homogeneous products and duopolistic price competition with heterogeneous products. The focus is on the papers in which the sequence of competition is endogenous. Experimental studies checking Cournot competition against Stackelberg competition act as benchmarks. I find that while Stackelberg equilibrium outcomes are seldom under quantity competition, under price competition, the Stackelberg equilibrium prediction seems to be more appropriate. However, after discussing the experimental setups, I conclude that some methodological problems are present. Moreover, I make recommendations for further research

Propuestas para la política de Ordenación del territorio en Andalucía a partir de la práctica en Alemania

El presente trabajo tiene el, objetivo de ofrecer un análisis de la política de ordenación del territorio en Alemania, para ampliar el conocimiento sobre este caso y, especialmente, generar posibles sugerencias que puedan servir de referente para el desarrollo y la consolidación de la ordenación del territorio como política pública de la Comunidad Autónoma de Andalucía. En primer lugar, se explican las razones por las que las experiencias de los Länder alemanes en ordenación del territorio son dentro de la experiencia europea de especial interés y el referente idóneo para la política de ordenación del territorio de Andalucía y de otras Comunidades Autónomas españolas. En segundo lugar, se esbozan los elementos básicos del sistema de planificación territorial alemán, con una visión comparada que resalta las similitudes y diferencias respecto a la planificación territorial andaluza. En tercer lugar, se presentan casos de experiencias que constituyen elementos novedosos o buenas prácticas en la ordenación del territorio alemana. El trabajo culmina con conclusiones en forma de sugerencias extraíbles del estudio del caso alemán, que se refieren a los contenidos, instrumentos y procedimientos de la ordenación del territorio y que se consideran útiles para inspirar la presente y futura política de la Junta de Andalucía en esta materia.The aim of the present article is to offer analysis an sintetic overview of the spatial planning policy in Germany with te objective to increment the knowledge about this case y, especially, to produce possible suggestions which could serve as a reference for the development and consolidation of spatial planning as public policy of the Autonomous Community of Andalusia. Firstly are explained the reasons why the experiences of the German Länder are in the European experience of special interest and the best reference and benchmark for the spatial planning policy in Andalusia an other Autonomous Communities of Spain. Secondly, are outlined the basic elements of the German spatial planning system with a comparative perspective highlighting similarities and differences regarding Andalusian spatial planning. Thirdly, the focus is placed on cases of experiences that constitute innovative elements and good practices of the German spatial planning. Finally, the last part presents some conclusions related to the contents, instruments and procedures of spatial planning that points out the lessons which could be drawn for the present and future spatial planning policy of Andalusian government