Recursive Competitive Equilibrium

In this article we define a Recursive Competitive Equilibrium, provide an example and review the related literature. The article is an entry prepared for The New Palgrave: A Dictionary of Economics, 2nd Edition (Palgrave Macmillan: New York).

Role of "Lead Market" factors in globalization of innovation: Emerging evidence from India & its implications

Access to lead markets is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid, worldwide. --Lead Markets,India,Globalization of Innovation,Internationalization of R&D,Frugal Innovations

Implementing Efficient Graphs in Connection Networks

We consider the problem of sharing the cost of a network that meets the connection demands of a set of agents. The agents simultaneously choose paths in the network connecting their demand nodes. A mechanism splits the total cost of the network formed among the participants. We introduce two new properties of implementation. The first prop- erty, Pareto Nash Implementation (PNI), requires that the efficient out- come is always implemented in a Nash equilibrium, and that the efficient outcome Pareto dominates any other Nash equilibrium. The average cost mechanism (AC) and other assymetric variations, are the only rules that meet PNI. These mechanisms are also characterized under Strong Nash Implementation. The second property, Weakly Pareto Nash Implementation (WPNI), requires that the least inefficient equilibrium Pareto dominate any other equilibrium. The egalitarian mechanism (EG), a variation of AC that meets individual rationality, and other assymetric mechanisms are the only rules that meet WPNI and Individual Rationality. PNI and WPNI provide the first economic justification of the Price of Stability (PoS), a seemingly natural measure in the computer science literature but not easily embraced in economics. EG minimizes the PoS across all individually rational mechanisms.ntable SCFs in our environment if we add a few desirable axioms.

Influence of government policies on industry development: The case of India's automotive industry

The automotive industry in India has come a long way from its nascent state at the time of India's independence in 1947 to its present day dynamic form. As compared to the production of mere 4,000 vehicles in 1950, the production of the industry crossed the historic landmark of 10 million vehicles in 2006. Today, the industry produces a wide range of automobiles and auto-components catering to both the domestic as well as foreign markets. The development of the industry has been shaped by the demand on the one hand and the government interventions on the other; the influence of the latter being considerable. The evolution of India's automotive industry is identified to have occurred in four phases. In the first (1947-1965) and second phase (1966-1979), the important policies identified were related to protection, indigenisation and regulation of the industry. On the one hand, these policies helped India to build an indigenous automotive industry, while on the other it led to unsatisfactory industry performance. In the third phase (1980-1990), the single most important policy identified was the one with regard to relaxation in the means of technology acquisition. The foreign competition inducted into the industry transformed its dynamics. Lastly, in the fourth phase (1991 onwards) the liberalisation with regard to foreign investment had a significant influence on the Indian automotive industry as we see it today. This work traces the evolution of the automotive industry from its inception to present day and identifies the important policies made by the Indian government. The work also studies the influence of important policies on the development of the industry. --India,Automotive,Industrial Policy,Government Policy,Government Influence

Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?

Technological advancements, especially in Information and Communication Technologies (ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMEs) are no more immune to the challenges that the globalization brings about. It is a remarkable, and in certain instances worrisome, situation since SMEs play a key-role in most economies, in that they constitute the largest business block and provide the bulk of employment. However, opportunities presented by the globalization and the entwined, simultaneous pressure to innovate opens for SMEs new arenas to engage in what we may call are global innovation activities so as to gain, retain, and further strengthen the competitive position. This pressure to go for global innovation is enhanced by given socio-demographic factors, e.g. shortage of skilled labour, in many industrialized countries. This paper presents the findings of a survey by the authors carried out in the Metropolitan Region of Hamburg in Germany to identify barriers to innovation in selected industries and to work out solutions. The project RIS-Hamburg was initiated by the State Ministry of Economic and Labour Affairs in Hamburg and co-financed by the European Union (EU). The findings of this survey are here matched against perceived opportunities and challenges presented by global innovation. --Innovation Management,Barriers to Innovation,Globalization of Innovation,Research and Development,SME, Globalization,Small and Medium-sized Enterprises (SME),Internationalization of R&D,Research &Development

Implementing Efficient Graphs in Connection Networks

We consider the problem of sharing the cost of a network that meets the connection demands of a set of agents. The agents simultaneously choose paths in the network connecting their demand nodes. A mechanism splits the total cost of the network formed among the participants. We introduce two new properties of implementation. The first property, Pareto Nash Implementation (PNI), requires that the efficient outcome is always implemented in a Nash equilibrium, and that the efficient outcome Pareto dominates any other Nash equilibrium. The average cost mechanism (AC) and other asymmetric variations, are the only rules that meet PNI. These mechanisms are also characterized under Strong Nash Implementation. The second property, Weakly Pareto Nash Implementation (WPNI), requires that the least inefficient equilibrium Pareto dominate any other equilibrium. The egalitarian mechanism (EG), a variation of AC that meets individual rationality, and other asymmetric mechanisms are the only rules that meet WPNI and Individual Rationality. PNI and WPNI provide the first economic justification of the Price of Stability (PoS), a seemingly natural measure in the computer science literature but not easily embraced in economics. EG minimizes the PoS across all individually rational mechanisms.Cost-sharing, Implementation, Average Cost, Egalitarian Mechanism.

Lead market factors for global innovation: Emerging evidence from India

Securing access to lead markets is generally regarded as a key driver for the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for in the innovation process of firms. Lead markets are generally defined in terms of product segments within national boundaries and are thought to exist in economies with high per capita income, highly sophisticated markets and high international visibility. We argue that there is increasing evidence of lead market tendencies in certain emerging economies, e.g. India. Both domestic and foreign-owned firms there, in recent years, have produced several internationally acclaimed frugal innovations such as the Tata Nano or GE's handheld ECG machine Mac400. Using several examples we demonstrate that India seems to have emerged as a global hub for low-cost, frugal innovations. In this paper, we seek to crystallize the role of lead markets in globalization of R&D and identify the need for an update/extension to better reflect the changed ground realities. On the basis of emerging evidence we propose that sustained economic growth, voluminous markets, strong domestic technological capabilities, presence of foreign-owned R&D, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid worldwide. --globalization of innovation,lead markets,internationalization of R&D,frugal innovations,bottom of the pyramid

The Equity Premium in Retrospect

This article takes a critical look at the literature on equity premium puzzle - the inability of standard intertemporal economic models to rationalize the statistics that have characterized U.S. financial markets over the past century. A summary of historical returns for the United States and other industrialized countries and an overview of the economic construct itself are provided. The intuition behind the discrepancy between model prediction and empirical data is explained and the research efforts to enhance the model's ability to replicate the empirical data are summarized.

Challenges of the multicultural workforce which effect business growth and service

This research is based on the multicultural workforce of a local cleaning organisation. The main question of the research is what are the challenges faced by this multicultural organisation for making good relationships between employer and employee? The aim of the research is based on the challenges and effects of multicultural organisations on the growth of business and quality of services. The research methodology used is qualitative and the data collection method was interviews. Results of the research are based on thematic analysis methods and direct toward communication barriers, teamwork, cultural values or thinking of diverse employees. The multicultural workforce helps in the growth of the business and improves the service quality of the business

The mobile commerce technologies: Generations, standards and protocols

Mobile Commerce has staged a remarkable come-back. Driven by the technological innovations in the field of telecommunications, it is showing signs of a healthy recovery. The collapse of the dot-com boom in 2001/2002 had dealt a severe blow not only to Electronic Commerce but also to Mobile Commerce, which was just about developing at that time. In addition to a general lack of customer demand for mobile, location-based, services, it suffered heavily under the technical deficiencies of end-devices, slow data transmission and unripe technological standards. These factors in turn had a negative impact on the customer acceptance of mobile services and whatever little demand was available, was rendered useless. Many of the environmental conditions have changed since then. Technology innovations have reduced many barriers to acceptance. Increasing globalization has led to more mobility and therefore to greater demand for mobile, ubiquitios services that can be consumed anytime, anywher. This paper examines different telecommunication technologies regarding their suitablilty and deficiencies. It provides an overview over the historical development of mobile technologies while pointing towards the expected future scenario. --Mobile Commerce,M-Commerce,UMTS,WLAN,3G