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In a search model, prospects encounter salespeople who can try to persuade them. Persuasive messages can increase the … utility of buying or increase the cost of not buying. The latter reduces welfare. Equilibria where only some salespeople make … a persuasive effort often exist. Salespeople vary in their empathy, and choose their jobs accordingly. When all …
Persistent link: https://www.econbiz.de/10012462677
This paper examines complementarity among vertical integration decisions in automobile product development. Though most research assumes that contracting choices are independent of each other, contracting complementarity arises when the returns to a single vertical integration decision are...
Persistent link: https://www.econbiz.de/10012465421
Using an original data source, this paper investigates the circumstances under which firms adopt computer numerical control (CNC), an important type of flexible automation which can significantly increase productivity, product variety and quality. The paper shows that arms'-length...
Persistent link: https://www.econbiz.de/10012473597
We study the performance of small retail sales teams facing an incentive scheme that includes both a lump sum bonus and multiple accelerators (kinks where the piece rate jumps upward). Consistent with standard labor supply models, we find that the presence of an attainable bonus or kink on a...
Persistent link: https://www.econbiz.de/10012482702
This study considers the role that seller motivation plays in determining sales price and selling time. We find that sale prices are directly related to the estimated value of the property and to the amount of over-pricing, which is directly related to the seller's level of motivation. Further,...
Persistent link: https://www.econbiz.de/10012473818
Sales agents are impatient relative to owners. If a good fails to sell, the owner still retains possession of that good and can enjoy its services, whereas the agent receives nothing. As a consequence, sales agents prefer a lower price than does an owner. Owners are therefore reluctant to...
Persistent link: https://www.econbiz.de/10012458136
With a large nationwide retailer, we run a natural field experiment to measure the effects of energy use information disclosure, customer rebates, and sales agent incentives on demand for energy efficient durable goods. While a combination of large rebates plus sales incentives substantially...
Persistent link: https://www.econbiz.de/10012458616
Are foreign production and exports substitutes or complements? The continuing globalization of production makes the question of the relationship between trade and foreign direct investment ever more important. Standard theory of the multinational corporation (MNC) assumes substitution, while...
Persistent link: https://www.econbiz.de/10012471633
We construct measures of industry performance and welfare in the U.S. car and light truck market from 1980-2018. We estimate a differentiated products demand model for this market using product level data on market shares, prices, and product characteristics, and consumer level data on...
Persistent link: https://www.econbiz.de/10012599303
Persistent link: https://www.econbiz.de/10012477119