EXPRESS: Learning to Set Prices

2021 ◽  
pp. 002224372110685
Author(s):  
Yufeng Huang ◽  
Paul B. Ellickson ◽  
Mitchell J. Lovett
Keyword(s):  
Learning Process ◽  
Firm Behavior ◽  
Profit Maximization ◽  
Washington State ◽  
Previous Experience ◽  
Firm Capabilities ◽  
Rational Models ◽  
Heterogeneous Firm ◽  
Firm Conduct ◽  
Firm Learning

The authors empirically examine how firms learn to set prices in a new market. The 2012 privatization of off-premise liquor sales in Washington State created a unique opportunity to observe retailers learn to set prices from the point at which their learning process began. Tracking this market as it evolved through time, the authors find that firms indeed learn to set more profitable prices, that these prices increasingly reflect demand fundamentals, and they ultimately converge to levels consistent with (static) profit maximization. The paper further demonstrates that initial pricing mistakes are largest for products whose demand conditions differ the most from those of previously privatized markets, that retailers with previous experience in the category are initially better-informed, and that learning is faster for products with more precise sales information. These findings indicate that firm behavior converges to rational models of firm conduct, but also reveal that such convergence takes time to unfold and play out differently for different firms. These patterns suggest important roles for both firm learning and heterogeneous firm capabilities.

The flexibility of corporate payouts vis-à-vis capital investment: some UK evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ioannis Chasiotis ◽  
Andreas G. Georgantopoulos
Keyword(s):  
Fixed Effects ◽  
Firm Behavior ◽  
Estimation Methods ◽  
Share Repurchases ◽  
Quantile Regressions ◽  
Growth Opportunities ◽  
Content Type ◽  
Conditional Mean ◽  
Heterogeneous Firm ◽  
The Uk

PurposeThis study investigates the relative flexibility of payouts vis-à-vis investment in the UK, motivated by concerns regarding this market's distinct payout characteristics and limited relevant research. It addresses the information gap related to the use of conditional mean estimations and examines firm behavior across the investment distribution.Design/methodology/approachThe sample is an unbalanced panel of 6,173 firm-year observations, from 271 non-financial firms in the FTSE-All Share Index, during 1990–2019. Estimation methods include pooled- ordinary least squares (OLS) and firm fixed-effects regressions as well as unconditional quantile regressions with firm fixed effects.FindingsFor the “average” firm results show a negative relationship between share repurchases and investment, amplified in the presence of financial constraints and growth opportunities. Quantile regressions analysis reveals heterogeneous firm behavior as this relationship becomes stronger in successive quantiles of the investment distribution and disappears at the upper/lower extremes. Results suggest that UK firms exploit the inherent flexibility of share repurchases to facilitate investment. However, this flexibility appears irrelevant to firms with extremely high/low investment, characterized by significant differences in growth opportunities, cash flows and external financing cost. Dividends and investment are independent across the investment distribution, underlining the rigidity of dividends in the UK.Originality/valueTo the best of our knowledge, this is the first study to investigate the relative flexibility of payouts vis-à-vis investment in the UK, using firm-level financial data and at points other than the conditional mean. Its value lies in that it shows that share repurchases facilitate rather than impede investment and thus do not corroborate relevant concerns by economists and policymakers. Additionally, by utilizing a relatively new methodology it uncovered heterogeneous firm behavior across the investment distribution suggesting that conditional mean estimations should be applied with caution at least for highly heterogeneous samples.

scholarly journals Analysis of previous perceptual and motor experience in breaststroke kick learning

2015 ◽  
Vol 16 (4) ◽  
Author(s):  
Bettina Ried ◽  
Graciele Massoli Rodrigues ◽  
Cássio Miranda Meira
Keyword(s):  
Physical Education ◽  
Learning Process ◽  
Effect Size ◽  
Spatial Configuration ◽  
Previous Experience ◽  
Stroke Index ◽  
Education Students ◽  
Large Effect Size ◽  
Positive Effects ◽  
Physical Education Students

AbstractOne of the variables that influence motor learning is the learner’s previous experience, which may provide perceptual and motor elements to be transferred to a novel motor skill. For swimming skills, several motor experiences may prove effective. Purpose. The aim was to analyse the influence of previous experience in playing in water, swimming lessons, and music or dance lessons on learning the breaststroke kick. Methods. The study involved 39 Physical Education students possessing basic swimming skills, but not the breaststroke, who performed 400 acquisition trials followed by 50 retention and 50 transfer trials, during which stroke index as well as rhythmic and spatial configuration indices were mapped, and answered a yes/no questionnaire regarding previous experience. Data were analysed by ANOVA (p = 0.05) and the effect size (Cohen’s d ≥0.8 indicating large effect size). Results. The whole sample improved their stroke index and spatial configuration index, but not their rhythmic configuration index. Although differences between groups were not significant, two types of experience showed large practical effects on learning: childhood water playing experience only showed major practically relevant positive effects, and no experience in any of the three fields hampered the learning process. Conclusions. The results point towards diverse impact of previous experience regarding rhythmic activities, swimming lessons, and especially with playing in water during childhood, on learning the breaststroke kick.

Rewarding the good and penalizing the bad? Consumers’ reaction to food retailers’ conduct

2018 ◽  
Vol 120 (11) ◽  
pp. 2539-2553 ◽  
Author(s):  
Ha Thi Mai Vo ◽  
Monika Hartmann ◽  
Nina Langen
Keyword(s):  
Online Survey ◽  
Firm Behavior ◽  
Ethical Issues ◽  
Shopping Behavior ◽  
Negativity Bias ◽  
Content Type ◽  
Multivariate Tests ◽  
Responsible Conduct ◽  
Food Retailers ◽  
Firm Conduct

Purpose The purpose of this paper is to obtain insights into Vietnamese consumers’ knowledge and relevance of as well as their reaction to modern food retailers (MFRs) responsible and irresponsible conduct. Design/methodology/approach Data were obtained from an online survey applying content analysis, uni- and multivariate tests and multivariate regression models. Findings In total, 60 percent of respondents are not aware of (ir)responsible conduct of MFR. Most of those aware of such behavior indicate that this has induced a change in their shopping behavior. This holds to a similar extent for those not aware but envisaging the (ir)responsible conduct of MFRs. The findings point to a negativity bias in that consumers’ reaction is more sensitive regarding irresponsible than responsible firm behavior. This bias is higher for consumers already knowledgeable about the (ir)responsible behavior of MFRs. The likelihood that consumers punish irresponsible conduct is influenced by the importance they attach to “food quality and safety” while those having high concerns for environmental, social and ethical’ issues are more likely to reward responsible firm actions. Research limitations/implications The negativity bias which implies that consumers react more sensitive regarding irresponsible than responsible firm behavior is likely underestimated in hypothetical studies. Practical implications Customer loyalty is at stake for MFRs behaving irresponsible while it can be strengthened by responsible firm conduct. Originality/value This research is the first to highlight the importance consumers in Vietnam attach to responsible firm conduct. It also points to a lack of awareness of such behavior.

scholarly journals Information and Quality When Motivation is Intrinsic: Evidence from Surgeon Report Cards

2013 ◽  
Vol 103 (7) ◽  
pp. 2875-2910 ◽  
Author(s):  
Jonathan T Kolstad
Keyword(s):  
Firm Behavior ◽  
Profit Maximization ◽  
Report Cards ◽  
Relative Role ◽  
Market Demand ◽  
Response Information ◽  
New Information ◽  
Alternate Model ◽  
Profit Incentives

If profit maximization is the objective of a firm, new information about quality should affect firm behavior only through its effects on market demand. I consider an alternate model in which suppliers are motivated by a desire to perform well in addition to profit. The introduction of quality “report cards” for cardiac surgery in Pennsylvania provides an empirical setting to isolate the relative role of extrinsic and intrinsic incentives in determining surgeon response. Information on performance that was new to surgeons and unrelated to patient demand led to an intrinsic response four times larger than surgeon response to profit incentives. (JEL D83, I11, L15)

Turning Marketing Students into Active Citizens

2019 ◽  
pp. 983-1000
Author(s):  
Krittinee Nuttavuthisit
Keyword(s):  
21St Century ◽  
Learning Process ◽  
Profit Maximization ◽  
Social Aspect ◽  
Social Domain ◽  
Marketing Education ◽  
The Social ◽  
Or Organization

This chapter discusses the learning of consumption and marketing within the context of social-related issues. The objectives are to expand dimensions of marketing education into a wider perspective beyond the economic focus to the social domain. Exploring the different contexts can help uncover a deeper perspective beyond general concepts of consumption and marketing. Moreover, considering the social aspect can enhance a longer perspective of business beyond current profit maximization, particularly in the 21st century with its emphasis on sustainability. The learning process can follow the four main steps of understanding the problem, introducing the solution, engaging participation (with real actions to support the project or organization), and evaluating output and outcome. These processes are elaborated together with examples of real practices and summarized learning derived from the classes conducted in Thailand. Not only can this benefit the students, but also the overall business and the society by turning marketing students into active citizens.

Dividends and Investment: Evidence of Heterogeneous Firm Behavior

2015 ◽  
Author(s):  
Aparna Mathur ◽  
Nirupama Rao ◽  
Michael R. Strain ◽  
Stan Veuger
Keyword(s):  
Firm Behavior ◽  
Heterogeneous Firm

Examination of Novice Coaches’ Previous Experience as Athletes: Examples of Autonomy Support and Controlling Behaviors as Influences on Future Coaching Practice

2021 ◽  
Vol 8 (1) ◽  
pp. 48-61
Author(s):  
Diane Benish ◽  
Jody Langdon ◽  
Brian Culp
Keyword(s):  
Informal Learning ◽  
Learning Process ◽  
Autonomy Support ◽  
Interview Data ◽  
Previous Experience ◽  
Coaching Behaviors ◽  
Supportive Behaviors ◽  
And Behaviors ◽  
Past Experiences ◽  
Controlling Behaviors

As part of a coach’s informal learning process, previous athletic experience is a foundational element of an athlete’s future coaching career, determining the perspectives, beliefs, and behaviors the coach will use in their interactions with athletes. Although it is investigated more generally, previous athletic experience is rarely considered in understanding specific coaching behaviors related to supporting athletes’ needs and motivation. This study investigated 15 novice coaches’ personal athletic and coaching experiences to determine how these experiences influenced their own coaching practice with regard to the engagement in autonomy-supportive and/or controlling behaviors. The interview data revealed that novice coaches used their past experiences to inform their practice in the following three ways: (a) experienced controlling behaviors as an athlete, which transferred to a desire to be more autonomy supportive in coaching; (b) experienced controlling behaviors as an athlete, which transferred to a desire to be more controlling in coaching; and (c) experienced autonomy-supportive behaviors as an athlete, which transferred to a desire to be more autonomy supportive in coaching. These results suggest the importance of considering previous athletic experience as an antecedent to coaches’ engagement in autonomy-supportive behaviors.

Turning Marketing Students into Active Citizens

2016 ◽  
pp. 77-94
Author(s):  
Krittinee Nuttavuthisit
Keyword(s):  
21St Century ◽  
Learning Process ◽  
Profit Maximization ◽  
Social Aspect ◽  
Social Domain ◽  
Marketing Education ◽  
The Social ◽  
Or Organization

This chapter discusses the learning of consumption and marketing within the context of social-related issues. The objectives are to expand dimensions of marketing education into a wider perspective beyond the economic focus to the social domain. Exploring the different contexts can help uncover a deeper perspective beyond general concepts of consumption and marketing. Moreover, considering the social aspect can enhance a longer perspective of business beyond current profit maximization, particularly in the 21st century with its emphasis on sustainability. The learning process can follow the four main steps of understanding the problem, introducing the solution, engaging participation (with real actions to support the project or organization), and evaluating output and outcome. These processes are elaborated together with examples of real practices and summarized learning derived from the classes conducted in Thailand. Not only can this benefit the students, but also the overall business and the society by turning marketing students into active citizens.

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