The Impact of Free Riding on Price and Service Competition in the Presence of E-Commerce Retailers

2002 ◽  
Author(s):  
Steven Strauss
Keyword(s):  
Free Riding ◽  
Service Competition ◽  
The Impact

Een halve eeuw vakbondslidmaatschap : Een verkennende longitudinale studie naar enkele cyclische determinanten voor de ledenontwikkeling van de Belgische vakbonden, 1946-1995

Res Publica ◽  
2004 ◽  
Vol 46 (1) ◽  
pp. 6-32
Author(s):  
Kurt Vandaele
Keyword(s):  
Trade Union ◽  
Union Membership ◽  
Trade Unions ◽  
Econometric Model ◽  
Positive Impact ◽  
Union Density ◽  
Free Riding ◽  
Structural Variable ◽  
Explanatory Variables ◽  
The Impact

This article explains the ebb and flow in Belgian trade union membership from 1946 to 1995 by replicating the econometric model by Bain and Elsheikhn in which changes in macro-economic variables are highly significant. Since the automatic indexation of wages and the extension of collective labour agreements invite free riding, the relevance of the change in inflation and real wage is quite striking. However, the free riding-effect is slowed down by the institutionalised presence of the trade unions on the work floor. The Ghent system explains the positive impact of the unemployment rate . The model is furthermore improved by the trade union density as a structural variable. The linear form reflects the enforcement effect, while the quadratic form mirrors the saturation effect on the trade union membership. Mainly due to the 'Allgemeinkoalitionsfähighkeit' of the Belgian government system, the impact of left parties on union growth and decline is not significant in a quantitative framework. With only four explanatory variables the model clarifies more than 75% of the fluctuations in Belgian trade union membership.

scholarly journals The Impact of Team Identity and Gender on Free-Riding Responses to Fear and Cooperation Sustainability

2020 ◽  
Vol 12 (19) ◽  
pp. 8175 ◽  
Author(s):  
Laura Gomez-Ruiz ◽  
María J. Sánchez-Expósito
Keyword(s):  
Interaction Effect ◽  
Risk Preferences ◽  
Social Dilemma ◽  
Free Riding ◽  
Team Identity ◽  
Men And Women ◽  
Team Members ◽  
Free Ride ◽  
And Gender ◽  
The Impact

This study explores the interaction effect of team identity and gender on free-riding responses to fear and cooperation sustainability in a social dilemma situation. Based on differences in inequity aversion, risk preferences, and reaction to competition between men and women, we predict that team identity reduces free-riding behaviors among men when they feel fear to be exploited by others teammates that free-ride, but that it does not affect women in this way. Consequently, we also predict that the effect of team identity on cooperation sustainability differs between the two genders. We conducted an experiment in which dominant incentives to free-ride were held constant over 30 periods and where agents had to make a decision between cooperation and free-riding in each period. After each decision, agents received teammates’ contribution and earnings, which facilitates that agents identify whether their team members free-ride. Our findings show no effect for team identity on free-riding response to fear among women. However, team identity affects free-riding response to fear among men, which positively impacts cooperation sustainability.

SERVICE COMPETITION, FIRM PERFORMANCE AND RESOURCE ALLOCATION IN MANUFACTURING: EVIDENCE FROM FIRM-LEVEL DATA IN CHINA

2013 ◽  
Vol 10 (04) ◽  
pp. 1350010 ◽  
Author(s):  
LEI LIN ◽  
GUISHENG WU
Keyword(s):  
Resource Allocation ◽  
Developing Countries ◽  
Firm Performance ◽  
Financial Performance ◽  
Developed Countries ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Service Competition ◽  
Resource Endowment ◽  
The Impact

Service-based differentiation competitive strategy has been hugely adopted by manufacturing firms in both developing and developed countries, which would influence firm performance and resource allocation mode. Against the background of developing countries such as China, this empirical study has two purposes. The first is to investigate the impact of service competition on firm performance. The second is to summarize the resource allocation mode which executives would adopt to implement service competition. Based on service-dominant (SD) logic, resource-based view (RBV) and service marketing theory, this paper constructs a theoretical framework to link the organizational resources (product-related resources and service-related resources), competitive advantage (product quality and service quality) and firm performance (financial performance and non-financial performance), and proposes several hypotheses about the relationships among these constructs. Based on the survey data obtained from manufacturing firms in China in 2006, this paper employs a structural equation modeling (SEM) approach with interaction effect involved to test the hypotheses. Several findings are found through data analysis. First, service competition has positive and significant impact on firm performance, and the contribution of product-related inputs on performance is much larger than that of service-related inputs. This implies that though the impact on performance of service competition is comparatively lower, service can still be the source of product differentiation and act as a positive complement to product-based competition. Second, consistent with our theoretical expectation, the finding indicates that there is a substitutive relationship between service-related resource and product-related resource to a certain degree, though weakly supported by data. This can be explained by the factors such as China's initial resource endowment, low-level stage of the market and the industry, etc. Finally, the paper discusses the theoretical and managerial implications of the research findings, which would provide empirical supports for the implementation of service-based differentiation strategy in manufacturing in developing countries.

scholarly journals Coordination of Advertising Free Riding in Hybrid Channel Supply Chain

2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Jin Sha ◽  
Aihu Wang ◽  
Ting Lv ◽  
Wenling Wu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Orthogonal Experiment ◽  
Free Riding ◽  
Market Expansion ◽  
Positive Externalities ◽  
Common Effect ◽  
Demand Creation ◽  
The Impact ◽  
The Relationship

Advertising is a crucial tool for demand creation and market expansion; enterprises in supply chain use it widely to increase sales and improve profits. But the homogeneity of products sold in hybrid channel supply chain magnifies the positive externalities of advertising and leads to serious free-riding problem. To coordinate the supply chain effectively, firstly, this paper classifies hybrid channel supply chain based on the relationship between members and selects horizontally integrated, vertically integrated, and decentralized hybrid channel supply chains as research objects. Then, a demand function considering the common effect of price and advertising is proposed and coordination schemes for different types of supply chains are designed. Finally, a sensitivity analysis is performed to assess the impact of parameters on coordination using orthogonal experiment.

scholarly journals Essays on the interaction between multilateral tariff bindings and the formation of preferential trade agreements

2021 ◽  
Author(s):  
Nken Moise
Keyword(s):  
Free Trade ◽  
Comparative Advantage ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Free Riding ◽  
Preferential Trade Agreements ◽  
Customs Union ◽  
Preferential Trade ◽  
High Tariff ◽  
The Impact

This dissertation studies the effect of continual reduction in the tariff bindings and its implications on the static and dynamic formation of preferential trade agreements (PTAs). Underlying trade model is a three country \competing exporters" model. First, utilizing a static game of endogenous trade agreement formation between three countries, we examine the effects of continual reduction in tariff bindings on the role of PTA formation in attaining global free trade. We show that, in the free trade agreement (FTA) formation game, when countries are completely symmetric, free trade always obtains as the coalition-proof Nash equilibrium (CPNE) of the FTA game. Under the customs union (CU) game, CU members exercise an exclusion incentive and free trade fails to be a CPNE. When countries are asymmetric with respect to their comparative advantage, the country with a weaker comparative advantage has an incentive to free ride on trade liberalization of the two others and continual reduction in tariff bindings facilitates FTA formation in attaining global free trade. Next, we employ a three country dynamic model of PTA formation where countries form PTAs over time and investigate the impact of multilateral tariff binding liberalization on the equilibrium extent of FTA and CU formation in isolation. When forming FTAs under relatively high tariff bindings, a myopic free riding incentive of FTA non-members constrains FTA formation. Thus, tariff binding liberalization can facilitate FTA expansion to global free trade. However, when forward looking countries do not value this myopic free riding incentive, tariff binding liberalization can impede FTA expansion to global free trade. In our CU game, CU formation proceeds to global free trade only for relatively high tariff bindings. Finally, we examine the PTA game where countries endogenously choose between CU and FTA formation. Under such a game, we show that the equilibrium emergence of CUs can prevent global free trade that would otherwise occur through FTAs. In contrast, the equilibrium emergence of FTAs can facilitate global free trade that would otherwise not occur through CUs.

scholarly journals Does Farmland Scale Management Promote Rural Collective Action? An Empirical Study of Canal Irrigation Systems in China

Land ◽  
2021 ◽  
Vol 10 (11) ◽  
pp. 1263
Author(s):  
Liangzhen Zang ◽  
Yahua Wang ◽  
Yiqing Su
Keyword(s):  
Collective Action ◽  
Public Goods ◽  
Production Efficiency ◽  
Arable Land ◽  
Free Riding ◽  
Production Costs ◽  
Rural Public Goods ◽  
The Impact ◽  
Farming Households ◽  
Scale Management

Farmland scale management represents an inevitable trend toward global modern agriculture. In the new development context, the key to solving the tough problem of the insufficient supply of rural public goods is to effectively improve the enthusiasm of farming households to participate in rural collective action in countries with a small arable area per capita, such as India, China and countries in Eastern Europe. This paper adopts the Institutional Analysis and Development (IAD) framework in the context of a land system with Chinese characteristics, and uses sample data of 3663 rural households in 17 provinces to study the impact of farmland scale and various relevant systems on farming households’ participation in rural collective action. We found that the advantages of collective action, such as reduced production costs, enhanced risk resistance and improved production efficiency, can offset the disadvantages incurred by free-riding behavior, and the expansion of farmland scale can significantly facilitate rural collective action. Additionally, as the farmland scale expands, stable farmland tenure and reasonable farmland tenure transfer can help to optimize the allocation of arable land resources, increase investment, and reduce free-riding behavior, thus effectively stimulating farming households to actively participate in collective action. However, since socialized agricultural services lead to the separation of the suppliers and the users of rural public goods, the expansion of farmland scale shows a negative effect. Therefore, in the context of the continuous migration of the rural population to cities, a stable farmland tenure adjustment mechanism should be established, while the balance between farmland tenure transfer and socialized agricultural services, in pushing forward rural collective action, should be emphasized, so as to ensure the effective supply of rural public goods in propelling farmland scale management. Especially in promoting the development of socialized agricultural services, more attention should be paid to specifying the responsibilities and obligations of the main provider of commercialized services in the supply of rural public goods.

scholarly journals Optimum Frequency of Peer Evaluations in Capstone Design Courses

2017 ◽  
Author(s):  
Michel F. Couturier ◽  
Guida Bendrich
Keyword(s):  
Free Riding ◽  
Relative Performance ◽  
Optimum Frequency ◽  
Peer Ratings ◽  
Final Grade ◽  
Peer Evaluations ◽  
Senior Design ◽  
Developmental Feedback ◽  
The Impact ◽  
Capstone Design Courses

Peer evaluations are commonly used in design courses for developmental and evaluative purposes. Peer ratings are however often higher than the instructor ratings and this can induce fears regarding their reliability. This study examined whether it may be possible to increase the agreement between peer and instructor ratings by increasing the frequency of the peer assessments. The premise was that peers may provide less lenient assessments if the impact of single evaluations on the final grade is reduced by increasing the number of evaluations. Increasing the number of peer evaluations in our senior design course from two to six per year did not increase the accuracy of the peer ratings but provided other benefits such as earlier identification of dysfunctional teams, elimination of free riding and more frequent developmental feedback. Peer and instructor ratings can be normalized however to yield similar indicators of the relative performance of teammates. The frequency and timing of peer evaluations are critical to obtain meaningful results and maximize impact on team dynamics

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