Declining Search Frictions and Type-of-Employment Choice

Many jurisdictions around the world have deregulated utilities and opened retail markets to competition. However, inertial decision making can diminish consumer benefits of retail competition. Using household-level data from the Texas residential electricity market, we document evidence of consumer inertia. We estimate an econometric model of retail choice to measure two sources of inertia: search frictions/inattention and a brand advantage that consumers afford the incumbent. We find that households rarely search for alternative retailers, and when they do search, households attach a brand advantage to the incumbent. Counterfactual experiments show that low-cost information interventions can notably increase consumer surplus. (JEL D12, D83, L81, L94, L98, M31)

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INTERNATIONAL DEVIATIONS FROM THE LAW OF ONE PRICE: THE ROLE OF SEARCH FRICTIONS AND MARKET SHARE*

International Economic Review ◽

10.1111/j.0020-6598.2004.00305.x ◽

2004 ◽

Vol 45 (4) ◽

pp. 1263-1291 ◽

Cited By ~ 31

Author(s):

George Alessandria

Keyword(s):

Market Share ◽

Law Of One Price ◽

Search Frictions ◽

The Law

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Entrepreneurial mindset and the role of universities as strategic drivers of entrepreneurship

Journal of Small Business and Enterprise Development ◽

10.1108/jsbed-07-2016-0117 ◽

2017 ◽

Vol 24 (1) ◽

pp. 136-157 ◽

Cited By ~ 22

Author(s):

Fauzia Jabeen ◽

Mohd. Nishat Faisal ◽

Marios I. Katsioloudes

Keyword(s):

United Arab Emirates ◽

Structural Model ◽

Economic Incentives ◽

Entrepreneurial Success ◽

Content Type ◽

Employment Choice ◽

Strategic Factors ◽

Modelling Methodology ◽

The Government

Purpose The purpose of this paper is to provide insight into the factors that influence the mindset of youth in the United Arab Emirates (UAE) in choosing entrepreneurship as their future employment. It also suggests the pathway to improve the role of the universities as strategic drivers in inducing an entrepreneurial mindset. Design/methodology/approach An exhaustive literature review of extant research followed by an exploratory study was conducted. Furthermore, to understand factors influencing the role of universities, interpretive structural modelling methodology is applied to evolve a hierarchy-based relationship among the strategic factors. Findings The results of empirical research suggest that young people in the UAE rank entrepreneurship as their first employment choice. However, most of them have not attended any formal entrepreneurship-related course in school or in college. The study also suggests that individual and environmental factors influence the entrepreneurial mindset of both males and females in the UAE. The structural model developed in the study indicates that to give an impetus to the entrepreneurial mindset, the government must create a supporting environment with UAE universities playing the role of a catalyst. Practical implications Professional entrepreneurship instruction is seen as a strategic tool to stimulate financial and societal growth. The results could provide insights for both entrepreneurship educators and policymakers and will boost their commitment to promote the entrepreneurial mindset within UAE society by enhancing and developing traits associated with entrepreneurial success. The results support recognition of the factors that induce educational programmes and economic incentives targeted at the development of sustainable entrepreneurial culture and ventures in the UAE. Originality/value The study is an effort to highlight the role of higher education in envisaging and cultivating entrepreneurs in a fast-growing developing country through a survey and a hierarchy-based model.

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