2022
Authors
Laussel, D; Long, NV; Resende, J;
Publication
JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Abstract
Using a Markov-perfect equilibrium model, we show that the use of customer data to practice intertemporal price discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U-shaped relationship lends support to a popular view that knowledge is good only if it is sufficiently refined. When information accuracy can only be achieved through costly investment, we find that investing in profiling is profitable only if this allows to reach a high enough level of information precision. Consumers expected surplus being a hump-shaped function of information accuracy, we show that consumers have an incentive to lobby for privacy protection legislation which raises the cost of monopoly's investment in information accuracy. However, this cost should not dissuade firms to collect some information on customers' tastes, as the absence of consumers' profiling is actually detrimental to consumers.
2022
Authors
Laussel, D; Resende, J;
Publication
MANAGEMENT SCIENCE
Abstract
This paper investigates duopoly competition when horizontally differentiated firms are able to make personalized product-price offers to returning customers, within a behavior-based discrimination model. In the second period, firms can profile old customers according to their preferences, selling them targeted products at personalized prices. Product-price personalization (PP) allows firms to retain all old customers, eliminating second-period customer poaching. The overall profit effects of PP are shown to be ambiguous. In the second period, PP improves the matching between customers??? preferences and firms??? offers, but firms do not make any revenues in the rival???s turf. In the Bertrand outcome, second-period profits only increase for both firms if the size of their old turfs are not too different or initial products are not too differentiated. However, the additional secondperiod profits may be offset by lower first-period profits. PP is likely to increase firms??? overall discounted profits when consumers??? (firms???) discount factor is low (high) and firms??? initial products are exogenous and sufficiently different. When the location of initial products is endogenous, profits are hurt because of an additional location (strategic) effect aggravating head-to-head competition in the first period. Likewise, when a fraction of active consumers conceals their identity, PP increases second-period profits at the cost of aggressive first-period price competition. Finally, we show that the room for profitable PP enlarges considerably if firms rely on PP as an effective device to sustain tacit collusive outcomes, with firms credibly threatening to respond to first-period price deviations with
2022
Authors
Costa, J;
Publication
Research Anthology on Strategies for Maintaining Successful Family Firms
Abstract
Worldwide, family businesses are one of the cornerstones of the entrepreneurial fabric, being as a consequence central to growth and development. In a globalized era, these institutions require the attention of businessmen, practitioners, and policymakers. The chapter seeks to examine if the internationalization performance does vary according to firm size, and its link to the innovative performance in multiple dimensions along with conventional characteristics such as age and turnover. Theoretical research evidences the interest in understanding the patterns and determinants of the internationalization performance, given its importance in firm growth and survival; however, this strategical option brings advantages and problems. Empirical evidence demonstrates that the determinants do change according to firm dimension; estimations provide valuable insights about the connection between globalized operation and innovation, for the different organisations. © 2022 by IGI Global. All rights reserved.
2022
Authors
Costa, J;
Publication
ECONOMIES
Abstract
COVID-19 is the last nail in the coffin of globalization as we know it. This research aims to explore the influence of capital ownership in the (re)design of internationalization strategies among firms, considering the new macroeconomic challenges. It is commonly accepted that the extent to which family businesses approach internationalization differs from their counterparts; as such, the identification of leverages or hinderers in this process and the potential singularities of these firms is urgent. Intermittences in global operation and discontinuous internationalization paths remain overlooked in the theory. Continuity or intermittence across the internationalization strategies, as well as their determinants, were tested using data from the triennia of 2018, 2019, and 2020; the data were gathered from the Iberian Balance Sheet Analysis System Database (SABI), through a balanced panel of 26,154 firms belonging to all sectors of the manufacturing industry. Empirical evidence supports the heterogeneity of strategies among family businesses, as well as dissimilarities from their non-family counterparts. The firm dimension, experience in global operation, and the regional ecosystem in which the firm is embedded are identified as being central in internationalization endeavors. Urgency and assertiveness of policy action addressing the new macroeconomic challenges are required to foster economic recovery, and exploring extant entrepreneurial fabric potential and the already-established networks will determine the pace and success of the measures. Moreover, empirical evidence reinforces region-specific actions to be implemented, proposing the re-location of economic activities while promoting the intensification of spatial clustering and international networking. Designing an accurate policy package places demands upon heterogeneous players and layers of action, overlapping clusters and networks, and the creation of a multilevel ecosystem in which the flow of economic, human, and knowledge aspects circulate, reinforcing community resilience.
2022
Authors
Costa, J;
Publication
Research Anthology on Strategies for Maintaining Successful Family Firms
Abstract
Family businesses (FBs) are central to economies: In Portugal the impact of these structures reaches 2/3 of the GDP, 1/2 of the labour force, and 4/5 of the firms in operation, most of them being SMEs. These organisations play a central role in terms of job creation, local development, knowledge transfer, and territorial cohesion. Innovative activities are key factors for competitive economies; yet innovation increases risk exposure and FBs are conservative and risk adverse, resisting change, relying on internal factors rather than opening to the external environment, consequently postponing innovation and thus pledging their future. Their embedded culture reduces innovative propensity; still, the existence loyalty trust and informal networks enhance individual or collective innovation processes. Using a dataset of 110 FBs innovation and internationalization along with other structural characteristics are connected to their economic performance, shedding light on the determinants FB economic efficiency. Given their importance, made-to-measure policy schemes should be designed. © 2022 by IGI Global. All rights reserved.
2022
Authors
Costa, J; Moreira, AC;
Publication
Journal of Open Innovation: Technology, Market, and Complexity
Abstract
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