infonet-economy

This paper examines the relationship between brand equity and customer acquisition, retention, and profit margin, the key components of customer lifetime value (CLV). We examine a unique database from the U.S. automobile market that combines 10 years of acquisition rate, retention rate, and customer profitability data with measures of brand equity from Young & Rubicam’s Brand...

Static and dynamic games are important tools for the analysis of strategic interactions among economic agents and have found many applications in economics. In many games, equilibria can be described as solutions of polynomial equations. In this paper, we describe state-of-the-art techniques for finding all solutions of polynomial systems of equations, and illustrate these techniques...

We investigate the socially optimal intervention in the global carbon cycle. Limiting factors are (i) increasing atmospheric carbon concentration due to fossil fuel-related carbon emissions, and (ii) the inertia of the global carbon cycle itself. Accordingly, we explicitly include the largest non-atmospheric carbon reservoir, the ocean, to achieve a better representation of the...

There are two important rules to patent races: minimal accomplishment necessary to receive the patent and the allocation of the innovation benefits. We study the optimal combination of these rules. A planner, who cannot distinguish between competing firms in a multistage innovation race, chooses the patent rules by maximizing either consumer or social surplus. We show that efficiency...

In order to avoid too many tied games after playing the five-minute overtime period, the National Hockey League (NHL) introduced two rule changes in the 1999-2000 season. First, a team that loses in overtime receives one point instead of zero points. Second, the number of skaters in overtime is reduced from five to four. The theoretical literature analyzing these rule changes...

Although consumers increasingly use online communities for various activities, little is known about how participation in them affects people's decision-making strategies. Through a series of field and laboratory studies, the authors demonstrate that participation in an online community increases people's risk-seeking tendencies in their financial decisions and behaviors....

Terrorism is a complex problem and therefore simple solutions focusing just on one aspect are destined to fail. We have to capture terrorism in its entirety and system dynamics offers various tools to support us. We developed a semi-quantitative system dynamics approach aiming to characterize relationships between different variables and their impact on the system as a whole. The...