Classical Economics Research Articles

Analysis of the Hong Kong Beverage Market Based on Classical Economic Theory: The Vitasoy Incident

Beverage businesses have had to contend with an expanding range of products in recent years as the beverage market has grown more competitive. Against this background, Vitasoy Enterprises has suffered a certain blow in terms of sales. In particular, the Vitasoy incident has led to the company being negatively affected by consumers in the mainland market. After establishing the research objectives, this paper collects relevant information, reads books and literature, and organizes and analyzes them, and chooses to use classical economic theory to explain and analyze the impact of the Vitasoy incident on the company. Classical economic theory suggests that markets should be characterized by transparency and complete information. In addition, classical economic theory also emphasizes the importance of market competition. However, apart from the classical economic theory, there are other economic theories that can be used to explain the impact of the Vitasoy incident. For example, behavioral economics, institutional economics, and new institutional economics. The impact of the Vitasoy incident on the company can be explained through classical economic theory, while also drawing on other economic theories to provide a more comprehensive analysis and recommendations.

Improving the representation of smallholder farmers’ adaptive behaviour in agent-based models: Learning-by-doing and social learning

Computational models have been used to investigate farmers’ decision outcomes, yet classical economics assumptions prevail, while learning processes and adaptive behaviour are overlooked. This paper advances the conceptualisation, modelling and understanding of learning-by-doing and social learning, two key processes in adaptive (co-)management literature. We expand a pre-existing agent-based model (ABM) of an agricultural social-ecological system, RAGE (Dressler et al., 2018). We endow human agents with learning-by-doing and social learning capabilities, and we study the impact of their learning strategies on economic, ecological and social outcomes. Methodologically, we contribute to an under-explored area of modelling farmers’ behaviour. Results show that agents who employ learning better match their decisions to the ecological conditions than those who do not. Imitating the learning type of successful agents further improves outcomes. Different learning processes are suited to different goals. We report on conditions under which learning-by-doing becomes dominant in a population with mixed learning approaches.

Integrating Value at Risk (VaR) Model into Behavior Economics for Consumer Behavior Marketing and Decision Analysis

This overview paper supplies a background for a potential suppose of a new research dimension, based on Value at Risk model analysis applying in a point of view based on behavior economics, and supposed theory of using the models of Value at Risk. This article proposes a novel research avenue by melding the Value at Risk (VaR) model with behavioral economics, aiming to enrich our comprehension and forecasting of consumer behavior in the marketing domain. The paper underscores the significance of the discussed topics, encompassing the VaR model, marketing strategies, consumer behavior patterns, behavioral economics, and a concise touch on econometric tools. Hypotheses are presented, showcasing a regression model that holds the potential to significantly contribute to upcoming research endeavors. The foundational context and recommended methodologies of this study are tailored to spotlight specific market segments when gauging market reactions. By employing this combined model, researchers can delve into the behavior of consumers within specific geographical or economic markets, offering insights into their likely reactions to shifts in the price of merit goods. This approach beckons further exploration in correlating domains, encompassing classical economics, marketing insights related to consumer behavior, and the broader realm of behavioral economics.

War, Nationalism, and Money: The Monetary Policy of the CPC from 1937 to 1945

For classical economists, money is a colorless general equivalent. However, according to Zelizer, money is not colorless and has social meaning. According to this point of view, this paper mainly discusses the monetary policy of the Communist Party of China in the base areas of the Anti-Japanese War from 1937 to 1945. By using literature analysis, this article attempts to answer two questions: How did CPC give money social meaning, and how did this social meaning affect the use of money? The article points out that the money designed by the CPC has chosen specific patterns to display the spirit of nationalism and the political views of the CPC. After issuance, the CPC ensured the acceptance of the border money by promoting special alternative names for money and enacting relevant laws. Border money also gained a reputation for its social meaning.

The evolution of behavioral economics

Decisions can be impacted by various biases and misleading information. Classical economics, as suggested by Adam Smith, posits that everyone behaves rationally during economic activities to satisfy their best interest and utility. However, in reality, we may make decisions emotionally, whether ordering in a restaurant or investing in the stock market. In this context, behavioral economics began to emerge in the world of economics.

Modern trends in the development of corporate social responsibility

In today’s rapidly changing global landscape, corporate social responsibility (CSR) has become an important component of the activities of enterprises striving for prosperity and maintaining a positive public image. According to the School of Classical Economics, the only task of the company is to obtain maximum profit by legal means. Within this framework, the company — by its nature — strives for economic benefits, according to which it is evaluated as successful or not, and does not seem to care about its social responsibility. However, with the development of social production and the rapid increase in the number and size of companies, much attention has been paid to the «theory of stakeholders», and it has become the subject of research. In fact, some researchers are putting forward innovative views on CSR, which is increasingly becoming a matter of serious concern, and as a result, more and more guidelines related to CSR are being implemented at the international level. Meanwhile, various coalitions, codes of conduct, valuation methods and investment standards have been developed for companies. But even though the concept of CSR is widely recognized around the world, there is still no consensus on what CSR is, what it covers and how it should be applied.

Real Competition and Profit Rate Equalisation: Theory and Evidence from the Norwegian Economy

The existence of long-run profitability differentials in market economies is a fundamental question that all traditions of economic thought since the times of the classical economists have dealt with in some form or another. In consideration of the modern synthesis of the classical views on competition into what has come to be known as the Theory of Real Competition, this article presents both a consistent theoretical basis from which to argue in favour of the tendential elimination of profitability premia across industries, as well as empirical evidence pointing to such conclusion from the Norwegian economy. The data, which covers 26 industries across nearly five decades (1971–2017), is used to estimate average and incremental total long-run profit rate differentials following two distinct methodologies. The first method has been commonly used in the prior literature, and the second has been newly systematised by this study’s author. Both methods are critically scrutinised, and their results compared to allow for a more robust conclusion. The findings suggest that average profit rates exhibit a weak tendency towards equalisation in Norway, and that such tendency is much stronger for incremental profit rates.

Розвиток науково-методичних під ходів до ОРГАНІЗАЦІЇ ESG-АКТИВНОСТІ ПІДПРИЄМСТВ

The article explores new models of the organization of the economy, called the circular economy – a model of production and consumption aimed at overcoming global challenges, such as climate change, loss of biodiversity, waste and environmental pollution. The participants were identified and the forms of participation in the process of achieving the SDGs (sustainable development goals) were defined. It was substantiated that the use of the principles of the UN Global Compact in the practical activities of enterprises should ensure that they comply with their basic duties to people and the planet, and would also create the foundations for long-term success. The types of ESG activity of enterprises were systematized according to certain criteria, followed by their classification and definition of the basic objects to which the ESG activity of the enterprise is directed. The standpoints of classical economics were analyzed, by studying the scientific works of specialists in this field of science. Based on the results of this analysis, it was established that ESG activity is a cost that with a doubtful probability can be compensated in the form of additional income. That is, by default it is a loss-making activity. At least, such a perception of ESG-activity can be when studying the issue superficially. The analysis of academic literature and corporate practice made it possible to highlight the key motives for enterprises to implement ESG activities. A study of ESG activity of Ukrainian enterprises was conducted and it was established that this process in Ukraine is at the stage of formation and the situation in this area has significantly worsened due to the war. According to the results of the study of the theoretical foundations of ESG activity of enterprises, the author’s interpretation of the term «ESG activity» was proposed, which should be understood as all types of enterprise activities aimed at achieving the goals of sustainable development through appropriate management decisions, which include measures to improve the environmental condition, social relations and corporate responsibility.

Биржи в структуре энергетического рынка: новый взгляд

The paper offers a systematized and updated view of exchange-traded energy products. The increase in natural gas and electricity trade volumes at commodity exchanges has dramatically changed the wholesale market structure in Europe. Nowadays commodity exchanges have played an essential role in energy trading. The complexity of exchange technologies and the reasons for their demand are often hidden under everyday exchange routine. Academic analysis of exchange activity has traditionally been feebly developed, because, firstly, classical economics assumes that finding of equilibrium between supply and demand is an instantaneous and cost-free process. Markets were mainly described as simple market exchanges where faceless buyers and sellers meet for an instant to exchange standardized goods at equilibrium prices. Secondly, energy exchanges are relatively new phenomenon. The justification of exchange trading became possible as a result of new institutional economics (NIE) and transaction cost theory (TCT) findings. Under conditions of positive transaction costs, incomplete foresight and bounded rationality – the conditions of the New Institutional Economics (NIE) – the institutional framework not only of firms but also of markets matters. Also, within this institutional framework the concept of “governance structure” was introduced. A high-performance system shall align transactions with governance structures in relation to their adaptive needs. Governance structures are properly regarded as part of the optimization problem. A shift from one structure to another may permit a simultaneous reduction in both the expense of writing a complex contract and the expense of executing it effectively in an adaptive, sequential way. The founders of NIE and TCT, having been investigating the stock and commodity exchanges, approached them as a measure of transaction costs for other-the-counter trades. However, they did not include exchange trading into classification of governance structures. As far as is known, it has not been described in this way in terms of NIE and TCT to date. Natural gas and electricity markets is a good examples of network industries, which are an appropriate case of institutional flexibility regarding the alignment between transactions and governance structures. “Liberalised” network industries needed and still need an “intense” design and re-design to be able to host any kind of markets and to interact with. Organized markets, energy exchanges have developed a required bridge between leaving long-term contracts and price promulgation. The hypothesis of energy exchange classification as a special type of governance structure, in the meaning of NIE and TCT, for network industries is discussed in this article.

Smoke and flame temperature propagation characteristics during cabin fire in Airbus A380

The Airbus A380 cabin is selected as the research object to study the smoke and temperature propagation process of upper cabin fires. The results show that during the fire, the overall spread of smoke lasted for 600 s. At z=3.6 m in the upper cabin aisle, the time required for smoke propagation in first class, business, and luxury economy cabins is 89 s, 59 s, and 83 s. At z=3.6 m in the upper cabin seats, the time required for smoke propagation in first class, business, and luxury economy cabins is 89 s, 82 s, and 106 s. The closer the cabin is to the front of the first class cabin, the higher the temperature, while the closer the business cabin is to the fire source, the higher the temperature. In the upper cabin aisle and seats, the temperature in first class, business class, and luxury economy class is higher as it gets closer to the fire source. The ranking of comprehensive danger level from low to high is luxury economy class, first class, and business class.

Prevention and control of jet lag symptoms and temporary impairment of cognitive function with Pycnogenol® in healthy individuals and in hypertensives.

The aim of this registry study was to evaluate the efficacy of Pycnogenol® in controlling signs/symptoms and temporary impairment of cognitive function (COFU) associated with jet lag. Previous flight studies have shown a decrease in the level of jet lag symptoms with Pycnogenol®. The control of jet lag signs/symptoms appeared to be correlated with flight-related microangiopathy and peripheral edema. Pycnogenol® - a standardized extract from the bark of French maritime pine - has significant antiedema, anti-inflammatory and antioxidant properties. A group of subjects flying east in economy class for 10-12 hours used Pycnogenol® 150 mg/day and a similar group without supplementation served as controls. A subgroup of mild hypertensive subjects using a single ACE inhibitor was also included. One hundred twenty-seven subjects completed the study. Of the participants, 48 were aviation professionals like pilots, flight attendants or air company staff - 24 of them took Pycnogenol® and 24 served as controls. Forty-seven study participants were frequent flyers and non-staff professionals, 25 of which took Pycnogenol® and 22 served as controls. In addition, a group of 32 subjects with mild hypertension was included, 16 took Pycnogenol® and 16 served as controls. No side effects and a good tolerability were observed. The registry groups were comparable for baseline characteristics. Eastbound flights' duration was 11.22±0.4 hours in supplemented subjects and 11.14±0.32 in controls. Dropouts were due to logistical problems. Post flight Visual Analogue Scale (VAS) scores were significantly lower in all Pycnogenol® groups, including hypertensives for all signs and symptoms of jet lag compared to controls, showing prevention and improvement of jet lag symptoms. The duration of any sign/symptom of jet lag with Pycnogenol® intake was significantly shorter (P<0.05) post-flight compared to controls (P<0.05). The number of nights of altered/disturbed sleep was also lower in the Pycnogenol® groups compared to controls. Leg edema was present in almost all subjects with different degrees especially in the hypertensive group. The increase in ankle circumference before and after flight was significantly lower with Pycnogenol® compared to controls (P<0.05). After the flight, average scores of the single COFU tasks were significantly higher in the Pycnogenol® groups compared to controls, showing preserved cognitive function. In conclusion, in this registry study Pycnogenol® was effective in preventing jet lag-related symptoms and preserving cognitive functions without tolerability problems. These observations should be tested in a larger group of subjects including complex individuals prone to edema (i.e. diabetics, hypertensive or older patients).

Analysis of the Performance of Regional III Airport Authority Air Transport Inspector Personnel on Optimizing PT Minimum Service Standard Supervision. Wings Airlines

In order to achieve optimal aviation safety, security, and service, activities of control, supervision, and investigation are necessary by the Air Transport Inspector. Air transport services provided by Air Transport Companies to Scheduled Commercial Air Transport for Economy Class Passengers and domestic flights within the country. Passenger service standards cover aspects such as pre-flight service standards, in-flight service standards, and post-flight service standards. Pre-flight service standards include flight information, ticket reservations, ticket bookings, check-in processes, boarding procedures, handling of delays and flight cancellations, as well as the issuance of boarding passes. The number of inspectors available to conduct supervision is also a factor affecting the results of the Minimal Standard Inspection of these services. This research aims to identify factors that affect the optimization results of Air Transport Inspectors at Wings Air airline. This research method is descriptive with a qualitative approach, and data is collected through observation, interviews, and documentation. The research results indicate that one of the challenges in the supervision of Air Transport Inspectors for Wings Air airline is the insufficient number of Air Transport Inspector personnel, resulting in a lack of direct supervision of airline personnel in various sub-units of airline services.

New Keynesian and New Classical Debate on Contemporary Macroceconomic Development: Review

This paper analyzes the extended debate between two schools of economic thought – Keynes and Classics with recently updated ideas noted as New Keynesianism (NK) and New Classicism (NC). Here, ideas on Keynesian and classical economics, their similarities, differences, successes, applicability and criticisms has been studied comparatively through descriptive analysis of previous articles from researchers and renowned economists since decades before. The paper suggests that the nomenclature issue between these macroeconomic developments is more than a terminological debate that points out what should be the current issue between Keynesians and Classicals. There are both similarities and differences within the schools of thoughts. The analysis shows the assumptions, criticisms and successes of two of these schools of economic thought viz. NC and NK and explains which of them is appropriate to be applied for assessing policy, monetarism and business cycle theory. Nevertheless, no matter how much they criticize and compete with one another or how many theories and explanations are added, their core remains the same while their applicability always differs in accordance to time and place.

Critical Study of Keynes Consumption Theory According to As-Syaibani in Al-Kasb Book

Purpose: The study aims to criticize the consumption theory concept of the classical economist revolutionary John Maynard Keynes, with the theory of consumption in his book Al-Kasb belonging to Asy Syaibani, a figure who contributed to the Islamic economy, and the originator of the first work classification system.Design/Method/Approach: This study uses library research with a descriptive approach. Data collection techniques are form of collecting information data through books, journals, websites, and important documents related to research.Findings: The result of this study found that Keynes argued that current disposable income has a significant impact on current consumption. According to Keynes there is a minimal consumption limitation, it is independent of one's amount of income. This indicates that even if income is zero, the level of consuming must be maintained. His theory actually contends is a rational economy that influences individual consumption, income distribution, and also goes to hinder the growth of the national economy.Originality/Values: The contribution of this study is to see how Muslim consumers can act more rationally when they want to release some of their economic consumption, increase material and spiritual satisfaction. With ifaq consumption or issuing zakat can play a significant part as an economic stabilizer among Muslims.

Neural Network in Aircraft Customer Satisfaction Prediction

The aviation service market has become increasingly competitive in recent years, and airlines are constantly seeking new ways to attract more customers and improve their market share. One effective method of assessing customer satisfaction is through evaluating the quality of airline services. In this paper, the target is to explore the influence of various airline services to customer satisfaction. The study identified four key service types that have a significant impact on customer satisfaction. These include Wi-Fi service, online boarding pass printing service, business class customer service, and personal travel customer service. Improving the quality of these services or lowering their price may result in higher satisfaction evaluations, thus attracting more customers and increasing market share. The study found that improving the quality of services for business class customers can have a significant impact on satisfaction levels. For personal travel customers, offering specific promotions or service upgrades can lead to higher satisfaction evaluations. Additionally, for all types of customers, offering high-quality economy class services can significantly reduce negative evaluations and increase the likelihood of repeat business. Overall, the findings suggest that airlines should focus on improving the quality of these key service types to attract more customers and improve their market share. By offering high-quality services at a reasonable price, airlines can enhance their reputation and build a loyal customer base, leading to long-term success in the competitive aviation industry.

Embedded Economic Behavior in Baatar Jujuran of Banjar Tradition in Banjarmasin

This research delves into the economic behavior embedded in the traditional Banjar wedding process of Baatar Jujuran, a distinctive practice in South Kalimantan, Indonesia. While from a classical economics perspective, individual actions are often viewed as rational and instrumental, this study explores how cultural and religious values significantly influence the economic actions of the Banjar people. This research employs a qualitative approach through in-depth interviews with informants selected via purposive sampling. Three informants were chosen, including a community leader, a cultural expert, and a religious figure with expertise in Islamic perspectives on marriage. Result found Baatar Jujuran involves the groom providing a sum of money to the bride's family, with the amount being determined by the bride, reflecting family social status. Through the theory of embeddedness, this research reveals that economic actions, even in a modern society, remain socially embedded in non-economic institutions like culture and religion, demonstrating the pervasive impact of cultural and religious values. The study also examines the Baatar Jujuran tradition from an Islamic perspective, highlighting its compatibility with Islamic teachings and practices. The findings illustrate how cultural and religious values, along with the dynamics of personal relationships, significantly shape economic behaviors in the Banjar community, offering a unique perspective on economic sociology.

The factors affecting people’s willingness in participating in and paying for upgrading their seats from the economy class to the premium class

As information technology develops rapidly and network information becomes more and more transparent, it is urgent for airlines to increase their flight carrying rates through marketing to maximize profits before take-off. While the seat bidding strategy has been one of the business models adopted by many airlines in recent years, it has not been implemented yet in Taiwan’s airlines. In order to understand the seat bidding behavior of passengers, this study adopted the double-hurdle model to explore the factors affecting passengers’ participation in seat bidding and calculated the prices they were willing to pay. Moreover, this study investigated the effects of long and short flight distances on passengers’ participation in seat bidding and the prices they were willing to pay for either flight distance. According to the results, the factors affecting the participation of passengers in seat bidding were different for long-distance and short-distance trips, while a common factor between them was that young people and passengers with preliminary knowledge of such activities were more willing to participate. According to the analysis on the prices people were willing to pay, the price difference that passengers of long-haul flights and short-haul flights were willing to pay for upgrades was about 55 and 24% of the reference price, respectively. The information obtained in this study can serve as a reference for future research or for airlines.

Marxian Analysis of Capitalism and Crises

ABSTRACT The subject of economics, which was once famous for several views and schools of thought, has been limited to just one school neoclassical: where markets usually find equilibrium, meaning government intervention is not needed, and any such intervention could hinder the economic growth process and smooth functioning of the economy. The neoclassical theory focuses on the behaviour of individual agents, which are assumed to be economic decision-makers. There is an attempt to emphasise the importance of the Marxist approach to analysing capitalist crises logically and historically. The study of economics must stay close and keep unity between different social sciences, especially sociology, political science, and history, which classical economists had established but marginalist economists had tried to undermine. The study concludes that economics is embedded in society and politics, and the mainstream school of thought ignores this. They cannot effectively address the main economic issues of our times, which include combating rising inequality, economic and environmental crises, and biodiversity loss.

Thomas Edward Cliffe Leslie's Enthralling Journeys and His Critique of Ricardianism: From Inductive Political Economy to the Emergence of British Historical Economics

Thomas Edward Cliffe Leslie was one of the founders of British historical economics. He was an important figure in the history of economic thought of the nineteenth century, as he contributed to the critique of Ricardian political economy while at the same time being one of the founders of the British historical school. Cliffe Leslie was influenced by classical economists, such as Adam Smith and J. S. Mill, in calling for a historically and institutionally informed political economy. This article attempts to delineate the evolution of his economic thought by presenting the first phase of his intellectual development, which is marked by his frequent journeys in continental Europe. This phase, which is characterized by his applied political economy, is of considerable importance for understanding the emergence of British historical economics.

Model of the impact of intangible resources on the competitiveness of listed companies from the WIGtech index in Poland

Motivation: The complexity of the phenomenon of competitiveness among contemporary enterprises implies the legitimacy of searching for sources of competitive advantages beyond traditional success factors. The concepts of enterprise competitiveness have evolved from classical economics to the present day and theories with a practical purpose such as: the theory of five forces by M.E. Porter and the theory of key competences by G. Hamel and C.K. Prahalad. Nowadays research on the phenomenon of the competitiveness of enterprises seeks answers to the following questions: what is the role of intangible resources in being competitive on the market and what types of intangible resources are the most important from the point of view of the research?Aim: The aim of the article is to examine the strength and direction of the impact of intangible resources on the competitiveness of listed companies. The article presents a theoretical model of the impact of intangible resources on the competitiveness of listed companies. The case study used for the empirical verification of the constructed model will be joint-stock companies from the Warsaw Stock Exchange selected according to the criteria defined in the article. Statistical data of the tested objects from 2021 will be implemented in the model in order to analyze its stability.Results: To achieve the aim of the article, the PLS-SEM method of modeling structural equations was used, which allows for the study of relationships between directly unobservable variables. The model consists of two parts: a structural (internal) model and a measurement (external) model. These models are also used in the parameter estimation process — they are interrelated. Two unobservable (hidden) variables were adopted in the constructed model: intangible resources (IR) and competitiveness of companies (CC). Hidden variables were defined based on a potential set of indicators (observable variables). The specification of the PLS-SEM model will make it possible to determine the strength and direction of the impact of intangible resources on the competitiveness of listed companies, based on the theory of key competences. Identification of the most important variables among intangible resources shaping the competitiveness of enterprises will contribute to the determination of theoretical conclusions and practical recommendations for listed companies in Poland.