Market Model Research Articles

WAGE RISK, EMPLOYMENT RISK, AND THE RISE IN WAGE INEQUALITY

AbstractU.S. male residual wage inequality rose, and the employment rate fell between 1983 and 2013. Using a structural labor market model, we show that rising idiosyncratic wage risk and lower taxes at the bottom of the earnings distribution are the main forces behind rising wage inequality. The former contributes to the falling employment rate. Falling real wages and rising disability risk further depressed employment of workers without a college degree and rising exogenous job destruction depressed employment of workers with a college degree. Higher idiosyncratic risk entails large welfare losses with the largest losses among workers without a college degree.

Az európai uniós szankciók eseményhatás-elemzéssel történő vizsgálata

This study examines the impact of the European Union’s sanctions against Russia and the news about them on gas prices. Using the event study methodology, we primarily seek to answer whether the different types of news related to sanctions (any mention of the sanctions package, announcements of its content or adoption) impacted gas prices significantly and in differing ways. The 24 selected events were analysed using three different model variants (market model, GARCH, EGARCH) and four different (3-, 5-, 10-, and 15-day) window lengths. Our results confirmed our hypothesis that the mere mention of sanctions has an upward effect on gas prices, similar to the other two types of news.

Development of an integrated model for SME marketing and CRM optimization

The development of an integrated model for optimizing marketing and customer relationship management (CRM) in small and medium-sized enterprises (SMEs) presents a crucial advancement in enhancing business competitiveness and customer engagement. This paper proposes a unified model that merges scalable software solutions for social media analytics with AI-driven CRM to provide a comprehensive framework for SMEs to enhance their marketing strategies and customer interactions. Social media platforms have become vital channels for customer outreach, engagement, and feedback, yet SMEs often face challenges in leveraging these platforms due to limited resources and expertise. Integrating social media analytics into CRM systems offers businesses the ability to analyze customer behaviors, preferences, and sentiment on a large scale. The proposed model utilizes artificial intelligence (AI) to streamline customer interactions, enabling personalized communication and improving customer retention. By incorporating AI into CRM, SMEs can automate routine tasks, such as responding to customer inquiries and segmenting audiences based on their social media activity. This allows for more efficient marketing strategies and enables businesses to proactively address customer needs, ultimately driving customer loyalty and long-term growth. Furthermore, the unified model focuses on scalability, ensuring that SMEs can adopt and adapt these technologies according to their evolving needs and resources. This paper also explores the benefits of integrating these technologies, including the potential for improved data-driven decision-making, enhanced customer experience, and increased operational efficiency. In conclusion, this integrated model presents a strategic pathway for SMEs to optimize their marketing and CRM efforts through the adoption of scalable, AI-driven tools that enhance customer engagement and boost business performance. Keywords: SME Marketing, CRM Optimization, Social Media Analytics, AI-Driven CRM, Customer Engagement, Scalable Software Solutions, Business Performance, Personalized Communication, Customer Retention, Data-Driven Decision-Making.

Martingale Pricing and Single Index Models: Unified Approach with Esscher and Minimal Relative Entropy Measures

In this paper, we explore the connection between a single index model under the real-world probability measure and martingale pricing via minimal relative entropy or Esscher transform, within the context of a one-period market model, possibly incomplete, with multiple risky assets and a single risk-free asset. The minimal relative entropy martingale measure and the Esscher martingale measure coincide in such a market, provided they both exist. From their Radon–Nikodym derivative, we derive a portfolio of risky assets in a natural way, termed portfolio G. Our analysis shows that pricing using the Esscher or minimal relative entropy martingale measure is equivalent to a single index model (SIM) incorporating portfolio G. In the special case of elliptical returns, portfolio G coincides with the classical tangency portfolio. Furthermore, in the case of jointly normal returns, Esscher or minimal relative entropy martingale measure pricing is equivalent to CAPM pricing.

Ethical Benefits and Challenges in Insurance: Framework of Introducing Pillar IV Regulation to Solvency II

The paper delves into the concept of Pillar IV, which addresses the recovery, resolution, and orderly exit from the insurance market within the framework of Solvency II - an essential tool for insurers' supervision. While Solvency II has undoubtedly reduced the risk of insolvency for insurers, it hasn't eliminated it. Therefore, this research aims to conduct a comparative analysis of various market models and proposals from authorities to come up with the best possible solutions for recovery stages, mechanisms to be implemented in the case of economic non-viability of the insurer, and resolution mechanisms to ensure a seamless exit from insolvency. The article evaluates different resolution methods, weighing their benefits and challenges, considering the interests of consumers, and the roles of regulatory and resolution authorities. The authors suggest a set of best practices, solutions, and guidelines to implement a resolution through regulations, which can be used to establish Pillar IV and enhance the level of preparedness of insurers. The goal is to avoid the adverse systemic effects of a traditional bankruptcy, which could significantly impact consumers, the economy, and public funds. Keywords: Solvency II; Resolution; Insurance; Recovery; Bail-in

Optimal Sin Taxation and Market Power

We study how market power impacts the efficiency and redistributive properties of sin taxation, with an empirical application to sugar-sweetened beverage taxation. We estimate an equilibrium model of the UK drinks market, which we embed in a tax design framework to solve for optimal sugar-sweetened beverage tax policy. Positive price-cost margins for drinks create inefficiencies that lower the optimal rate compared with a perfectly competitive setting. Since profits mainly accrue to the rich, this is partially mitigated under social preferences for equity. Overall, ignoring market power when setting tax policy leads to welfare gains 40 percent below those at the optimum. (JEL D62, H21, H23, H25, L13, L25, L66)

What determines transfer of carbon from plants to mycorrhizal fungi?

Biological Market Models are common evolutionary frameworks to understand the maintenance of mutualism in mycorrhizas. 'Surplus C' hypotheses provide an alternative framework where stoichiometry and source-sink dynamics govern mycorrhizal function. A critical difference between these frameworks is whether carbon transfer from plants is regulated by nutrient transfer from fungi or through source-sink dynamics. In this review, we: provide a historical perspective; summarize studies that asked whether plants transfer more carbon to fungi that transfer more nutrients; conduct a meta-analysis to assess whether mycorrhizal plant growth suppressions are related to carbon transfer; and review literature on cellular mechanisms for carbon transfer. In sum, current knowledge does not indicate that carbon transfer from plants is directly regulated by nutrient delivery from fungi. Further, mycorrhizal plant growth responses were linked to nutrient uptake rather than carbon transfer. These findings are more consistent with 'Surplus C' hypotheses than Biological Market Models. However, we also identify research gaps, and future research may uncover a mechanism directly linking carbon and nutrient transfer. Until then, we urge caution when applying economic terminology to describe mycorrhizas. We present a synthesis of ideas, consider knowledge gaps, and suggest experiments to advance the field.

PECULIARITIES OF MARKETING AND BRANDING IN THE CONFECTIONERY AND CAFE INDUSTRY

The purpose of this article is to determine the essence and theoretical features of marketing and branding in the confectionery and cafe industry, as well as the challenges associated with marketing activities in these establishments. The main research methods used in the article include induction, synthesis, analysis, comparison, and generalization. The specific features of marketing activities in confectioneries and cafes have been identified. The impact of marketing efforts on service delivery in these establishments has been studied. Key problems arising from marketing activities and brand promotion in confectioneries and cafes have been identified. Various tools used in marketing efforts within this industry, which constitute the marketing mix or marketing complex, have been explored. The peculiarities of developing a marketing plan for confectioneries and cafes using the “5R+1C” integrated marketing model, and elements of the marketing mix specific to the food industry, are discussed. The ecosystem of the internet marketing strategy for confectioneries and cafes is outlined. The necessity for increasing social media activity (SMM) and enhancing market recognition, as well as developing a user-friendly website with online table reservations and sweet order functionalities, has been emphasized. Directions for optimizing the digital strategy effectiveness for confectioneries and cafes, focused on improving brand recognition among target audiences, are proposed. Factors influencing the selection of Google’s contextual media network for the promotion of confectioneries and cafes are outlined. The required changes for social media pages and websites to enhance brand promotion are discussed. International experiences regarding the efficacy of business tools in the food industry, incorporating marketing concepts, are also explored. The main idea of advertising campaigns, centered around creating favorable conditions for customer purchases and replicating the brand’s style in every part of the establishment, is reviewed. The specifics of consumer loyalty, shaped by the brand’s appearance, communication, establishment design, and available offerings, are also examined.

Business Empowerment through Digital Marketing Strategy and Accounting Report at KWT Permata

Women Farmers Group (KWT) is a forum that provides opportunities for women to participate in advancing the agricultural sector. One example is KWT Permata, which is expected to provide opportunities for women in villages to channel their abilities in cultivating agricultural land. Activities held by KWT Permata, such as technical training, business management, and product marketing, aim to improve women's self-actualization in their social environment. This study will explore the role of KWT in empowering village women in Bali, especially through kombucha production, the challenges faced, and its impact on their economic and social welfare. KWT Permata has been well managed and has been touched by assistance from the Government to support the work of the KWT, but there is no or does not yet know the procedures for bookkeeping/daily records related to production, income, costs, profit and loss , so they really don't know clearly the financial conditions and positions, there is no marketing model to promote their products, the packaging is still simple and does not have a brand, and the conditions and environment of the business premises in terms of marketing are very far from the city so that the scope of product marketing is limited.

Brand loyalty, managerial delegation and position choices: Bertrand versus Cournot competition

In a mature product market, brands compete aggressively with each other using a marketing mix that includes position, pricing, and managerial delegation to win loyal customers and gain a larger market share. We examine the effects of brand loyalty on the endogenous choices of managerial compensation contracts and optimal brand positions in an uncovered market model. We analytically compare 18 symmetric and asymmetric mutual delegation cases associated with three delegation schemes—no delegation, sales delegation and relative performance (RP) delegation—in the Bertrand and Cournot competition modes. In the case of symmetric mutual contracts, under Bertrand competition, a price commitment effect resulting from the delegation decision weakens the competition, inducing higher prices and profits for both brands regardless of the type of delegation scheme. Under Cournot competition, delegation decisions can be viewed as signals to promote competition, intensifying the degree of competition. To acquire more loyal customers and higher profits, mutual RP delegation is the dominant choice under Bertrand competition, whereas mutual profit maximization is the dominant choice under Cournot competition. Furthermore, the social welfare is the highest when both brands optimally choose the RP delegation under Bertrand or optimally choose no delegation under Cournot; however, consumer surpluses are the lowest in both optimal cases.

Application Development Model E-Commerce in Traditional Markets Using the TOGAF Framework

The existence of traditional markets is increasingly being eroded by the presence of online market models that already utilize various e-commerce platforms. However, the TOGAF Framework provides a ray of hope. Even though the existence of traditional markets is unlikely to disappear, if traders in traditional markets do not try to adapt to using e-commerce, it will have an impact on losing customers, losing turnover, and will even affect the acceleration of their business. Architectural design for system development in traditional market activities can provide an important picture of how to advance traditional market industries that will not be out of competition with modern markets. TOGAF (The Open Group Architecture Framework) provides a detailed method of how patterns build, manage, and implement enterprise architecture and information systems called the Architecture Development Method. Analysis using the TOGAF Framework provides an overview of how to plan, design, develop and implement information system architectures for traditional markets. The results of this design analysis are an information technology architectural design which is the basis for traditional market managers, especially in Indonesia, in advancing the business processes of traders in the market so that they are not unable to compete with modern markets but with gap analysis constraints that must really be considered with regard to internet infrastructure problems in the market, sellers who are not fully able to use technology due to age and not all forms of goods on the market can be sold through e-commerce platforms. This gap analysis will make e-commerce implementation slow to implement.

Marketing Strategies of Cultural Tourism Industry under Media Convergence Background

The advent of the era of media convergence has broken down the barriers between traditional and emerging media, bringing profound changes to the marketing models of the cultural tourism industry. This paper explores the impact of media convergence on the development of the cultural tourism industry by analyzing its concepts and characteristics. It further delves into the application of diversified media channel integration, digital, and interactive marketing strategies. By building an integrated media matrix and fostering cross-industry collaborations, cultural tourism can maximize brand communication effectiveness, enhancing consumer engagement and loyalty. This study also examines typical domestic and international cases to summarize the successful experiences and practical paths of cultural tourism marketing strategies in the context of media convergence. The research suggests that the cultural tourism industry should continue to focus on media convergence trends, innovating marketing strategies to enhance market competitiveness and achieve a win-win situation for both cultural and economic benefits.

Low-carbon information quality dimensions and random forest algorithm evaluation model in digital marketing

The growing urgency for low-carbon lifestyles necessitates developing effective strategies to promote sustainable consumer choices. This study investigates key dimensions of information quality that shape consumer behavior within digital marketing to achieve this goal. Employing a mixed-methods approach that integrates grounded theory and machine learning, this study identifies three core dimensions of low-carbon information quality: matching quality, presentation quality, and interpretability quality. These dimensions underscore the importance of aligning information with consumer needs, ensuring clear and accurate presentation, and fostering transparency for trustworthiness. A Random Forest algorithm-based evaluation model is constructed to assess low-carbon information quality, demonstrating its effectiveness in identifying high-quality, sustainable content. This research provides a practical tool for digital marketers to enhance their strategies, raise consumer awareness of sustainable options, and ultimately contribute to the growth of the low-carbon consumption market.

A dynamic multi-objective optimization model for inner-industry carbon responsibility allocation based on carbon tax and carbon offsets accounting

The setting of Intergovernmental Panel on Climate Change (IPCC) raises concerns on curbing the excessive carbon emissions, and European Union (EU) has been proactively attempting “green” initiatives striving to achieve carbon neutrality. The current Carbon Border Adjustment Mechanism (CBAM) only works on short-term carbon reduction without much “greenness” investment incentives so far, and few studies focus on the long-standing inner-industrial carbon reduction coordination. To address these issues, this paper creatively presents a dynamic multi-objective carbon responsibility allocation model (CRAM) for EU carbon market, allows the carbon trade with a taxation based on carbon offsets accounting, and considers the final targets of sustainable “greenness” investment incentives. To find the optimal results of the designed dynamic CRAM, an improved KT-NSGA-II algorithm is proposed to detect the Pareto frontiers of each successive periods. Data from EU Cement and Aluminium industries are then selected for empirical analysis to compare the proposed CRAM to conventional CBAM model. The findings demonstrate that the superiority of CRAM in carbon emissions reduction, economic benefits improvement and green invests encouragement. With the adjustment of the inner-industrial carbon allowance trade, total carbon emissions decreased by 28.03% and the “greenness” investment initiative increased by 39.24% in contrast to the CBAM. The sensitivity analysis of the model also provides suggestions on the settings of carbon quota and tax with different industrial production process, and proposes policy recommendations for CRAM implementation.

Impact of green bond issues on Euronext firms’ stock abnormal returns

Climate change is forcing countries to take strategic measures to reduce the negative impact on future generations. In this context, sustainable finance has played a key role in sustainable development since the establishment of environmental, social and governance principles. The underlying market has developed rapidly since its inception, with green bonds being the most prominent instrument. This article aims to study the impact of green bond issues on the abnormal stock returns of stocks listed on the main Euronext indices. The sample includes 58 issues carried out between 2014 and 2022 by 21 different firms listed on the AEX (Netherlands), BEL 20 (Belgium), CAC 40 (France), ISEQ 20 (Ireland), OBX (Norway) and PSI (Portugal) indices. The methodology follows the procedures of the event study using the market model. The results show significant positive stock price reaction on the issue date. After the abnormal losses just before the issues, suggesting the reserves of this consolidating market, abnormal gains persisted for over a week, providing evidence against the weak efficiency Euronext’s financial markets. The findings are useful for policy makers and entrepreneurs to promote innovative initiatives that encourage the financing and development of environmentally sustainable infrastructures.

Innovative Social Groups in the Institutional Changes of the Russian Countryside

The article considers the formation of innovative social groups in the social structure of the Russian countryside, broadcasting the managerial style of thinking and lifestyle of an active subject of agricultural labor. The current model of the agricultural market was formed under the powerful institutional pressure of market reforms. These objective social processes transformed the mentality of rural residents, gave rise to various labor practices, including employment in the informal sector, from which innovative market models of behavior in the agricultural labor market emerged. Using the example of farms and rural entrepreneurs, innovative layers in the labor market are shown, the criteria for which are an increase in agricultural land, production growth using new technologies and digital equipment, access to export markets. The information base consists of data from large-scale panel studies of Rosstat 2011–2022 and the All-Russian agricultural censuses of 2006, 2016, 2021. Institutional changes in the agricultural labor market have been identified, within the framework of which innovative groups are being formed. The development of innovative technologies used in agriculture requires the involvement of highly qualified labor. However, there is an acute shortage of personnel in the agricultural labor market. The wages of a significant segment of jobs in the rural market do not ensure economic stability. The survival strategy remains the main factor in the socio-economic behavior of rural residents, which determines the employment of most of them in non-agricultural sectors in the agricultural labor market. The crisis of agricultural organizations and the arrival of high-tech capitalist forms of production in agriculture cause the migration of the rural population to cities. Despite significant government support for agriculture, there is a shortage of engineering specialties and skilled workers. All these processes hinder the emergence and development of new innovative groups in rural areas. The foreign experience of the functioning of an institutionalized system of information networks and consulting for farmers and small businesses in agriculture is also presented.

Using necessary condition analysis to complement multigroup analysis in partial least squares structural equation modeling

With the growing importance of partial least squares structural equation modeling (PLS-SEM) in marketing and consumer research, the use of Multigroup Analysis (MGA) for discovering observed heterogeneity (i.e., differences in relationships between variables for subgroups of the population under investigation) and deriving relevant operational results has become of great interest. However, these analyses are based exclusively on an additive sufficiency logic and do not permit researchers to test and validate hypotheses drawing on a necessity logic, the latter having been the focus of recent significant developments. Addressing this concern, the present paper offers guidelines for combining the use of Necessary Condition Analysis (NCA) and MGA performed with PLS-SEM. Taken together, these analyses can explore and improve knowledge about predefined subgroups of interest, enhance the understanding of relationships, refine the role of specific key antecedents by discovering meaningful necessary conditions, and therewith, contribute to theorizing. An empirical illustration drawing on the relationship between corporate social responsibility and customer loyalty is developed in a step-by-step fashion to provide marketing researchers with the guidelines to conduct the MGA and NCA, and finally report and interpret the results in accordance with both the sufficiency and the necessity logics. This integrative procedure contributes to the advancement of PLS-SEM applications. By delivering a better understanding of the group-specific results of a PLS-SEM–based MGA in a necessity logic, it promotes the complementary usage of sufficiency and necessity logics and therefore helps researchers to uncover novel theoretical and practical results when evaluating the data.

Strategi Komunikasi Pemasaran Agrowisata Berbasis Ketahanan Pangan di Desa Renah Kayu Embun (RKE) Kecamatan Kumun Debai Kota Sungai Penuh

The purpose of this study is to analyze the marketing communication strategies for agritourism based on food security in Renah Kayu Embun Village, Kumun Debai Sub-district, Sungai Penuh City. The research method used is Participatory Rural Appraisal (PRA). Data were collected through interviews, observations, documentation, and Focus Group Discussions (FGD). The analysis was conducted interactively and included a SWOT analysis. The technique for selecting research informants was purposive sampling, involving 25 agritourism business actors focused on food security in Renah Kayu Embun Village, Kumun Debai Sub-district, Sungai Penuh City. The results of the study indicate that the village authorities have not yet been able to effectively manage the organization, marketing, promotion, business unit development, and partnerships. Consequently, there is a need for an integrated marketing communication model through the empowerment of food security-based agritourism in Renah Kayu Embun Village, Kumun Debai Sub-district, Sungai Penuh City.

The impact of coronavirus disease 2019 (COVID-19) pandemic experiences on attitudes towards vaccinations: on the social, cultural and political determinants of preferred vaccination organization models in Poland

BackgroundThe article describes attitudes towards vaccinations in Poland in relation to issues such as voluntary versus compulsory vaccinations, the method of financing vaccinations, the method of organizing and carrying out vaccinations, the cognitive and educational aspect of vaccines (how to obtain knowledge about vaccines) and the preferred model of work and research on new vaccines. Taking into account these issues, the authors have created four ideal models of preferred vaccination policies: (a) the market model; (b) the state model; (c) the vaccine hesitancy model; and (d) the civic–social model. This perspective makes it possible to better understand and learn about the various motives behind the attitudes of anti-vaccination movements, as well as to notice cracks and divisions among vaccination supporters and their attitudes towards the financing and organization of vaccinations.MethodsThe study was carried out using the CATI method on a representative random-quota sample of Polish society of 1000 people aged 18 and over. The study took age, sex, education and the size of the place of residence into account.Additionally, in the Socio-demographic factors influencing attitudes towards vaccination practices in Poland section, we used the chi-squared test and regression analysis of factors influencing vaccination practices in Poland. PASW Statistics 18 (a version of SPSS) software was used for statistical analysis. Significant correlations were demonstrated at a significance level of 0.05% Pearson.ResultsThis article has shown that attitudes towards vaccinations are embedded in broader divisions and orientations related to the vision of the social order: the role of the state, the organization of healthcare and payments for vaccinations and medical services, as well as preferred ways of knowledge production in society and work on new vaccines. The political sympathies and the age of the respondents were the most important variables influencing vaccination behaviour. The education of the respondents was less important.ConclusionsA few years after the peak of the pandemic, the scope of anti-vaccination attitudes in Polish society ranges from 20% of the population (dogmatic anti-vaxxers) to 30% (vaccine hesitancy occurring depending on attitudes towards vaccinations).

The GAI marketing model: A conceptual framework and future research directions

This research introduces the GAI Marketing Model, a comprehensive conceptual framework for understanding and applying generative artificial intelligence (GAI) within marketing, specifically in the hospitality and tourism sectors. Building on existing classifications of GAI, this model incorporates critical elements such as adoption factors, marketing stages, and downstream outcomes. The framework offers a structured approach to exploring GAI’s potential to transform marketing strategies by enhancing personalization, improving customer engagement, and optimizing decision-making processes. The GAI Marketing Model synthesizes elements of technology, marketing theory, and consumer psychology, offering crucial insights that are instrumental for researchers and practitioners seeking to harness GAI for competitive advantage. Additionally, the model underscores the importance of ethical considerations and regulatory compliance, thereby ensuring that the integration of GAI into marketing practices remains both efficacious and responsible. This study establishes a foundational framework for future research, emphasizing the interdisciplinary scope of GAI’s influence on marketing strategies and practices