INTRODUCTION "The Market for Lemons: Quality Uncertainty and the Market Mechanism" is a 1970 paper by the economist George Akerlof. It talks about data asymmetry‚ which happens when the merchant or seller knows more around an item than the purchaser. A lemon is an American slang term for a car that is discovered to be blemished or defective strictly when it has been purchased. Akerlof‚ Michael Spence‚ and Joseph Stiglitz mutually got the Nobel Memorial Prize in Economic Sciences in 2001 for their
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Introduction There are many theories given by different group of researchers about the existence of multinational enterprises or MNE’s. According to John Cantwell‚ it was in the 1970’s and 1980’s that many theories on MNE’s were proposed. These theories were either general theories of MNE’s which were called the main institution for international production or the theories on foreign direct investment‚ the means by which international production is done ( Pitelis‚ Christos N. and Sugden‚ Roger
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Economics 31 (2001) 105–231 Capital markets research in accounting$ S.P. Kothari* Sloan School of Management‚ Massachusetts Institute of Technology‚ Cambridge‚ MA 02142‚ USA Received 22 November 1999; received in revised form 8 March 2001 Abstract I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation‚ tests of market efficiency‚ and the role of accounting
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article: Market leaders’ v/s Market followers Author Ruhi Lal Senior Lecturer Amity School of Communication (ASCO) Amity University‚ Sec-125‚ Noida‚ UP The author can be reached at rlal@amity.edu Abstract The article is aiming to study how big brands are losing their market share & what changes they are bringing in their marketing strategy to cope up with the current market scenario or to regain their market share. This study is focused on leadership in Indian market on various
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Assess the view that making an oligopolistic market more contestable is the best way to improve the efficiency of that market. The theory of perfectly contestable markets was presented as a generalization of the theory of perfectly competitive markets and was presented as providing guidelines for the conduct of regulation‚ namely to allow freedom of entry and exit and to ensure equal access of competitors. An oligopolistic market is a particular market that is controlled by a small number of firms
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Market structure is defined as the particular environment of a firm‚ the characteristics of which influence the firm’s pricing and output decisions. There are four theories of market structure. These theories are: Pure competition Monopolistic competition Oligopoly Monopoly Each of these theories produce some type of consumer behavior if the firm raises the price or if it reduces the price. The theory of pure competition is a theory that is built on four assumptions:
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successful entrepreneurs 3. McGregor’s view was that theory X amounted to “treating people as children”. Should we deduce from this that a Theory X approach on part of teachers will produce the best results in the classroom? (10) Firstly‚ Theory X managers assume a number of things about the workers: they assume they don’t want to work‚ lack ambition and discipline is essential to make them work. For these reasons‚ the leadership style of theory X managers is autocratic- orders and commands are given
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Market at compelling Valuation–Good Opportunity to buy quality in staggered way (Based on Mean Reversion Theory) Dividend Yield‚ Price/Sales and EV/Sales ratios are more consistent to evaluate the valuations for equity markets. Generally the most popular tool-PE ratio is used to gauge the top and bottom of market. Contrary to this‚ we found that the above mentioned ratios have low standard deviation vis a vis PE or other multiples and hence are better for overall market valuation. Even though the
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Markets in action It is obviously clear that the market affects our daily lives‚ which has become an indispensable part for us. However‚ even though the market is so powerful that it can perform effectively in most cases‚ sometimes it fails to maximize the utility of the limited resources. Under this situation‚ in order to achieve goals of equity and social efficiency‚ it is governments throughout the world that intervene the market in the means of adopting various policies. This essay will analyze
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www.sciedu.ca/ijfr International Journal of Financial Research Vol. 3‚ No. 4; 2012 Market Value of the Firm‚ Market Value of Equity‚ Return Rate on Capital and the Optimal Capital Structure Chao Chiung Ting Michigan State University‚ USA E-mail: tingtch7ti@aol.com Received: September 4‚ 2012 doi:10.5430/ijfr.v3n4p1 Abstract The firm should pursue both maximum return rate on capital and maximum return rate on equity simultaneously. Maximum return rate on capital is the primary goal for firms
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