A simulation exercise shows that market-based estimates of deposit insurance premium which ignore the cap lead to significant understimation. An important product strategy for firms in mature markets is value-adding modifications to existing products. Marketing information that reveals consumers' preferences, buying habits and lifestyle is critical for the identification of such product modifications. The authors address these issues in a model consisting of an information vendor facing two downstream firms who sell differentiated products. The authors study the dynamics of a work group whose members value not only compensation, but also having a high status relative to their peers.
Compensation takes the form of a fixed salary plus a bonus based on group performance.
The authors show that status competition based on merit can push group members to work hard. One of the authors, Christoph Loch has elaborated with Professor Arnoud De Meyer a new programme called International Project Management . It will run for the first time on our campus in Asia from 26 February to March 2001.