Journal articles on the topic 'EBay (Firme)'

Platforms like eBay allow product seekers and providers to meet and exchange goods. On eBay, consumers can return a product if it does not correspond to expectations; eBay is the third-party firm in charge of assuring that the agreement among seekers and providers will be respected. Who provides the same service for what concerns open innovation, where specifications might not be fully defined? This paper describes the business model of an organizational structure to support the elicitation and respect of agreements among agents, who have conflicting interests but that gain from cooperating together. Extending previous studies, the business model takes into account the economic dimensions concerning the needs of knowledge share and mutual control to allow a third-party to sustainably reinforce trust among untrusted partners and to lower their overall relational risk.

Purpose This study aims to investigate whether a religious environment affects a firm capital structure. Design/methodology/approach The authors use data from Saudi Arabia with a highly Islamic religious environment. The authors use an extreme bounds analysis (EBA), which provides a reliable analysis of the determinants of capital structure and aids the process of selecting explanatory variables when there is model uncertainty. Findings The authors find that firms in such an Islamic environment are relatively less leveraged compared to firms in a non-Islamic environment. The authors also find that firms located in an Islamic environment have different determinants of capital structure than firms located in a non-Islamic environment. Specifically, the Islamic society creates decision makers who are more risk averse, thus leading to a preference for corporate financing using internal funds. Practical implications The results imply a potential challenge for growth-seeking firms located in religious Islamic societies. Originality/value This study is one of the first to examine the determinants of corporate capital structure in Saudi Arabia using EBA.

We study cheap talk by firms and responses by their consumers, focusing on unverifiable promises of charitable donations on eBay during 2005–2006. Cheap talk listings have lower sales probabilities but sell at higher prices when successful. The negative relationship between cheap talk and sales is concentrated in the months following Hurricane Katrina, a time when verifiable and unverifiable charity listings increased dramatically. Finally, we show that cheap talk sellers have lower quality ratings than those making verifiable donations. Our results suggest that buyers ( justifiably) avoid cheap talk listings when credible quality signals are available, thus limiting the extent of cheap talk. (JEL D12, D82, D83, L15, L31, M31)

To study whether consumers will pay more for products that generate charitable donations, we analyze data from eBay on charity and noncharity auctions of otherwise identical products. Charity prices are 6 percent higher, on average, than noncharity prices. Bids below the closing price are also higher, as are bids by individuals bidding on identical charity and noncharity products. Bidders appear to value charity revenue at least partially as a public good, as they submit bids earlier in charity auctions, stimulating other bidders to bid more aggressively. Our results help explain why firms may pledge charitable donations, green production, or similar activities. (JEL D12, D44, D64, L81, M14, M31)

The cross-sectional technique of extreme bounds analysis (EBA) is used to identify the determinants of capital structure in a sample of Indonesian shareholding companies. Additional results are presented based on variable deletion and nonnested model selection tests. The results of traditional EBA show that the only robust variable is liquidity, but the results of restricted EBA add three more robust variables: profitability, tangibility, and income variability. However, variable deletion and nonnested model selection tests lend support only to size and liquidity. The conclusion is that most of the variables that appear important in studies of capital structure may not be important at all. From a policy perspective, the finding that some firm-specific factors are relevant to corporate capital structure confirms that financial reform has eliminated the distortions of corporate financial policies and financial markets caused by the previously dominant role of state banks.

Two-sided markets (or platforms) are defined as the platforms that provide goods or services to two distinct groups of customers, and that intermediate the transactions between these groups. Such platforms are of great importance in todays global business world and considerable amount of value is created by these platforms. The success of numerous firms in the business world, including but are not limited to Google, eBay, Amazon, Microsoft, Apple, Sony PlayStation, Visa, is mainly due to the advantages provided by the two-sided platforms. This paper is devoted to the two-sided markets phenomenon, its basic characteristics, architecture as well as mechanism. The paper explains the aforementioned information regarding two-sided markets by providing the case from Apples digital application platform. Furthermore, Apples competitive advantage stemming from this platform has been articulated by the theoretical perspective provided by the Resource Based View (RBV).

Most of SMEs are is emerging and flourishing as the number of entrepreneurs who start an online business is continuously growing. Third-party e-commerce platforms (such as eBay and Taobao) offer small and medium-sized businesses (SMEs) fantastic chances to overcome technology barriers and access e-commerce markets. However other market entry impediments, such as resource limits and institutional challenges, still exist for SMEs. To shed light on how SMEs could possibly cope with these issues, the study apply entrepreneurial bricolage theory to the setting of online firms functioning on third-party e-commerce platforms. By using a novel approach for investigating the links between various types of entrepreneurial bricolage and the performance of online stores. Survey data from a sample of small online retailers on Alibaba's Taobao.com, China's largest third-party e-commerce platform, was used to test the research hypotheses (NYSE: BABA). The result shows that the Input bricolage has a favorable influence on efficiency, and market bricolage has a beneficial effect on sales.

Public accounting firms and other independent assurance providers have developed and marketed web assurance services resulting in a seal as an indicator of compliance. Academic research finds that seals potentially meet some of the most acute consumer concerns, but that consumers have inadequate understandings about the seals, and low regard for them. This study extends the research on the role of information assurance seals as an antecedent of trust by examining the use of seals on the eBay auction site. The study analyzes a sample of transactions in which buyers acted with their own money, and had time to learn about various signals and consider their strengths. The transactions are examined to see whether presence of a seal on the seller's web page made a significant difference on actual consumer purchasing behavior. Empirical tests found significant associations between the presence of seals and consumer purchasing behavior in both auction and posted-price contexts.

SummaryThe mountains of south-eastern Nigeria are a western extension of the Cameroon mountain range, which is classified as an endemic bird area (EBA). Unlike its eastern extension in Cameroon, most of the ornithological surveys in the western extension of the Cameroon highlands in Nigeria have produced only limited checklists and inventories. There is a clear need for quantitative baseline data so that conservation problems can be identified. Twenty line transects covering a total transect length of 28.8 km were used to survey five sites (Afi Mountain Wildlife Sanctuary, Oban Division and Okwangwo Division of Cross River National Park, Sankwala Mountains and Mbe Mountains) in the westernmost extension of the Cameroon Mountains EBA in south-eastern Nigeria. Vegetation measurements were taken to control for the potential confounding effect of variation in vegetation density and structure on detectability of birds between sites. The 193 bird species recorded in Afi, 158 in Sankwala, 124 in Oban, 100 in Mbe and 73 in Okwangwo Division included most of the Cameroon highlands restricted range species. The results show that the mountains of south-eastern Nigeria are important parts of the Cameroon EBA, particularly Afi Mountain Wildlife Sanctuary. However these sites are threatened by fire and livestock grazing on the hilltops, shifting agriculture on the hillsides and lowlands, and logging for timber in some parts, as well as wildlife hunting for bushmeat.

SummaryA study of Thuong Da Nhim and Chu Yang Sin Nature Reserves - identified as priority sites because located within the Da Lat Plateau Endemic Bird Area (EBA) in Vietnam -was conducted between 10 November 1993 and 1 February 1994. A total of 212 bird species, of which 11 are considered globally threatened (including the rediscovered Grey-crowned Crocias Crocias langbianis), were recorded in the reserves. Eight restricted-range species were recorded, including the four species confined to the EBA. These two reserves are of international importance because they jointly support bird communities representative of the EBA. They are also of great economic importance, being within watersheds. Their extent is believed adequate but it is not known if they encompass all representative habitats over the full altitudinal range. Local tribal communities traditionally practise shifting cultivation, which has greatly modified the extent, composition and quality of evergreen forest and is causing its increasing fragmentation. Deliberate fires are preventing the regeneration of evergreen forest and promoting the growth of a climax dominated by Pinus kesiya. This reduces bird diversity and compromises the future of the endemic bird taxa. Other threats include recent logging activities, human immigration, the urban expansion of Da Lat and consequent increasing demand for charcoal and fuelwood. The Ministry of Agriculture and Rural Development should urgently proceed with the production of management plans for these areas, aiming to create a single, enlarged protected area. The primary land-use management strategy should be to conserve remaining areas of evergreen forest and to increase their extent by boundary realignment, elimination of shifting cultivation and fire, and the introduction of sympathetic forestry practices.

Cloud computing is a rapidly growing paradigm which has evolved from having a monolithic to microservices architecture. The importance of cloud data centers has expanded dramatically in the previous decade, and they are now regarded as the backbone of the modern economy. Cloud-based microservices architecture is incorporated by firms such as Netflix, Twitter, eBay, Amazon, Hailo, Groupon, and Zalando. Such cloud computing arrangements deal with the parallel deployment of data-intensive workloads in real time. Moreover, commonly utilized cloud services such as the web and email require continuous operation without interruption. For that purpose, cloud service providers must optimize resource management, efficient energy usage, and carbon footprint reduction. This study presents a conceptual framework to manage the high amount of microservice execution while reducing response time, energy consumption, and execution costs. The proposed framework suggests four key agent services: (1) intelligent partitioning: responsible for microservice classification; (2) dynamic allocation: used for pre-execution distribution of microservices among containers and then makes decisions for dynamic allocation of microservices at runtime; (3) resource optimization: in charge of shifting workloads and ensuring optimal resource use; (4) mutation actions: these are based on procedures that will mutate the microservices based on cloud data center workloads. The suggested framework was partially evaluated using a custom-built simulation environment, which demonstrated its efficiency and potential for implementation in a cloud computing context. The findings show that the engrossment of suggested services can lead to a reduced number of network calls, lower energy consumption, and relatively reduced carbon dioxide emissions.

The increased use of smartphones and tablets, along with advanced security features being offered by the online retailers are adding strength to e-commerce industry. Growing at an astonishing rate at 85%, as against 65% growth of regular shopping over the previous year, internet retailing in India touched US $10.672 billion in 2013, making it one of the most anticipated destinations for national and multinational online retailers. Several web portals are looking to capture a share of this huge market. This study gains importance as Indian arms of multinational online selling companies like Amazon and eBay are fighting various home-grown players like Snapdeal, Flipkart and many more. The objective of this paper is to identify and rank the factors that influence the selection of web portal among online shoppers in India. Exploratory study was conducted to identify various precursors of web site selection for online shopping. Twenty-four variables identified from this study were used to create a structured questionnaire. This questionnaire was then administered among 203 shoppers in India using convenience sampling. To determine the factors that influence the selection of web portals. Principal Component Analysis with Varimax Rotation was used. The study condensed the comprehensive set of twenty-four variables into six factors that have a direct influence on consumers' choice of online buying website. These were transaction security, augmented benefits, user experience, cognitive stimuli, personalized assurance and web atmospherics. This is against the general perception that shoppers prefer the web portals with best user experience and attractive web atmospherics. The online buying population of the world's third largest economy selects the portals based on the primary motive of security in a transaction. Adding to the existing knowledge on shoppers' selection of online buying portals, the study reveals the prevalence of a multitude of antecedent factors and distinct patterns with respect to constituents of these factors. Findings of this research may be used as guidelines for the development of multi-dimensional strategic framework by online retailing firms.

Currently, researchers are working to contribute to the emerging fields of cloud computing, edge computing, and distributed systems. The major area of interest is to examine and understand their performance. The major globally leading companies, such as Google, Amazon, ONLIVE, Giaki, and eBay, are truly concerned about the impact of energy consumption. These cloud computing companies use huge data centers, consisting of virtual computers that are positioned worldwide and necessitate exceptionally high-power costs to preserve. The increased requirement for energy consumption in IT firms has posed many challenges for cloud computing companies pertinent to power expenses. Energy utilization is reliant upon numerous aspects, for example, the service level agreement, techniques for choosing the virtual machine, the applied optimization strategies and policies, and kinds of workload. The present paper tries to provide an answer to challenges related to energy-saving through the assistance of both dynamic voltage and frequency scaling techniques for gaming data centers. Also, to evaluate both the dynamic voltage and frequency scaling techniques compared to non-power-aware and static threshold detection techniques. The findings will facilitate service suppliers in how to encounter the quality of service and experience limitations by fulfilling the service level agreements. For this purpose, the CloudSim platform is applied for the application of a situation in which game traces are employed as a workload for analyzing the procedure. The findings evidenced that an assortment of good quality techniques can benefit gaming servers to conserve energy expenditures and sustain the best quality of service for consumers located universally. The originality of this research presents a prospect to examine which procedure performs good (for example, dynamic, static, or non-power aware). The findings validate that less energy is utilized by applying a dynamic voltage and frequency method along with fewer service level agreement violations, and better quality of service and experience, in contrast with static threshold consolidation or non-power aware technique.

Abstract. Recent Arctic sea ice retreat has been quicker than in most general circulation model (GCM) simulations. Internal variability may have amplified the observed retreat in recent years, but reliable attribution and projection requires accurate representation of relevant physics. Most current GCMs do not fully represent falling ice radiative effects (FIREs), and here we show that the small set of Coupled Model Intercomparison Project Phase 5 (CMIP5) models that include FIREs tend to show faster observed retreat. We investigate this using controlled simulations with the CESM1-CAM5 model. Under 1pctCO2 simulations, including FIREs results in the first occurrence of an “ice-free” Arctic (monthly mean extent <1×106 km2) at 550 ppm CO2, compared with 680 ppm otherwise. Over 60–90∘ N oceans, snowflakes reduce downward surface shortwave radiation and increase downward surface longwave radiation, improving agreement with the satellite-based CERES EBAF-Surface dataset. We propose that snowflakes' equivalent greenhouse effect reduces the mean sea ice thickness, resulting in a thinner pack whose retreat is more easily triggered by global warming. This is supported by the CESM1-CAM5 surface fluxes and a reduced initial thickness in perennial sea ice regions by approximately 0.3 m when FIREs are included. This explanation does not apply across the CMIP5 ensemble in which inter-model variation in the simulation of other processes likely dominates. Regardless, we show that FIRE can substantially change Arctic sea ice projections and propose that better including falling ice radiative effects in models is a high priority.

Purpose. The objectives of the paper are two-fold. The first objective of the research is formulated with the intent to analyze the existence or not of a possible “European Banking Authority (EBA) effect” on the credit offer of local banks compared with national banks subject to the requests of capital from European Authority. The second research objective aims to understand what are the conditions that allow to develop a model of a local bank capable of supporting SMEs, with a suitable risk-return profile. Methodology. This paper presents an empirical comparative analysis between Cooperative Credit Banks (BCCs) and Italian banking groups. Findings. The empirical analysis shows how the financial then real crisis has not induced BCCs to restrict credit to firms. In particular, the BCCs not included in stress exercises, show, unlike national banks, a substantial “independence” of credit trend from the advices of the Authority. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Research Limitations. The quantitative nature of the empirical analysis must be followed by a qualitative analysis in order to strengthen the validity of the results. Implications. This work will be useful to stimulate the debate on the studies of local banks and their anti-cyclic role in favor of the SMEs. Originality. The work affects an aspect which has hitherto been little studied.

SummaryIt is often argued in economics that building a reputation for trustworthiness could help individuals or firms to mitigate or even overcome problems of contractual incompleteness. In this paper, we use data from the German eBay website to test whether a seller’s bad reputation has an effect on selling prices. For auctions of popular DVDs at eBay we do indeed find evidence for this hypothesis. We show that an increase in the share of negative ratings of one percentage point decreases the selling price by about 4 per cent. The number of negative ratings, in contrast, does not affect the selling price significantly. Hence, bidders on the eBay marketplace seem to concentrate on relative rather than on absolute measures of reputation. Further, we challenge the recommendation that it is profitable for eBay sellers to let their auction end in the evening, when many potential buyers are supposed to be online. We find that prices are relatively lower in the evening. This may be due to a much higher supply of DVDs in the evening.

<p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt;">This paper presents an improved, efficiency based absorption costing method. Efficiency based absorption costing EBAC represent an algorithm that absorbs costs based on efficiency as the main driver and we compare its results with other methods such as ABC as proof-of-concept. EBAC results in significant cost changes compared to ABC and the traditional costing system (TCS). Businesses could embrace the more efficient EBAC for a host of their pertinent cost control and decision making needs. The EBAC methodology is both easy and convenient to apply as firms currently using ABC could instantly explore EBAC without the need to gather extra information.</span></p>

Abstract Many firms divide the price a consumer pays for a good into two pieces---the price for the item itself and the price for shipping and handling. With fully rational customers, the exact division between the two prices is irrelevant---only the total price matters. We test this hypothesis by selling matched pairs of CDs and Xbox games in a series of field experiments on eBay. In theory, the ending auction price should vary inversely with the shipping charge to leave the total price paid constant. Contrary to the theory, we find that charging a high shipping cost and starting the auction at a low opening price leads to higher numbers of bidders and higher revenues when the shipping charge is not excessive. We show that these results can be accounted for by boundedly rational bidding behavior such as loss-aversion with separate mental accounts for different attributes of the price or disregard for shipping costs.

I examine how patent enforcement affects corporate research and development (R&D), exploiting the legal changes induced by the Supreme Court decision eBay v. MercExchange. This ruling increased courts’ flexibility in remedying patent cases and effectively lowered the potential costs of patent litigation for defendants. For identification, I compare innovative activity across firms differentially exposed to patent litigation before the ruling. Across several measures, I find that the decision led to a general increase in innovation. This result confirms that the changes in enforcement induced by the ruling reduced some of the distortions caused by patent litigation. Exploring the channels, I show that patent litigation negatively affects investment because it lowers the returns from R&D and exacerbates its financing constraints. This paper was accepted by Gustavo Manso, finance.

Handel elektroniczny to obszar gospodarki rozwijający się bardzo intensywnie w ciągu ostatnich kilkunastu lat. Pojawienie się w połowie lat 90. takich przedsiębiorstw, jak eBay czy Amazon, i ich powodzenie pociągnęły za sobą mnóstwo podobnych inwestycji. Łatwy i szybki sposób dokonywania transakcji zadecydowały o gwałtownym rozwoju e-commerce. E-handel polega na zawieraniu transakcji handlowych i sprzedaży towaru dzięki urządzeniom elektronicznym takim jak telefon czy komputer, przez sieć internetową. Patrząc na rozwój handlu internetowego, można zauważyć, że w jego ramach wiele firm chce odnieść sukces. Nie ma wątpliwości co do tego, że podejście przedsiębiorców do e-commerce uległo zmianie. Coraz więcej z nich ma świadomość, że można z sukcesem sprzedawać produkty wyłącznie przez Internet. Jeszcze dekadę temu przez sieć internetową odbywał się niewielki ułamek sprzedaży detalicznej, obecnie natomiast zakupy w sieci zmieniają całkowicie obraz handlu, a co za tym idzie – przyczyniają się do zmian w funkcjonowaniu tradycyjnych sklepów. Dzieje się to za sprawą łatwego dostępu do Internetu, poprawy infrastruktury w kanale e-commerce, zwiększającej się liczby e-sklepów i w efekcie – wzrastającej liczby osób, które dokonują zakupów w sieci. Ważnym aspektem dla każdego biznesu e-commerce jest zrozumienie potrzeb klientów korzystających w głównej mierze z urządzeń mobilnych i dostarczenie im odpowiednich rozwiązań oraz doświadczeń zakupowych. Na podstawie obserwacji oraz analiz można przyjąć tezę, że handel elektroniczny nadal będzie się rozwijał, jednak dynamika wzrostu będzie na niższym poziomie.

In the previous few years, Asian country had witnessed a considerable lag within the mergers and acquisitions (“M&A”) activity. within the year 2014, Indian firms were concerned in transactions value $ thirty three billion whereas within the year 2015, the worth of M&A activity saw a dip to $ twenty billion. it's forecasted that 2016 can see heightened world M&A activity and it's anticipated that the worth of transactions would cross $ thirty billion simply. One will expect the rise within the M&A deals and activities within the future time as each native and international investors and business homes area unit eyeing Asian country with a hope of tremendous growth. the start of 2017 proceeded with the executive amendment motivation of the administration particularly, product and Services Tax (GST), property regulatory agency (RERA), combined with the legal translations on a number of elements of the not terribly very previous economic condition and Bankruptcy Code (IBC) that has reimagined the obligation and liquidation scene in Asian country. The year 2017 was loaded up with nice live of discusses company reconstruction and mergers and acquisitions – thanks to the relative facilitating of the executive setting and primarily thanks to the event of the IBC, that at one hand offers recovery/liquidation of the organizations in doldrums and at different hand offers the monetary fund sound organizations to develop/grow by gaining the opposition/focuses at seductive valuations. The arrangements examined loosely were within the medium half Vodafone-Idea merger, Bharti Airtel procuring Telenor Asian country, and Bharti Airtel merger with Tata Teleservices. Among the most important M&A arrangements to be culminated were – Russia's Rosneft PJSC willing to get Essar Oil Ltd, Flip kart procuring the Indian arm of Ebay, Axis Bank forward management over the versatile installment application – FreeCharge, olla gaining Foodpanda, the partners of depository financial institution of Asian country (SBI) connexion into SBI, during this means upgrading the muscle intensity of individuals normally division behemoth.

BackgroundIn the centuries since Odysseus entrusted his son Telemachus to Athena, biographical, literary, and historical accounts have cemented the concept of mentorship into our collective consciousness. Early foundational research characterised mentors as individuals who help us transition through different phases of our lives. Chief among these phases is the progression from adolescence to adulthood, during which we “imagine exciting possibilities for [our lives] and [struggle] to attain the ‘I am’ feeling in this dreamed-of self and world” (Levinson 93). Previous research suggests that mentoring can positively impact a range of developmental outcomes including emotional/behavioural resiliency, academic attainment, career advancement, and organisational productivity (DuBois et al. 57-91; Eby et al. 441-76; Merriam 161-73). The growth of formal mentoring programs, such as Big Brothers-Big Sisters, has further strengthened our belief in the value of mentoring in personal, academic and career contexts (Eby et al. 441-76).In recent years, claims of mentorship uptake have become widespread, even ubiquitous, ranging from codified components of organisational mandates to casual bragging rights in coffee shop conversations (Eby et al. 441-76). Is this a sign that mentorship has become indispensable to personal and professional development, or is mentorship simply in vogue? In this paper, we examine uses of, and corresponding meanings attached to, mentorship. Specifically, we compare popular news portrayals of mentoring with meanings ascribed to mentoring relationships by academics who are part of formal mentoring programs.MethodsWe searched for articles published in the New York Times between July and December 2015. Search terms used included: mentor, mentors, mentoring or mentorship. This U.S. national newspaper was chosen for its broad focus, and large online readership. It is among the most widely read online newspapers worldwide (World Association of Newspapers and News Publishers). Our search generated 536 articles. We conducted a qualitative thematic contentan alysis to explore the nature, scope, and importance of mentorship, as depicted in these media accounts. We compared media themes identified through this analysis with those generated through in-depth interviews previously conducted with 23 academic faculty in mentoring programs at the University of Calgary (Canada). Data were extracted by two authors, and discrepancies in interpretation were resolved through discussion with a third author.The Many Faces of MentorshipIn both interviews and New York Times (NYT) accounts, mentorship is portrayed as part of the “fabric” of contemporary culture, and is often viewed as essential to career advancement. As one academic we interviewed commented: “You know the worst feeling in the world [as a new employee] is...to feel like you’re floundering and you don’t know where to turn.” In 322 NYT articles, mentorship was linked to professional successes across a variety of disciplines, with CEOs, and popular culture icons, such as rap artists and sports figures, citing mentorship as central to their achievements. Mentorship had a particularly strong presence in the arts (109 articles), sports (62 articles) business (57 articles), politics (36 articles), medicine (26 articles), and law (21 articles).In the NYT, mentorship was also a factor in student achievement and social justice issues including psychosocial and career support for refugees and youth from low socioeconomic backgrounds; counteracting youth radicalisation; and addressing gender inequality in the workplace. In short, mentorship appears to have been taken up as a panacea for a variety of social and economic ills.Mentor Identities and RolesWhile mentors in academia were supervisors or colleagues, NYT articles portrayed mentors more broadly, as family members, employers, friends and peers. Mentoring relationships typically begin with a connection which often manifests as shared experiences or goals (Merriam). One academic interviewee described mentorship in these terms: “There’s something there that you both really respect and value.” In many NYT accounts, the connection between mentors and mentees was similarly emphasized. As a professional athlete noted: “To me, it's not about collecting [mentors]...It's if the person means something to me...played some type of role in my life” (Shpigel SP.1).While most mentoring relationships develop organically, others are created through formal programs. In the NYT, 33 articles described formal programs to support career/skills development in the arts, business, and sports, and behaviour change in at-risk youth. Although many such programs relied on volunteers, we noted instances in professional sports and business where individuals were hired to provide mentorship. We also saw evidence to suggest that formal programs may be viewed as a quick fix, or palatable alternative, to more costly, or long-term organisational or societal change. For instance, one article on operational challenges at a law firm noted: “The firm's leadership...didn't want to be told that they needed to overhaul their entire organizational philosophy.... They wanted to be told that the firm's problem was work-family conflict for women, a narrative that would allow them to adopt a set of policies specifically aimed at helping women work part time, or be mentored” (Slaughter SR.1).Mutuality of the RelationshipEffective mentoring occurs when both mentors and mentees value these relationships. As one academic interviewee noted: “[My mentor] asked me for advice on certain things about where they’re going right career wise... I think that’s allowed us to have a stronger sort of mentoring relationship”. Some NYT portrayals of mentorship also suggested rich, reciprocal relationships. A dancer with a ballet company described her mentor:She doesn't talk at you. She talks with you. I've never thought about dancing as much as I've thought about it working with her. I feel like as a ballerina, you smile and nod and you take the beating. This is more collaborative. In school, I was always waiting to find a professor that I would bond with and who would mentor me. All I had to do was walk over to Barnard, get into the studio, and there she was. I found Twyla. Or she found me. (Kourlas AR.7)The mutuality of the mentorship evident in this dancer’s recollection is echoed in a NYT account of the role of fashion models in mentoring colleagues: “They were...mentors and connectors and facilitators, motivated...by the joy of discovering talent and creating beauty” (Trebay D.8). Yet in other media accounts, mentorship appeared unidirectional, almost one-dimensional: “Judge Forrest noted in court that he had been seen as a mentor for young people” (Moynihan A.21). Here, the focus seemed to be on the benefits, or status, accrued by the mentor. Importance of the RelationshipAcademic interviewees viewed mentors as sources of knowledge, guidance, feedback, and sponsorship. They believed mentorship had profoundly impacted their careers and that “finding a mentor can be one of the most important things” anyone could do. In the NYT portrayals, mentors were also recognized for the significant, often lasting, impact they had on the lives of their mentees. A choreographer said “the lessons she learned from her former mentor still inspire her — ‘he sits on my shoulder’” (Gold CT 11). A successful CEO of a software firm recollected how mentors enabled him to develop professional confidence: “They would have me facilitate meetings with clients early on in my career. It helped build up this reservoir of confidence” (Bryant, Candid Questions BU.2).Other accounts in academic interviews and NYT highlighted how defining moments in even short-term mentoring relationships can provoke fundamental and lasting changes in attitudes and behaviours. One interviewee who recently experienced a career change said she derived comfort from connecting with a mentor who had experienced a similar transition: “oh there’s somebody [who] talks my language...there is a place for me.” As a CEO in the NYT recalled: “An early mentor of mine said something to me when I was going to a new job: ‘Don't worry. It's just another dog and pony show.’ That really stayed with me” (Bryant, Devil’s Advocate BU.2). A writer quoted in a NYT article also recounted how a chance encounter with a mentor changed the course of his career: “She said... that my problem was not having career direction. ‘You should become a teacher,’ she said. It was an unusual thing to hear, since that subject had never come up in our conversations. But I was truly desperate, ready to hear something different...In an indirect way, my life had changed because of that drink (DeMarco ST.6).Mentorship was also celebrated in the NYT in the form of 116 obituary notices as a means of honouring and immortalising a life well lived. The mentoring role individuals had played in life was highlighted alongside those of child, parent, grandparent and spouse.Metaphor and ArchetypeMetaphors imbue language with imagery that evokes emotions, sensations, and memories in ways that other forms of speech or writing cannot, thus enabling us communicate complex ideas or beliefs. Academic interviewees invoked various metaphors to illustrate mentorship experiences. One interviewee spoke of the “blossoming” relationship while another commented on the power of the mentoring experience to “lift your world”. In the NYT we identified only one instance of the use of metaphor. A CEO of a non-profit organisation explained her mentoring philosophy as follows: “One of my mentors early on talked about the need for a leader to be a ‘certain trumpet’. It comes from Corinthians, and it's a very good visualization -- if the trumpet isn't clear, who's going to follow you?” (Bryant, Zigzag BU.2).By comparison, we noted numerous instances in the NYT wherein mentors were present as characters, or archetypes, in film, performing arts, and television. Archetypes exhibit attributes, or convey meanings, that are instinctively understood by those who share common cultural, societal, or racial experiences (Lane 232) For example, a NYT film review of The Assassin states that “the title character [is] trained in her deadly vocation by a fierce, soft-spoken mentor” (Scott C.4). Such characterisations rely on audiences’ understanding of the inherentfunction of the mentor role, and, like metaphors, can help to convey that which is compelling or complex.Intentionality and TrustIn interviews, academics spoke of the time and trust required to develop mentoring relationships. One noted “It may take a bit of an effort... You don’t get to know a person very well just meeting three times during the year”. Another spoke of trust and comfort as defining these relationships: “You just open up. You feel immediately comfortable”. We also found evidence of trust and intentionality in NYT accounts of these relationships. Mentees were often portrayed as seeking out and relying on mentorship. A junior teacher stated that “she would lean on mentors at her new school. You are not on that island all alone” (Rich A1). In contrast, there were few explicit accounts of intentionality and reflection on the part of a mentor. In one instance, a police officer who participated in a mentorship program for street kids mused “it's not about the talent. It was just about the interaction”. In another, an actor described her mentoring experiences as follows: “You have to know when to give advice and when to just be quiet and listen...no matter how much you tell someone how it goes, no one really wants to listen. Their dreams are much bigger than whatever fear or whatever obstacle you say may be in their path” (Syme C.5).Many NYT articles present career mentoring as a role that can be assumed by anyone with requisite knowledge or experience. Indeed, some accounts of mentorship arguably more closely resembled role model relationships, wherein individuals are admired, typically from afar, and emulated by those who aspire to similar accomplishments. Here, there was little, if any, apparent awareness of the complexity or potential impact of these relationships. Rather, we observed a casualness, an almost striking superficiality, in some NYT accounts of mentoring relationships. Examples ranged from references to “sartorial mentors” (Pappu D1) to a professional coach who shared: “After being told by a mentor that her scowl was ‘setting her back’ at work, [she] began taking pictures of her face so she could try to look more cheerful” (Bennett ST.1).Trust, an essential component of mentorship, can wither when mentors occupy dual roles, such as that of mentor and supervisor, or engage in mentoring as a means of furthering their own interests. While some academic interviewees were mentored by past and current supervisors, none reported any instance of role conflict. However in the NYT, we identified multiple instances where mentorship programs intentionally, or unintentionally, inspired divided loyalties. At one academic institution, peer mentors were “encouraged to befriend and offer mentorship to the students on their floors, yet were designated ‘mandatory reporters’ of any incident that may violate the school policy” (Rosman ST.1). In another media story, government employees in a phased-retirement program received monetary incentives to mentor colleagues: “Federal workers who take phased retirement work 20 hours a week and agree to mentor other workers. During that time, they receive half their pay and half their retirement annuity payout. When workers retire completely, their annuities will include an increase to account for the part-time service” (Hannon B.1). More extreme depictions of conflict of interest were evident in other NYT reports of mentors and mentees competing for job promotions, and mentees accusing mentors of sexual harassment and rape; such examples underscore potential for abuse of trust in these relationships.Discussion/ConclusionsOur exploration of mentorship in the NYT suggests mentorship is embedded in our culture, and is a means by which we develop competencies required to integrate into, and function within, society. Whereas, traditionally, mentorship was an informal relationship that developed over time, we now see a wider array of mentorship models, including formal career and youth programs aimed at increasing access to mentorship, and mentor-for-hire arrangements in business and professional sports. Such formal programs can offer redress to those who lack informal mentorship opportunities, and increased initiatives of this sort are welcome.Although standards of reporting in news media surely account for some of the lack of detail in many NYT reports of mentorship, such brevity may also suggest that, while mentoring continues to grow in popularity, we may have compromised substance for availability. Considerations of the training, time, attention, and trust required of these relationships may have been short-changed, and the tendency we observed in the NYT to conflate role modeling and mentorship may contribute to depictions of mentorship as a quick fix, or ‘mentorship light’. Although mentorship continues to be lauded as a means of promoting personal and professional development, not all mentoring may be of similar quality, and not everyone has comparable access to these relationships. While we continue to honour the promise of mentorship, as with all things worth having, effective mentorship requires effort. This effort comes in the form of preparation, commitment or intentionality, and the development of bonds of trust within these relationships. In short, overuse of, over-reference to, and misapplication of the mentorship label may serve to dilute the significance and meaning of these relationships. Further, we acknowledge a darker side to mentorship, with the potential for abuses of power.Although we have reservations regarding some trends towards the casual usage of the mentorship term, we are also heartened by the apparent scope and reach of these relationships. Numerous individuals continue to draw comfort from advice, sponsorship, motivation, support and validation that mentors provide. Indeed, for many, mentorship may represent an essential lifeline to navigating life’s many challenges. We, thus, conclude that mentorship, in its many forms, is here to stay.ReferencesBennett, Jessica. "Cursed with a Death Stare." New York Times (East Coast) 2 Aug. 2015, late ed.: ST.1.Bryant, Adam. "Designate a Devil's Advocate." New York Times (East Coast) 9 Aug. 2015, late ed.: BU.2.Bryant, Adam. "The Power of Candid Questions." New York Times (East Coast) 16 Aug. 2015, late ed.: BU. 2.Bryant, Adam. "Zigzag Your Way to the Top." New York Times (East Coast) 13 Sept. 2015, late ed.: BU.2.DeMarco, Peter. "One Life, Shaken and Stirred." New York Times (East Coast) 23 Aug. 2015, late ed.: ST.6.DuBois, David L., Nelson Portillo, Jean E. Rhodes, Nadia Silverhorn and Jeffery C. Valentine. "How Effective Are Mentoring Programs for Youth? A Systematic Assessment of the Evidence." Psychological Science in the Public Interest 12.2 (2011): 57-91.Eby, Lillian T., Tammy D. Allen, Brian J. Hoffman, Lisa E. Baranik, …, and Sarah C. Evans. "An Interdisciplinary Meta-analysis of the Potential Antecedents, Correlates, and Consequences of Protégé Perceptions of Mentoring." Psychological Bulletin 139.2 (2013): 441-76.Gold, Sarah. "Preserving a Master's Vision of Sugar Plums." New York Times (East Coast) 6 Dec. 2015, late ed.: CT 11.Hannon, Kerry. "Retiring, But Not All at Once." New York Times (East Coast) 22 Aug. 2015, late ed.: B.1.Kourlas, Gia. "Marathon of a Milestone Tour." New York Times Late Edition (East Coast) 6 Sept. 2015: AR.7.Lane, Lauriat. "The Literary Archetype: Some Reconsiderations." The Journal of Aesthetics and Art Criticism 13.2 (1954): 226-32.Levinson, Daniel. J. The Seasons of a Man's Life. New York: Ballantine, 1978.Merriam, Sharan. "Mentors and Protégés: A Critical Review of the Literature." Adult Education Quarterly 33.3 (1983): 161-73.Moynihan, Colin. "Man's Cooperation in Terrorist Cases Spares Him from Serving More Time in Prison." New York Times (East Coast) 24 Oct. 2015, late ed.: A.21.Pappu, Sridhar. "Tailored to the Spotlight." New York Times (East Coast) 27 Aug. 2015, late ed.: D1.Rich, Motoko. "Across Country, a Scramble Is On to Find Teachers." New York Times (East Coast) 10 Aug. 2015, late ed.: A1.Rosman, Katherine. "On the Campus Front Line." New York Times (East Coast) 27 Sept. 2015, late ed.: ST.1.Scott, AO. "The Delights to Be Found in a Deadly Vocation." New York Times (East Coast) 16 Oct. 2015, late ed.: C.4.Shpigel, Ben. "An Exchange of Respect in the Swapping of Jerseys." New York Times (East Coast) 18 Oct. 2015, late ed.: SP.1.Slaughter, Ann-Marie. "A Toxic Work World." New York Times (East Coast) 20 Sept. 2015, late ed.: SR.1.Syme, Rachel. "In TV, Finding a Creative Space with No Limitations." New York Times (East Coast) 26 Aug. 2015, late ed.: C.5.Trebay, Guy. "Remembering a Time When Fashion Shows Were Fun." New York Times (East Coast) 10 Sept. 2015, late ed.: D.8.World Association of Newspapers and News Publishers. World Press Trends Report. Paris: WAN-IFRA, 2015.

Economics of Cute There are many ways to study cute: for example, neuro-biology (cute as adaptation); anthropology (cute in culture); political economy (cute industries, how cute exploits consumers); cultural studies (social construction of cute); media theory and politics (representation and identity of cute), and so on. What about economics? At first sight, this might point to a money-capitalism nexus (“the cute economy”), but I want to argue here that the economics of cute actually works through choice interacting with fixed costs and what economists call ”the substitution effect”. Cute, in conjunction with the Internet, affects the trade-offs involved in choices people make. Let me put that more starkly: cute shapes the economy. This can be illustrated with internet animals, which at the time of writing means Grumpy Cat. I want to explain how that mechanism works – but to do so I will need some abstraction. This is not difficult – a simple application of a well-known economics model, namely the Allen-Alchian theorem, or the “third law of demand”. But I am going to take some liberties in order to represent that model clearly in this short paper. Specifically, I will model just two extremes of quality (“opera” and “cat videos”) to represent end-points of a spectrum. I will also assume that the entire effect of the internet is to lower the cost of cat videos. Now obviously these are just simplifying assumptions “for the purpose of the model”. And the purpose of the model is to illuminate a further aspect of how we might understand cute, by using an economic model of choice and its consequences. This is a standard technique in economics, but not so in cultural studies, so I will endeavour to explain these moments as we go, so as to avoid any confusion about analytic intent. The purpose of this paper is to suggest a way that a simple economic model might be applied to augment the cultural study of cute by seeking to unpack its economic aspect. This can be elucidated by considering the rise of internet animals as a media-cultural force, as epitomized by “cat videos”. We can explain this through an application of price theory and the theory of demand that was first proposed by Armen Alchian and William Allen. They showed how an equal fixed cost that was imposed to both high-quality and low-quality goods alike caused a shift in consumption toward the higher-quality good, because it is now relatively cheaper. Alchian and Allen had in mind something like transport costs on agricultural goods (such as apples). But it is also true that the same effect works in reverse (Cowen), and the purpose of this paper is to develop that logic to contribute to explaining how certain structural shifts in production and consumption in digital media, particularly the rise of blog formats such as Tumblr, a primary supplier of kittens on the Internet, can be in part understood as a consequence of this economic mechanism. There are three key assumptions to build this argument. The first is that the cost of the internet is independent of what it carries. This is certainly true at the level of machine code, and largely true at higher levels. What might be judged aesthetically high quality or low quality content – say of a Bach cantata or a funny cat video – are treated the same way if they both have the same file size. This is a physical and computational aspect of net-neutrality. The internet – or digitization – functions as a fixed cost imposed regardless of what cultural quality is moving across it. Second, while there are costs to using the internet (for example, in hardware or concerning digital literacy) these costs are lower than previous analog forms of information and cultural production and dissemination. This is not an empirical claim, but a logical one (revealed preference): if it were not so, people would not have chosen it. The first two points – net neutrality and lowered cost – I want to take as working assumptions, although they can obviously be debated. But that is not the purpose of the paper, which is instead the third point – the “Alchian-Allen theorem”, or the third fundamental law of demand. The Alchian-Allen Theorem The Alchian-Allen theorem is an extension of the law of demand (Razzolini et al) to consider how the distribution of high quality and low quality substitutes of the same good (such as apples) is affected by the imposition of a fixed cost (such as transportation). It is also known as the “shipping the good apples out” theorem, after Borcherding and Silberberg explained why places that produce a lot of apples – such as Seattle in the US – often also have low supplies of high quality apples compared to places that do not produce apples, such as New York. The puzzle of “why can’t you get good apples in Seattle?” is a simple but clever application of price theory. When a place produces high quality and low quality items, it will be rational for those in faraway places to consume the high quality items, and it will be rational for the producers to ship them, leaving only the low quality items locally.Why? Assume preferences and incomes are the same everywhere and that transport cost is the same regardless of whether the item shipped is high or low quality. Both high quality and low quality apples are more expensive in New York compared to Seattle, but because the fixed transport cost applies to both the high quality apples are relatively less expensive. Rational consumers in New York will consume more high quality apples. This makes fewer available in Seattle.Figure 1: Change in consumption ratio after the imposition of a fixed cost to all apples Another example: Australians drink higher quality Californian wine than Californians, and vice versa, because it is only worth shipping the high quality wine out. A counter-argument is that learning effects dominate: with high quality local product, local consumers learn to appreciate quality, and have different preferences (Cowen and Tabarrok).The Alchian-Allen theorem applies to any fixed cost that applies generally. For example, consider illegal drugs (such as alcohol during the US prohibition, or marijuana or cocaine presently) and the implication of a fixed penalty – such as a fine, or prison sentence, which is like a cost – applied to trafficking or consumption. Alchian-Allen predicts a shift toward higher quality (or stronger) drugs, because with a fixed penalty and probability of getting caught, the relatively stronger substance is now relatively cheaper. Empirical work finds that this effect did occur during alcohol prohibition, and is currently occurring in narcotics (Thornton Economics of Prohibition, "Potency of illegal drugs").Another application proposed by Steven Cuellar uses Alchian-Allen to explain a well-known statistical phenomenon why women taking the contraceptive pill on average prefer “more masculine” men. This is once again a shift toward quality predicted on falling relative price based on a common ‘fixed price’ (taking the pill) of sexual activity. Jean Eid et al show that the result also applies to racehorses (the good horses get shipped out), and Staten and Umbeck show it applies to students – the good students go to faraway universities, and the good student in those places do the same. So that’s apples, drugs, sex and racehorses. What about the Internet and kittens?Allen-Alchian Explains Why the Internet Is Made of CatsIn analog days, before digitization and Internet, the transactions costs involved with various consumption items, whether commodities or media, meant that the Alchian-Allen effect pushed in the direction of higher quality, bundled product. Any additional fixed costs, such as higher transport costs, or taxes or duties, or transactions costs associated with search and coordination and payment, i.e. costs that affected all substitutes in the same way, would tend to make the higher quality item relatively less expensive, increasing its consumption.But digitisation and the Internet reverse the direction of these transactions costs. Rather than adding a fixed cost, such as transport costs, the various aspects of the digital revolution are equivalent to a fall in fixed costs, particularly access.These factors are not just one thing, but a suite of changes that add up to lowered transaction costs in the production, distribution and consumption of media, culture and games. These include: The internet and world-wide-web, and its unencumbered operation The growth and increasing efficacy of search technology Growth of universal broadband for fast, wide band-width access Growth of mobile access (through smartphones and other appliances) Growth of social media networks (Facebook, Twitter; Metcalfe’s law) Growth of developer and distribution platforms (iPhone, android, iTunes) Globally falling hardware and network access costs (Moore’s law) Growth of e-commerce (Ebay, Amazon, Etsy) and e-payments (paypal, bitcoin) Expansions of digital literacy and competence Creative commons These effects do not simply shift us down a demand curve for each given consumption item. This effect alone simply predicts that we consume more. But the Alchian-Allen effect makes a different prediction, namely that we consume not just more, but also different.These effects function to reduce the overall fixed costs or transactions costs associated with any consumption, sharing, or production of media, culture or games over the internet (or in digital form). With this overall fixed cost component now reduced, it represents a relatively larger decline in cost at the lower-quality, more bite-sized or unbundled end of the media goods spectrum. As such, this predicts a change in the composition of the overall consumption basket to reflect the changed relative prices that these above effects give rise to. See Figure 2 below (based on a blog post by James Oswald). The key to the economics of cute, in consequence of digitisation, is to follow through the qualitative change that, because of the Alchian-Allen effect, moves away from the high-quality, highly-bundled, high-value end of the media goods spectrum. The “pattern prediction” here is toward more, different, and lower quality: toward five minutes of “Internet animals”, rather than a full day at the zoo. Figure 2: Reducing transaction costs lowers the relative price of cat videos Consider five dimensions in which this more and different tendency plays out. Consumption These effects make digital and Internet-based consumption cheaper, shifting us down a demand curve, so we consume more. That’s the first law of demand in action: i.e. demand curves slope downwards. But a further effect – brilliantly set out in Cowen – is that we also consume lower-quality media. This is not a value judgment. These lower-quality media may well have much higher aesthetic value. They may be funnier, or more tragic and sublime; or faster, or not. This is not about absolute value; only about relative value. Digitization operating through Allen-Alchian skews consumption toward the lower quality ends in some dimensions: whether this is time, as in shorter – or cost, as in cheaper – or size, as in smaller – or transmission quality, as in gifs. This can also be seen as a form of unbundling, of dropping of dimensions that are not valued to create a simplified product.So we consume different, with higher variance. We sample more than we used to. This means that we explore a larger information world. Consumption is bite-sized and assorted. This tendency is evident in the rise of apps and in the proliferation of media forms and devices and the value of interoperability.ProductionAs consumption shifts (lower quality, greater variety), so must production. The production process has two phases: (1) figuring out what to do, or development; and (2) doing it, or making. The world of trade and globalization describes the latter part: namely efficient production. The main challenge is the world of innovation: the entrepreneurial and experimental world of figuring out what to do, and how. It is this second world that is radically transformed by implications of lowered transaction costs.One implication is growth of user-communities based around collaborative media projects (such as open source software) and community-based platforms or common pool resources for sharing knowledge, such as the “Maker movement” (Anderson 2012). This phenomenon of user-co-creation, or produsers, has been widely recognized as an important new phenomenon in the innovation and production process, particularly those processes associated with new digital technologies. There are numerous explanations for this, particularly around preferences for cooperation, community-building, social learning and reputational capital, and entrepreneurial expectations (Quiggin and Potts, Banks and Potts). Business Models The Alchian-Allen effect on consumption and production follows through to business models. A business model is a way of extracting value that represents some strategic equilibrium between market forms, organizational structures, technological possibilities and institutional framework and environmental conditions that manifests in entrepreneurial patterns of business strategy and particular patterns of investment and organization. The discovery of effective business models is a key process of market capitalist development and competition. The Alchian-Allen effect impacts on the space of effective viable business models. Business models that used to work will work less well, or not at all. And new business models will be required. It is a significant challenge to develop these “economic technologies”. Perhaps no less so than development of the physical technologies, new business models are produced through experimental trial and error. They cannot be known in advance or planned. But business models will change, which will affect not only the constellation of existing companies and the value propositions that underlie them, but also the broader specializations based on these in terms of skill sets held and developed by people, locations of businesses and people, and so on. New business models will emerge from a process of Schumpeterian creative destruction as it unfolds (Beinhocker). The large production, high development cost, proprietary intellectual property and systems based business model is not likely to survive, other than as niche areas. More experimental, discovery-focused, fast-development-then-scale-up based business models are more likely to fit the new ecology. Social Network Markets & Novelty Bundling MarketsThe growth of variety and diversity of choice that comes with this change in the way media is consumed to reflect a reallocation of consumption toward smaller more bite-sized, lower valued chunks (the Alchian-Allen effect) presents consumers with a problem, namely that they have to make more choices over novelty. Choice over novelty is difficult for consumers because it is experimental and potentially costly due to risk of mistakes (Earl), but it also presents entrepreneurs with an opportunity to seek to help solve that problem. The problem is a simple consequence of bounded rationality and time scarcity. It is equivalent to saying that the cost of choice rises monotonically with the number of choices, and that because there is no way to make a complete rational choice, agents will use decision or choice heuristics. These heuristics can be developed independently by the agents themselves through experience, or they can be copied or adopted from others (Earl and Potts). What Potts et al call “social network markets” and what Potts calls “novelty bundling markets” are both instances of the latter process of copying and adoption of decision rules. Social network markets occur when agents use a “copy the most common” or “copy the highest rank” meta-level decision rule (Bentley et al) to deal with uncertainty. Social network markets can be efficient aggregators of distributed information, but they can also be path-dependent, and usually lead to winner-take all situations and dynamics. These can result in huge pay-offs differentials between first and second or fifth place, even when the initial quality differentials are slight or random. Diversity, rapid experimentation, and “fast-failure” are likely to be effective strategies. It also points to the role of trust and reputation in using adopted decision rules and the information economics that underlies that: namely that specialization and trade applies to the production and consumption of information as well as commodities. Novelty bundling markets are an entrepreneurial response to this problem, and observable in a range of new media and creative industries contexts. These include arts, music or food festivals or fairs where entertainment and sociality is combined with low opportunity cost situations in which to try bundles of novelty and connect with experts. These are by agents who developed expert preferences through investment and experience in consumption of the particular segment or domain. They are expert consumers and are selling their “decision rules” and not just the product. The more production and consumption of media and digital information goods and services experiences the Alchian-Allen effect, the greater the importance of novelty bundling markets. Intellectual Property & Regulation A further implication is that rent-seeking solutions may also emerge. This can be seen in two dimensions; pursuit of intellectual property (Boldrin and Levine); and demand for regulations (Stigler). The Alchian-Allen induced shift will affect markets and business models (and firms), and because this will induce strategic defensive and aggressive responses from different organizations. Some organizations will seek to fight and adapt to this new world through innovative competition. Other firms will fight through political connections. Most incumbent firms will have substantial investments in IP or in the business model it supports. Yet the intellectual property model is optimized for high-quality large volume centralized production and global sales of undifferentiated product. Much industrial and labour regulation is built on that model. How governments support such industries is predicated on the stability of this model. The Alchian-Allen effect threatens to upset that model. Political pushback will invariably take the form of opposing most new business models and the new entrants they carry. Conclusion I have presented here a lesser-known but important theorem in applied microeconomics – the Alchian-Allen effect – and explain why its inverse is central to understanding the evolution of new media industries, and also why cute animals proliferate on the Internet. The theorem states that when a fixed cost is added to substitute goods, consumers will shift to the higher quality item (now relatively less expensive). The theorem also holds in reverse, when a fixed cost is removed from substitute items we expect a shift to lower quality consumption. The Internet has dramatically lowered fixed costs of access to media consumption, and various development platforms have similarly lowered the costs of production. Alchian-Allen predicts a shift to lower-quality, ”bittier” cuter consumption (Cowen). References Alchian, Arman, and William Allen. Exchange and Production. 2nd ed. Belmont, CA: Wadsworth, 1967. Anderson, Chris. Makers. New York: Crown Business, 2012. Banks, John, and Jason Potts. "Consumer Co-Creation in Online Games." New Media and Society 12.2 (2010): 253-70. Beinhocker, Eric. Origin of Wealth. Cambridge, Mass.: Harvard University Press, 2005. Bentley, R., et al. "Regular Rates of Popular Culture Change Reflect Random Copying." Evolution and Human Behavior 28 (2007): 151-158. Borcherding, Thomas, and Eugene Silberberg. 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