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The requirements of modern e-learning techniques change. Aspects such as community interaction, flexibility, pervasive learning and increasing mobility in communication habits become more important. To meet thesechallenges e-learning platforms must provide support on mobile learning. Most approaches try to adopt centralized and static elearning mechanisms to mobile devices. However, often technically it is not possible for all kinds of devices to be connected to a central server. Therefore we introduce an application of a mobile e-learning network which operates totally decentralized with the help of an underlying ad hoc network architecture. Furthermore the concept of ad hoc messaging network (AMNET) is used as basis system architecture for our approach to implement a platform for pervasive mobile elearning.
In recent years, the development of software in open source communities has attracted immense attention from research and practice. The idea of commercial quality, free software, and open source code accelerated the development of well-designed open source software such as Linux, Apache tools, or Perl. Intrinsic motivation, group identification processes, learning, and career concerns are the key drivers for a successful cooperation among the participants. These factors and most mechanisms of control, coordination, and monitoring forms of open source communities can hardly be explained by traditional organizational theories. In particular, the micro and macro structures of open source communities and their mode of operation are hardly compatible with the central assumption of the New Institutional Theory, like opportunistic behavior. The aim of this contribution is to identify factors that sustain the motivation of the community members over the entire life cycle of an open source project. Adequate coordination and controlling mechanisms for the governance in open source communities may be extracted.
This paper describes the administrative powers of local jurisdictions in Georgia, emphasizing on the tax competences and the abilities to mobilize other sources of income. Having listed and explained the types of revenues and incomes, the articles continues to show their distribution among administrative levels according to the current tax code. Following a brief overview of the main laws underlying tax regulation, the existing problems of the status quo before 2007 and some perspectives for the immediate future are outlined.
Real costs of freight transportation have strong increased in Russia particularly during the period of price liberalization 1992–93. This paper investigates possible connections between rising transport costs and the evolution of the size structure of the system of cities in the Russian Federation and its federal subjects. Empirical findings suggest that under conditions of a closed system agglomeration processes according to the predictions of the model of Tabuchi et al. (2005) would have taken place especially in the periphere regions of the North and Far East.
This paper gives a review on the theoretical foundation for fiscal decentralisation and a status quo analysis of the intergovernmental relations in Mongolia. It consists of two parts. Part I briefly reviews the theories of fiscal decentralisation and its impact on the nations’ welfare considering the major challenges for a transition economy. Part II of the paper describes the general structure and scope of the government and examines the current fiscal autonomy in Mongolia focusing on the four main areas of intergovernmental relations. This paper concludes that local governments in Mongolia are still far away from having the political, administrative and fiscal autonomy. New approaches for the assignments of expenditures and revenues in Mongolia are urgently needed.
The paper describes the exchange program in between the University of Wisconsin/ Milwaukee and the University of Potsdam in the field of economics. It discusses in detail the development of the program, including the problems and challenges. Additionally a brief description of the curriculum is presented. Then the future possibilities of the Transatlantic Degree Program (TDP) are discussed and the influences and problems of the Bologna process analysed.
Of Rawls's two principles of justice only the second has received attention from economists. The second principle is concerned with the social and economic conditions in a just society. The first principle, however, has largely been neglected. It claims, that all people in society should have equal basic liberties. In this paper Rawls's first principle is characterised in a freedom of choice framework. The analysis reveals conceptual problems of the Rawlsian approach to justice.
Part of the intorduction: The task of writing a reliable and convincing paper on this topic is a very uneasy one because it is threefold: one has to know at least a bit about the agricultural sector, biology (or more precisely ecology), and about the sometimes beneficial but often distorting consequences of human activities. And all that has to be judged from the perspective of an economist who is aware of the steadily increasing uncertainties which are closely connected with post-modem sciences. Especially with regard to global, but also regional environmental issues, neither the conventional applied sciences nor the traditional professional consultancy deliver promising results. Today scientists have to tackle problems which are created by political necessities overwhelmingly caused by short-term human behavior, due in part to a serious lack of information on the longterm behavioral consequences. In these issues, typically, information stacks are high, scientific facts uncertain, individual as well as collective values disputed, and political decisions very urgent. "In general, the post-normal situation is one where the traditional opposition of 'hard'facts and 'soft' values is inverted. Here we find decisions that are 'hard' in every sense, for which the scientific inputs are irremediably 'soft'" (FUNTOWICZ/RAVETZ, 1991, p. 138).
The first goal of the present work focuses on the need for different rationing methods of the The Global Change and Financial Transition (GFT) work- ing group at the Potsdam Institute for Climate Impact Research (PIK): I provide a toolbox which contains a variety of rationing methods to be ap- plied to micro-economic disequilibrium models of the lagom model family. This toolbox consists of well known rationing methods, and of rationing methods provided specifically for lagom. To ensure an easy application the toolbox is constructed in modular fashion. The second goal of the present work is to present a micro-economic labour market where heterogenous labour suppliers experience consecu- tive job opportunities and need to decide whether to apply for employ- ment. The labour suppliers are heterogenous with respect to their qualifi- cations and their beliefs about the application behaviour of their competi- tors. They learn simultaneously – in Bayesian fashion – about their individ- ual perceived probability to obtain employment conditional on application (PPE) by observing each others’ application behaviour over a cycle of job opportunities.
Do institutions matter?
(2006)
Contens 1 Introduction 2 Institutions and the Institutional Change 2.1 Institutions and Theoretical Concepts in Economics 2.2 Path Dependence 2.3 Inconsistence of Institutional Development 2.4 Determinants of Effectiveness 2.5 Efficiency of New Institutions 3 What is “Competition Policy”? 4 The Competition Policy in Russia as an Institution 4.1 Establishment of the Competition Policy as an Institution 4.2 Market Structure and Competition Policy 4.3 Measures of Competition Policy 4.3.1 Prohibition of Competition Restrictive Agreements or Concerted Actions 4.3.2 Abuse of Dominance 4.3.3 Merger Control 4.3.4 Restrictive Action to Competition of Administrative Bodies 4.4 Violations of the Competition Law 4.5 Problems of the Russian Competition Policy 5 Which Mistakes Russia has made with the Implementation of theCompetition Policy? 6 Is a Lacking Effectiveness of Transplanted Institutions Inevitable? 7 Concluding Remarks
A casual look at regional unemployment rates reveals that there are vast differences, which cannot be explained by different institutional settings. Our paper attempts to trace these differences in the labor market performance back to the regions' specialization in products that are more or less advanced in their product cycle. The model we develop shows how individual profit and utility maximization endogenously yields higher employment levels in the beginning. In later phases, however, employment decreases in the presence of process innovation. Our model suggests that the only way to escape from this vicious circle is to specialize in products that are at the beginning of their "economic life". The model is based on an interaction of demand and supply side forces.
Textbook wisdom says that competition yields lower prices and higher consumer surplus than monopoly. We show in two versions of a simple location-product differentiation model with and without endogenous choice of products that these two results have to be qualified. In both models, more than half of the reasonable parameter values lead to higher prices with duopoly than with monopoly. If the product characteristics are exogenous to the firms, consumers may even be be better off with monopoly in average.
This paper analyses the structural change in Russia during the transition from the planned to a market economy. With regard to the famous three sector hypothesis, broad economic sectors were formed as required by this theory. The computation of their shares at GNP at market prices using Input-Output tables, and the adjustment of results from distortions, generated as side effects of tax avoidance practices, shows results that clearly reject claims that Russia would be on the road to a post-industrial service economy. Instead, at least until 2001, a tendency of "primarisation" could be observed, that presents Russia closer to less-developed countries.
Instability in competition
(2005)
In this paper we show that Puu (2002) does not provide a stable solution to the location game, according to his own definition of stability. If the usual two-stage game is considered, where in the first stage a location is chosen once and forever, and in the second stage prices are determined, the equilibrium proves stable for a sizeable interval of parameters, however. Even though this procedure is most common in analyzing Hotelling's location problem, it is not satisfying because it exhibits an inconsistent informational structure. The search for a better concept of stability is imperative.
Table of contens 1 Introduction 2 The concept of sustainability 2.1 Ecological sustainability 2.2 Social sustainability 2.3 Economic sustainability 2.4 The sustainability strategy of the german government 3 Effects of energy use on the enviromment 4 Requirements of the SSGG for energy policy 4.1 Ecological implications of thr SSGG 4.2 Social and economic requirements of the SSGG 5 The German Renewable Energies Act 5.1 Objectives 5.2 Design and mechanisms 5.3 Fees-in tariffs 6 Does the EEG meet the sustainability requirements of the SSGG? 6.1 Management rules 6.2 Social sustainability 6.3 Economic sustainability 6.4 Development tendencis 7 Possible amendments for more sustainability 7.1 Changing the promotional system 7.2 A European regulation
Social segregation in cities takes place where different household groups exist and when, according to Schelling, their location choice either minimizes the number of differing households in their neighborhood or maximizes their own group. In this contribution an evolutionary simulation based on a monocentric city model with externalities among households is used to discuss the spatial segregation patterns of four groups. The resulting complex spatial patterns can be shown as graphic animations. They can be applied as initial situation for the analysis of the effects a rent control has on segregation.
Optimal spatial patterns of two, three and four segregated household groups in a monocentric city
(2004)
Usually, in monocentric city models the spatial patterns of segregated household groups are assumed to be ring-shaped, while early in the 1930ies Hoyt showed that wedge-shaped areas empirically predominate. This contribution presents a monocentric city model with different household groups generating positive externalities within the groups. At first, border length is founded as a criterion of optimality. Secondly, it is shown that mixed patterns of concentric and wedge-shaped areas represent multiple equilibria if more than two groups of households are being considered. The welfare optimal segregated pattern depends on the relative purchasing power of different household groups.
Usually, in monocentric city models, the spatial patterns of segregated ethnic groups are assumed to be ring-shaped, whereas in the 1930ies Hoyt showed that empirically wedge-shaped areas predominate. In contrast to Rose-Ackerman.s discussion of the in.uence within a ring-shaped pattern which the aversion which different households in the context of racism have, Yinger showed that, depending on the population mix, a wedge-shaped pattern may arise if it is border length which causes the spatial pattern. In this contribution, a simulation based on a monocentric city model with two or more different household groups is used to derive spatial patterns. Wedge-shaped segregation is shown to be the result of positive externalities among similar households. Differences between households only lead to ring-shaped patterns if the e¤ect of a city center on spatial structure dominates neighborhood e¤ects. If more than two groups of households are being considered, mixed patterns of concentric and wedge-shaped areas arise.
Economy vs. history
(2004)
The aim of this study is to examine in which cases economic forces or historical singularities prevail in the determination of the long-run distribution of firms. We develop a relatively general model of heterogenous firms' location choice in discrete space. The main force towards an agglomerated structure is the reduction of transaction costs for consumers if firms are located closely, whilst competition and transport costs work towards a more disperse structure. We then assess the importance of the initial conditions by simulating and comparing the resulting distribution of firms for identical economic parameters but varying initial settings. If the equilibrium distributions of firms are similar we conclude that economic forces have prevailed, while differences in the resulting distributions indicate that 'history' is more important. The (dis)similarity of distributions of firms is calculated by means of a measure, which exhibits a number of desirable features.
In the recent years there are many researchs discussing the effects of trade policy (tariffs, subsidies etc.) in international trade. The results are manifold. Some authors show that trade policy has negative effects on welfare, some spatial economists demonstrate that trade policy can have positive effects on welfare. This paper considers the effects of the trade policy made by both countries participating in international trade in a spatial economic model. It can be showed that trade policy of both trade partners (tariffs of one country and export subsidies of the other country) can improve the world welfare in comparison with free trade.
Table of contents 1 Introduction 2 Ecological regulation and cost effectiveness 2.1 Climate policy 2.2 Promotion of renewable energies 3 Ecological regulation and security of supply 3.1 Climate policy 3.2 Promotion of renewable energies 4 The German Renewable Energies Act (EEG) 4.1 Objectives 4.2 Design and mechanisms 5 The European emissions trading system (EETS) 5.1 Objectives 5.2 Framework 6 The EEG and the EETS: trade off between ecological objectivesand cost effectiveness, innovation and security of supply? 6.1 EEG 6.2 EETS 6.3 Comparison between the approaches of the EEG and the EETS 7 Conclusions and outlook
(De)regulatory interventions frequently have unintended cross- market effects, which may or may not be desirable. We assess the effects of three policies on aggregate variables, in particular real income, from a theoretical perspective. Our results suggest that instruments acting upon wages have only a weak impact on real income, whereas the distribution of income is affected strongly. In contrast, a policy that enhances product market competition is fostering real income, but also impacts strongly on union wages and the distribution of income.
Existing theoretical literature fails to explain the differences between the pay of workers that are covered by union agreements and others who are not. This study aims at closing this gap by a single general- equilibrium approach that integrates a dual labor market and a two- sector product market. Our results suggest that the so called 'union wage gap' is largely determined by the degree of centralization of the bargains, and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.
Our analysis is concerned with the impact of a regionalisation of unemployment insurance (UI) on workers’ preferences, on firms’ profits, and on effciency. The existence and the extent of UI are endogenously derived by maximising an objective function of the state. Three different types of regionalisation are considered which differ with respect to the area the UI objective function is related to, and with respect to the policy variable used to maximise it. It comes to light that workers are always in favour of central UI, while it depends on the type of regionalisation whether or not firms are better off with regional or with central UI. The same somewhat surprising result applies for efficiency.
We examine the effects of regionalising the budget of unemployment insurance (UI) on wages, employment, and on UI parameters, which, for their part, determine the agents’ preferences concerning such a reform. A numerical example shows that, under reasonable assumptions, the intuition that the reform would enhance efficiency and improve the economic situation of agents from the low- unemployment region to the disadvantage of agents from the high- unemployment region is not valid in general.
This study examines how the size of trade unions relative to the la- bor force impacts on the desirability of different organizational forms of self-financing unemployment insurance (UI) for workers, firms, and with reference to an efficiency criterion. For this purpose, we respectively nu- merically compare the outcome of a model with a uniform payroll tax to a model where workers pay taxes according to their systematic risk of unemployment. Our results highlight the importance of the bargaining structure for the assessment of a particular UI scheme. Most importantly, it depends on the size of the unions whether efficiency favors a uniform or a differentiated UI scheme.
This paper investigates the formation of the ownership structure and the corporate governance system of the Ukraine as a country in transition. Numerous studies consider that privatization results in the establishment of a proprietors’ motivation mechanism. On the other hand it causes ownership concentration in the hands of a few shareholders and managers. The goal of economic reform in transition and, largely, its pace, is measured by the degree to which shareholders participate in short- and long-term corporate value creation. Shareholder access to such created value depends on the ability of corporate “insiders”, especially executives and management, to claim a disproportionate share of corporate value (the “insider effect”). An econometric analysis of the correlation between privatization and macroeconomic factors studies the degree of effectiveness of economic reforming in Ukrainian regions.
This paper tries to apply common methods to estimate unbiased coefficients for the return to schooling in Germany for the year 2004. Based on the simple Mincer-type wage equation, the return to schooling is around 9.5% per year. There is no sheepskin effect. As expected the return in the private sector is higher than in the public sector. Females have a higher return than males, but there are no differences between East and West Germans. An Instrumental Variables and a 3-Stage-Least-Squares approach give very high returns. For correcting the sample selection, the Heckman Two Step Procedure and the Heckman Maximum Likelihood Approach are used. For both methods, the coefficients are very similar, but higher than without correcting for it.
This paper presents in the first section a methodological introduction concerning statistics of consumer prices in Georgia. The second section gives a general idea of the development of consumer prices from January 1994 till September 1999. A detailed regional analysis is added in section 3. The fourth section analyses the development of consumer prices for the eight main groups included in the total CPI. Section 5 compares the changes in Georgian CPI with the movements of foreign exchange rates in Georgian Lari. This paper ends with a summary including a short outlook to the next years.
The attractiveness of foreign direct investment in Russia and Ukraine : a statistical analysis
(1999)
In this paper a comparative exploration of the potential for foreign investment and real inflow to Russia and Ukraine are examined. The analysis showed that primarily both countries enjoyed significant comparative advantages in attracting foreign capital. Since the foundation of independent states in 1992 attractiveness began to diverge dramatically. This difference is clearly explained by the determination of the Russian government to reform the economy earlier than the Ukrainian government. The transition to a market economy is closely connected with the development of a favorable investment climate in both countries. It includes the foundation of a stable system of property rights and a conducive legal environment.
Inhalt: Grundgedanken zur Entwicklung von Leitbildern -Leitbilder im Kontext eines Stadtmarketingkonzeptes -Ein Modell zur Entwicklung von Leitbildern -Das Leitbild als ein Element der Entwicklung eines Stadtmarketing- Konzepts -Funktion von Leitbildern -Anforderungen an Leitbilder Beispiele zur Leitbildentwicklung für die Städte Hennigsdorf und Potsdam
Inhalt: Introduction: -Some Introductory Examples -Consumer-relevant Utility Dimensions -Communication Flow between the Relevant Actors -Risk Communication Dimensions -Complete Model -Aims of the Study Method: -Participants -Procedure -Content Analysis Results: -Sample Category 1: Food safety -Sample Category 2: Product Quality -Sample Category 3: Freedom of Choice -Sample Category 4: Decision Power over Foodstuffs -Strategy 1: Scientific Information Approach -Strategy 2: Balanced Information Approach -Strategy 3: Product Information Approach -Strategy 4: Classical Advertising -Strategy 5: Trust me I'm no Baddie -Strategy 6: Induction of Fear
Public pensions in the U.S.
(2005)
Contents: The Public Old Age Insurance of the U.S. -Historical overview -Technical details -Individual equity and social adequacy The Economic Problem of Old Age -Risks and economic security -Old age, retirement, and idividual precaution -Insurance markets, market failures, and social insurance -Options for public pension systems The Problems of Social Security -The financial balance of OASDI -Causes of the long-run problems -Rates of return -Conclusion - The case for Social Security reform Proposed Remedies -Full, partial, or no privatization? -The President's Commission to Strengthen Social Security -Kotlikoff's Personal Security System -The Diamond-Orszag Three-Part plan
Many European countries have experienced a significant increase of unemployment in recent years. This paper reviews several theoretical models that try to explain this phenomenon. Predominantly, these models claim a link between the poor performance of European labor markets and the high level of market regulation. Commonly referred to as the Eurosclerosis debate, prominent approaches consider insider-outsider relationships, search-models, and the influence of hiring and firing costs on equilibrium employment. The paper presents empirical evidence of each model and studies the relevance of the identified rigidities as a determinant of high unemployment in Europe. Furthermore, a case study analyzes the unemployment problem in Germany and critically discusses new reform efforts. In particular this section analyzes whether the recently enacted Hartz reforms can induce higher employment.
Revisiting public investment
(2004)
The consumption equivalence method is the theoretical basis of public cost-benefit analysis. Consumption equivalence public capital prices are explicitly introduces in order to sufficiently care for the opportunity cost of public expenditure. This can solve the dispute about the social rate of discount within public cost-benefit analysis witch was generated on a criterion looking similar to the capital value formula, known as Lind’s approach. The social rate of discount is liberated from opportunity costs considerations and the discounting away of the effects for future welfare vanishes. The corresponding question whether one should accept a positive value of the pure rate of social time preference is an old issue. Its current state between the prescriptive and descriptive view can also be interpreted as a consequence of the oversimplification of standard cost– benefit analysis. But apart from an economic self-process the pure rate of social time preference is also defined as a business-as-usual value of social distance discounting. Hence, a political choice has to be made about this rate which is free in principal.
An exhaustive and disjoint decomposition of social choice situations is derived in a general set theoretical framework using the new tools of the Lifted Pareto relation on the power set of social states representing a pre-choice comparison of choice option sets. The main result is the classification of social choice situations which include three types of social choice problems. First, we usually observe the common incompleteness of the Pareto relation. Second, a kind of non-compactness problem of a choice set of social states can be generated. Finally, both can be combined. The first problem root can be regarded as natural everyday dilemma of social choice theory whereas the second may probably be much more due to modeling technique implications. The distinction is enabled at a very general set theoretical level. Hence, the derived classification of social choice situations is applicable on almost every relevant economic model.
Contents: Actors, Markets and Interest Groups in Health Services Private and Social Health Insurance in a Simple Model Misallocation and Malpractice in Social Health Care and Insurances -The UK Health Care System -The German Social Health Insurance System -Current Discussions: Intertemporal Perspective and Fundamental Change Interplay of Public and Private Health Insurance: Lessons for Countries in Transition Summary: The Necessary Steps to a Fundamental Reform
Contents: Targets, Means and Benefits of Social Protection Standard Risks and Possible Institutional Settings for Social Protection -Market Structure for Pension and Health Insurance -Systems of Social Protection and Security -Replacement Ratios and Income Taxation Social Protection in Selected European Countries: Germany, Austria, The Netherlands, United Kingdom -Pension System -Health System -Unemployment Insurance -Accident Insurance -Basic Security System -Taxation of Wages and Profits The Overall Burden of Taxes and Social Protection Expenses Necessary Reforms, Lessons for Russia and a Basic Approach for a Blueprint -Basic Features of the Reform Process -Reforms within the Branches of Social Protection -Integrated Tax and Transfer Reform -Empirical Evaluation of Tax and Transfer Reforms
The polit-economic situation in germany : chances for changes in resource and energy economics
(2002)
Contents: Regional Management, Land Use and Energy Production -Biophysical View -First Hypothesis -International and Interregional Cooperation -Second Hypothesis -Partnership with Nature Sustainability and the Agricultural Sector -Traditional Farming -Mono-cultural Bio-industry -Liquid Manure Problems -Clean Drinking Water -Integrated Agro-industrial System -Ecological Farming -Ecotones and Bio-manipulation Regional Economic and Agricultural Policy -New Roles for the Agricultural Sector
The concepts of food deficit, hunger, undernourishment and food security are discussed. Axioms and indices for the assessment of nutrition of individuals and groups are suggested. Furthermore a measure for food aid donor performance is developed and applied to a sample of bilateral and multilateral donors providing food aid for African countries.
The paper is an enquiry into dynamic social contract theory. The social contract defines the rules of resource use. An intergenerational social contract in an economy with a single exhaustible resource is examined within a framework of an overlapping generations model. It is assumed that new generations do not accept the old social contract, and access to resources will be renegotiated between any incumbent generation and their successors. It turns out that later generations will be in an unfortunate position regardless of their bargaining power.
In modern political philosophy social contract theory is the most prominent approach to individual rights and fair institutions. According to social contract theory the system of rights in a society ought to be justified by reconstructing its basic features as a contract between the mutually unconcerned members of society. This paper explores whether social contract theory can successfully be applied to justify rights of future generations. Three competing views are analysed: Rawls's theory of justice, Hobbes's radical liberalism and Gauthier's bargaining framework based on the Lockean proviso.
The value concept of traditional resource economics is welfare. Therefore, sustainability of welfare is often taken to characterise our obligations to future generations. This paper argues that this view is inappropriate because it leaves no room for future generations autonomy. Future generations should be free to make their own decisions. Consequently freedom of choice is the appropriate value concept on which resource economics should be based. The concept of sustainability receives a new interpretation. Sustainability is a principle of intertemporal distributive justice which requires equitable opportunities across generations.
Time series analysis
(2004)
The thesis assesses the contribution of technology option of Carbon Capture and Sequestration (CCS) to climate change mitigation. CCS means that CO2 is captured at large industrial facilities and sequestered in goelogical structures. The technology uses the endogenous growth model MIND. Herein the various climate change mitigation options of reducing economic growth, increasing energy efficiency, changing the energy mix and CCS are assessed simultaneously. An important question is whether CCS is a temporary or long-term solution. The results show that in the middle of the 21st century CCS has its peak contribution, which allows prolonged use of relatively cheap fossil energy carriers. However, this leads to delayed introduction of renewable energy carriers. The technology path ways are accombined with different costs of climate change mitigation. The use of CCS delays and reduces the costs of climate change mitigation. However, the delayed introduction of renewable energy carriers leads to reduced technological learning, which induces higher costs in the longer term. All in all the temporary use of CCS reduces the costs of climate change mitigation costs. The result is robust, which is tested with various uncertainty analysis.
Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers that are covered by collective agreements and others who are not. This study aims at providing a model framework which is amenable for an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called 'union wage gap' is largely determined by the degree of centralization of the bargains, and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.
Consumer attitudes towards genetically modified foods in Europe : structure and changeability
(2004)
Genetically modified foods have been at the center of debate in European consumer policy in the last two decades. Although the quasi-moratorium has been lifted in May 2004 and the road to the market is in principle reopened, strategies for product introduction are lacking. The aim of the research is to assess potential barriers in the area of consumer acceptance and suggest ways in which they can be overcome. After a short history of the genetically modified foods debate in Europe, the existing literature is reviewed. Although previous research converges in its central results, issues that are more fundamental have remained unresolved. Based on classical approaches in attitude research and modern theories of social cognition, a general model of the structure, function and dynamics of whole systems of attitudes is developed. The predictions of the model are empirically tested based on an attitude survey (N = 2000) and two attitude change experiments (N = 1400 and N = 750). All three studies were conducted in parallel in four EU member states. The results show that consumer attitudes towards genetically modified foods are embedded into a structured system of general socio-political attitudes. The system operates as a schema through which consumers form global evaluations of the technology. Specific risk and benefit judgments are mere epiphenomena of this process. Risk-benefit trade-offs, as often presupposed in the literature, do not appear to enter the process. The attitudes have a value-expressive function; their purpose is not just a temporary reduction of complexity. These properties render the system utterly resistant to communicative interventions. At the same time, it exerts stong anchoring effects on the processing of new information. Communication of benefit arguments can trigger boomerang effects and backfire on the credibility of the communicator when the arguments contrast with preexisting attitudes held by the consumer. Only direct sensory experience with high-quality products can partially bypass the system and lead to the formation of alternative attitude structures. Therefore, the recommended market introduction strategy for genetically modified foods is the simultaneous and coordinated launch of many high-quality products. Point of sale promotions should be the central instrument. Information campaigns, on the other hand, are not likely to have an effect on the product and technology acceptance of European consumers.