CENTRALIZED OR DECENTRALIZED INFORMATION: WHICH IS BETTER FOR PROVIDING INCENTIVES?

A risk‐neutral ruler must invest in improving the quality of his country's infrastructures. Higher quality infrastructures increase the profitability of capital investment by foreign entrepreneurs. The ruler wishes to maximize the amount of capital investment that flows into the country. Before selecting their investment, entrepreneurs receive a signal on the quality of infrastructures. We consider two cases. First, all entrepreneurs observe the same signal (centralized information). Second, each entrepreneur receives an independently drawn signal (decentralized information). We compare the effectiveness of these two scenarios for incentivizing the ruler. We find remarkably clear‐cut results. When the entrepreneurs’ investments are strategic complements, centralized information does a better job in incentivizing the ruler. The opposite holds when investments are strategic substitutes. This may help understand the role of media, rating agencies, public announcements, and ambiguity. (JEL D82, D62)     

UNIVERSITY STARTUP INTENSITY AND FACULTY QUALITY

Using a theoretical model of university technology transfer and licensing survey data from 1991 to 2013, we show that greater faculty quality and venture capital availability is positively associated with licenses to startups. We employ a two‐stage game of licensing terms (royalty rate and fixed fee) and development efforts to show that under reasonable conditions, licensing to a startup rather than an established firm will be more attractive to a technology transfer office (TTO) because the inventor's ownership share in a startup firm will increase total development efforts by the inventor and licensee. TTOs will be more likely to target startup licensees when the marginal effect of the faculty inventor's additional development effort on the probability of success is large relative to that of the venture capitalist or established firm. Empirical evidence supports the results of the model; using Associated University Technology Data licensing survey data and employing panel and cross‐sectional analyses, we show that an increase in the quality of engineering faculty has roughly twice the positive impact on startup licenses than on established firm licenses. Startup licensing is also strongly impacted by venture capital availability within institutions over time. (JEL L24, L26, D86)     

Altruism, ideological entrepreneurs and the non-profit firm

Ideology and altruism are central to understanding the non-profit charitable sector. This paper addresses three questions. Why do people make charitable gifts? Why do they usually give to non-profit organisations? When can non-profits run by committed ideologues compete with profit-oriented entrepreneurs in the provision of services? the altruistic motives of individuals and the ideological commitments of entrepreneurs come together to support charitable organisations. The non-profit form provides a weak guarantee that gifts are not being syphoned off as profits. Furthermore, independent non-profits can often better reflect donors' desires than public agencies constrained by majoritarian claims, and ideological entrepreneurs can use the non-profit form to reify their beliefs without being accountable to profit-seeking investors. A non-profit organisation can only survive, however, if it can attract money and customers. Sometimes its ideological character will facilitate both tasks. Non-ideological customers may, nevertheless, patronise an ideological non-profit if the entrepreneur's commitment helps to guarantee high quality.     

Institutional holes and entrepreneurship in China

Theories of entrepreneurship and institutions have grown up in partial isolation, but they are actually complementary. By analogy with Ronald Burt's structural holes, the idea of institutional holes calls attention to the ways entrepreneurs create connections among sites kept separate by existing institutions. Especially in transitional economies, entrepreneurs strike a risky balance between acquiring institutional support for new enterprises without allowing institutions to absorb those enterprises, on one side, and creating profit‐making connections, on the other. The experience of a daring Chinese entrepreneur illustrates both the exploitation of institutional holes and the perils of institutional entrepreneurship.     

TAX RATES,GOVERNANCE, AND THE INFORMAL ECONOMY IN HIGH‐INCOME COUNTRIES

Approximately 16.7% of output in high‐income OECD (Organisation for Economic Cooperation and Development) countries is produced informally. I present a model economy where entrepreneurs decide how much of their production to keep informal. Informality carries a risk of getting caught, taxed, and fined. Results from a model with differences in tax rates alone only agree to approximately 23% with data on informality. Taking into account both governance quality and tax rates, agreement between the model's results and data increases to 72%. A policy experiment raising governance quality in Greece, Italy, Spain, and Portugal to Finnish standards reduces informality by 13 percentage points. (JEL E26, H26, J24)     

Founder's background as a catalyst for social entrepreneurship

Social entrepreneurship has a long history of practice worldwide. However, the concept has become widely popular among researchers over the last two decades. Despite this popularity, less is known about the process, which leads to becoming a social entrepreneur. Barendsen and Gardner's study shows that many social entrepreneurs have traumatic experience in their early lives; however, there are no supporting studies investigating the impact of the background of founders on the founding decision of their entities. Because of that we utilized the models of theory of planned behavior as well as the concept of imprinting to explain the process that leads to entrepreneurial behavior. The purpose of our study is to investigate the life stories of some Turkish social entrepreneurs, and to explore which factors in these people's backgrounds may have contributed to their decisions to establish their foundations.     

Feminist Insight on Gendered Work: New Directions in Research on Women and Entrepreneurship

This paper discusses research on female entrepreneurs in conjunction with feminist theory on gendered work. I explore the ways in which much of the research on women's experiences of entrepreneurship focuses on identifying similarities and differences between female and male business owners, and on providing explanations for the differences identified. While such an approach is useful in compensating for the exclusion of women in earlier studies of business ownership, it does not illuminate how and why entrepreneurship came to be defined and understood vis-à-vis the behaviour of only men. I argue that existing knowledge on women business owners could be enhanced through reflection on two issues — first, on the essentialism in the very construction of the category of ‘the female entrepreneur’ (which prioritizes sex over other dimensions of stratification) and second, on the ways in which the connections between gender, occupation and organizational structure differently affect female and male business owners.     

Negotiating class,femininity and career: Latin American migrant women entrepreneurs in Spain

This article analyses how the gendered and classed positions of migrant women explain the meanings of becoming an entrepreneur and the role of their spouses in their occupational trajectories. Using a translocational positionality approach, the article challenges the claim that women escape patriarchal domination by establishing their own businesses. The narratives of 35 Latin American women entrepreneurs in Spain reveal that becoming an entrepreneur is conditioned by class‐based ideas of masculinity and femininity. I argue that middle‐class Latin American immigrant women become entrepreneurs to promote their spouse's career advancement while conforming to class‐based norms of femininity. In contrast, lower class Latin American women view the business as a space of autonomy and occupational upward mobility that nevertheless also complies with working‐class definitions of femininity. The policy implications of these findings relate to making class aspirations central to the support of labour market integration and empowerment of migrant women.     

ENDOGENOUS TIMING IN CONTESTS WITH DELEGATION

We study two‐player contests in which each player hires a delegate, and the delegates decide endogenously when to expend their effort. First, we look closely at the delegates' decisions on when to expend their effort, given contracts between the players and the delegates, and look at the players' decisions on their contracts. Then, we compare the outcomes of the endogenous‐timing framework with those of the simultaneous‐move framework. We show that the higher‐valuation player offers her delegate greater contingent compensation than her opponent, the delegate of the higher‐valuation player chooses his effort level after observing his counterpart's, the equilibrium expected payoff of the delegate of the higher‐valuation player is greater than that of his counterpart, and economic rent for each delegate exists. We show that, in the endogenous‐timing framework, each player offers her delegate better contingent compensation, each delegate's expected payoff is greater, and each player's expected payoff is smaller, as compared with the simultaneous‐move framework. (JEL D72)     

Hopelessly Devoted? Relationship Quality During and After Incarceration

A growing literature highlights the multifaceted consequences of incarceration for family life, but little is known about the quality of relationships between couples who remain together during and after 1 partner's incarceration. In this article, the author used data from the Fragile Families and Child Wellbeing Study (N = 1,848), a longitudinal cohort of parents, to consider the association between paternal incarceration and 4 measures of relationship quality: (a) overall relationship quality, (b) supportiveness, (c) emotional abuse, and (d) physical abuse. The results showed that paternal incarceration in the past 2 years was, by and large, associated with lower mother‐reported (but not father‐reported) relationship quality. However, across some outcome variables, current paternal incarceration was positively associated with relationship quality. Taken together, these findings suggest that current and recent incarceration have countervailing consequences for relationship quality and, more generally, that the penal system exerts a powerful influence even among couples who maintain relationships.     

DO REAL ESTATE BROKERS ADD VALUE WHEN LISTING SERVICES ARE UNBUNDLED?

This paper measures the effects of real estate brokerage services provided to sellers, other than MLS listings, on the terms and timing of home sales. It is not obvious that sellers benefit from those services. On the one hand, brokers offer potentially useful knowledge and expertise. On the other hand, because the relationship between the homeowner and the broker resembles a classical principal‐agent problem, the broker may not deploy services in ways that promote the seller's interests. Yet as long as valuable MLS listings are bundled with brokerage services, homeowners may use brokers even if the agency costs exceed the benefits of brokers' knowledge and expertise. Thus, quantification of the net value of brokerage services other than MLS listings bears directly on the recent policy debate over the desirability unbundling of MLS listings. We estimate the effect of a seller's decision to use a broker on list prices, selling prices, and speed of sale for a real estate market with an unusual and critical characteristic: it has a single open‐access listing service that is used by essentially all sellers, regardless of whether they employ brokers. Our central finding is that, when listings are not tied to brokerage services, a seller's use of a broker reduces the selling price of the typical home by 5.9% to 7.7%, which indicates that agency costs exceed the advantages of brokers' knowledge and expertise by a wide margin. (JEL D12, R31, L85)     

Entrepreneurial Motivations and Capabilities of Migrant Entrepreneurs in Australia

This article presents findings on immigrant entrepreneurship in Australia. The relationship between the entrepreneurial start‐up motivation, co‐ethnic preferences and entrepreneurial capabilities of established immigrant businesses are explored. We analyse data collected with a self‐administered survey questionnaire from 157 immigrant entrepreneurs in Melbourne's suburbs. Our findings show that immigrant entrepreneurs who report a high level of individual achievement as their start‐up motivation also report high levels of entrepreneurial capabilities in terms of opportunity recognition, managerial innovativeness and proactiveness. Immigrant entrepreneurs who are highly influenced by co‐ethnic preferences on staff employment and customer targeting report higher opportunity recognition than those who have a co‐ethnic preference on suppliers. We provide important insights and explanations for these findings and their implications for Australian immigrant entrepreneurs and policymakers.     

Retail entrepreneurial values in a bicultural community: Cultural and economic contentions and negotiation

Economic activity is universal yet the objectives of entrepreneurship are culture-specific in that the entrepreneur cannot be separated from the cultural context. The purpose of this research was to understand the structural differences between the Old Order Amish and their non-Amish counterpart as they conduct entrepreneurial activity in a bi-cultural rural setting. Eleven months of field research uncovered distinct differences between the two groups with regard to three conceptual themes: responsibility, cooperation and competition, and success. Amish entrepreneurs often find themselves in a state of negotiation between contradictory values of their own cultural system and those of the dominant world. The economic behavior of non-Amish entrepreneurs, on the other hand, is steeped in notions of individual gain found in the free market system. In an increasingly multicultural world, understanding the role of culture in economic life becomes critical if cultural groups are to conduct business in the same marketplace.     

Education of Children Left Behind in Rural China

Despite China's substantial internal migration, long‐standing rural–urban bifurcation has prompted many migrants to leave their children behind in rural areas. This study examined the consequences of out‐migration for children's education using longitudinal data from the China Health and Nutrition Survey (N = 885). This study took into account the complex family migration strategies and distinguished various types of migration in China, including different forms of parental migration as well as sibling migration. The results showed that migration of siblings generates benefits for children's education, which is particularly pronounced for girls and children at middle‐school levels. But parental migration has not given children left behind a significant advantage in educational prospects as their parents had hoped. Younger children seem to be especially susceptible to the disruptive effect of parental out‐migration.     

Male Pregnancy Intendedness and Children's Mental Proficiency and Attachment Security During Toddlerhood

Using a sample of biological resident fathers and their children from the Early Childhood Longitudinal Study Birth Cohort (ECLS‐B) 9‐ and 24‐month surveys (N = 5,300), this study examines associations and the direct and indirect pathways through which men's pregnancy intentions influence toddlers' mental proficiency and attachment security. Findings indicate that unwanted and mistimed pregnancies for fathers had negative consequences for toddlers' mental proficiency and attachment security. Additionally, men's pregnancy intentions were found to work indirectly through lower prenatal behaviors and father engagement and greater mother‐father relationship conflict to negatively influence toddlers' mental proficiency. Men's pregnancy intentions also worked indirectly through greater relationship conflict and higher father involvement to influence attachment security.     

So,Doctor, How's Your Sex Life? A Cross-Examiner's View of Countertransference

ABSTRACT

Bias can taint the forensic work product to a far greater degree than many lawyers and judges, as relatively unsophisticated consumers of psychological expertise, are aware. Daniel Pickar's article, “Countertransference Bias in the Child Custody Evaluator” (this issue) describes the deep roots and potential impact on evaluations that can emerge from countertransference thoughts and feelings forming in the shadows of the evaluator's psyche. This article examines countertransference bias primarily from the perspective of the cross-examining attorney charged with the obligation of revealing possible sources of invalidity underlying the expert's conclusions. It addresses also the legitimate concerns raised by David A. Martindale and Jonathan W. Gould that the wholesale importation of a highly nuanced and potentially confusing lexicon from psychoanalytic theory may yield more confusion than clarity. Finally, this article cautions as to the potentially fatal implications to evidentiary admissibility which may be encountered if an evaluator should, as suggested by Pickar, premise his or her conclusions, in part, on the subjective interpretation of counter-transference thoughts and feelings.     

THE MORAL COSTS OF NASTINESS

We introduce two variants of the one‐shot joy‐of‐destruction minigame (mini‐JOD). Two players are endowed with the same amount of money. They simultaneously decide whether or not to reduce the other player's payoff at an own cost. In one treatment there was a probability that nature would destroy the opponent's money anyway. We test whether this feature reduces the moral costs of nastiness, and find that destruction rates rise significantly, despite the absence of strategic reasons. (JEL C72, C91, D03)     

‘Strategic (dis)obedience’: Female entrepreneurs reflecting on and acting upon patriarchal practices

It has been suggested that entrepreneurship is a form of emancipation and social change for women. We adopt a more comprehensive view by considering micro‐emancipation at the level of both agency and identity of women entrepreneurs in patriarchal and Islamic societies. We borrow from organization studies literature to draw on the notions of the dynamic and ongoing process between dominators (i.e., men of the patriarchal family) and the dominated (i.e., women entrepreneurs). In this process micro‐emancipation and active obedience are intertwined. For this purpose, we contextualize the study in the United Arab Emirates, where men of the family regulate women's agency and identity. The men of the family are not only the gatekeepers of societal culture, but also the potential supporters for women to navigate the societal arrangements. By adopting an interpretive approach, we analyse the narratives of Emirati female entrepreneurs in their early stages of becoming an entrepreneur who engage in strategic (dis)obedience. The article contributes to the literature on micro‐emancipation in the context of gender and entrepreneurship.     

THE BEHAVIOR OF INEXPERIENCED BIDDERS IN INTERNET AUCTIONS

In Internet auctions, bidders alter their strategies as they gain market experience. While inexperienced bidders bid the same high amounts regardless of the seller’s reputation, experienced bidders bid substantially less if the seller has yet to establish a reputation and raise their bids as reports are filed that the seller has treated bidders well in the past. Experienced bidders also wait until much closer to the end of the auction to place their bids, although it takes very little experience to learn that waiting to submit one’s bid is a superior strategy. (JEL L14, L15, D83, D12)     

‘Talk’ and Hermès

Attention to ‘textuality’ has been used in organizational studies to point to the strong situational quality of organizing, but there has been little detailed empirical or theoretical examination of talk in action. Simply stating that ‘organizing is talk’ is not enough. Starting with Boden's analysis of organizing as ‘talk’, the import of the communication‐based interpretation of organizing is examined. A ‘flat’ or ‘one‐dimensional’ analysis of organization, grounded solely on speech‐based causality, will be rejected. Michel Serres' philosophy of communication provides in the figure of Hermès, needed complex connectionist insight(s) into interaction. And coupled with Levi‐Strauss' concept of the totemic operator, Serres' philosophical insights are used to develop a concept of communicative agency in tune with a complex narrative analysis of organizing.