Entitlement and the efficiency-equality trade-off: an experimental study

When randomly assigning participants to experimental roles and the according payment prospects, participants seem to receive “manna from heaven.” In our view, this seriously questions the validity of laboratory findings. We depart from this by auctioning off player roles via the incentive compatible random price mechanism thus avoiding the selection effect of competitive second price auctions. Our experiment employs the generosity game where the proposer chooses the size of the pie, facing an exogenously given own agreement payoff, and the responder is the residual claimant. We find that entitlement crowds out equality seeking and strengthens efficiency seeking. More generally, we find that inducing entitlement for the roles in which participants find themselves makes a difference. Interpreting participants’ willingness to pay for their role as their aspiration level further allows to test satisficing and explore “mutual satisficing.” We find that responder participants apparently do not anticipate proposer generosity in aspiration formation.     

Social Workers’ and Students’ Attitudes toward Electronic Tracking of People with Alzheimer's Disease

Global Positioning Systems (GPS) have recently been employed to help monitor persons with dementia. While the advantages of such technologies are clear, making use of them raises a number of ethical dilemmas. Considering the fact that social workers may be called upon to assist families in making decisions regarding the use of GPS, their attitudes on this issue are important. Fifty-five social workers and 61 social work students completed a questionnaire including: attitudes toward tracking, knowledge of Alzheimer's Disease (AD) symptoms, familiarity with persons who have AD, and ratings of who should be involved in the decision-making process regarding GPS use. Findings showed that the highest-scored attitude factor was respecting elders’ autonomy, while the lowest-scored factor opposed GPS use. The elderly and their spouses were rated as important decision-makers regarding the use of GPS. Knowledge of AD and respecting autonomy were negatively correlated. Students gave a higher rating to respecting elders’ autonomy than the social workers. Social workers gave a higher rating to the importance of a multidisciplinary team. Implications for social work education are discussed including recommendations for person-centered AD care on the one hand, and the need to balance the interests of the individual and the family on the other.     

Nonlinear structural equation modeling: is partial least squares an alternative?

Nonlinear structural equation modeling provides many advantages over analyses based on manifest variables only. Several approaches for the analysis of latent interaction effects have been developed within the last 15 years, including the partial least squares product indicator approach (PLS-PI), the constrained product indicator approach using the LISREL software (LISREL-PI), and the distribution-analytic latent moderated structural equations approach (LMS) using the Mplus program. An assumed advantage of PLS-PI is that it is able to deal with very large numbers of indicators, while LISREL-PI and LMS have not been investigated under such conditions. In a Monte Carlo study, the performance of LISREL-PI and LMS was compared to PLS-PI results previously reported in Chin et al. (2003) and Goodhue et al. (2007) for identical conditions. The latent interaction model included six indicator variables for the measurement of each latent predictor variable and the latent criterion, and sample size was N=100. The results showed that PLS-PI’s linear and interaction parameter estimates were downward biased, while parameter estimates were unbiased for LISREL-PI and LMS. True standard errors were smallest for PLS-PI, while the power to detect the latent interaction effect was higher for LISREL-PI and LMS. Compared to the symmetric distributions of interaction parameter estimates for LISREL-PI and LMS, PLS-PI showed a distribution that was symmetric for positive values, but included outlying negative estimates. Possible explanations for these findings are discussed.     

Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC-MNC Performance

Previous theoretical and empirical research provides substantial support for a contingency approach toward international entry-mode selection. Similarly, additional empirical research supports the notion that different international ownership-based entry modes tend to be associated with varying performance levels. In this study we provide an initial attempt to use Werner, Brouthers and Brouthers' (1996) multiple measures of Perceived Environmental Uncertainty (PEU) to determine the entry mode choices of firms and link these risk-adjusted mode choices to managerial satisfaction with firm performance. We hypothesize and find that firms which make PEU risk-adjusted entry mode choices are significantly more satisfied with their firm's performance than firms whose entry mode choices cannot be predicted using multiple PEU risk measures.     

Zum Einfluss der Inhaberführung auf die Betriebsrat-Geschäftsführer-Beziehung – Eine theoretische und empirische Analyse in mittelständischen Unternehmen

This paper examines the quality of the relationship between business managements and works councils in small and medium-sized enterprises and strives for answering the question, which factors determine the quality. As ownership is an important determining factor of the establishment of works councils in small and medium-sized businesses, especially the impact of ownership on this relationship has been investigated. Agency theory and stewardship theory give hints that the owner management can have different impacts on this relationship. In order to test these contradictory hypotheses we have estimated a Heckman selection model to investigate which factors determine the quality of the relationship between business managements and works councils. Our results based on data generated from a survey in small and medium-sized enterprises conducted by the IfM Bonn in the years 2005 and 2006 indicate that ownership has a negative influence on the establishment of works councils, but a positive one on the quality of the relationship between business management and works council. Thus, the hypotheses predicting the existence of stewardship behaviour among owners and the existence of agency behaviour among managers can be confirmed.     

Assessing goodness-of-fit for evaluation of dose-proportionality

For the clinical development of a new drug, the determination of dose-proportionality is an essential part of the pharmacokinetic evaluations, which may provide early indications of non-linear pharmacokinetics and may help to identify sub-populations with divergent clearances. Prior to making any conclusions regarding dose-proportionality, the goodness-of-fit of the model must be assessed to evaluate the model performance. We propose the use of simulation-based visual predictive checks to improve the validity of dose-proportionality conclusions for complex designs. We provide an illustrative example and include a table to facilitate review by regulatory authorities.