Contract design and insurance fraud: an experimental investigation

This paper experimentally examines the impact of contract design on insurance fraud. We test how fraud behavior varies for insurance contracts with full coverage, a straight deductible or claim-dependent premiums (bonus-malus contracts), in a setup where rational and selfish individuals have an incentive to always claim the maximum possible indemnity. We find a substantial impact of contractual arrangements: Deductible contracts lead to a greater extent to claim build-up than full coverage contracts. In contrast, bonus-malus contracts that entail the same net gains from fraud as deductible contracts do not increase claim build-up. Thus, our results indicate that bonus-malus contracts may be superior to deductible contracts for behavioral reasons.     

Adaptive information design for outdoor augmented reality

Augmented Reality focuses on the enrichment of the user's natural field of view by consistent integration of text, symbols and interactive three-dimensional objects in real time. Placing virtual objects directly into the user's view in a natural context empowers highly dynamic applications. On the other hand, this necessitates deliberate choice of information design and density, in particular for deployment in hazardous environments like military combat scenarios. As the amount of information needed is not foreseeable and strongly depends on the individual mission, an appropriate system must offer adequate adaptation capabilities. The paper presents a prototypical, vehicle-mountable Augmented Reality vision system, designed for enhancing situation awareness in stressful urban warfare scenarios. Tracking, as one of the most crucial challenges for outdoor Augmented Reality, is accomplished by means of a Differential-GPS approach while the type of display to attach can be modified, ranging from ocular displays to standard LCD mini-screens. The overall concept also includes envisioning of own troops (blue forces), for which a multi-sensor tracking approach has been chosen. As a main feature, the system allows switching between different information categories, focusing on friendly, hostile, unidentified or neutral data. Results of an empirical study on the superiority of an in-view navigation cue approach conclude the paper.     

Design recommendations for the creation of icons for the elderly

During employment of icons in order to represent system functions, specific user requirements from elderly people have not been scientifically gathered and thus will merely be considered during the process of system design. The survey, with explicit consideration of technology acceptance and experience of 120 elderly probands, looked into the comprehension of four different classes of non-animated graphical representations. It was shown that among elderly, the use of photos compared to pictograms or clip art leads to a significantly higher recognition rate. The mapping of actions rather than objects leads to a further reduction of the error probability and is thus, especially in the context of telemedicine, preferable for the target group.     

Rationality,fairness and the cost of distrust

An adapted version of “the trust game with revenge” is applied to a Swedish setting. Senders – the first-movers – can keep an endowment of SEK 30, or give fractions or all to an unknown receiver. Donations are multiplied by five before reaching receivers, who may, or may not, send back part or the entire received amount. Half of the receivers are given information that the sender has the opportunity to exact revenge, while the remaining are not given this information. Results differ from Fehr and Gächter (2000), in the sense that the share of endowments sent in the first stage is around two thirds, compared to less than one third in Fehr and Gächter. Furthermore, they find a very strong effect of punishment while we find almost no effect. An efficiency frontier is defined and results show that that only 25% of the outcomes reach this frontier due to lack of trust. If senders were confident that receivers would return at least 20% of the donated amount, it is optimal to donate the whole endowment. Only about one-fifth returned of the receivers returned less than this, so for the most part the lack of trust is unwarranted.     

How to reduce workload--augmented reality to ease the work of air traffic controllers

In the future the air traffic will rise--the workload of the controllers will do the same. In the BMWi research project, one of the tasks is, how to ensure safe air traffic, and a reasonable workload for the air traffic controllers. In this project it was the goal to find ways how to reduce the workload (and stress) for the controllers to allow safe air traffic, esp. at huge hub-airports by implementing augmented reality visualization and interaction.     

Dimensions of Social Stratification and Their Relation to Mortality: A Comparison Across Gender and Life Course Periods in Finland

Social Indicators Research - Differences in mortality between groups with different socioeconomic positions (SEP) are well-established, but the relative contribution of different SEP measures is...     

Environmental practices and firm performance in emerging markets: the mediating role of product quality

Environmental practices have not received as much research attention in emerging market contexts as traditional topics like quality. However, the importance of environmental practices for a firm’s production strategy has been increasing at an unprecedented level across the globe. Our research objective is, therefore, to investigate the interplay between environmental practices and quality in the pursuit of firm performance. Relying on 492 responses from Turkish manufacturers to test our hypotheses, we show that environmental practices directly improve the quality of products over and above the effect of quality management practices in emerging markets. Product quality, in turn, is important for increasing firm performance, acting as a mediator for the positive effects of environmental practices on performance. Thus, we reveal that product quality functions as an instrumental conduit between environmental practices and firm performance in emerging markets like Turkey where stakeholder pressures are weak, and regulations are often not properly enforced.