Reconsidering the common ratio effect: the roles of compound independence,reduction, and coalescing

Common ratio effects should be ruled out if subjects’ preferences satisfy compound independence, reduction of compound lotteries, and coalescing. In other words, at least one of these axioms should be violated in order to generate a common ratio effect. Relying on a simple experiment, we investigate which failure of these axioms is concomitant with the empirical observation of common ratio effects. We observe that compound independence and reduction of compound lotteries hold, whereas coalescing is systematically violated. This result provides support for theories which explain the common ratio effect by violations of coalescing (i.e., configural weight theory) instead of violations of compound independence (i.e., rank-dependent utility or cumulative prospect theory).     

Supply Chain Disruptions and the Role of Information Asymmetry

This research investigates how information asymmetry between the firm and its investors can influence supply chain disruptions. In such settings, these actors may be induced to take steps which exacerbate rather than ameliorate both the likelihood and impact of disruptions. By better understanding these mechanisms, managers and investors alike are better armed to avoid the costly consequences.     

On the parameterized complexity of the Multi-MCT and Multi-MCST problems

The comparison of tree structured data is widespread since trees can be used to represent wide varieties of data, such as XML data, evolutionary histories, or carbohydrate structures. Two graph-theoretical problems used in the comparison of such data are the problems of finding the maximum common subtree (MCT) and the minimum common supertree (MCST) of two trees. These problems generalize to the problem of finding the MCT and MCST of multiple trees (Multi-MCT and Multi-MCST, respectively). In this paper, we prove parameterized complexity hardness results for the different parameterized versions of the Multi-MCT and Multi-MCST problem under isomorphic embeddings.     

Methodology and finance

The relationship between science and methodology (philosophy of science) is reciprocal. Methodological concepts can be used to describe, to evaluate, and even to guide scientific activity. In discussing philosophy of science, real-life science can be used to clarify, to illustrate, and even to evaluate competing methodological positions. This paper analyzes the reciprocal relationship between methodology and financial economics.Two different philosophical positions are presented, contrasted, and related to two different branches of financial economics. Capital market theory is tentatively evaluated on the basis of both positions. The evaluation shows that - and why - capital market theory can be considered as a successful research programme. As a methodological case study it also demonstrates that - and why - traditional methodological concepts are largely inappropriate to finance. The alternative methodological position presented in the paper is found to be better suited.These results are then used to investigate whether methodological arguments imply that a behavioral approach to business finance should be preferred rather than an economic approach. The traditional methodological position rejected in this paper does support a behavioural approach, while the position favored in the paper does not.     

Policy evaluation and economic policy advice

Arguably, one of the most important developments in the field of applied economics during the last few decades has been the emergence of systematic policy evaluation, with its distinct focus on the establishment of causality. By contrast to the natural sciences, the objects of our scientific interest typically exert some influence on their treatment status under the policy to be evaluated and on their economic outcomes. Thus, economic policy advice can only be successful, if it is based on an appropriate study design, experimental or observational. It will strive in societies that provide liberal access to data, accept the merits of randomized assignment and guard the independence of research institutions.     

Kognitive Balance und Arbeitsplatzwechsel. Der Einfluss informeller Sozialbeziehungen auf Vertrauensverluste und Anschlusskündigungen kritisch-loyaler Mitarbeiter

This article uses a concrete example of an employee–s notice of employment termination which lead to another notice of termination of his colleague, to explore the factors which lead to such extremely un-satisfactory working conditions. The balance theory of Fritz Heider is used as an explanatory basis. Using a model, the effects of a resignation of an employee on the attitude and behavior of a colleague, with whom a positive emotional relation exists, are described. This colleague resigned after a while although he had a normal relationship to the company and although the company did not in any way violate his existing contract. Modeling this situation we can show that an imbalanced relationship structure between the two colleagues and the company can entail a notice of termination given by a loyal and well-educated employee, who has no direct conflicts with his company.     

Loss of Agro-Biodiversity, Uncertainty, and Perceived Control: A Comparative Risk Perception Study in Austria and China

The biogeographical centers of origin of important food crops-called Vavilov centers-are considered to be crucial sources of genetic diversity for present and future crop-breeding programs and thus for human food safety worldwide. Global environmental change and more intensified modes of crop production may cause genetic erosion (loss of traditional crop varieties and loss of crop wild relatives), especially in Vavilov centers. The present study focused on how the risk of genetic erosion (or loss of agro-biodiversity) is perceived in comparison to 16 other risk topics by experts and lay people in Austria and China. The most striking result was that genetic erosion was perceived to be an exceptionally unknown and uncertain risk topic, given that only genetically modified organisms (GMOs) were perceived as being even more uncertain. As a consequence of the high uncertainty, the idea of applying the precautionary principle to further prevent genetic erosion is discussed. An unprecedented finding-one that differs from Austrian participants-is that the Chinese have a higher perceived control over all risk topics. The increased perception of controllability in China is discussed in light of the theory of reflexive modernization. This theory strives to explain the increased critical attitude in Western countries such as Austria toward scientific innovations and toward the idea that everything can be calculated and mastered at will. By revealing different notions of risk perception, this research also provides additional scientific input to risk communication efforts for public education.     

The Effects of Simultaneous Developmental Processes: Factors Relating to the Career Development of Lesbian,Gay, and Bisexual Youth

C. Hetherington (1991) hypothesized that lesbian, gay, and bisexual (LGB) adolescents may experience a “bottleneck effect” in career development because of internal psychological energy focusing on issues surrounding sexual identity. This assertion has not yet been tested, however, in the career development literature. The authors examined the relationship between variables indicative of psychological resources being devoted to managing an LGB identity, social support, and career development. Survey data from 102 LGB youth demonstrated that inner sexual identity conflict and social support predicted unique and shared variance in career maturity and vocational indecision, lending empirical support to the bottleneck hypothesis.