Emotional balance and probability weighting

We find suggestive evidence that emotional balance has an impact on probability weighting incremental to demographic controls. Specifically, low negative affectivity (implying high emotional balance) tends to be a characteristic of those whose probability weighting functions exhibit lower curvature and more neutral elevation. In other words, emotional balance seems to push people in the direction of normative expected utility theory.     

Writing the self: Exploring the stigma of hearing impairment

Neoclassical economic and sociological views of discrimination are compared. We summarize economic models of taste, statistical, error, and monopolistic discrimination. Economists argue that competitive market forces should lead to the demise of discrimination in the long run. After explaining these arguments, we present sociological arguments about institutional and social‐psychological mechanisms that promote the persistence of discrimination. A typology of social‐psychological feedback effects from discrimination is presented. We conclude that it is important to recognize forces promoting both the erosion and persistence of discrimination and that this requires a perspective drawing upon both sociology and economics.     

A functional connectivity approach for modeling cross-sectional dependence with an application to the estimation of hedonic housing prices in Paris

This paper proposes a functional connectivity approach, inspired by brain imaging literature, to model cross-sectional dependence. Using a varying parameter framework, the model allows correlation patterns to arise from complex economic or social relations rather than being simply functions of economic or geographic distances between locations. It nests the conventional spatial and factor model approaches as special cases. A Bayesian Markov Chain Monte Carlo method implements this approach. A small scale Monte Carlo study is conducted to evaluate the performance of this approach in finite samples, which outperforms both a spatial model and a factor model. We apply the functional connectivity approach to estimate a hedonic housing price model for Paris using housing transactions over the period 1990–2003. It allows us to get more information about complex spatial connections and appears more suitable to capture the cross-sectional dependence than the conventional methods.     

Does product complexity matter for competition in experimental retail markets?

We describe a first experiment on whether product complexity affects competition and consumers in retail markets. We are unable to detect a significant effect of product complexity on prices, except insofar as the demand elasticity for complex products is higher. However, there is qualified evidence that complex products have the potential to induce consumers to buy more than they would otherwise. In this sense, consumer exploitability in quantities cannot be ruled out. We also find evidence for shaping effects: consumers’ preferences are shaped by past experience with prices, and firms may in principle exploit this to sell more.     

A Diamond-Stiglitz approach to the demand for self-protection

The existing research concerning the relationship between risk aversion and prudence and the demand for self-protection assumes that the loss variable follows a Bernoulli distribution, and that changes in the level of self-protection are mean preserving. The analysis here replaces these two very strong conditions with ones which are more general. When doing this, the method of analysis is also significantly modified. This modification includes representing a change in the level of self-protection using the procedure developed by Diamond and Stiglitz (Journal of Economic Theory 8:337-360, 1974) for representing a change in risk. This alternate representation allows the existing findings to be generalized considerably, and also simplifies the analysis.     

Teacher-Based Racial Discrimination: The Role of Racial Pride and Religiosity Among African American and Caribbean Black Adolescents

This study explored the extent to which private regard and religiosity beliefs serve as protective factors for school bonding among African American and Caribbean black adolescents who experience racial discrimination in school. Findings are drawn from a nationally representative sample of (n = 810) African American and (n = 360) Caribbean black adolescents (52% girls) aged 13–17 (M_age = 15, SD = 1.42) years. Results suggest that perceiving racial discrimination from teachers was associated with lower levels of school bonding for African American and Caribbean black adolescents. For African American adolescents, perceiving more racial discrimination from teachers and reporting lower private regard beliefs was associated with less school bonding. The findings for Caribbean black adolescents revealed that endorsing moderate levels of religiosity and perceiving higher rates of teacher discrimination was associated with less school bonding. The developmental significance and implications for future research are discussed.     

Identifying Latent Structures in Panel Data

This paper provides a novel mechanism for identifying and estimating latent group structures in panel data using penalized techniques. We consider both linear and nonlinear models where the regression coefficients are heterogeneous across groups but homogeneous within a group and the group membership is unknown. Two approaches are considered—penalized profile likelihood (PPL) estimation for the general nonlinear models without endogenous regressors, and penalized GMM (PGMM) estimation for linear models with endogeneity. In both cases, we develop a new variant of Lasso called classifier‐Lasso (C‐Lasso) that serves to shrink individual coefficients to the unknown group‐specific coefficients. C‐Lasso achieves simultaneous classification and consistent estimation in a single step and the classification exhibits the desirable property of uniform consistency. For PPL estimation, C‐Lasso also achieves the oracle property so that group‐specific parameter estimators are asymptotically equivalent to infeasible estimators that use individual group identity information. For PGMM estimation, the oracle property of C‐Lasso is preserved in some special cases. Simulations demonstrate good finite‐sample performance of the approach in both classification and estimation. Empirical applications to both linear and nonlinear models are presented.     

A Business Model Innovation Typology

An effective business model is the core enabler of any company's performance. Business model innovation is not only becoming more and more important due to increasing and globalizing competition, but also an enormous challenge, both theoretically and practically. Although many managers are eager to consider more disruptive changes to their business model, they often do not know how to articulate their existing or desired business model and, even less so, understand the possibilities for innovating it. One of the steps toward developing more theoretical insight and practical guidelines is the identification of types and the development of a typology of business model innovations. Ten retrospective case studies of business model innovations undertaken by two industrial companies provide the empirical basis for this article. We analyzed the characteristics of these innovations as well as their success rates. The findings suggest that there are indeed various business model innovation types, each with its own characteristics and challenges.     

Oppositional Girlhoods and the Challenge of Relational Politics

Over the last five years, scholars from a wide variety of disciplines have problematized the discourse of “adolescent female exceptionalism” (Switzer in Fem Theory 14(3):345–360, 2013, p. 4) popularized by the NIKE Foundation’s Girl Effect. Arriving at similar conclusions, scholars point to the artificial neocolonial divisions between ‘the West’ and ‘the rest’ of the world animated by an ‘invest in girls’ logic. This paper endeavors to move beyond the “oppositional girlhoods” (Bent in Sociol Stud Child Youth 16(1):3–20, 2013a, p. 7) bind of girl effects discourse to propose that differentially positioned and experienced girlhoods might be better understood as transnational, relational cultural formations. Drawing from our empirical research with girls in North America and Sub-Saharan Africa, we consider the implications of girls’ increasing global visibility as the ‘saviors of humanity’ from different geopolitical contexts. We then go further to suggest the oppositional girlhoods frame assumes reductive, apolitical, and ahistorical claims of divergence between girlhoods in the Global North and Global South “with highly unequal effects” (Gonick et al. in Girlhood Stud 2(3):1–9, 2009, p. 3). By countering the normative construction of global girlhoods as mutually exclusive forms of personhood and historical experience, our project authorizes a new understanding of girlhoods as mutually constituted and relationally contingent. It is from within this relational framework that we propose new directions for thinking about girlhoods transnationally.