Getting tuned in to those who are different: The role of empathy as mediator between diversity and performance

We present a theoretical model on the processes that mediate and moderate the diversity-performance relationship. Past research on this topic—for example the categorization elaboration model (van Knippenberg et al. 2004)—has often focused on information elaboration as mediator. Complementing this cognitive perspective, we propose that group diversity can also stimulate group members to engage with each other emotionally, resulting in higher levels of empathy—an emotional state which arises from the comprehension and apprehension of fellow group members’ emotional state. Empathy, in turn, is likely to enhance performance through processes within a single group member and through processes between group members. At the core of the model lies the proposition that group- as well as individual-level empathy mediate the relationship between diversity of organizational units and the performance of individual members and groups at large (multilevel mediation). Furthermore, we specify moderating conditions for the relationship between diversity and empathy. Diversity beliefs and diversity climates are introduced as second-order moderators.     

Tenure Profiles and Efficient Separation in a Stochastic Productivity Model

We develop a theoretical model based on efficient bargaining, where both log outside productivity and log productivity in the current job follow a random walk. This setting allows the application of real option theory. We derive the efficient worker-firm separation rule. We show that wage data from completed job spells are uninformative about the true tenure profile. The model is estimated on the Panel Study of Income Dynamics. It fits the observed distribution of job tenures well. Selection of favorable random walks can account for the concavity in tenure profiles. About 80% of the estimated wage returns to tenure is due to selectivity in the realized outside productivities.     

Dividend yield and stability versus performance on the German stock market: a descriptive study

It is often examined in the literature whether the dividend yields of stocks correlate with their total returns. This paper analyzes the effect of dividend yield on return as well as on risk and on performance of stocks and stock portfolios on the German market. Not only the influence of dividend yield but also of dividend stability is subject to our analysis. Furthermore, tax aspects are considered. However, this study should rather be seen as an empirical analysis of the influence of dividends as a capital market anomaly than a theoretical based validation approach. Our data set comprises daily adjusted stock prices and dividend payment data from the German capital market over the period 3 January 2000–31 July 2008. This period was characterized by a high volatility of the stock market. In addition to the existing literature examining mainly the long-term influence of dividend yields, we also want to find out whether stocks with high and stable dividend payments are able to reduce the risk of a stock investment in short time periods characterized by extreme conditions. We use blue chips (DAX), stocks of medium-sized companies (MDAX), and stocks of technology firms (TecDAX). Our findings suggest that stock performance generally improves with an increasing dividend yield, where this result is actually based on risk reduction instead of a higher return. However, this risk reduction diminishes with an increasing degree of diversification.     

An axiomatic approach to predictability of outcomes in an interactive setting

This article is an axiomatic approach to the problem of ranking game forms in terms of the predictability they offer to individuals. Two criteria are proposed and characterized, the CardMin and the CardMax. Both compare game forms on the basis of the number of distinct outcomes that can result from the choice of a CardMin (resp. CardMax) strategy. The CardMin (resp. CardMax) strategy is defined as a strategy leading to the smallest (resp. highest) number of different outcomes. In both cases, the lower these numbers the better the game form.     

Shape-constrained Gaussian process regression for surface reconstruction and multimodal,non-rigid image registration

We present a new statistical framework for landmark ?>curve-based image registration and surface reconstruction. The proposed method first elastically aligns geometric features (continuous, parameterized curves) to compute local deformations, and then uses a Gaussian random field model to estimate the full deformation vector field as a spatial stochastic process on the entire surface or image domain. The statistical estimation is performed using two different methods: maximum likelihood and Bayesian inference via Markov Chain Monte Carlo sampling. The resulting deformations accurately match corresponding curve regions while also being sufficiently smooth over the entire domain. We present several qualitative and quantitative evaluations of the proposed method on both synthetic and real data. We apply our approach to two different tasks on real data: (1) multimodal medical image registration, and (2) anatomical and pottery surface reconstruction.     

Politicized expertise – an analysis of the political dimensions of consultants' policy recommendations to developing countries with a case study of McKinsey's advice on REDD+ policies

This article argues that expertise must be seen as politicized. Most of the existing research on the role of experts in policy-making neglects that there are many political factors which influence what and whose expertise is sought and used. This article looks at the role consultants play in shaping public policy in developing countries. Applying concepts from different disciplines a theoretical framework is developed to examine in what ways such politicized expertise undermines notions of neutrality and legitimacy. This framework is then applied to a case study looking at the advice that McKinsey & Company has given developing countries on their deforestation and Reducing Emissions from Deforestation and Forest Degradation policies.     

User acceptance of cooperative maneuver-based driving--a summary of three studies

Modern cars offer drivers support with the help of a number of driver assistance systems. Those systems aim to relieve drivers through assumption of sub parts of the driving task (e.g. in case of an Adaptive Cruise Control by regulation of vehicle speed and time gap to preceding vehicle). Today, systems are controlled and monitored separately which leads to efforts to combine the functionality of all systems in an overlying assistance for drivers. The approach of the University of Technology Darmstadt is called Conduct-by-Wire and can be seen as a cooperative maneuver-based driving paradigm, where the driver gives maneuver command to the systems which are automatically executed. This paper summarizes the results of three studies which investigated the user acceptance of this driving paradigm. Overall, it can be said that the acceptance of the system depends on personal traits of the driver and on the driving situation. Almost all participants are willing to use Conduct-by- Wire for routine tasks such as commuting, which makes the systems interesting for company cars. Still, there remain a number of drivers who are not willing to use such a highly automated system at all.     

Bivariate pointing movements on large touch screens: investigating the validity of a refined Fitts' Law

On the basis of three empirical studies Fitts' Law was refined for bivariate pointing tasks on large touch screens. In the first study different target width parameters were investigated. The second study considered the effect of the motion angle. Based on the results of the two studies a refined model for movement time in human-computer interaction was formulated. A third study, which is described here in detail, concerns the validation of the refined model. For the validation study 20 subjects had to execute a bivariate pointing task on a large touch screen. In the experimental task 250 rectangular target objects were displayed at a randomly chosen position on the screen covering a broad range of ID values (ID= [1.01; 4.88]). Compared to existing refinements of Fitts' Law, the new model shows highest predictive validity. A promising field of application of the model is the ergonomic design and evaluation of project management software. By using the refined model, software designers can calculate a priori the appropriate angular position and the size of buttons, menus or icons.     

Gender, Nonstandard Work Schedules, and Marital Quality

Relatively few studies have focused on the effects of working late and rotating shifts on marital dynamics. This study addressed the limitations of prior studies by sampling from a sector of the economy (i.e., grocery and drug store workers) where shift work and rotating schedules were common, and by controlling for numerous accompanying disruptive effects of shift work on marital quality. Results show that working late shifts reduces marital quality among men, whereas among women, job-family spillover explained away marital quality effects of working rotating schedules. These results suggest that more than men, women remain largely responsible for family life irrespective of work schedules, yet further research on how family lives are affected by work schedules is needed.     

Judgmental overconfidence: Three measures, one bias?

Overconfidence is used to explain various instances of detrimental decision making. In behavioral economic and finance models, it is usually captured by misperceiving the reliability of signals and results in overweighting private information. Empirical tests of these models often fail to find evidence for the predicted effects of overconfidence. These studies assume, however, that a specific type of overconfidence, i.e. “miscalibration,” captures the underlying trait. We challenge this assumption and borrow the psychological methodology of single-cue probability learning to obtain a direct measure for misperceiving signal reliability. Our findings indicate that the perception of signal precision and measures of miscalibration are unrelated. We thus conclude that in order to test the theoretical predictions of the overconfidence literature in economics and finance, one cannot rely on the well-established miscalibration bias.