Promoting a higher retirement age: A prospect‐theoretical approach

Demographic ageing and the necessity of raising the retirement age is one of the most frequently debated topics among European welfare policy experts. This study used prospect theory as developed in behavioural economics to explain public attitudes towards pension reforms. It argues that, in line with prospect theory, negative incentives are more useful in changing people's attitudes in favour of a higher statutory retirement age than are positive incentives. Therefore, in the case of increasing life expectancy, defined‐contribution schemes that apply actuarial formulae linking the level of starting monthly pension benefits to life expectancy are more useful in promoting a higher retirement age than conventional defined‐benefit schemes, which typically do not forge an automatic connection between longevity and starting pensions. The implications of prospect theory for attitudes towards pension reforms were tested using Eurobarometer survey data collected in 2004 and 2009 in the Czech Republic, Poland and Slovakia.     

Abusive Supervision und die Konsequenzen f��r die Coaching Praxis

Abusive Supervision refers to sustained perceptions of hostile leader behavior. So far, it is mostly understood one-sidedly as a sort of dysfunctional leadership style, neglecting any influence of the addressed follower(s). In contrast, this article conceptualizes Abusive Supervision as a persistent pattern of leadership interaction: It may emerge when leader and follower construct the reality of their interaction in opposing ways and see their own behavior only as reactive to the negative behavior displayed by the other. Implications for coaching practice are discussed.     

Online graph exploration algorithms for cycles and trees by multiple searchers

This paper deals with online graph exploration problems by multiple searchers. The information on the graph is given online. As the exploration proceeds, searchers gain more information on the graph. Assuming an appropriate communication model among searchers, searchers can share the information about the environment. Thus, a searcher must decide which vertex to visit next based on the partial information on the graph gained so far by searchers. We assume that all searchers initially start the exploration at the origin vertex, and the goal is that each vertex is visited by at least one searcher and all searchers finally return to the origin vertex. The objective is to minimize the time when the goal is achieved. We study the case of cycles and trees. For the former, we give an optimal online exploration algorithm in terms of competitive ratio, and for the latter, we also give an online exploration algorithm which is optimal among greedy algorithms.     

Exploring the Interaction Between Volunteering Status,Paid Job Characteristics and Quality of Volunteers’ Motivation on Mental Health

The literature on the health-promoting effects of community work has primarily dealt with the population in retirement age, yet the vast majority of volunteers are people still in the workforce. The aim of this study is to observe the relationship between volunteering and health within the context of working life, considering paid work conditions and motives to volunteer as moderating variables. We conducted an online survey with a sample of Swiss workers employed in different industries. Results show that volunteers with self-determined motives (but not with controlled motives) report lower levels of stress and burnout than non-volunteers. Moreover, volunteers in general (regardless of the quality of motivation) report higher levels of work engagement and well-being. Analyses further reveal an interaction effect for burnout and stress, where the difference between self-determined volunteers and non-volunteers becomes larger with unfavorable working conditions at their paid job, hinting at potential compensatory effects. Implications for future research and the voluntary sector are discussed.     

Bayesian Dividend Optimization and Finite Time Ruin Probabilities

We consider the valuation problem of an (insurance) company under partial information. Therefore, we use the concept of maximizing discounted future dividend payments. The firm value process is described by a diffusion model with constant and observable volatility and constant but unknown drift parameter. For transforming the problem to a problem with complete information, we derive a suitable filter. The optimal value function is characterized as the unique viscosity solution of the associated Hamilton-Jacobi-Bellman equation. We state a numerical procedure for approximating both the optimal dividend strategy and the corresponding value function. Furthermore, threshold strategies are discussed in some detail. Finally, we calculate the probability of ruin in the uncontrolled and controlled situation.     

A Comparative Study of Institutionalizing Public Plant Breeding

Public–private partnerships are merely defined as an institutionalized cooperation between the public administration and private companies, but may take very different settings. This paper uses the case of partnerships in the plant breeding sector to study the institutional evolution of such linkages. It is shown how corporatist exclusivity can enter such partnerships, as their setting can have different purposes and be used to transfer subsidies from the public to companies or professional associations through low prices for resources transferred to the sector. The inefficiencies connected with such rents and possible alternatives are outlined and conclusions are drawn for the institutional theory of organizations.     

The gender longevity gap: explaining the difference between singles and couples

This paper studies the respective gender longevity gap in favour of women among singles, utilitarian and altruistic couples. The following hypotheses are derived: (1) the gender longevity gap is smaller within couples than among singles; (2) marriage increases longevity of men but decreases longevity of women; and (3) the gender longevity gap decreases with an increase in wealth. The hypotheses are tested using a complete data set of the Swiss deceased at the age 65+ in 2001 and 2002, with information on the individuals’ age at death and their average earnings over the life cycle.     

Split‐Award Procurement Auctions—Can Bayesian Equilibrium Strategies Predict Human Bidding Behavior in Multi‐Object Auctions?

We analyze if and when symmetric Bayes Nash equilibrium predictions can explain human bidding behavior in multi‐object auctions. We focus on two sealed‐bid split‐award auctions with ex ante split decisions as they can be regularly found in procurement practice. These auction formats are straightforward multi‐object extensions of the first‐price sealed‐bid auction. We derive the risk‐neutral symmetric Bayes Nash equilibrium strategies and find that, although the two auction mechanisms yield the same expected costs to the buyer, other aspects of the two models, including the equilibrium bidding strategies, differ significantly. The strategic considerations in these auction formats are more involved than in single‐lot first‐price sealed‐bid auctions, and it is questionable whether expected utility maximization can explain human bidding behavior in such multi‐object auctions. Therefore, we analyzed the predictive accuracy of our equilibrium strategies in the laboratory. In human subject experiments we found underbidding, which is in line with earlier experiments on single‐lot first‐price sealed‐bid auctions. To control for regret, we organize experiments against computerized bidders, who play the equilibrium strategy. In computerized experiments where bid functions are only used in a single auction, we found significant underbidding on low‐cost draws. In experiments where the bid function is reused in 100 auctions, we could also control effectively for risk aversion, and there is no significant difference of the average bidding behavior and the risk‐neutral Bayes Nash equilibrium bid function. The results suggest that strategic complexity does not serve as an explanation for underbidding in split‐award procurement auctions, but risk aversion does have a significant impact.