Deterministic transformations of random variables and the comparative statics of risk

In this article, a general class of deterministic transformations that can be interpreted as changes in risk are identified. This provides a fourth characterization of a Rothschild-Stiglitz increase in risk. In addition, a particular subclass of these transformations, termed simple transformations, is shown to be well suited for comparative static analyses. This subclass contains as a special case the linear transformation used so often in the literature. A theorem is presented that generalizes the known comparative static results for large as well as small changes in risk.     

Reputational Bargaining and Deadlines

I highlight how reputational concerns provide a natural explanation for “deadline effects,” the high frequency of deals prior to a deadline in bargaining. Rational agents imitate the demands of obstinate behavioral types and engage in brinkmanship in the face of uncertainty about the deadline's arrival. I also identify how surplus is divided when the prior probability of behavioral types is vanishingly small. If behavioral types are committed to fixed demands, outcomes converge to the Nash bargaining solution regardless of agents' respective impatience. If behavioral types can adopt more complex demand strategies, outcomes converge to the solution of an alternating offers game without behavioral types for the deadline environment.     

Multiple‐Family Group Intervention for Incarcerated Male Adolescents Who Sexually Offend and Their Families: Change in Maladaptive Emotion Regulation Predicts Adaptive Change in Adolescent Behaviors

The multiple‐family group intervention is an effective, yet affordable, 8‐week treatment that is conducted in a juvenile correctional institution in Alabama with adolescents who sexually offend and their families. Data from 115 incarcerated male adolescents and their male and female caregivers collected at pre‐, post‐, and 1‐year follow‐up were used to determine that problem behaviors (internalizing, externalizing) decreased over pre‐ and posttest and the significant decreases in maladaptive emotion regulation predicted those changes. Adolescent‐reported anxiety over abandonment and attachment dependence on parents increased significantly; these changes were predicted by decreases in maladaptive emotion regulation. Linear growth models were also fit over the 3 time points and indicate decreases in adolescent problem behavior and maladaptive emotion regulation.     

Turning Social Return on Investment on Its Head

This article undertakes a critique of social return on investment (SROI), combining the existing research literature with an analysis of six case studies of supported social enterprises employing people with disabilities and other challenges that affect their access to the conventional labor market. The critique of SROI focuses on its positivist roots and its emphasis on one number, the SROI ratio. It also discusses the technical challenges in producing that number, including concerns about its reliability. The article presents the stakeholder impact statement, an approach that is rooted in interpretivism and attempts to understand the impact of enterprises through the eyes of multiple stakeholders. Unlike SROI, which is a supplement to conventional accounting statements, the stakeholder impact statement integrates financial and social impact data, thereby placing them on the same level of importance.     

A Simulator for Twenty20 Cricket

This paper develops a Twenty20 cricket simulator for matches between sides belonging to the International Cricket Council. As input, the simulator requires the probabilities of batting outcomes which are dependent on the batsman, the bowler, the number of overs consumed and the number of wickets lost. The determination of batting probabilities is based on an amalgam of standard classical estimation techniques and a hierarchical empirical Bayes approach where the probabilities of batting outcomes borrow information from related scenarios. Initially, the probabilities of batting outcomes are obtained for the first innings. In the second innings, the target score obtained from the first innings affects the aggressiveness of batting during the second innings. We use the target score to modify batting probabilities in the second innings simulation. This gives rise to the suggestion that teams may not be adjusting their second innings batting aggressiveness in an optimal way. The adequacy of the simulator is addressed through various goodness‐of‐fit diagnostics.     

Changing patterns of migration between metropolitan and nonmetropolitan areas in the United States: Recent evidence

Data from the 1975 Current Population Survey confirm that, during 1970–1975, there was a reversal of the traditional net migration stream between metropolitan and nonmetropolitan areas in the United States. During this period, there was net in-migration of 1,600,000 persons to nonmetropolitan areas, in contrast to net out-migration of 350,000 persons from these areas in 1965–1970. Reversal was caused by a 12 percent decrease in the number of nonmetropolitan out-migrants and a 23 percent increase in the number of SMSA residents moving to nonmetropolitan territory over 1965–1970 levels. While some changes in the size of migration streams were due to changes in age structures and population bases in metropolitan and nonmetropolitan areas, they were caused primarily by real shifts in outmigration propensities at practically all ages in both areas.     

Risk and risk aversion effects in contests with contingent payments

Contests by their very nature involve risk, winning and losing are both possible, and the gain from winning can itself be uncertain. The participants in a contest use resources to increase their chance of winning. The main focus of this analysis is on the effects of risk aversion and risk in contests where only winners pay for resources used to compete. When payment is contingent on winning, the effect of risk aversion is in the opposite direction of what occurs when costs are paid by both winners and losers. A number of contests observed in the marketplace that exhibit this contingent payment property are discussed.     

Complexity Factors and Intuition-based Methods for Facility Network Design

Logistics managers frequently utilize decision support systems (DSS) to make facility network design decisions. Many DSS do not provide optimization capabilities, but instead rely on scenario evaluation as a means for developing solutions. We experimentally assessed the performances of decision makers, including experienced managers, who used four variants of a scenario evaluation-based DSS to solve realistically sized network design problems of varying complexities. Complexity factors included DSS attributes, problem size, network types, and demand dispersion patterns. Decision makers' performances were assessed relative to optimal solutions. Overall, the decision makers generated relatively high-quality solutions using the DSS variants. The type of design problem solved did not significantly impact problem-solving performance. However, performance degraded and variability in solution quality escalated as problem size was increased. The availability of incremental solution cost improvement cues in the DSS significantly improved solution quality and reduced performance variability. Iconic graphic enhancements to the DSS did not consistently affect performance. However, significant interactions existed among the effects of DSS graphics capabilities, DSS information cues, and problem attributes.