Identification and Inference in Ascending Auctions With Correlated Private Values

We introduce and apply a new nonparametric approach to identification and inference on data from ascending auctions. We exploit variation in the number of bidders across auctions to nonparametrically identify useful bounds on seller profit and bidder surplus using a general model of correlated private values that nests the standard independent private values (IPV) model. We also translate our identified bounds into closed form and asymptotically valid confidence intervals for several economic measures of interest. Applying our methods to much studied U.S. Forest Service timber auctions, we find evidence of correlation among values after controlling for a rich vector of relevant auction covariates; this correlation causes expected profit, the profit‐maximizing reserve price, and bidder surplus to be substantially lower than conventional (IPV) analysis of the data would suggest.     

The Impact of Corporate Reputation on Firm Risk: A Panel Data Analysis of Spanish Quoted Firms

Researchers have traditionally addressed the influence of corporate reputation on firm performance, but have not considered the influence of corporate reputation on firm risk. This research develops hypotheses regarding the opposing influence of corporate reputation on a firm's systematic risk, unsystematic risk and total risk, as well as the moderation effect of firm size and industry concentration. Using a panel data method, these relationships are analysed, controlling for the effects of endogeneity, for a sample of Spanish quoted firms in the period 2001–2007. Specifically, two complementary analyses are performed. The first distinguishes firms included and not included in the MERCO index of the most reputable firms. The second analyses the impact of corporate reputation for the sub‐sample of most reputable firms. Being reputable reduces a firm's unsystematic risk and total risk, but increases systematic risk. In addition, firm size weakens these influences of corporate reputation on firm risk. However, among the most reputable firms, differences in reputation score have a lower effect on risk. Specifically, the corporate reputation level only influences firm unsystematic risk. It seems that what matters is not the degree of corporate reputation, but whether being or not being reputable is the question in terms of risk.     

Inferring an Augmented Bayesian Network to Confront a Complex Quantitative Microbial Risk Assessment Model with Durability Studies: Application to Bacillus Cereus on a Courgette Purée Production Chain

The Monte Carlo (MC) simulation approach is traditionally used in food safety risk assessment to study quantitative microbial risk assessment (QMRA) models. When experimental data are available, performing Bayesian inference is a good alternative approach that allows backward calculation in a stochastic QMRA model to update the experts’ knowledge about the microbial dynamics of a given food‐borne pathogen. In this article, we propose a complex example where Bayesian inference is applied to a high‐dimensional second‐order QMRA model. The case study is a farm‐to‐fork QMRA model considering genetic diversity of Bacillus cereus in a cooked, pasteurized, and chilled courgette purée. Experimental data are Bacillus cereus concentrations measured in packages of courgette purées stored at different time‐temperature profiles after pasteurization. To perform a Bayesian inference, we first built an augmented Bayesian network by linking a second‐order QMRA model to the available contamination data. We then ran a Markov chain Monte Carlo (MCMC) algorithm to update all the unknown concentrations and unknown quantities of the augmented model. About 25% of the prior beliefs are strongly updated, leading to a reduction in uncertainty. Some updates interestingly question the QMRA model.     

Consumption of Bovine Spongiform Encephalopathy (BSE) Contaminated Beef and the Risk of Variant Creutzfeldt‐Jakob Disease

To date, the variant Creutzfeldt‐Jakob disease (vCJD) risk assessments that have been performed have primarily focused on predicting future vCJD cases in the United Kingdom, which underwent a bovine spongiform encephalopathy (BSE) epidemic between 1980 and 1996. Surveillance of potential BSE cases was also used to assess vCJD risk, especially in other BSE‐prevalent EU countries. However, little is known about the vCJD risk for uninfected individuals who accidentally consume BSE‐contaminated meat products in or imported from a country with prevalent BSE. In this article, taking into account the biological mechanism of abnormal prion PrP^res aggregation in the brain, the probability of exposure, and the expected amount of ingested infectivity, we establish a stochastic mean exponential growth model of lifetime exposure through dietary intake. Given the findings that BSE agents behave similarly in humans and macaques, we obtained parameter estimates from experimental macaque data. We then estimated the accumulation of abnormal prions to assess lifetime risk of developing clinical signs of vCJD. Based on the observed number of vCJD cases and the estimated number of exposed individuals during the BSE epidemic period from 1980 to 1996 in the United Kingdom, an exposure threshold hypothesis is proposed. Given the age‐specific risk of infection, the hypothesis explains the observations very well from an extreme‐value distribution fitting of the estimated BSE infectivity exposure. The current BSE statistics in the United Kingdom are provided as an example.     

Beyond the Disciplinary Role of Governance: How Boards Add Value to Spanish Foundations

Due to the significant role of non‐profit organizations in the development of modern societies, these organizations must adjust their boardrooms. Since traditional theories of corporate governance appear to be limited in explaining the changing non‐profit world, we propose an extended model of governance that integrates the traditional arguments of agency theory with a cognitive dimension. Based on a sample of Spanish foundations, we present evidence on the effect of the board composition on foundations' organizational efficiency. We show that board size and independence do not have a definitive effect on the entity's efficiency. Instead, the knowledge diversity inside the boardroom and the active character of trustees have a positive influence on resource allocation. The cognitive dimension of the extended model of governance is critical to explaining how boards impact on organizational performance.     

Critical Theorist,Postmodernist and Social Constructionist Paradigms in Organizational Analysis: A Paradigmatic Review of Organizational Learning Literature

In an effort to clarify alternative approaches to organizational analysis, this paper is concerned to stimulate the debate on how an inquiry into organizational phenomena, in general, and organizational learning, in particular, can be accomplished. Encouraging attention to different aspects of various paradigmatic approaches, the paper focuses on critical theory, postmodernism and social constructionism and how these paradigms have contributed and can contribute to the research in the subject domain of organizational learning. To this end, a paradigmatic review of the literature on organizational learning is offered in this paper. Organizational learning, as the study of learning processes of, and within, organizations, has attracted significant attention in academe since the early 1980s. There is a plethora of studies on organizational learning, which offer rich material for a paradigmatic review. This study highlights the need for further development of the field from alternative paradigmatic perspectives, with a view to generating more insights into the multifaceted, complex and changing nature of learning in contemporary organizations.     

Integrated Approaches for the Public Health Prioritization of Foodborne and Zoonotic Pathogens

To address the persistent problems of foodborne and zoonotic disease, public health officials worldwide face difficult choices about how to best allocate limited resources and target interventions to reduce morbidity and mortality. Data‐driven approaches to informing these decisions have been developed in a number of countries. Integrated comparative frameworks generally share three methodological components: estimating incidence of acute illnesses, chronic sequelae, and mortality; attributing pathogen‐specific illnesses to foods; and calculating integrated measures of disease burden such as cost of illness, willingness to pay, and health‐adjusted life years (HALYs). To discuss the similarities and differences in these approaches, to seek consensus on principles, and to improve international collaboration, the E.U. MED‐VET‐NET and the U.S.‐based Food Safety Research Consortium organized an international conference convened in Berlin, Germany, on July 19–21, 2006. This article draws in part on the deliberations of the conference and discusses general principles, data needs, methodological issues and challenges, and future research needs pertinent to objective data‐driven analyses and their potential use for priority setting of foodborne and zoonotic pathogens in public health policy.     

Global Sensitivity Analysis Applied to a Contamination Assessment Model of Listeria monocytogenes in Cold Smoked Salmon at Consumption

In this study, a variance‐based global sensitivity analysis method was first applied to a contamination assessment model of Listeria monocytogenes in cold smoked vacuum packed salmon at consumption. The impact of the choice of the modeling approach (populational or cellular) of the primary and secondary models as well as the effect of their associated input factors on the final contamination level was investigated. Results provided a subset of important factors, including the food water activity, its storage temperature, and duration in the domestic refrigerator. A refined sensitivity analysis was then performed to rank the important factors, tested over narrower ranges of variation corresponding to their current distributions, using three techniques: ANOVA, Spearman correlation coefficient, and partial least squares regression. Finally, the refined sensitivity analysis was used to rank the important factors.     

A Quantitative Assessment of the Risk for Highly Pathogenic Avian Influenza Introduction into Spain via Legal Trade of Live Poultry

Highly pathogenic avian influenza (HPAI) is considered one of the most important diseases of poultry. During the last 9 years, HPAI epidemics have been reported in Asia, the Americas, Africa, and in 18 countries of the European Union (EU). For that reason, it is possible that the risk for HPAI virus (HPAIV) introduction into Spain may have recently increased. Because of the EU free‐trade policy and because legal trade of live poultry was considered an important route for HPAI spread in certain regions of the world, there are fears that Spain may become HPAIV‐infected as a consequence of the legal introduction of live poultry. However, no quantitative assessment of the risk for HPAIV introduction into Spain or into any other EU member state via the trade of poultry has been published in the peer‐reviewed literature. This article presents the results of the first quantitative assessment of the risk for HPAIV introduction into a free country via legal trade of live poultry, along with estimates of the geographical variation of the risk and of the relative contribution of exporting countries and susceptible poultry species to the risk. The annual mean risk for HPAI introduction into Spain was estimated to be as low as 1.36 × 10⁻³, suggesting that under prevailing conditions, introduction of HPAIV into Spain through the trade of live poultry is unlikely to occur. Moreover, these results support the hypothesis that legal trade of live poultry does not impose a significant risk for the spread of HPAI into EU member states.     

Large Risks,Limited Liability,and Dynamic Moral Hazard

We study a continuous‐time principal–agent model in which a risk‐neutral agent with limited liability must exert unobservable effort to reduce the likelihood of large but relatively infrequent losses. Firm size can be decreased at no cost or increased subject to adjustment costs. In the optimal contract, investment takes place only if a long enough period of time elapses with no losses occurring. Then, if good performance continues, the agent is paid. As soon as a loss occurs, payments to the agent are suspended, and so is investment if further losses occur. Accumulated bad performance leads to downsizing. We derive explicit formulae for the dynamics of firm size and its asymptotic growth rate, and we provide conditions under which firm size eventually goes to zero or grows without bounds.