Resolving Rabin’s paradox

We present a theoretical model of Rabin’s famous calibration paradox that resolves confusions in the literature and that makes it possible to identify the causes of the paradox. Using suitable experimental stimuli, we show that the paradox truly violates expected utility and that it is caused by reference dependence. Rabin already showed that utility curvature alone cannot explain his paradox. We, more strongly, do not find any contribution of utility curvature to the explanation of the paradox. We find no contribution of probability weighting either. We conclude that Rabin’s paradox underscores the importance of reference dependence.

     

SOLVING A COMBINED PART-SELECTION,MACHINE-LOADING,AND TOOL-CONFIGURATION PROBLEM IN FLEXIBLE MANUFACTURING SYSTEMS*

Loading too many or too few copies of tools may result in waste of tool magazine slots and unnecessary machine shutdowns. This is a consequence of not integrating the tool-configuration problem with other flexible manufacturing system (FMS) planning problems. Solving part-selection, machine-loading and tool-configuration problems independently may cause entire solutions to be infeasible. We propose both an approach to the explicit formulation of tool configuration problems and the simultaneous solution of part-selection, machine-loading and tool-configuration problems. We developed and solved sequentially some associated bicriteria models sequentially. We also discussed the effects of considering some secondary objectives on system performance and described the concepts of critical magazine size and critical machining time using an example problem. Unnecessary allocation and under-use of tool magazine capacity and machining time could be reduced by considering the critical magazine size and machining time. Finally, we suggest using a method based on Lagrangian relaxation for solving large size problems.     

The Women’s Empowerment in Livestock Index

Social Indicators Research - The empowerment of women in the livestock sector is fundamental to achieve gender equality. It also is instrumental for increased household productivity and improved...     

The effects of pre-IPO corporate activity on newly-public firms' growth

We investigate firms' pre-IPO corporate activity. We find that firms involved in extraordinary – i.e., beyond momentum – amounts of acquisitions, JVs, and alliances in the year leading up to their IPOs (1) are more likely to engage in post-IPO corporate activity; and (2) enter into their first post-IPO transaction twice as fast as other firms. Our results indicate that signaling via extraordinary corporate activity can have a significant effect on entrepreneurial firms’ growth. The implications are discussed.     

How trade/GNP ratio decreases with country size

The ratio of a country's foreign trade (i.e., exports plus imports) to its GNP has a known tendency to decrease with country size. Previous studies have used a single year's data; but trade fluctuates greatly from year to year. This paper makes available a compilation of 1953–1972 export/GNP and import/GNP figures for 110 countries. The average import/GNP figure is found to correlate strongly with population size; the simple expression, Imports/GNP = 40 $\text{P}{}^{\mathrm{<mtext>?1</mtext><mtext>3</mtext>}}$, applies, within a factor of 2, in 94% of cases. No correlation with development level can be seen. The United States data throughout its history (1799–1972) follow the same inverse cube root pattern, but with a constant of 20 instead of 40. Correlation is much poorer in the case of export/GNP ration. Export and import figures are only marginally correlated to each other.