Portfolio allocation and asset demand with mean-variance preferences

We analyze the comparative static effects of changes in the means, the standard deviations and the covariance of asset returns in a standard portfolio selection problem when investors have mean variance preferences. Simple and intuitive characterizations in terms of the elasticity of risk aversion are provided.     

Introduction of a new measure for detecting poor fit due to omitted nonlinear terms in SEM

The model chi-square that is used in linear structural equation modeling compares the fitted covariance matrix of a target model to an unstructured covariance matrix to assess global fit. For models with nonlinear terms, i.e., interaction or quadratic terms, this comparison is very problematic because these models are not nested within the saturated model that is represented by the unstructured covariance matrix. We propose a novel measure that quantifies the heteroscedasticity of residuals in structural equation models. It is based on a comparison of the likelihood for the residuals under the assumption of heteroscedasticity with the likelihood under the assumption of homoscedasticity. The measure is designed to respond to omitted nonlinear terms in the structural part of the model that result in heteroscedastic residual scores. In a small Monte Carlo study, we demonstrate that the measure appears to detect omitted nonlinear terms reliably when falsely a linear model is analyzed and the omitted nonlinear terms account for substantial nonlinear effects. The results also indicate that the measure did not respond when the correct model or an overparameterized model were used.     

Trust, repute and the role of non-profit enterprise

This article examines the trust hypothesis: the claim that asymmetric information can explain the existence of non-profit enterprise in certain markets. We argue that this hypothesis, in order to be viable, has to meet three challenges: ‘reputational ubiquity’, ‘incentive compatibility’ and ‘adulteration’. Drawing on modern agency theory, we conclude that the trust hypothesis stands on shaky ground. It can be sustained only under particular conditions that have been neither carefully described in theory nor subject to empirical assessment. The available evidence, patchy and inadequate as it is, seems to suggests that there are some ownership-related differences in aspects of organisational performance connected with asymmetric information. However, there is little evidence that this relates to trustper se or provides a rationale for the existence of non-profit ownership in these industries. We conclude with a plea for substantial research on consumer expectations and provider motivations. Visiting Associate Professor at Rutgers University, New Brunswick, New Jersey.     

Assessment Made Visible: Individual and Collective Practices

In this article I argue that by connecting assessment to learning and instruction and by enacting assessment as a collective practice we can see new opportunities for learning. The concept of mediated action and the notion of a collective zone of proximal development are used to theorize assessment. Two cases are included to support and make empirically visible the conceptual argument. The first case involves student teachers who assess exam papers in an online environment. The second case involves peer-group assessment among learners in an upper secondary school. Through the conceptual argument and the supporting cases assessment emerges as a practice involving process as well as product and a practice in which learning, teaching, and assessment are mutually constitutive of learners' development. Finally, some implications for practice are discussed, including some challenges related to the tension between individual and collective approaches.     

The impact of mimicry on sales - Evidence from field and lab experiments

A buyer’s observation that one or more people are consuming a product can lead that buyer to consume the product as well. The evidence supporting unconscious and unintentional (automatic) mimicry of consumption suggests that it is a pervasive and robust phenomenon. However, up until now most findings on the antecedents of mimicry have been obtained from lab studies. Using a field study, the current research shows that passengers in a train mimic the consumption behavior of other passengers. Two subsequent lab studies suggest that mimicry of consumption is all the more powerful the more people there are consuming and the more intense and consistent their consumption behavior is. However, the impact of the number of people on the willingness to engage in mimicry reaches a peak at approximately eight people and is relatively constant thereafter.     

The willingness to pay–willingness to accept gap revisited: The role of emotions and moral satisfaction

While many earlier studies have found that people’s maximum willingness to pay for having a good is often substantially lower than their minimum willingness to accept not having it, more recent experimental evidence suggests that this discrepancy vanishes for standard consumption goods when an incentive-compatible design without misconceptions is used. This paper hypothesises that there is nevertheless a discrepancy for goods with a perceived moral character, such as contributions to a good cause, and moreover that the reason for this discrepancy can largely be explained by differences in emotions and moral perceptions. The results from a real-money dichotomous-choice experiment, combined with measurements of emotions and morality, are consistent with these hypotheses.     

Macht und Einfluss verschiedener Abteilungen in fr��hen und sp?ten organisationalen Lebenszyklusphasen

The present research examines the performance consequences of the influence of four major departments (sales, marketing, R&D, and manufacturing) and integrates organizational life cycle stages as moderating variables. Further, the article derives a hypothesis that addresses the influence dispersion among the departments that is most beneficial for performance. In order to validate this research model empirically, survey data from small and medium-sized German firms were gathered. Findings show that the optimal distribution of influence among departments is a function of the organizational life-cycle stage. While no moderating effects of the life-cycle stage emerge for the sales or manufacturing departments, a strong marketing department contributes to organizational performance only in early stages, while a strong R&D department contributes only in later stages. Further, the estimation of the non-linear regression model shows that a medium level of influence dispersion among departments is most beneficial to organizational performance.     

K?nnen Studienbeitr?ge die Lehre in der BWL verbessern?

The introduction of tuition fees by some German universities raised fears about possible negative effects, which scientific research has not substantiated, though. Meanwhile, little attention has been paid to positive effects tuition fees might entail. This is surprising as universities are obliged to use tuition fees to improve study conditions. Business programs are highly frequented with limited academic staff. More assistance would therefore improve study conditions substantially. Tutorials funded by fees can be introduced quickly and, unlike faculty positions, do not tie up money in the long run. This makes them ideal to cope with the one-time enrollment peak due to the shortening of secondary education. We show that tutorials improve both satisfaction and study outcomes. We use data from an introductory course characteristic of business programs, where tutorials have been introduced. This course is attended by about 750 students per term and the data cover several terms. We control for a number of effects, including general academic ability. Increased satisfaction and improved study outcomes show that tutorials enhance both the objective and perceived study conditions. This makes tutorials an example of how tuition fees can be used to produce positive effects.