The asymptotic equivalence between the iterated improved 2sls estimator and the 3sls estimator

In this paper we show that the 3SLS estimator of a system of equations is asymptotically equivalent to an iterative 2SLS estimator applied to each equation, augmented with the residuals from the other equations. This result is a natural extension of Telser (1964).     

Changes in Product Attributes and Costs as Drivers of New Product Diffusion and Substitution

Diffusion theory has typically focused on how communication, internal or external to a social system, leads to adoptions and diffusion of an innovation. We develop a diffusion and substitution model based on a somewhat different perspective. In some cases, progressive improvements in product attributes and/or continual cost reduction seem to be a key driver of the diffusion process. For example, after introduction of the 5.25‐inch disk drive, its capacity continually increased, and accordingly, so did customer willingness‐to‐pay. Our model is based on a linear reservation price framework, in which a product is described by its depth (defined as the difference between a product̂s maximum reservation price and its production cost), and its breadth (related to the slope of its reservation price curve), indicating how broadly it appeals across various customer segments. Because of changes in product depths and breadths over time, customers who previously preferred the old product may later prefer the new product, thus creating the diffusion process. While the Bass model describes diffusion as a function of the coefficients of innovation and imitation, in our model, it is described by the coefficients of depth and breadth (the rates of change in relative depth and breadth), along with an S‐coefficient that we associate with the technology S‐curve. We fit our model to data from the disk‐drive and the microprocessor industries.     

The importance of key celebrity characteristics for customer segmentation by age and gender: Does beauty matter in professional football?

This paper examines through the lens of sport whether male and female customers as well as differently aged customers focus on different celebrity characteristics and whether they are influenced by celebrities’ facial attractiveness. Drawing on psychological and sociological theories like attachment theory, social role theory of gender, or social norm theory as well as on the academic literature on celebrity endorsement in general, we develop several hypotheses regarding how a fan’s age and gender affect the importance of key characteristics of football stars—namely experience, personality, exemplary behavior, and skills. Using a proprietary dataset that combines archival data concerning professional football players and clubs with survey data of more than 2100 football fans, we find evidence that female fans attach more importance to a player’s personality and behavior while male fans seem to focus on experience and skills. We further find that when fans get older, the importance of a player’s behavior and experience increases. Moreover, our results show that the facial attractiveness of players clearly influences fan perceptions. Our results contribute to existing research on customer segmentation by providing a more differentiated picture of the effects of key celebrity characteristics on different customers.     

Insurance demand and social comparison: An experimental analysis

This paper analyzes whether social comparison can explain the low take-up of disaster insurance usually reported in field studies. We argue that risks in the case of disasters are highly correlated between subjects whereas risks for which high insurance take-up can be observed (e.g. extended warranties or cell phone insurance) are typically idiosyncratic. We set up a simple model with social reference points and show that in the presence of inequality aversion social comparison makes insurance indeed less attractive if risks are correlated. In addition we conducted a simple experiment which confirms these theoretical results. The average willingness to pay for insurance is significantly higher for idiosyncratic than for correlated risks.     

Matching Product Architecture and Supply Chain Configuration

In this paper, we examine the suggested link between product architecture (i.e., the extent to which a product is modular vs. integral) and supply chain configuration (i.e., whether the product development is done internally by the manufacturer in an integrated supply chain or in collaboration with a supplier in a decentralized supply chain). Our model suggests that the choice of product architecture depends on firm, market, and product characteristics in addition to supply chain structure. In contrast to other studies, we find that the optimal mapping from architecture to supply chain structure is not always one‐to‐one. A decentralized supply chain may be associated with a more integral product when the technical collaboration penalty is not excessive and suppliers have significantly superior product development capabilities. Furthermore, in a decentralized supply chain, the nature of the relationship between the original equipment manufacturer and its supplier (adversarial or collaborative) plays a role in the choice of product architecture: modular architectures are more likely when the parties have adversarial relationships, while long‐term trust‐based relationships facilitate more integral product architectures.     

Testing transitivity in choice under risk

Recently proposed models of risky choice imply systematic violations of transitivity of preference. This study explored whether people show the predicted intransitivity of the two models proposed to account for the certainty effect in Allais paradoxes. In order to distinguish “true” violations from those produced by “error,” a model was fit in which each choice can have a different error rate and each person can have a different pattern of preferences that need not be transitive. Error rate for a choice is estimated from preference reversals between repeated presentations of the same choice. Results showed that few people repeated intransitive patterns. We can retain the hypothesis that all participants were transitive.     

Gender Minority Stress: A Critical Review

ABSTRACT

Past studies that compare cisgender to transgender (or trans) and gender diverse people have found a higher prevalence of mental health problems among the latter groups. This article uses Testa’s gender minority stress framework, which is an expansion of minority stress theory, to assess minority stressors that are specific to the experiences of trans and gender diverse people. The concept of cisnormativity, an ideology that positions cisgender identities as a norm, is used in relation to the gender minority stress framework to describe the marginalizing nature of social environments for trans and gender diverse people. This article provides a critical review that integrates and expands on past theoretical perspectives on gender minority stressors and protective factors. Specifically, this article demonstrates the relevance of cultural and ethnic backgrounds to complement the application of intersectionality in research on health disparities experienced by trans and gender diverse people.     

Harmful Algal Blooms in South Carolina Residential and Golf Course Ponds

The South Carolina coastal zone is among the fastest growing areas in the U.S., and population epicenters are marked by dense brackish water pond (lagoon) coverage associated with housing complexes and golf courses. Surveillance efforts in 2001–2002 documented the widespread occurrence of several types of potentially or measurably toxic harmful algal blooms (HABs) in these ponds. These man-made retention ponds were constructed in order to serve as a buffer between developed areas and open estuaries or for aesthetic reasons. However, the combination of restricted tidal flow and nutrient and/or contaminant deposition creates a stimulatory environment for potential HAB formation. These discoveries introduce the need to consider mitigation measures to existing ponds and HAB preventive strategies for future pond construction.     

Cross-Cultural Analyses of Determinants of Quality of Life and Mental Health: Results from the Eurohis Study

Recent projects on international instrument development have produced a wide array of health indicators that may be used for cross-cultural field-testing, however more information on their cross-cultural performance in relation to health determinants is necessary. The current study approaches one step for international conceptual validation by analysing the association between various health determinants and different types of health outcomes (mental health, quality of life) across a range of countries or geographical areas. The current study is based on the EUROHIS project that has been conducted in a sample of 4849 adults across 10 European countries. Results highlight that interactions between health determinants with subjective mental health, general health and quality of life (QoL) differ between Western European countries, Eastern European countries and the Newly Associated States as well as Israel. Using a MIMIC model approach, we were able to show that the impact of each of the sociodemographic variables cannot be interpreted on the basis of its single loading but only seeing the interacting with other indicators. Future studies should include sociodemographics in MIMIC models in each latent factor before carrying out regressions on a larger scale. Future investigations will require larger and representative samples to (a) test models on latent factors of mental health and QoL and (b) on the basis of these findings test overall structural models across countries.