On regression modelling with dummy variables versus separate regressions per group: Comment on Holgersson et al.

In a recent issue of this journal, Holgersson et al. [Dummy variables vs. category-wise models, J. Appl. Stat. 41(2) (2014), pp. 233–241, doi:10.1080/02664763.2013.838665] compared the use of dummy coding in regression analysis to the use of category-wise models (i.e. estimating separate regression models for each group) with respect to estimating and testing group differences in intercept and in slope. They presented three objections against the use of dummy variables in a single regression equation, which could be overcome by the category-wise approach. In this note, I first comment on each of these three objections and next draw attention to some other issues in comparing these two approaches. This commentary further clarifies the differences and similarities between dummy variable and category-wise approaches.     

An experimental investigation of risk sharing and adverse selection

Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect adverse selection? We experimentally investigate individuals’ willingness to share risks with others. Across treatments we vary how risk profiles differ between individuals. We find strong evidence for adverse selection if individuals’ risk profiles can be ranked according to first-order stochastic dominance and only little evidence for adverse selection if risk profiles can only be ranked according to mean-preserving spreads. We observe the same pattern also for anticipated adverse selection. These results suggest that the degree to which adverse selection erodes voluntary risk sharing arrangements crucially depends on the form of risk heterogeneity.     

Promoting Ethnic Entrepreneurship in European Cities: Sometimes Ambitious,Mostly Absent,Rarely Addressing Structural Features

An increasing number of immigrants have become entrepreneurial and many governments expect or hope that the ongoing rise of ethnic entrepreneurship will contribute significantly to the integration of immigrants, to their upward mobility, and to the economic development of the city of residence. In this article we explore the rules, regulations and policy interventions that shape self‐employment trajectories in general and those of immigrant ethnic minorities in particular. The article is based on a general inventory of measures to promote ethnic entrepreneurship in 32 European countries, and a somewhat deeper inventory of policies and interventions in 28 European cities. We came across all kinds of measures and interventions and identified certain patterns, but the most striking finding was that such explicit measures and interventions were actually thin on the ground. We conclude this article with a discussion of the structural determinants of this outcome.     

Predictors of Antisocial and Prosocial Behavior in an Adolescent Sports Context

This study examined antisocial and prosocial behavior of N = 439 adolescent athletes between 14 and 17 years of age (67 teams). Multi‐level analyses showed that team membership explained 20 and 13 percent of the variance in antisocial and prosocial behavior in the sports context, respectively. The team effects suggest that aggregating antisocial or prosocial adolescents within teams may partially explain differences in antisocial and prosocial behavior among athletes in the sports context. A trend was found toward a relation between higher levels of moral reasoning within teams, and less antisocial behavior in the sports context. Favorable moral atmosphere was positively associated with more prosocial behavior in the sports context. Finally, supportive coach–athlete relationships were associated with both less antisocial and more prosocial behavior in the sports context.     

Understanding the complexity of knowledge integration in collaborative new product development teams: A case study

Knowledge integration is important in collaborative new product development (Co-NPD). The research literature shows that the way actors create a shared understanding about the new to create products is a quality indicator of Co-NPD. This study investigates what factors influence the creation of a shared understanding in Co-NPD. The results show factors at three different levels; the actor, project and company level. Additionally, there exist relationships across the factors. The related factors form four different types of interfaces. The interfaces differ from each other since different types of collaborative mechanisms exist within them.     

A Theory of Time Preference

This article proposes that people generally prefer present consumption to future consumption because their expected utility from consumption (eventually) falls as their mental and physical abilities (eventually) decline with age. Moreover, contrary to the ubiquitous intertemporal formulation with a constant rate of time preference and contrary to three recent theories of time preference that predict decreasing discounting as people age, this article asserts that discounting increases over the life cycle. This hypothesis is supported by data from the Panel Study of Income Dynamics as well as evidence from numerous previous studies.     

Unraveling quantity discounts

We consider the situation in which a buying organization deals with a discrete quantity discount schedule offered by a selling organization. Furthermore, the buying organization can negotiate with the selling organization about the lot size and purchase price, but does not know the underlying function that was used by the selling organization to determine the quantity discount schedule. In this paper, we provide an analytical and empirical basis for one general quantity discount function (QDF) that can be used to describe the underlying function of almost all different quantity discount types. We first develop such a QDF analytically. Among other things, this QDF enables buying organizations to calculate detailed prices for a large number of quantities. We subsequently show that the QDF fits very well with 66 discount schedules found in practice. We discuss that the QDF and related indicators can be a useful tool in supplier selection and negotiation processes. It can also be used for competitive analyses, multiple sourcing decisions, and allocating savings for purchasing groups. Additionally, the QDF can be included in research models incorporating quantity discounts. We conclude the paper with an outlook on further QDF research regarding the characterization of commodity markets from a demand elasticity point of view.     

Poverty Research in a Development Policy Context

This article provides an evaluation of the extent to which science is addressing worldwide poverty and hunger. It is based on the literature contained in the Thomson Reuters' Web of Science Citation Index (1980 to 2008) and focuses on the WOTRO Strategy Plan 2007–2010 of the Netherlands Foundation for the Advancement of Tropical Research, although similar policies from other countries might also be assessed. The data show that poverty/hunger research has grown steadily over time in many disciplines, most significantly in Environmental Sciences and Technology. Much of this research is hidden; hence the construction of an internationally recognised open‐access database is recommended so that scientists can easily identify critical gaps related to scientific capacity‐building.     

Resolving conflict over salespeople’s brand adoption in franchised channels of distribution

Many franchise-based retail outlets offer both the franchisor-owned brand and brands of competitors or independent suppliers. As salespeople may influence customers’ brand choices considerably, an important concern for franchisors is how to raise salespeople’s selling preferences for the franchisor-owned brand. However, the channel administration literature suggests that salespeople may not automatically favor the franchisor’s brand over other brand lines. While a large body of research examines franchise–channel relationships, previous investigations have conspicuously overlooked this channel conflict. In proposing a conceptual model grounded in the behavioral sciences, this study analyzes how franchisors can induce salespeople to advocate their brand by fostering the intention to promote the franchisor-owned brand (IFOB) in customer interaction. The results of an empirical field study show that individual brand promotion depends on factors such as salespeople’s identification with the franchisor and their tenure with the organization, as well as on the franchisor’s prestige and administration of the franchise. Moreover, we find that franchisees’ IFOB transfers to salespeople, but only if franchisees display a charismatic leadership style. We discuss these findings in light of extant theory and empirical evidence and derive several managerially relevant implications for the administration of franchised retail channels.     

The Veils of Clio: Dimensions of a Behavioral Narratology

This paper outlines a behavior-analysis approach to the field of narratology, the study of the narrative or story, with emphasis on nonfiction stories and the processes by which such stories distort the world they describe. Stories are described in terms of (a) a behavior-analysis adaptation of Todorov''s (1977) analysis of the plots of stories in terms of states of equilibrium/disequilibrium and (b) Grant''s (2005) analysis of the structure of stories in terms of establishing operations and escape contingencies. These two sets of concepts are applied to understanding how and why stories lead to distortions of the events they report.