RISK AVERSION AND OVERBIDDING IN FIRST PRICE SEALED BID AUCTIONS: NEW EXPERIMENTAL EVIDENCE

Bidding above the risk‐neutral Nash equilibrium in first price sealed bid auctions has traditionally been ascribed to risk aversion. Later studies, however, offer other explanations and even argue that risk aversion plays no or a minor role. In a novel experimental design, we directly test the relationship between risk aversion and overbidding by systematically varying the distribution of risk attitudes in auction markets. We find a significant relationship between our measure of risk aversion and overbidding. (JEL D44, C91)     

An Agent‐Based Model for Pathogen Persistence and Cross‐Contamination Dynamics in a Food Facility

We used an agent‐based modeling (ABM) framework and developed a mathematical model to explain the complex dynamics of microbial persistence and spread within a food facility and to aid risk managers in identifying effective mitigation options. The model explicitly considered personal hygiene practices by food handlers as well as their activities and simulated a spatially explicit dynamic system representing complex interaction patterns among food handlers, facility environment, and foods. To demonstrate the utility of the model in a decision‐making context, we created a hypothetical case study and used it to compare different risk mitigation strategies for reducing contamination and spread of Listeria monocytogenes in a food facility. Model results indicated that areas with no direct contact with foods (e.g., loading dock and restroom) can serve as contamination niches and recontaminate areas that have direct contact with food products. Furthermore, food handlers’ behaviors, including, for example, hygiene and sanitation practices, can impact the persistence of microbial contamination in the facility environment and the spread of contamination to prepared foods. Using this case study, we also demonstrated benefits of an ABM framework for addressing food safety in a complex system in which emergent system‐level responses are predicted using a bottom‐up approach that observes individual agents (e.g., food handlers) and their behaviors. Our model can be applied to a wide variety of pathogens, food commodities, and activity patterns to evaluate efficacy of food‐safety management practices and quantify contamination reductions associated with proposed mitigation strategies in food facilities.     

The Salience of Perceived Societal Conflict in Europe: A 27 Country Study on the Development of a Measure for Generalized Conflict Thinking

Social Indicators Research - Over the last two decades, European countries have struggled with several crises (e.g., the Great Recession, the refugee crisis) which had a tremendous impact on (some)...     

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.     

Volunteer Reliability in Nonprofit Organizations: A Theoretical Model

The reliability of volunteers is a major concern for many nonprofit organizations. To address this problem in more detail, we develop a theoretical model of volunteer reliability based on psychological contract theory. By taking this perspective as a starting point, we explore how individual volunteer characteristics, organizational factors, and sociological developments shape the exchange of inducements and contributions between volunteers and nonprofit organizations. We discuss how these factors can create tensions in the psychological contract and determine the extent to which volunteers behave reliably. As such, we develop a theoretical framework for addressing the reliability problem in volunteer management.     

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.