A game theoretical analysis of an extended manager-auditor-conflict

Horst Albach has dealt in his research very often with problems of the quality of balance auditing (Albach 1992, 2003). Sometimes his considerations show close relations to the current crisis of the financial market and its consequences. Some of his contributions were already made in times, when it was not yet expected that the dependency of auditors from clients could once become a serious deficit of auditing. Those aspects also become relevant now in connection with the crisis of the financial market.The misgivings that arise continuously in this context with regard to the correctness of submitted balance sheets have sparked off intense discussions in two directions in the Federal Republic of Germany. Whereas the USA has already realised a prohibition of this nature to a great extent through statutory provisions, a broad spectrum of additional consultancy services is still permissible in the Federal Republic of Germany in spite of similar initiatives on the part of legislators.The present paper analyses methodically in the framework of an extended manager–auditor game how the Nash equilibrium is altered in a non-cooperative two-person game through the behaviour of the players, if the supervisory board, as an exogenous party, detects with a specific probability the incorrect certification of a substantively incorrectly prepared balance sheet. At the same time, payoffs from consultancy services for both players are included in the analysis here. However, with a greater probability of detection of an incorrectly certified incorrect balance sheet, and through the reductions of consultancy payoffs, the supervisory board can work towards the product of audit and publication quality being increased.     

Warteschlangen-Modelle in der Produktionsplanung – Möglichkeiten und Grenzen

Production Management often tried to apply queueing models to describe the flow of products and parts. These approaches usually apply very simple queueing models. Due to mathematical problems implied by general waiting line models, an adaptation to real life problems fails often. In this paper, some simple models discussed in production management are presented and it is shown why they failed to be generalized. Afterwards, we try to find a way how to model the simple case of flow shop production using generalized queueing models: First decomposition of serial waiting lines and approximation of the system by a sequence of independent stations. Afterwards the approach of recent literature to consider again the entire system simultaneously is sketched, and it is argued that these approaches are restricted as well to small problems     

Path to “Stardom” in Globally Distributed Hybrid Teams: An Examination of a Knowledge‐Centered Perspective using Social Network Analysis

Although distributed teams have been researched extensively in information systems and decision science disciplines, a review of the literature suggests that the dominant focus has been on understanding the factors affecting performance at the team level. There has however been an increasing recognition that specific individuals within such teams are often critical to the team's performance. Consequently, existing knowledge about such teams may be enhanced by examining the factors that affect the performance of individual team members. This study attempts to address this need by identifying individuals who emerge as “stars” in globally distributed teams involved in knowledge work such as information systems development (ISD). Specifically, the study takes a knowledge‐centered view in explaining which factors lead to “stardom” in such teams. Further, it adopts a social network approach consistent with the core principles of structural/relational analysis in developing and empirically validating the research model. Data from U.S.–Scandinavia self‐managed “hybrid” teams engaged in systems development were used to deductively test the proposed model. The overall study has several implications for group decision making: (i) the study focuses on stars within distributed teams, who play an important role in shaping group decision making, and emerge as a result of a negotiated/consensual decision making within egalitarian teams; (ii) an examination of emergent stars from the team members’ point of view reflects the collective acceptance and support dimension decision‐making contexts identified in prior literature; (iii) finally, the study suggests that the social network analysis technique using relational data can be a tool for a democratic decision‐making technique within groups.     

On the distance paired domination of generalized Petersen graphs <Emphasis Type="Italic">P</Emphasis>(<Emphasis Type="Italic">n</Emphasis>,1) and <Emphasis Type="Italic">P</Emphasis>(<Emphasis Type="Italic">n</Emphasis>,2)

Let G=(V,E) be a graph without an isolated vertex. A set D⊆V(G) is a k -distance paired dominating set of G if D is a k-distance dominating set of G and the induced subgraph 〈D〉 has a perfect matching. The minimum cardinality of a k-distance paired dominating set for graph G is the k -distance paired domination number, denoted by γ _p ^k (G). In this paper, we determine the exact k-distance paired domination number of generalized Petersen graphs P(n,1) and P(n,2) for all k≥1.     

Association of educational level and child sex ratio in rural and urban India

Utilizing data from the Census of India, this study compared child sex ratio in rural and urban regions of India and analyzed whether the child sex ratio was associated with mother’s education level. The child sex ratios in the rural and urban regions throughout India were analyzed using the two-sample and paired Student’s t-test. Further, the Chi-square test for trend in binomial proportions was used to assess the association between child sex ratios and mother’s education levels in rural and urban areas. Analysis of the data showed that there was a significant difference between the child sex ratios in rural areas versus urban areas. In addition, the Chi-square test for trend showed that there was a significant association of the child sex ratio and the educational levels of their mothers. This trend occurred in both rural and urban areas.     

Extreme Copulas and the Comparison of Ordered Lists

We introduce two extreme methods to pairwisely compare ordered lists of the same length, viz. the comonotonic and the countermonotonic comparison method, and show that these methods are, respectively, related to the copula T _M (the minimum operator) and the Ł ukasiewicz copula T _L used to join marginal cumulative distribution functions into bivariate cumulative distribution functions. Given a collection of ordered lists of the same length, we generate by means of T _M and T _L two probabilistic relations Q ^M and Q ^L and identify their type of transitivity. Finally, it is shown that any probabilistic relation with rational elements on a 3-dimensional space of alternatives which possesses one of these types of transitivity, can be generated by three ordered lists and at least one of the two extreme comparison methods.     

Transparency in the European Bond Market

The European bond market is made up of many segments characterised by varying levels of liquidity and of pre- and post-trade transparency. The possibility of extending the transparency provisions envisioned in the Directive 2004/39/EC, disciplining the functioning of markets in financial instruments in Europe (MiFID), from the equity to the bond market is currently being discussed. This poses risks to the status quo through trading fragmentation and strong negotiating power of a few large dealers, particularly with respect to small retail investors. The main conclusion of the paper is that if MiFID transparency rules are to be extended to the bond market, this must be “real” transparency, meaning pre-trade dissemination of real-time executable prices and a transparent order book. Under current provisions, this kind of information is available if not directly to everybody, at least directly to dealers and indirectly to professional and retail clients through business-to-business electronic platforms.     

Combining Occurrence and Toxicity Information to Identify Priorities for Drinking-Water Mixture Research

Characterizing all possible chemical mixtures in drinking water is a potentially overwhelming project, and the task of assessing each mixture's net toxicity even more daunting. We propose that analyzing occurrence information on mixtures in drinking water may help to narrow the priorities and inform the approaches taken by researchers in mixture toxicology. To illustrate the utility of environmental data for refining the mixtures problem, we use a recent compilation of national ground-water-quality data to examine proposed U.S. Environmental Protection Agency (EPA) and Agency for Toxic Substances and Disease Registry (ATSDR) models of noncancer mixture toxicity. We use data on the occurrence of binary and ternary mixtures of arsenic, cadmium, and manganese to parameterize an additive model and compute hazard index scores for each drinking-water source in the data set. We also use partially parameterized interaction models to perform a bounding analysis estimating the interaction potential of several binary and ternary mixtures for which the toxicological literature is limited. From these results, we estimate a relative value of additional toxicological information for each mixture. For example, we find that according to the U.S. EPA's interaction model, the levels of arsenic and cadmium found in U.S. drinking water are unlikely to have synergistic cardiovascular effects, but the same mixture's potential for synergistic neurological effects merits further study. Similar analysis could in future be used to prioritize toxicological studies based on their potential to reduce scientific and regulatory uncertainty. Environmental data may also provide a means to explore the implications of alternative risk models for the toxicity and interaction of complex mixtures.     

Online coupon consumption problem

Nowadays, it is popular that the dealer makes profits by selling a kind of discount coupons, which can be used as money to purchase commodities with total cost less than or equal to the face value of the coupon. We can purchase a coupon at a price of 0<s≤1 times its face value and the number of potential purchasable coupons is a given integer l. The customer has the option to buy the goods by cash completely or by a discount coupon. However, each piece of goods can only use one coupon and the coupon used must have enough balance for the goods. The objective is to minimize the total cost for purchasing all the goods. In this paper, we reduce the problem to a special bin packing model. We consider the online problems for all 0<s≤1 and 1≤l≤∞. We present optimal online algorithms for all 0<s≤1 when l=∞ and l=1. For 2≤l<∞, we give both a lower bound and an algorithm, and show the algorithm is optimal for l=2. A preliminary version of this paper appeared in the proceedings of the 1st International Symposium on Combinatorics, Algorithms, Probabilistic and Experimental Methodologies, Lecture Notes in Computer Science. Y. Jiang supported by Natural Science Foundation of Zhejiang Province (Y605316). Z. Tan supported by Natural Science Foundation of China (10671177, 60021201).     

Estimating the Relative Success of Local Authorities at Labour-Market Integration of Immigrants

We propose a method for estimating indicators of the success of local authorities at integrating immigrants in the labour-market. The proportion of time in employment of individuals is used to measure labour-market integration, and we correct for differences in characteristics of immigrants and local labour markets using a two-limit Tobit model. This method is applied to a large administrative micro dataset which contains information on all immigrants in Denmark. We compare the estimated indicators of integration to corresponding uncorrected measures, and conclude that the corrections have a significant effect on the ranking of local authorities.