Multivariate testing and model-checking for generalized order statistics with applications

The exponential family structure of the joint distribution of generalized order statistics is utilized to establish multivariate tests on the model parameters. For simple and composite null hypotheses, the likelihood ratio test (LR test), Wald's test, and Rao's score test are derived and turn out to have simple representations. The asymptotic distribution of the corresponding test statistics under the null hypothesis is stated, and, in case of a simple null hypothesis, asymptotic optimality of the LR test is addressed. Applications of the tests are presented; in particular, we discuss their use in reliability, and to decide whether a Poisson process is homogeneous. Finally, a power study is performed to measure and compare the quality of the tests for both, simple and composite null hypotheses.     

Options Contracts with Overbooking in the Air Cargo Industry

In today's world economy, which is marked by intensified international trade, air cargo acts as a key facilitator. However, cargo airlines continue to struggle to be profitable because of very high asset costs and substantial demand uncertainty. To improve upon this situation, we propose an options contract. Our model captures the main features of cargo trade between an airline and a freight forwarder and allows us to derive an optimal reservation policy. We then go on to analyze the impact of overbooking on the profit of the cargo capacity provider. The model is subsequently applied to real‐life booking data provided by a major cargo carrier. This enables us to compare current contractual arrangements with the ones proven optimal in the model. A numerical study provides insights about the impact of overbooking on contract parameters and profitability. Managerial insights to be drawn conclude this study.     

Random restricted matching and lower bounds for?combinatorial optimization

We prove results on optimal random extensions of trees over points in [0,1] ^d . As an application, we give a general framework for translating results from combinatorial optimization about the behaviour of random points into results for point sets with sufficiently high regularity. We furthermore introduce a new irregularity problem concerning Voronoi cells, which has applications in logistics.     

Ownership concentration beyond good and evil: is there an effect on corporate performance?

In this paper, we analyze the relationship between ownership concentration and firm performance, while accounting for the endogeneity of the ownership structure, a potential curvilinearity of the performance effect, differences in corporate governance systems, and alternative performance measures. Using a sample of 1,079 firms from 8 countries we find evidence for a curvilinear effect of ownership concentration on firm performance, which becomes insignificant after controlling for endogeneity. Hence, our results support the findings by Demsetz and Villalonga (J Corp Fin 7(3):209?C233, 2001). More research is needed to disentangle the contradictory findings in prior works.     

Die Verbreitung moderner Managementkonzepte im Mittelstand

Within existing studies on the diffusion of modern management concepts, such as Lean Management, Business Process Reengineering or Shareholder Value Management, small and medium-sized enterprises are frequently examined as a homogeneous group of hesitant adopters. Differences among small and medium-sized companies with regard to concept adoption can thus hardly be explained by referring to existing research. In this paper, we argue that differences in adoption patterns of modern management concepts across small medium-sized companies can be explained on the basis of their resource endowment and embedment in different social environments. We thereby employ central arguments from organizational diffusion theory. Based on a multivariate analysis of online-survey data on the diffusion of 22 modern management concepts among 272 German SMEs, our results show that adoption decisions are mainly based on relationships to local organizational environments, whereas concept awareness can be best explained by media-exposure.     

Local translations of a universal concept: ‘Child Perspective’ in Swedish social assistance

In recent years, scholars have called for studies exploring how key concepts originating from the children's rights discourse are understood in local contexts. In Sweden, national policy advocates that a child perspective should guide social assistance (SA), a cash benefit constituting society's last safety net. The study analyses the child perspective as an idea (i.e. an ambiguous principle), which is translated (i.e. reformulated and interpreted) at the local level. The findings indicate multiple and partly inconsistent translations of a child perspective. The study argues that it is unclear what adopting a child perspective implies for children in families receiving SA.     

Big Business in a Thin Market: Understanding the Privatization of Residential Care for Children and Youth in Sweden

This article analyzes the transformation of Swedish residential care for children from a regionally coordinated, public social service system into a thin, but highly profitable, national spot market in which large corporations have a growing presence. Marketization and privatization are theorized as complex processes, through which the institutional structure and logics of this small, but significant, social policy field changed profoundly. Using official documents, register data, media reports and existing research, three consecutive phases in the development of the children's home market are identified since the early 1980s. Change was driven on one hand by policies inspired by New Public Management, which shifted public authority horizontally to the private sector, and vertically to local authorities (funding) and to the state (regulation). On the other hand were the responses of local authorities and private actors to the changing incentives that policy shifts entailed. During the first two phases, both the proportion and size of for‐profit providers increased, and the model of family‐like care was replaced by a professional model. Cutting across the trend of privatization in the third phase was establishment of a parallel system of homes for unaccompanied refugee children – mostly in public ownership. Similarities with privatization in the English system of children's care homes are noted. By showing how the Swedish market for residential care has been created by policy and by actors’ responses to those reforms, the article provides a foundation for thinking through how the predictable, significant and well‐documented problems of such care markets might be addressed.     

Process fairness,outcome fairness,and dynamic consistency: Experimental evidence for risk and ambiguity

Literature on fairness preferences distinguishes between outcome fairness, concerning the final allocation of payoffs, and process fairness, concerning the expected allocation of payoffs. It is not obvious, however, whether process fairness can consistently be implemented. Once uncertainty is resolved and outcomes are determined, the ex-ante procedurally fair decision maker may become consequentialist ex-post, and reconsider her choice on the basis of the observed outcomes. We present experimental evidence on dynamic consistency of social preferences under both known risk and ambiguity. A significant share of people subscribe to process fairness both before and after the resolution of uncertainty.     

Analyzing the Productive and Protective Dimensions of Welfare: Looking Beyond the OECD

Several theorists have argued that social policy in East Asia can be seen as representing a distinctive welfare ideal type based around ‘productive welfare’. However, we have contested such claims in earlier work (Hudson and Kühner 2009) and, in common with theorists such as Castells, have suggested that some of the welfare states of the Organisation for Economic Co‐operation and Development (OECD) have a distinct bias towards the ‘productive’ rather than ‘protective’ dimensions of welfare. In this article, we build on our earlier work, utilizing fuzzy set ideal type analysis (FSITA) to explore the balance between ‘productive' and ‘protective’ dimensions of welfare state activity. Here we extend our analysis beyond the OECD, incorporating a range of nations on the ‘fringe’ of the OECD from Latin America, East Asia and the non‐OECD parts of Europe. In so doing, we contest simple notions of welfare regimes aligning with regional blocks. Primarily, however, we highlight the advantages of the ‘diversity‐orientated’ approach to data analysis that fuzzy set methods facilitate in comparison with standard quantitative techniques. In particular, we utilize FSITA to avoid data availability and reliability issues that have plagued quantitatively informed classifications of global welfare regimes. Not least, we argue FSITA allows for the contextualization of cases in a way that is sealed to quantitatively driven, comparative research. Thus, we argue FSITA has an important role to play in attempts to extend the inclusiveness of the ‘welfare modelling business’ in a manner that reflects diverse and highly significant cases beyond the Western lens that dominates the literature.     

Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?

For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically—an effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its robustness is largely undisputed. The effect’s causes, however, have not been thoroughly examined with regard to one important aspect. Due to the construction of the lotteries that were used in the experiments, none of the studies is able to distinguish between MLA and an explanation based on (myopic) loss probability aversion (MLPA). This distinction is important, however, in discussion of the practical relevance and the generalizability of the phenomenon. We designed an experiment that is able to disentangle lottery attractiveness and loss probabilities. Our analysis reveals that mere loss probabilities are not as important in this dynamic context as previous findings in other domains suggest. The results favor the MLA over the MLPA explanation.