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.     

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.     

The role of deliberate and experiential learning in developing capabilities: Insights from technology licensing

We discuss the interdependencies between deliberate and experiential learning in developing a dynamic technology licensing capability, which was termed ‘desorptive capacity’ in earlier conceptual work. We use new three-year lagged data from two surveys of 79 firms to examine the role of dedicated licensing employees and prior licensing experience in developing firms’ sensing, seizing, and transforming capacities in technology out-licensing. The findings emphasize capabilities’ multidimensionality and critical trade-offs due to interdependencies between deliberate and experiential learning in developing capabilities. Besides interdependencies with experiential learning, deliberate learning strengthens sensing and seizing capacity, but it negatively affects transforming capacity based on inertia.     

Leisure, recreation, and play from a developmental context

Participation in activities and experiences defined as play, recreation,and leisure has important developmental implications for youth. Elements and characteristics of leisure experiences contribute directly to the development of identity, autonomy, competence,initiative, civic duty, and social connections. Whether in informal or formal, appropriately structured and organized programs,leisure experiences can help facilitate adolescent development in these areas. For example, one of the defining elements of leisure is that it is characterized by free choice and self-determination. Programs that promote leadership, choice, autonomy, and initiative can help adolescents deal with developmental challenges associated with this age group. Leisure experiences can also promote civic engagement and provide important peer-to-peer, peer to-adult, and peer-to-community connections. The social context of leisure is important to adolescent development in that it provides opportunities to learn empathy, loyalty, and intimacy in their group activities, as well as to negotiate with peers, resolve conflict,and work together for communal goals. In addition, adolescents often report positive emotional experiences in leisure, which can serve as a relief from the stress they feel in other areas of their lives and contribute to positive psychological adjustment and well-being. A case study is used to show how planned, purposive programs can be used as critical components of efforts to contribute to adolescent development.     

Ethnic Prejudice and Discrimination in Europe

This article provides an introduction to research on European prejudice and discrimination. First, we list the distinctive characteristics of a European perspective and provide a short sketch of European immigration and ethnic groups. Europe has become a multicultural community. Nevertheless, public opinion and the continent's politics often do not reflect this empirical fact. Prejudice and discrimination directed at immigrants are a widespread phenomena across Europe. Several cross-European surveys support this conclusion, although theoretically driven surveys on prejudice and discrimination in Europe remain rare. Cross-European research studies classical and modern theories of prejudice and discrimination and attempts to uncover the psychological mechanisms that explain individual readiness to exclude ethnic groups. A brief sketch of recent European research is presented. This issue offers both important cross-national perspectives as well as needed comparisons with the more studied case of racial prejudice and discrimination in the United States.     

Relative Deprivation and Intergroup Prejudice

Using three diverse European surveys, we test the relationship between relative deprivation (RD) and anti-immigrant prejudice. We find that both group relative deprivation (GRD) and individual relative deprivation (IRD) are found primarily among working-class respondents who are politically alienated. We also find that GRD, but not IRD, serves as a proximal correlate of prejudice. IRD's effects on prejudice are largely mediated through GRD. In addition, GRD partially mediates the effects of such distal predictors of prejudice as education and family income. Finally, blaming the victim mediates in part the GRD link with prejudice. These results lead to a socially situated path model of RD's effects on prejudice with public policy implications.     

Third-generation prospect theory

We present a new theory of decision under uncertainty: third-generation prospect theory (PT³). This retains the predictive power of previous versions of prospect theory, but extends that theory by allowing reference points to be uncertain while decision weights are specified in a rank-dependent way. We show that PT³ preferences respect a state-conditional form of stochastic dominance. The theory predicts the observed tendency for willingness-to-accept valuations of lotteries to be greater than willingness-to-pay valuations. When PT³ is made operational by using simple functional forms with parameter values derived from existing experimental evidence, it predicts observed patterns of the preference reversal phenomenon.

Gesellschafterausstieg in großen Familienunternehmen

Zusammenfassung  Dieser Beitrag befasst sich mit dem Ausstieg von Gesellschaftern aus Familienunternehmen als bedeutendes Corporate Governance-Problem. Im Mittelpunkt steht die Untersuchung der Wirkung von Ausstiegsmotiven, Rahmenbedingungen sowie Ausstiegsbarrieren auf die Belastung von Unternehmen und Familie durch den Gesellschafterausstieg. Eine explorative empirische Untersuchung von 55 gro?en deutschen Familienunternehmen liefert Ans?tze für eine Organisationstheorie des Familienunternehmens und für praktische Empfehlungen bei der Gestaltung von Satzung und Ausstiegsverhandlung.

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Summary  This article deals with the exit of shareholders in family owned businesses as an important corporate governance problem. We mainly analyse the effect of exit motivations, exit conditions, and barriers to exit on the exit’s burden for the company and the family. An explorative empirical study of 55 large German family owned businesses comes up with ideas for an organization theory of family owned businesses as well as some practical recommendations for statutes and exit negotiations.

     

The right to be different: Multiculturalism and the racialization of scandinavian welfare politics; The case of Denmark

‘Multiculturalism’ as an influential ideology for structuring ethnic relations has become exposed to increasing critique also in the Scandinavian context. The paper discusses a racialized political debate, legislation, and institutional practices, taking Denmark as the prime example. An increasingly ‘dual welfare’ is becoming legitimized through a hegemonic culturalized language, consistently interpreting ‘the right to be different’ as ‘being different’, and ‘being different’ as being ‘non‐integrated’. In a society where public debate on ethnic and racial discrimination is less than rudimentary, tolerant claims of multiculturalist relativism are effectively turned upside down in the service of neo‐racism, the preachings of which are imperceptibly becoming adopted as the conventional wisdom. This calls for a discussion on ‘politics of recognition’ which brings the debate on the universalism and particularity out of the abstract, while focusing on the vicissitudes of contemporary democracy in a changing welfare state.