Contingencies versus External Pressure: Professionalization in Boards of Firms Affiliated to Family Business Groups in Late‐Industrializing Countries

We examine the antecedents of professionalization in boards of firms affiliated to family business groups, increasingly recognized in the literature as the dominant form of big business organization in many late‐industrializing countries. Dimensions of board professionalization that we include in our study are board size, ratio of salaried executives and outsider presence. We compare predictions on board composition derived from contingency, institutional and power perspectives. Turkish family business groups, considered as an archetypal example of this form of organization, provide the empirical setting for the study, with data on 299 firms affiliated to ten different family business groups. Our results provide greater support for institutional and power perspectives, showing that, relative to internal and external complexity facing affiliate firms, institutional pressures and the presence of joint venture partners better predict board professionalization.     

INCIDENCE AND CONSEQUENCES OF RISK‐TAKING BEHAVIOR IN TOURNAMENTS—EVIDENCE FROM THE NBA

We empirically explore the relevance and efficiency of risk‐taking behavior in tournaments. We use data from the National Basketball Association (NBA) and measure risk‐taking by the fraction of three‐point shots in basketball games. We examine how point differences between teams during games affect their subsequent risk‐taking behavior. It is found that teams that are trailing are more likely to increase their use of three‐point shots. We additionally analyze the consequences of this change in behavior. Enhanced risk‐taking is inefficient in the vast majority of cases and is only beneficial if a team is trailing by a rather large margin. We discuss possible explanations for these decision errors. (JEL M5, D81, J30)     

On the Complexity of Constructing Evolutionary Trees

In this paper we study a few important tree optimization problems with applications to computational biology. These problems ask for trees that are consistent with an as large part of the given data as possible. We show that the maximum homeomorphic agreement subtree problem cannot be approximated within a factor of , where N is the input size, for any 0 in polynomial time unless P = NP, even if all the given trees are of height 2. On the other hand, we present an O(N log N)-time heuristic for the restriction of this problem to instances with O(1) trees of height O(1) yielding solutions within a constant factor of the optimum. We prove that the maximum inferred consensus tree problem is NP-complete, and provide a simple, fast heuristic for it yielding solutions within one third of the optimum. We also present a more specialized polynomial-time heuristic for the maximum inferred local consensus tree problem.     

A Note on Exponentially Smoothed Seasonal Differences

Filtering economic time series can be justified if variations within a certain frequency interval are relevant for the problem at hand. It is shown here that exponential smoothing of seasonal differences provides a simple means of damping short oscillations, including seasonal ones.     

Does Perceived Social Support Buffer the Negative Effects of Type C Personality on Quality of Life of Breast Cancer Patients?

The present study investigated possible Type C personality–quality of life (QOL) relationship, and the moderating role of perceived social support in this relation among 101 postoperative breast cancer patients. Participants were from different cities in Turkey but receiving treatment in the capital, Ankara. Obtained data were analyzed by moderated regression analysis. According to the results, Type C personality was not related to the QOL of participants, however, higher perceived social support was associated with better QOL in patients. Also, perceived social support moderated Type C personality–QOL relation. Accordingly, patients high on Type C personality and perceived social support had the highest QOL. In contrast, patients high on Type C personality and low on perceived social support had the lowest QOL. Findings, as well as the strengths and limitations of the study, were discussed in the light of the relevant literature. As a possible clinical implication, enhancement of social support networks of the patients were suggested.     

Faire Formeln

The literature on fair division has experienced a renaissance recently. Novel mathematical procedures promising an envy-free, socially efficient solution to conflicts over nearly indivisible goods play a particularly prominent role. This article presents a comparative experimental evaluation of three procedures. We examine to what extent features of the subjects of the procedures influence the choice in favor of one of the three negotiation protocols and the results of the division. Our analysis of the behavior of 119 subjects shows that psychological factors only affect the procedural choice. Dominance-seeking individuals tend to opt for those procedures that promise a fairer outcome than the relatively crude divide-and-choose-mechanism. In contrast, the outcome of the bilateral negotiations is determined by the attributes of the procedures. The strong influence of psychological factors at the initial stage of the bargaining process nevertheless casts strong doubts on the practicability of the procedures, recommended by the normative strand of game-theoretic negotiation analysis. The further development of ”fair formulas” for the resolution of redistributive conflicts should not neglect that the warring parties have to agree with the philosophy of the proposed bargaining protocol.     

Ensuring Pareto Optimality by Referendum Voting

We consider a society confronting the decision of accepting or rejecting a list of (at least two) proposals. Assuming separability of preferences, we show the impossibility of guaranteeing Pareto optimal outcomes through anonymous referendum voting, except in the case of an odd number of voters confronting precisely two proposals. In this special case, majority voting is the only anonymous social choice rule which guarantees Pareto optimal referendum outcomes.