Private equity: A review and synthesis

The recent international surge in private equity markets has been accompanied by growing interest in its nature and effects. Private equity involves investment in unquoted companies and includes both early stage venture capital and later stage buyouts. The latter, which have been particularly controversial, are our focus. This paper provides a review of the different theoretical approaches that have been deployed to understand this phenomenon. Thereafter, the findings of a large cross section of empirical studies within a range of different national settings are compared and contrasted. Finally, existing themes emerging from – and gaps in – the existing literature and likely future directions are summarized.     

Optimal Configuration of a Service Delivery Network: An Application to a Financial Services Provider

Driven by market pressures, financial service firms are increasingly partnering with independent vendors to create service networks that deliver greater profits while ensuring high service quality. In the management of call center networks, these partnerships are common and form an integral part of the customer care and marketing strategies in the financial services industry. For a financial services firm, configuring such a call center service network entails determining which partners to select and how to distribute service requests among vendors, while incorporating their capabilities, costs, and revenue‐generating abilities. Motivated by a problem facing a Fortune 500 financial services provider, we develop and apply a novel mixed integer programming model for the service network configuration problem. Our tactical decision support model effectively accounts for the firm's costs by capturing the impact of service requirements on vendor staffing levels and seat requirements, and permits imposing call routing preferences and auxiliary service costs. We implemented the model and applied it to data from an industry partner. Results suggest that our approach can generate considerable cost savings and substantial additional revenues, while ensuring high service quality. Results based on test instances demonstrate similar savings and outperform two rule‐based methods for vendor assignment.     

The First Person in Antislavery Literature: John Woolman,his Clothes and his Journal

In his lifetime John Woolman (1720–1772) drew attention to himself with his unusual behavior, his expressive demeanor and his clothes. He sought to become a ‘sign’ directing others toward a way of life without exploitation or slavery. After his death and the publication of his journal, he was celebrated as the most important figure in the campaign to turn the Quakers against slaveholding. Woolman's self-presentation, contemporary responses to him, and the posthumous commemoration of him provide an indication of the power and significance of personal narrative within Quakerism and in antislavery politics in Britain and America.     

Neighborhood Effects in Temporal Perspective

Theory suggests that neighborhood effects depend not only on where individuals live today, but also on where they lived in the past. Previous research, however, usually measured neighborhood context only once and did not account for length of residence, thereby understating the detrimental effects of long-term neighborhood disadvantage. This study investigates the effects of duration of exposure to disadvantaged neighborhoods on high school graduation. It follows 4,154 children in the PSID, measuring neighborhood context once per year from age 1 to 17. The analysis overcomes the problem of dynamic neighborhood selection by adapting novel methods of causal inference for time-varying treatments. In contrast to previous analyses, these methods do not "control away" the effect of neighborhood context operating indirectly through time-varying characteristics of the family, and thus they capture the full impact of a lifetime of neighborhood disadvantage. We find that sustained exposure to disadvantaged neighborhoods has a severe impact on high school graduation that is considerably larger than effects reported in prior research. Growing up in the most (compared to the least) disadvantaged quintile of neighborhoods is estimated to reduce the probability of graduation from 96% to 76% for black children, and from 95% to 87% for nonblack children.     

The Impact of Costliness,Competitive Importance,and Modularity of Investments on Outsourcing

This study is motivated by examples of outsourcing that are not readily explained by widely established economic theories. We extend recent literature that develops the idea that outsourcing can help firms avoid overinvestment by specifying more precisely the conditions under which this thesis is likely to apply. Our extension is realized through a two‐period game theoretic model in which the outsourcing and in‐house investments are driven by (1) the cost required to develop a product or process module, (2) competitive relevance, defined as the module's share in the production cost or the module's importance to the customer, and (3) modularity, defined as the extent to which generic investments in the module can approach firm‐specific investments in terms of the overall product/process performance. The analysis generates predictions about what types of insourcing, outsourcing, and non‐sourcing behaviors are likely to emerge in different parts of the parameter space. Outsourcing to a more concentrated industry upstream emerges at equilibrium when modularity is high, relevance low to medium, and development cost high enough that none or only a subset of focal firms wants to invest. While firms are forced to insource and overinvest due to a prisoner's dilemma when the development cost is sufficiently high relative to the module's relevance, we do not find outsourcing equilibria that solve this problem in a two‐period game with no commitment. This result implies that some form of tacit coordination in a multi‐period game may be necessary. We conclude the study with a discussion of empirical implications.     

Labels and leaders: The influence of framing on leadership emergence

In two studies, this paper examines the influence of task framing on leadership emergence in mixed-gender dyads. In Study 1, we found that males are more likely to emerge as leaders when a paper-folding task is framed as masculine (i.e., Building Project) relative to feminine (i.e., Art Project). Furthermore, females are more likely to emerge as leaders when a paper-folding task is framed as feminine relative to masculine. In Study 2, we conceptually replicate these results using a weaving task (framed as Knot-Tying Task vs. Hair-Braiding Task) and find that perceived competence is the mechanism through which task framing affects leadership emergence. Taken together, these results suggest that task framing can influence the emergence of leaders because of changes in perceptions of competence. These findings are discussed in the context of related theoretical findings and managerial implications are elaborated on.     

Modeling Extreme Risks in Ecology

Extreme risks in ecology are typified by circumstances in which data are sporadic or unavailable, understanding is poor, and decisions are urgently needed. Expert judgments are pervasive and disagreements among experts are commonplace. We outline approaches to evaluating extreme risks in ecology that rely on stochastic simulation, with a particular focus on methods to evaluate the likelihood of extinction and quasi‐extinction of threatened species, and the likelihood of establishment and spread of invasive pests. We evaluate the importance of assumptions in these assessments and the potential of some new approaches to account for these uncertainties, including hierarchical estimation procedures and generalized extreme value distributions. We conclude by examining the treatment of consequences in extreme risk analysis in ecology and how expert judgment may better be harnessed to evaluate extreme risks.     

Social Darwinism in Anglophone Academic Journals: A Contribution to the History of the Term

Abstract This essay is a partial history of the term "Social Darwinism". Using large electronic databases, it is shown that the use of the term in leading Anglophone academic journals was rare up to the 1940s. Citations of the term were generally disapproving of the racist or imperialist ideologies with which it was associated. Neither Herbert Spencer nor William Graham Sumner were described as Social Darwinists in this early literature. Talcott Parsons (1932 , 1934 , 1937 ) extended the meaning of the term to describe any extensive use of ideas from biology in the social sciences. Subsequently, Richard Hofstadter (1944 ) gave the use of the term a huge boost, in the context of a global anti-fascist war.