Bubbles and Crashes

We present a model in which an asset bubble can persist despite the presence of rational arbitrageurs. The resilience of the bubble stems from the inability of arbitrageurs to temporarily coordinate their selling strategies. This synchronization problem together with the individual incentive to time the market results in the persistence of bubbles over a substantial period. Since the derived trading equilibrium is unique, our model rationalizes the existence of bubbles in a strong sense. The model also provides a natural setting in which news events, by enabling synchronization, can have a disproportionate impact relative to their intrinsic informational content.     

The governance of free/open source software projects: monolithic, multidimensional, or configurational?

This paper presents the results of a qualitative review and synthesis of the literature on open source governance, addressing four key questions: (1) How has open source software (OSS) governance been defined? (2) Has the phenomenon of OSS governance been conceptualized as a monolithic or multidimensional phenomenon? (3) What purposes is OSS governance hypothesized to serve? and (4) What are the dimensions of OSS governance, and how are these dimensions related to each other? The results of the review suggest a framework for future comparative and case study research on OSS governance, and they provide a basis for comparison with research on the governance of other distributed, community-based forms of content and creation.     

University–industry relationships and open innovation: Towards a research agenda

Organizations increasingly rely on external sources of innovation via inter‐organizational network relationships. This paper explores the diffusion and characteristics of collaborative relationships between universities and industry, and develops a research agenda informed by an ‘open innovation’ perspective. A framework is proposed, distinguishing university–industry relationships from other mechanisms such as technology transfer or human mobility. On the basis of the existing body of research, the role of practices such as collaborative research, university–industry research centres, contract research and academic consulting is analysed. The evidence suggests that such university–industry relationships are widely practised, whereby differences exist across industries and scientific disciplines. While most existing research focuses on the effects of university–industry links on innovation‐specific variables such as patents or firm innovativeness, the organizational dynamics of these relationships remain under‐researched. A detailed research agenda addresses research needs in two main areas: search and match processes between universities and firms, and the organization and management of collaborative relationships.     

Cross-border mergers and the cross-border effect: the case of the automotive supply industry

In this paper we examine stock price reactions to cross-border mergers and acquisitions in a particular industry, the automotive supply industry. We show that cross-border transactions entail a pronounced value creation for the acquiring shareholders and that this value creation also holds for transcontinental transactions, which to our knowledge have not been investigated so far. Splitting the sample by different types of targets indicates that the value creation mainly stems from takeovers of subsidiaries. By examining differences between national and international takeovers in cross-section, we sustain the recent evidence of a negative cross-border effect (i.e., cross-border mergers and acquisitions entail lower announcement returns than national ones).

The Impacts of Alliance Purpose and Partner Similarity on Alliance Governance

It is generally recognized that the governance structure of an alliance has an impact on its probability of success. In this study, we examine the choice between two alternative alliance governance structures: equity and non-equity. Drawing from transaction cost economics, two sets of factors, namely alliance purpose (R&D or marketing) and cultural distance between partners, are hypothesized to influence the above choice. We further hypothesize that collaborative R&D alliances, where both parties contribute technical knowledge, are more likely to lead to the formation of equity alliances than non-collaborative research agreements, where only one partner may be doing the research work. Based on a sample of 2407 alliances formed in the global biotechnology industry, we find partial support for the hypothesized relationships. Specifically, we find that collaborative R&D alliances are more likely to be equity alliances, whereas non-collaborative R&D alliances do not have any impact on the choice of the governance form. We also find that alliances formed with a marketing purpose are less likely to be equity alliances. We did not find any relationship between cultural distance and the choice of equity alliances.     

A Primer on Visualizations for Comparing Populations,Including the Issue of Overlapping Confidence Intervals

In comparing a collection of K populations, it is common practice to display in one visualization confidence intervals for the corresponding population parameters θ₁, θ₂, …, θ_K. For a pair of confidence intervals that do (or do not) overlap, viewers of the visualization are cognitively compelled to declare that there is not (or there is) a statistically significant difference between the two corresponding population parameters. It is generally well known that the method of examining overlap of pairs of confidence intervals should not be used for formal hypothesis testing. However, use of a single visualization with overlapping and nonoverlapping confidence intervals leads many to draw such conclusions, despite the best efforts of statisticians toward preventing users from reaching such conclusions. In this article, we summarize some alternative visualizations from the literature that can be used to properly test equality between a pair of population parameters. We recommend that these visualizations be used with caution to avoid incorrect statistical inference. The methods presented require only that we have K sample estimates and their associated standard errors. We also assume that the sample estimators are independent, unbiased, and normally distributed.     

Globale ökonomische Eliten? Eine Globalisierungsthese auf dem Prüfstand der Empirie

Does globalization lead to global markets for managers and international careers? The hypothesis of the globalization literature, that a transnational management is emerging out of a global “war of talents” is examinded by using data on the migration of managers from the U.S., East Asia and Germany. The data show, that no significant brain drain between these countries is taking place and “brain circulation” of insiders with short-term stays abroad is the dominant career pattern. The less likely the exchange of an installed CEO, the more career systems are used for status achievement by Clans and the stronger the influence of informal cultural rules, the higher is the rate of insiders. Thus, between the U.S., Germany and East Asia no significant global markets for managers are evolving.     

The resentful undergrowth of nostalgia: Ontological insecurity,relative deprivation and powerlessness

This article untangles competing conceptualisations of nostalgia and identifies a specific form of collective-restorative nostalgia as politically significant. We argue that the link between resentment and this type of nostalgia emerges from their joint critique of the socio-political realities of the present. Nostalgia provides spatial and temporal orientations for a group's experiences of resentment through highly selective recollections of the heartland and an idealised golden age. We hypothesize that nostalgia leverages the heartland and the golden age to formulate claims for recognition and restored status on behalf of those who feel left behind by late modernity. Next, the article uses structural equation modelling and the 2019 Belgian National Election Study to reveal how resentment (consisting of ontological insecurity, group relative deprivation, and powerlessness) mediates between structural characteristics and nostalgia. Our findings suggest that each component of resentment individually contributes to explaining the nostalgia of less educated and economically deprived individuals.