The effect of fast and slow decisions on risk taking

We experimentally compare fast and slow decisions in a series of experiments on financial risk taking in three countries involving over 1700 subjects. To manipulate fast and slow decisions, subjects were randomly allocated to responding within 7 seconds (time pressure) or waiting for at least 7 or 20 seconds (time delay) before responding. To control for different effects of time pressure and time delay on measurement noise, we estimate separate parameters for noise and risk preferences within a random utility framework. We find that time pressure increases risk aversion for gains and risk taking for losses compared to time delay, implying that time pressure increases the reflection effect of Prospect Theory. The results for gains are weaker and less robust than the results for losses. We find no significant difference between time pressure and time delay for loss aversion (tested in only one of the experiments). Time delay also leads to less measurement noise than time pressure and unconstrained decisions, and appears to be an effective way of decreasing noise in experiments.     

Private equity regulation: a comparative analysis

This article examines the existing contractual arrangements and industry standards in private equity. It shows that investors are, in principle, capable of structuring their particular investments according to their own preferences, there are a range of governance problems and risks that could be potentially hazardous for some classes of investors. We examine the circumstances where existing industry codes and legal tools can be used to address the problems that arise in relation to private equity and buyout activity.     

The “Silent Dog” Method: Analyzing the Impact of Self-Generated Rules When Teaching Different Computer Chains to Boys with Autism

The purpose of the study was to extend the literature on verbal self-regulation by using the “silent dog” method to evaluate the role of verbal regulation over nonverbal behavior in 2 individuals with autism. Participants were required to talk-aloud while performing functional computer tasks.Then the effects of distracters with increasing demands on target behavior were evaluated as well as whether self-talk emitted by Participant 1 could be used to alter Participant 2''s performance. Results suggest that participants'' tasks seemed to be under control of self-instructions, and the rules generated from Participants 1''s self-talk were effective in teaching computer skills to Participant 2. The silent dog method was useful in evaluating the possible role of self-generated rules in teaching computer skills to participants with autism.     

Pandemic Recovery Analysis Using the Dynamic Inoperability Input-Output Model

Economists have long conceptualized and modeled the inherent interdependent relationships among different sectors of the economy. This concept paved the way for input-output modeling, a methodology that accounts for sector interdependencies governing the magnitude and extent of ripple effects due to changes in the economic structure of a region or nation. Recent extensions to input-output modeling have enhanced the model's capabilities to account for the impact of an economic perturbation; two such examples are the inoperability input-output model^{( 1 , 2 )} and the dynamic inoperability input-output model (DIIM).^{( 3 )} These models introduced sector inoperability, or the inability to satisfy as-planned production levels, into input-output modeling. While these models provide insights for understanding the impacts of inoperability, there are several aspects of the current formulation that do not account for complexities associated with certain disasters, such as a pandemic. This article proposes further enhancements to the DIIM to account for economic productivity losses resulting primarily from workforce disruptions. A pandemic is a unique disaster because the majority of its direct impacts are workforce related. The article develops a modeling framework to account for workforce inoperability and recovery factors. The proposed workforce-explicit enhancements to the DIIM are demonstrated in a case study to simulate a pandemic scenario in the Commonwealth of Virginia.     

RAILROADS AND GROWTH IN PRUSSIA

We study the effect of railroad access on urban population growth. Using GIS techniques, we match triennial population data for roughly 1,000 cities in 19th‐century Prussia to georeferenced maps of the German railroad network. We find positive short‐ and long‐term effects of having a station on urban growth for different periods during 1840–1871. Causal effects of (potentially endogenous) railroad access on city growth are identified using propensity score matching, instrumental variables, and fixed‐effects estimation techniques. Our instrument identifies exogenous variation in railroad access by constructing straight‐line corridors between nodes. Counterfactual models using pre‐railroad growth yield no evidence to support the hypothesis that railroads appeared as a consequence of a previous growth spurt.     

Intensive management reduces butterfly diversity over time in urban green spaces

Urban Ecosystems - Loss and fragmentation of semi-natural grasslands have had negative consequences for grassland biodiversity, such as butterflies. Urban parks and other urban green spaces have so...     

The need for knowledge modification in technology change: a framework to consider changes in domain complexity,knowledge and productivity

This paper researches productivity in relation to domain complexity and the present knowledge capacity in an organisational context. The study is based on five very different case studies. Three studies are conducted in Denmark, Germany, Mexico and China and are related to knowledge transfer in the relocation of manufacturing facilities. Two studies investigate operation and automation of oil and gas production in the North Sea. The case study method involves semi-structured interviews, surveys, an analysis of historical production data and observations. Based on the findings from the field studies, the paper develops a conceptual framework that management can use for discussions of productivity, development of knowledge and design of learning programmes when considering changes in the complexity of a domain or a change in knowledge.     

Core self-evaluations mediate the association between leaders' facial appearance and their professional success: Adults' and children's perceptions

Although the link between facial appearance and success is well established, the mechanisms responsible for this association have remained elusive. Evolutionary theory suggests that perceived leadership characteristics should be important for men's self-concept. Drawing on implicit leadership theory and evolutionary perspectives, we therefore examined the associations between first impressions based on facial appearance, core self-evaluations (CSEs), leadership role occupancy, and career success among a sample of working men. In Study 1, we found that CSEs mediated the relationship between individuals' facial appearance and measures of their success as leaders. In Study 2, we replicated these results using children's ratings of facial appearance, thus suggesting that basic properties of the targets' faces communicated their leadership ability more than the perceivers' life experience or acquired knowledge. These results suggest that people may use facial appearance as a diagnostic tool to determine the leadership ability of others.     

How to Compare Apples and Oranges: Infants' Object Identification Tested With Equally Salient Shape,Luminance, and Color Changes

What kind of featural information do infants rely on when they are trying to recognize a previously seen object? The question of whether infants use certain features (e.g., shape or color) more than others (e.g., luminance) can only be studied legitimately if visual salience is controlled, as the magnitude of feature values—how noticeable and interesting they are—will affect results. We employed a novel methodology, interdimensional salience mapping, that allowed us to quantify and calibrate salience changes along shape, luminance, and color feature dimensions. We then compared 9‐month‐old infants' identification of objects, employing feature changes that were equally salient. These results show that infants more readily identify objects on the basis of color and shape than luminance. Additionally, we show that relative salience changes rapidly in infancy—in particular, we found significantly higher salience thresholds for color in younger (6.5‐month‐old) infants—but that individual differences within an age group are remarkably modest.     

Rules Infants Look By: Testing the Assumption of Transitivity in Visual Salience

What drives infants’ attention in complex visual scenes? Early models of infant attention suggested that the degree to which different visual features were detectable determines their attentional priority. Here, we tested this by asking whether two targets—defined by different features, but each equally salient when evaluated independently—would drive attention equally when pitted head‐to‐head. In Experiment 1, we presented 6‐month‐old infants with an array of Gabor patches in which a target region varied either in color or spatial frequency from the background. Using a forced‐choice preferential‐looking method, we measured how readily infants fixated the target as its featural difference from the background was parametrically increased. Then, in Experiment 2, we used these psychometric preference functions to choose values for color and spatial frequency targets that were equally salient (preferred), and pitted them against each other within the same display. We reasoned that if salience is transitive, then the stimuli should be iso‐salient and infants should therefore show no systematic preference for either stimulus. On the contrary, we found that infants consistently preferred the color‐defined stimulus. This suggests that computing visual salience in more complex scenes needs to include factors above and beyond local salience values.