Politisierte Aufsichtsräte? Über die Entwicklung personeller Verflechtungen von Wirtschaft und Politik in Österreich (1989–2011)

Party affiliations of managers form the basis of social networks that are not only positioned between the mostly autonomous systems of politics and business, but are able to undermine the functional logics of these social systems. In the eighties Austrian business was dominated by the state to such an extent that political parties could vote their men of confidence into the boards of large stated-owned companies. This article quantifies the evolution of personal connections between business and politics in Austria (1983–2011) and explains changing patterns by pointing out shifts of power between the state and business. The focus of attention here is on multiple directors in supervisory boards of Austria’s big business. The study shows that businessmen have largely displaced the statesmen of industry who used to mediate conflicts between the state and business within a corporatist setting. “Proporz”, however, remains widespread and a change of government still leads to new constellations of political representation in supervisory boards of large companies. Political capital has thus not lost completely its value for top managers.     

Asset Accumulation: An Alternative Approach to Achieving the Millennium Development Goals

The United Nations Millennium Development Goals (MDGs) are unlikely to be achieved by 2015, owing to conceptual flaws in their design as well as the structural and political constraints faced during implementation at the country level. While criticism of the MDGs is widespread, innovative ideas on addressing these operational challenges are still scanty. By reviewing a number of experiences, including those of the Foundation for the Promotion of Local Development (PRODEL) in Nicaragua and the Ministry of Cities in Brazil, this article highlights the importance of incorporating an asset‐accumulation perspective into MDG‐related policies and programmes as a way of generating an enabling environment that opens up new opportunities for poverty reduction in the cities of low‐ and middle‐low‐income countries.     

A Polynomial Optimization Approach to Principal–Agent Problems

This paper presents a new method for the analysis of moral hazard principal–agent problems. The new approach avoids the stringent assumptions on the distribution of outcomes made by the classical first‐order approach and instead only requires the agent's expected utility to be a rational function of the action. This assumption allows for a reformulation of the agent's utility maximization problem as an equivalent system of equations and inequalities. This reformulation in turn transforms the principal's utility maximization problem into a nonlinear program. Under the additional assumptions that the principal's expected utility is a polynomial and the agent's expected utility is rational in the wage, the final nonlinear program can be solved to global optimality. The paper also shows how to first approximate expected utility functions that are not rational by polynomials, so that the polynomial optimization approach can be applied to compute an approximate solution to nonpolynomial problems. Finally, the paper demonstrates that the polynomial optimization approach extends to principal–agent models with multidimensional action sets.     

Efficient Competition Through Cheap Talk: The Case of Competing Auctions

We consider a large market where auctioneers with private reservation values compete for bidders by announcing cheap‐talk messages. If auctioneers run efficient first‐price auctions, then there always exists an equilibrium in which each auctioneer truthfully reveals her type. The equilibrium is constrained efficient, assigning more bidders to auctioneers with larger gains from trade. The choice of the trading mechanism is crucial for the result. Most notably, the use of second‐price auctions (equivalently, ex post bidding) leads to the nonexistence of any informative equilibrium. We examine the robustness of our finding in various dimensions, including finite markets and equilibrium selection.     

Probabilistic solutions to ordinary differential equations as nonlinear Bayesian filtering: a new perspective

Statistics and Computing - We formulate probabilistic numerical approximations to solutions of ordinary differential equations (ODEs) as problems in Gaussian process (GP) regression with nonlinear...     

The disenchantment of Bitcoin: unveiling the myth of a digital currency

Bitcoin and its peculiar, decentralized transaction system, have already ignited interest by professional and retail traders in search for profits and by economists and legal experts, looking for possible regulation to contain illegal uses. We instead examine the unexpected and ongoing success of Bitcoin from a sociological perspective, first questioning its unusual legitimation system, backed by the so called ‘blockchain technology’, instead of by governmental authorities. Then we collect data and elements to reconstruct Bitcoin’s history as a cryptocurrency, starting from the mysterious story surrounding its birth. We then follow its spread and development through social networks and words of mouth, together with its sudden booms and bursts, finally to suggest that both users and institutional regulators should be aware of the risks of Bitcoin and of its alleged power to challenge our very notion of money.     

Functional Upgrading and Value Capture of Multinational Subsidiaries

This paper investigates the relationship between the value capture of multinational subsidiaries and functional upgrading, which is defined as a diversification of employment from primary business functions to higher value adding activities such as ICT, R&D, marketing or logistics. By combining survey-based business function indicators with longitudinal accounting data for a representative sample of multinational subsidiaries located in six Central and Eastern European countries (CEECs), we assess the impact of functional upgrading on foreign subsidiaries' value capture. The results provide robust evidence that the breadth as well as the scope of functional upgrading induces an upward shift of subsidiaries' value added. The effect of functional upgrading is stronger in the earlier phases after entry of the foreign investor, while the long-term growth trend remains unaffected.     

Wer wurde als homosexuell verfolgt?

This paper investigates the impact of the social structure on the persecution of homosexuals in Austria during the Nazi regime and the following democratic Republic. So far local studies for the German case have come to the conclusion that the middle class has been victim to the same, or event to a greater extent, of state-supported homophobia as the lower social class. An analysis of court files confirms this finding partly but reveals the working class as the mainly affected social group in the Austrian case. Social status, however, did only have a marginal influence on the length of imprisonment. The fact that different occupational groups were overrepresented among the sentenced homosexuals in the two considered periods of time (1938?C1944; 1945?C1955) points to systematic patterns of repression. As historical data is sparse we can only formulate hypotheses on why certain persons were more likely to be sentenced for being homosexual than others.     

Design recommendations for the creation of icons for the elderly

During employment of icons in order to represent system functions, specific user requirements from elderly people have not been scientifically gathered and thus will merely be considered during the process of system design. The survey, with explicit consideration of technology acceptance and experience of 120 elderly probands, looked into the comprehension of four different classes of non-animated graphical representations. It was shown that among elderly, the use of photos compared to pictograms or clip art leads to a significantly higher recognition rate. The mapping of actions rather than objects leads to a further reduction of the error probability and is thus, especially in the context of telemedicine, preferable for the target group.