Setting an exam as an information design problem

We take a teacher's exam-setting task as an information design problem. Specifically, the teacher chooses a conditional distribution of grades given students' types. After observing their exam results, each student updates her belief regarding her type via Bayes' rule and chooses an action. Students' reactions to the same exam result could be different, depending on their heterogeneous prior beliefs. The teacher's objective is to persuade students to take a certain action (e.g., applying to universities), which some may not choose without an exam. The teacher adopts different grade distributions, depending on the teacher's and the students' heterogeneous prior beliefs.     

Optimal Pair–Trade Execution with Generalized Cross–Impact

Asia-Pacific Financial Markets - We examine a discrete–time optimal pair–trade execution problem with generalized cross–impact. This research is an extension of Fukasawa...     

Marketmaking Middlemen

This article develops a model in which market structure is determined endogenously by the choice of intermediation mode. There are two representative modes of intermediation that are widely used in real-life markets: one is a middleman mode where an intermediary purchases inventory from the wholesale market and resells to buyers; the other is a market-making mode where an intermediary offers a platform for buyers and sellers to meet and trade. We show that a marketmaking middleman, who adopts a mixture of these two intermediation modes, can emerge in a directed search equilibrium and discuss implications for the market structure.     

Edgeworth's taxation paradox when firms engage in cost-reducing investment

This study examines whether and when Edgeworth's taxation paradox, that taxation decreases the equilibrium price, occurs in a free-entry Cournot oligopoly with cost-reducing investment. In contrast to the fact that no paradox occurs in the short-run equilibrium, the paradox can occur in the long-run equilibrium, in which the number of firms is endogenous. However, the conditions under which the paradox occurs are restrictive when there is no investment. By incorporating cost-reducing investments into the model, we demonstrate that the paradox is likely to occur under less restrictive conditions, irrespective of whether the tax is specific or ad valorem.     

Methods for strengths use support: A multi-dimensional model

This study examines how middle managers support their employees' strengths use via three sequential analyses. In Study 1, an open-ended questionnaire survey of high-performing middle managers at a global manufacturer in Japan (n = 144) was conducted to collect comments on strengths use support (SUS). The grounded theory approach was used to generate four categories of SUS, and a quantitative questionnaire was developed based on the analysis. In Study 2, three dimensions of SUS (understanding employees' strengths and interests, developing strengths through challenging assignments, and supporting the accomplishment) were identified by exploratory factor analyses using the questionnaire survey data of middle managers in Japanese firms (n = 208). Study 3 examined the validity and reliability of the three-dimensional model using confirmatory factor analysis of the questionnaire survey data of middle managers in Japanese firms (n = 209).     

BOOK REVIEWS

Book Reviews in This Article: Enterprise and the State in Korea and Taiwan. Industrialization and the State: The Korean Heavy and Chemical Industry Drive.