Price discovery in tick time

This paper develops a tick time model for the quote setting dynamics on Nasdaq. The model decomposes quotes into an efficient price, asymmetric information and noise. Both the evolution of the efficient price and the information contents of quotes depend on quote durations. New measures for the contribution to price discovery are defined within this model. When aggregated to fixed calendar time intervals, they relate closely to Hasbrouck [Hasbrouck, Joel, 1995, One security, many markets: determining the contribution to price discovery, Journal of Finance 50, 1175–1199] information shares. Empirical results for 20 Nasdaq stocks indicate that ECNs, in particular Island, contribute most to price discovery for active stocks. For less active stocks, wholesale market makers contribute most.     

Employee involvement in ideation and healthcare service innovation quality

ABSTRACT

This study hypothesizes and empirically tests the influence of involvement of (1) frontline employees and (2) top managers in ideation process on healthcare service innovation quality. Based on data from 168 service innovation projects in Dutch healthcare organizations, the empirical results indicate that frontline employee involvement and top management involvement in, respectively, idea generation and idea application both improve the quality of healthcare service innovation. We find that the positive effect of frontline employee involvement is stronger under the condition of higher service innovativeness. In the direct relationship of top management involvement and healthcare service innovation quality, our data do not show such a moderating effect. The key and general managerial implication of the findings is that healthcare organizations are inspired to involve frontline employees in the idea generation processes and involve top managers in the idea application processes of service innovation projects, in order to improve innovation quality.     

On <Emphasis Type="Italic">Private Governance</Emphasis>

Edward Peter Stringham’s book Private Governance: Creating Order in Economic and Social Life (2015) is a compelling defense of the proposition that private governance is more widely used and more effective than most people think. Stringham looks to history to see how people solved problems of fraud and cheating without government intervention and provides example after compelling example to contradict the strong claim that a government or any third-party enforcer is necessary for voluntary exchange. While Stringham doesn’t take on the tough problem that private governance is not sufficient for its task, his book is intended to be the beginning, not the end, of thinking about private governance.     

The motivations,institutions and organization of university-industry collaborations in the Netherlands

This study builds on the economics and organization literatures to explore whether and how institutions and organizational structure complement or substitute each other to create specific spaces of alignment where specific individual actors’ motivations co-exist. Focusing on university-industry collaborations, the study examines whether and how different axes of alignment of university and industry motivations are integrated in projects with specific technological objectives and organizational structures, benefitting from the presence of specific institutions designed to facilitate collaboration. Empirically, the study relies on in-depth data on 30 university-industry collaborations in the Netherlands, and provides preliminary evidence that the technological objective and organizational structure of collaboration are malleable variables allowing the integration of both partners’ objectives and expectations. Different institutional incentives for university-industry collaboration favor specific axes of alignment of motivations and certain types of collaborative projects’ design. Hence, our exploratory results suggest that specific organizational and technological structures tend to prevail in the presence of specific institutions.     

The CDM framework: knowledge recombination from an evolutionary viewpoint

ABSTRACT

Since Crepon, Duguet, and Mairesse published their ground-breaking article (‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, 1998), the CDM framework has known a large diffusion, despite being published in a non-indexed journal. The present study is an exploration of the spread and recombination of ‘knowledge’ in the ‘CDM universe’, comprising all papers in Scopus indexed journals citing CDM or/and CDM cited papers. We assess first the speed and range of diffusion of CDM and investigate next the ‘origins’ and further ‘genealogical’ make up of the knowledge recombinations within the CDM universe. We find that CDM is cited by a growing number of papers, which spread over a variety of fields, and that it compares very well with the most cited comparable articles in indexed journals in its domain of research. We further find that the CDM universe is mainly constituted of three large clusters and for each of them we are able to identify knowledge paths going from the CDM and earlier cited papers to the subsequent main citing papers. We intend to provide a detailed interpretation of these findings in future work.     

Smile,Dictator, You're on Camera

We investigate the degree to which people in a shopping mall express other‐regarding behavior in the dictator game. Whereas many studies have attempted to increase the social distance between the dictator and experimenter and between the dictator and recipient, we attempt to minimize that social distance between random strangers by video recording the decisions, with the permission of the dictators, to display their image on the Internet. Offers made by dictators are high, relative to other experiments, and a nontrivial number give the entire experimental windfall away. However, a nontrivial number of people keep everything as well.     

Multinationals vs. Cooperatives: The Income and Efficiency Effects of Supply Chain Governance in India

The impact of multinational firms on the domestic agricultural sector in developing countries is controversial, in particular in India. Relying on a unique set of household‐level data from the state of Punjab, we study the biggest dairy company in the world (Nestlé) in India and compare its vertical spillover effects on upstream suppliers to other market channels (informal sector and cooperatives). We find that farmers that supply informal channels are less efficient and earn lower profits per dairy animal than farmers supplying the cooperative and the multinational sector. Furthermore, we find that farmers using the multinational channel are more efficient than farmers in the cooperative channel, but equally profitable. Hence, we do not find that supplying the cooperative channel is more beneficial for local dairy farmers than supplying the multinational channel. Overall, however, dairy productivity and profitability levels are still dramatically low, with substantial scope for dairy development.     

Second chance offers versus sequential auctions: theory and behavior

Second chance offers in online marketplaces involve a seller conducting an auction for a single object and then using information from the auction to offer a losing bidder a take-it-or-leave-it price for another unit. We theoretically and experimentally investigate this practice and compare it to two sequential auctions. We show that the equilibrium bidding strategy in the second chance offer mechanism only exists in mixed strategies, and we observe that this mechanism generates more profit for the auctioneer than two sequential auctions. We also observe virtually no rejections of profitable offers in the ultimatum bargaining stage.      

INPUT–OUTPUT ANALYSIS: THE NEXT 25 YEARS

This year marks the 25th anniversary of the International Input–Output Association and the 25th volume of Economic Systems Research. To celebrate this anniversary, a group of eight experts provide their views on the future of input–output. Looking forward, they foresee progress in terms of data collections, methods, theory testing, and focus and scope.