Influence of Affective Traits on Entrepreneur's Goals and Satisfaction

Emotions are important to an individual's behavior. However, affective elements have rarely been included in the analysis of entrepreneurs' behavior. Using a sample of 335 entrepreneurs from multiple industries of the Spanish region of Castile and León, we analyze the role of emotions in entrepreneurs' statement of goals and in their satisfaction with business performance. The results show that positive affective traits influence an entrepreneur to state broad and ambitious goals, and personal negative affective traits influence an entrepreneur to state a narrow set of goals. We also find that positive (negative) affective traits are positively (negatively) related to entrepreneur satisfaction.     

Towards equilibrium offers in unit commitment auctions with nonconvex costs

We compare two types of uniform-price auction formats commonly used in wholesale electricity markets—centrally committed and self-committed markets. Auctions in both markets are conducted by an independent system operator that collects generator bids and determines which generators will operate and how much electricity each will produce. In centrally committed markets, generators submit two-part bids consisting of a startup cost and a variable energy cost. Self-committed markets force generators to incorporate their startup costs into a one-part energy bid. The system operator in a centrally committed system ensures that each generator recovers the startup and energy costs stated in its two-part bid, while no such guarantees are made in self-committed markets. The energy cost ranking and incentive properties of these market designs remains an open question. While the system operator can determine the most efficient dispatch with a centralized market, the auction mechanism used to solicit generator data compels generators to overstate costs. Self commitment might involve less efficient dispatch but have better incentive properties. We derive Nash equilibria for both market designs in a symmetric duopoly setting. We also derive simple conditions under which the two market designs will be expected cost-equivalent.     

Kriging methodology for regional economic analysis: Estimating the housing price in Albacete

Because of the socioeconomic importance of the housing subsector in the local, regional, and national economy and its implications for housing policy, this paper attempts to analyze the spatial behavior of the free housing price in the city of Albacete. To achieve this aim, the authors have used the models and estimators imported from geology called kriging. To do this, it is necessary to know the spatial dependence structure of the process, which is shown in the variogram.     

Voter decisions on eminent domain and police power reforms

One unresolved issue arising from the use of eminent domain power involves how the perceived benefits and costs of eminent domain power affect people’s positions on the reform of eminent domain and police power law. The paper addresses this issue by estimating a voting model that explains voters’ decisions on eminent domain and police power reform referenda in the US. Estimates indicate that eminent domain referendum outcomes hinged on voters’ fundamental values and ideology, and voters’ immediate self-interest. Voters’ fundamental values and ideology affects referendum outcomes insofar as educational attainment in a county has a statistically significant effect on support for reform. Despite the greater incidence of eminent domain in low income and poorer communities, success of reform referenda in this study was found to be greater in counties with higher incomes and lower unemployment rates. This implies that whatever asymmetry exists in the exercise of eminent domain law across income groups does not affect voter reaction to eminent domain reforms. Moreover, counties with high unemployment rates consider the larger potential benefits from urban renewal projects in vote decision-making providing a link between self-interest and voting behavior.     

INTERORGANIZATIONAL TIME‐BASED POSTPONEMENT IN THE SUPPLY CHAIN

This paper presents the results of empirical research on the use of time‐based postponement in a supply chain context using data collected from two manufacturers, a distributor, and a retailer. The analysis shows that implementing postponement at the firm level can result in the supply chain carrying more inventory. In order to achieve its full potential, postponement needs to be implemented across organizations in the supply chain.     

Should Independent Directors Have Term Limits? The Role of Experience in Corporate Governance

We examine the role of independent directors with extended tenure in board‐level governance, monitoring decisions, and advising outcomes. These directors exhibit a higher level of commitment as they attend more board meetings and take more committee memberships. Firms with a higher proportion of these directors have lower chief executive officer (CEO) pay, higher CEO turnover‐performance sensitivity, and a smaller likelihood of intentionally misreporting earnings. These firms also restrict the expansion of resources under the CEO's control as they are less likely to make acquisitions, while the acquisitions they do make are of higher quality. Efforts to impose term limits on directors may, therefore, be misguided.     

Cultural Tourism And Flamenco In The City Of Cordoba (Spain)

Flamenco is a tourist product that can attract many visitors from around the world, and the city of Cordoba (Spain) has an important role in the origins of flamenco. This work studies whether the satisfaction of cultural tourists who visit the city can be influenced by cultural offers related to flamenco. To achieve this objective, fieldwork was carried out based on 709 surveys conducted in the most important flamenco “tablaos” (stages) of the city. The techniques of factorial analysis and linear adjustment were used. The results show that flamenco can be a product that complements the satisfaction of cultural tourists.     

The Effect of Overconfidence and Underconfidence on Consumer Value

Although the effect of knowledge miscalibration (i.e., the inaccuracy in subjective knowledge relative to objective knowledge) on consumer purchase decisions has been investigated, its effect in the usage stage of consumption is little understood. This paper examines the effect of knowledge miscalibration in terms of both overconfidence (i.e., when subjective knowledge is inflated) and underconfidence (i.e., when subjective knowledge is deflated) on the dimensions of consumer value (i.e., efficiency, excellence, play, and aesthetics). The paper makes the case that overconfidence and underconfidence should be treated separately as they trigger different consumption consequences. Several hypotheses are tested through two studies: a covariance‐based study (Study 1) and an experimental study (Study 2). In Study 1, overconfidence and underconfidence are measured, while in Study 2 they are experimentally manipulated. Findings of both studies show that underconfidence negatively influences efficiency, excellence, and aesthetics, and overconfidence negatively influences play. Also, Study 1 finds a negative effect of underconfidence on play and Study 2 finds a negative effect of overconfidence on excellence and aesthetics. Findings reveal that knowledge miscalibration negatively impacts consumers’ usage experiences. This implies that in designing product or service experiences suppliers benefit from ensuring that consumers achieve a reduced level of knowledge miscalibration.     

Delaying the Normal and Early Retirement Ages in Spain: Behavioural and Welfare Consequences for Employed and Unemployed Workers

In this paper, we explore the links between pension reform, early retirement, and the use of unemployment as an alternative pathway to retirement. We use a dynamic rational expectations model to analyze the search and retirement behaviour of employed and unemployed workers aged 50 or over. The model is calibrated to reproduce the main reemployment and retirement patterns observed between 2002 and 2008 in Spain. It is subsequently used to analyze the effects of the 2011 pension reform in Spain, characterized by 2-year delays in both the early and the normal retirement ages. We find that this reform generates large increases in labour supply and sizable cuts in pension costs, but these are achieved at the expense of very large welfare losses, especially among unemployed workers. As an alternative, we propose leaving the early retirement age unchanged, but penalizing the minimum pension (reducing its generosity in parallel to the cuts imposed on individual pension benefits, and making it more actuarially fair with age). This alternative reform strikes a better balance between individual welfare and labour supply stimulus.