Statistical approximation of plane convex sets

Summary

Given a convex set F in the plane with a sufficiently smooth boundary we try to approximate it by polygons in the following way. Using some specified sampling procedure we pick out n points on the boundary. Through each such point we draw the tangent. Consider the polygon F*_n spanned by all these tangents. If n is large we would expect F*_n to be close to F. Measuring the deviation by the area of F*_n — F we will derive an asymptotic expression for this area when n becomes large. This expression can be used to choose the optimum sampling procedure in the sense of smallest asymptotic deviation.

The problem arose from a problem of statistical approximation in propositional calculus, see section 1.     

Retailers' management of corporate social responsibility (CSR) in their supplier relationships – does practice follow best practice?

The aim of this study is to further explore (a) the extent to which retailers deploy corporate social responsibility (CSR) best practices to ensure social and environmental sustainability in international supplier relationships and (b) the association between firm characteristics and the retailers' CSR activities in the supply chain. As a first step, the study identifies eight best practices based on earlier research and the authors' qualitative studies of IKEA. As a second step, a survey of Swedish retailers was conducted. The results of the study suggest that a significant amount of the actors in the Swedish retail sector do not follow the majority of best practice as outlined and discussed in this study. Furthermore, it is found that sector belonging has a considerable impact on the extent that a retailer follows best practice, while firm size and internationalization experience also have a significant, albeit limited, impact on retailer behavior.     

Why do some multinational corporations relocate their headquarters overseas?

This paper examines the decision by a multinational corporation (MNC) to relocate its business unit and/or corporate HQ overseas. We argue that business unit HQs move overseas in response to changes in the internal configuration of their unit's activities and the demands of the product markets in which they operate, whereas corporate HQs move overseas in response to the demands of external stakeholders, in particular global financial markets and shareholders. Using data on 125 business unit HQs and 35 corporate HQs, we test and find support for these arguments. The research highlights important differences between corporate‐ and business‐level strategy, and it suggests ways in which the theory of the MNC needs to be reconsidered. Copyright © 2006 John Wiley & Sons, Ltd.     

New Findings on Firm Investment and Monetary Transmission in the Euro Area

In this paper we present comparative results on the determinantsof firms' investment and their link to monetary policy. Theresults have been obtained by the Eurosystem Monetary TransmissionNetwork. This network has produced a series of papers in whichthe use of micro data permits estimating and quantifying therelevance of two channels of monetary policy transmission: theinterest-rate and the broad-credit channels. The research findingsprovide evidence of an operative interest-rate channel in allcountries examined. Moreover, the results indicate that variableswhich proxy firms' financial conditions play a role. Firms characterizedby weaker balance sheets show higher liquidity sensitivity.     

Panel estimation of state-dependent adjustment when the target is unobserved

Understanding adjustment processes has become central in economics. Empirical analysis is fraught with the problem that the target is usually unobserved. This article develops and simulates GMM methods for estimating dynamic adjustment models in a panel data context with partially or entirely unobserved targets and endogenous, time-varying persistence. In this setup, the standard first difference GMM procedure fails. Four estimation strategies are proposed. Two of them are based on quasi-differencing. The third is characterised by a state-dependent filter, while the last is an adaptation of the GMM level estimator.     

A Meta-analysis of Loss Aversion in Product Choice

Loss aversion is a behavioral phenomenon with game-changing implications for economic theory and practice. We conduct a meta-analysis of 33 studies (providing 109 observations) investigating loss aversion in random utility models of brand choice. Specifically, we use multilevel modeling techniques to examine potential moderators of preference asymmetries as well as the variability of loss-aversion effects within and between studies. We find that loss aversion is manifest in product choice, but that it exhibits substantial variation across research contexts. Product-related variables (e.g., the category type), consumer characteristics (e.g., reference-point mechanisms), and particularly methodological decisions (e.g., model specifications) determine the observed degree of loss–gain disparity. Practical implications of the specific findings and opportunities for future research are discussed.     

Subsidiary knowledge creation in co-evolving contexts

In this paper we explore how the MNE subsidiary’s role internally within its corporation evolves through knowledge creation in accordance with an evolving external local knowledge network, and the extent to which the interwoven coevolving context matters for, and may be guided by the subsidiary. We conducted a qualitative investigation of purposely selected subsidiaries as case studies and longitudinally tracked the interwoven co-evolving contexts of their internal corporate role and external knowledge network. We show why role evolution may be differential and illustrate how competence-creating subsidiaries can balance and simultaneously manage the guided co-evolution of both contexts to advance their roles for knowledge creation. We develop a dynamic framework of subsidiary role evolution at the nexus of these interwoven co-evolving contexts. This advances theory on the dual embedded subsidiary as previous studies have predominantly been cross-sectional and static rather than evolutionary.     

Cognitive Processes in the CSR Decision-Making Process: A Sensemaking Perspective

Applying the sensemaking perspective in the field of corporate social responsibility (CSR) is a recent but promising development. Using an in-depth exploratory case study, we analyze and discuss the CSR character of British American Tobacco (BAT) Switzerland. Our findings indicate that BAT Switzerland does not follow traditional patters of building CSR. BAT Switzerland can be classified as a “legitimacy seeker,” characterized mainly by a relational identity orientation and legitimation strategies that might provide pragmatic and/or cognitive legitimacy. We conclude that understanding the cognitive processes underlying the CSR decision-making process is of fundamental value when analyzing and changing the CSR approach of a firm. We discuss boundary conditions of the CSR character framework and expand it by differentiating between process and product legitimacy, as both perspectives have important but possibly different implications for the firm.     

The aggregate cost of equity underdiversification

We analyze equity diversification of all retail investors in a country (Denmark). We find that underdiversification is pervasive. We calculate the nationwide aggregate loss due to underdiversification and express it in absolute and expected‐return terms. The aggregate loss is large. We find that investors with low education, low income, and low wealth are more likely to underdiversify. Despite better diversification, the larger fraction of the aggregate loss nevertheless adheres to the top of the income/wealth distribution. Finally, our results indicate that underdiversification arises because investors have limited information about the benefits of diversification.