Out of control or right on the money? Funder self-efficacy and crowd bias in equity crowdfunding

Our findings extend the entrepreneurship literature by highlighting the mechanism through which self-efficacy can hinder rather than enhance performance in entrepreneurial settings. Using two complementary experimental studies and a third quasi-experimental field study on equity crowdfunding decisions, we demonstrate that self-efficacy is negatively related to decision-making performance. This relationship is mediated by reduced searching effort. Our research also indicates that high self-efficacy funders tend to exhibit a “crowd bias” whereby they over-weight the opinions of the crowd, increasing the likelihood that they will fund poor quality ventures when such ventures are favored by the crowd. We introduce the term crowd bias and explore its effects, establishing that social indicators in the form of crowd cues can exasperate the negative effects of self-efficacy.     

Public policy for reducing tax evasion: implications of the Yule–Simpson paradox

The current study exhibits a new implication of the Yule–Simpson paradox with public policy repercussions. We construct Laffer curves of local property tax collection based on aggregated data and group division to residential land uses in Jerusalem. Results indicate that based on aggregated (dis-aggregated) data, the location of owner-occupiers and renters who pay a relatively high rate tariff will be on the upward-sloping (downward-sloping) part of the Laffer curve. Consequently, statistical test outcomes support Laffer’s controversial claim that for the few upper-brackets taxpayers, an efficient collection is associated with tax reduction rather than tax increase.     

PAGES AS STAGES: A Performance Approach to Visitor Books

This article offers a contribution to the fields of tourist performance and language. By exploring a visitor book located at a heritage site in Jerusalem, Israel, it argues that texts produced by tourists can assume the semiotic status of performances. Consequently, tourists’ texts should not be viewed merely as instances of “discourse” or “language”, but also as organic parts of the aesthetic and semiotic aspects of tourism. The article describes four dimensions that establish the visitor book as a particular “stage”, and the texts therein as the tourists’ situated performances. Taken together, these dimensions constitute a model for the analysis of linguistic performance and for the semiotic interrelationship between stage and performance in tourism.     

Inflation And Efficiency In A Search Economy*

We present a model in which purely monetary inflation systematically affects efficiency, welfare, and relative prices. The model focuses on the microeconomics of trade in search markets under inflation. Inflation, by increasing the cost of holding money, undermines the market's ability to sustain long‐term customer relationships. Because those relationships generate the most efficient transactions patterns, overall welfare unambiguously declines.     

A computational framework for analyzing dynamic auctions: The market impact of information sharing

This article develops a computational framework to analyze dynamic auctions and uses it to investigate the impact of information sharing among bidders. We show that allowing for the dynamics implicit in many auction environments enables the emergence of equilibrium states that can only be reached when firms are responding to dynamic incentives. The impact of information sharing depends on the extent of dynamics and provides support for the claim that information sharing, even of strategically important data, need not be welfare reducing. Our methodological contribution is to show how to adapt the experience-based equilibrium concept to a dynamic auction environment and to provide an implementable boundary-consistency condition that mitigates the extent of multiple equilibria.     

A woman's place is in the… startup! Crowdfunder judgments,implicit bias,and the stereotype content model

We examine investor stereotypes and implicit bias in crowdfunding decisions. Prior research in formal venture capital settings demonstrates that investors tend to have a funding bias against women. However, in crowdfunding – wherein a ‘crowd’ of amateur investors make relatively small investments in new companies – our empirical observations reveal a funding advantage for women. We explain the causal mechanism underlying this counterintuitive finding by drawing upon stereotype content theory and testing a dual path moderated-mediation model. Based on archival data and a follow-up experiment, our findings suggest common gender biases held by amateur investors function to increase female stereotype perceptions in the form of trustworthiness judgments, which subsequently increases investors' willingness to invest in early-stage women-led ventures. We discuss our results with specific attention to how our findings extend the entrepreneurship funding literature as well as the gender dynamics literature in entrepreneurship and organization research more broadly.     

Mediating touristic dangerscapes: the semiotics of state travel warnings issued to Israeli tourists

Official ‘travel warnings’ are recurrently published by the Counter-Terrorism Bureau in Israeli media, with the aim of informing potential tourists about the dangers of terrorism aimed at Israelis who travel abroad. These travel warnings, which juxtapose menacing warnings with tranquil visual representations of touristic vacationscapes, have recently gained a considerable public attention and have sprouted discussions around local tourism and identities. In this article, we offer a discursive and semiotic analysis of 55 travel warning articles, which appeared between 1998 and 2010 in printed and digital Hebrew press in Israel. We address visual and textual aspects of the articles and ask how they represent and mediate touristic vacationscapes. Following recent developments (‘turns’) in both tourism studies and media studies, we argue that these warnings articles construct multilayered spatial–visual representations of tourist destinations, which amount to a unique genre of tourism imagery in and of itself. Focussing on travel warnings addressing Israeli tourists who travel to the Eastern shores of the Egyptian Sinai Peninsula, we find that these combined or hybrid images and spaces present a convergence of two contemporary systems of representation, related to tourism and mass media, respectively, and construct a charged and mediated cultural space in Israeli collective imagination.     

Capital accumulation games of infinite duration

Consider a market in which firms accumulate capital according to the Nerlove-Arrow capital accumulation equation. Each player chooses a path of investment and thus an induced path of capital to maximize his total discounted profits which depend on his own capital and the capital stocks of his rivals. Existence is proved for such a nonzero sum, infinite horizon differential game and conditions under which the game converges to a particular stationary point, regardless of the initial conditions are shown. Thus, the game possesses the property of conditional global asymptotic stability.     

Open source software: Motivation and restrictive licensing

Open source software (OSS) is an economic paradox. Development of open source software is often done by unpaid volunteers and the “source code” is typically freely available. Surveys suggest that status, signaling, and intrinsic motivations play an important role in inducing developers to invest effort. Contribution to an OSS project is rewarded by adding one’s name to the list of contributors which is publicly observable. Such incentives imply that programmers may have little incentive to contribute beyond the threshold level required for being listed as a contributor. Using a unique data set we empirically examine this hypothesis. We find that the output per contributor in open source projects is much higher when licenses are less restrictive and more commercially oriented. These results indeed suggest a status, signaling, or intrinsic motivation for participation in OSS projects with restrictive licenses.

Deadline Effects and Inefficient Delay in Bargaining with Endogenous Commitment

Bilateral (sequential) negotiators delay agreements until a deadline if a player that rejects an offer is subsequently committed not to accept any poorer proposal, and if the common discount factor is close enough to one. Journal of Economic Literature Classification Numbers: C7, C78, J52.