Non-self-averaging of a two-person game with only positive spillover: a new formulation of Avatamsaka’s dilemma

In this game [Aruka in Avatamsaka game structure and experiment on the web. In: Aruka Y (ed) Evolutionary controversies in economics. Springer, Tokyo, pp 115–132, 2001], selfishness may not be determined even if an agent selfishly adopts the strategy of defection. Individual selfishness can only be realized if the other agent cooperates, therefore gain from defection can never be assured by defection alone. The sanction by defection as a reaction of the rival agent cannot necessarily reduce the selfishness of the rival. In this game, explicit direct reciprocity cannot be guaranteed. Now we introduce different spillovers or payoff matrices, so that each agent may then be faced with a different payoff matrix. A ball in the urn is interpreted as the number of cooperators, and the urn as a payoff matrix. We apply Ewens’ sampling formula to our urn process in this game theoretic environment. In this case, there is a similar result as in the classic case, because there is “self-averaging” for the variances of the number who cooperate. Applying Pitman’s sampling formula to the urn process, the invariance of the random partition vectors under the properties of exchangeability and size-biased permutation does not hold in general. Pitman’s sampling formula depends on the two-parameter Poisson–Dirichlet distribution whose special case is just Ewens’ formula. In the Ewens setting, only one probability α of a new entry matters. On the other hand, there is an additional probability θ of an unknown entry, as will be argued in the Pitman formula. More concretely, we will investigate the effects of different payoff sizes from playing a series of different games for newly emerging agents. As Aoki and Yoshikawa (Non-self-averaging in macroeconomic models: a criticism of modern micro-founded macroeconomics, Economics Discussion Papers 2007-49. . November 26, 2007) and Aoki (J Econ Interact Coord 3:1–3, 2008) dealt with a product innovation and a process innovation, they criticized Lucas’ representative method and the idea that players face micro shocks drawn from the same unchanged probability distribution. In the light of Aoki and Yoshikawa (Non-self-averaging in macroeconomic models: a criticism of modern micro-founded macroeconomics, Economics Discussion Papers 2007-49. . November 26, 2007), we show the same argument in our Avatamsaka game with different payoffs. In this setting, innovations occurring in urns may be regarded as increases of the number of cooperators in urns whose payoffs are different.     

The “probability of a fit choice”

This paper attempts to model elections by incorporating voter judgments about candidate and leader competence. The proposed model can be linked to Madison’s understanding of the nature of the choice of Chief Magistrate (Madison, James Madison: writings. The Library of America, New York, 1999 [1787]) and Condorcet’s work on the so-called “Jury Theorem” (Condorcet 1994 [1785]). Electoral models use the notion of a Nash Equilibrium. This notion generally depends on a fixed point argument. For deterministic electoral models, there will typically be no equilibrium. Instead we introduce the idea of a preference field, $H,$ for the society. A condition called half-openess of $H$ is sufficient to guarantee existence of a local direction gradient, $d,$ Even when $d$ is not well-defined we can use the idea of the heart for the society. This is an attractor of the set of social moves that can occur. As an application, a stochastic model of elections is considered, and applied to the 2008 presidential election in the United States. In such a stochastic model the electoral origin will satisfy the first order condition for a local Nash equilibrium. We then show how to compute the Hessian of each candidate’s vote share function, and obtain necessary and sufficient conditions for convergence to the electoral origin, suggesting that there will be a social direction gradient. The origin maximizes aggregrate voter utility and can be interpreted as a fit choice for the polity.     

Is There a Natural Rate of Crime?

Studies in the economics of crime literature have reached mixed conclusions on the deterrence hypothesis. One explanation that has been offered for the failure to find evidence of a deterrent effect in the long run is the natural rate of crime. This article applies univariate unit root tests to crime series for the United Kingdom and United States and panel unit roots to crime rates for a panel of G7 countries to examine whether there is a natural rate of crime. Our main finding is that when we allow for two structural breaks in the univariate unit root test and a structural break in the panel data unit root test, there is strong evidence of a natural rate of crime. The policy implications of our findings is that governments should focus on altering the economic and social structural profile that determines crime in the long run rather than increasing expenditure on law enforcement that will at best reduce crime rates in the short run.     

The competitive advantage of cluster firms: the priority of regional network position over extra-regional networks – a study of a French high-tech cluster

This paper extends research on industry clusters by unbundling network from cluster effects and by analysing how network effects drive the performance of cluster firms. The results show that a firm's connectedness in a regional network is positively associated with firm performance. However, we found that for cluster firms, it is even more important to build strong network positions by developing rather exclusive alliance networks. In addition, a weak position within a cluster cannot be compensated for by strong extra-regional networking activities. From this perspective, cluster-specific advantages are firm-specific and the basis for competitive advantage. Regional competitiveness is therefore a non-substitutable pre-condition for the overall performance of cluster firms.     

One-sample tests for a generalized Fréchet variance of a fuzzy random variable

A procedure to test hypotheses about the population variance of a fuzzy random variable is analyzed. The procedure is based on the theory of UH-statistics. The variance is defined in terms of a general metric to quantify the variability of the fuzzy values about its (fuzzy) mean. An asymptotic one-sample test in a wide setting is developed and a bootstrap test, which is more suitable for small and moderate sample sizes, is also studied. Moreover, the power function of the asymptotic procedure through local alternatives is analyzed. Some simulations showing the empirical behavior and consistency of both tests are carried out. Finally, some illustrative examples of the practical application of the proposed tests are presented.     

Predictors of the adoption of work–care arrangements: a study of South African firms

This study examines predictors of work–care arrangements in South African organisations. It investigates the adoption of 23 work–care arrangements in organisations listed on the Johannesburg Stock Exchange. Organisational size, female presence in the organisation and in trade unions, female leadership and trade union density are tested as predictors of the adoption of these arrangements. In addition, foreign ownership, a previously untested variable predicting the adoption of work–care arrangements, is included in this study. The findings show that the level of adoption of work–care arrangements in South African organisations is low. Organisational size and female presence in senior managerial positions are found to be associated with the greater adoption of work–care arrangements. The study adds to existing work–family research by examining work–care integration in a non-Western context. Furthermore, the study is innovative in the addition of foreign ownership as an independent variable and the inclusion of a broader range of work–care arrangements in the study. The study is relevant for other developing nations and extends the existing research on employer involvement in work and care in developed nations.     

The role of wasta in repatriates’ perceptions of a breach to the psychological contract: a Saudi Arabian case study

This study examines the influence of a national cultural dimension, specifically a strong orientation towards collectivism/reliance on network relationships, referred to as ‘wasta’, on the way in which psychological contracts form and change in a Saudi organisation. Specifically, it focuses upon how the psychological contract is perceived to have been breached by repatriates because of the role that wasta plays in shaping formal and informal HR practices pre- and post-assignment. The analysis demonstrates that prior to international assignment, wasta was taken for granted and only implicitly acknowledged as influencing selection criteria for assignments and individuals’ expectations and obligations associated with their psychological contract. Once repatriated, wasta was foregrounded and perceived as highly problematic in terms of career advancement. This shaped repatriates’ perceptions that their psychological contract had been breached, influencing their intentions to leave. These findings suggest that the psychological contract can be viewed as highly context-specific, as well as a person-centred phenomenon. We consider the implications of our research in terms of the influence of national cultural characteristics on individual’s perceptions of breaches to the psychological contract and highlight the possible implications generally for Saudi Arabia, which is aiming to be less reliant on foreign labour.     

The expatriate’s family as a stakeholder of the firm: a responsibility viewpoint

In this paper we argue for the recognition of the expatriate’s family as a stakeholder of the firm during the expatriation. We demonstrate why the expatriate’s family can be regarded as a stakeholder of the parent company and what kind of a stakeholder the family is. Additionally, we argue that the parent company needs to develop and apply a holistic well-being orientation to show stakeholder responsibility in the international assignment (IA) arena. We apply the theory of stakeholder salience to the IA relationship because it provides a theoretical framework for integrating the family into the expatriation process. Yet this theory does not necessarily provide a framework for assessing the social functioning of expatriates and their family members. Since expatriation often leads to a radical shift in family roles and living circumstances, family members (or indeed the expatriates themselves) cannot replicate all elements of their previous lives in the host country. Therefore, we use the capabilities approach to complete the theoretical framework, as this approach provides an evaluative mechanism which highlights how a socially responsible relationship between the company and the family can be advanced to foster well-being and quality of life for the family members as well as the expatriate, even if their functioning abroad differs from their functioning in their own country.     

Property rights out of anarchy? The Demsetz hypothesis in a game of conflict

The Demsetz hypothesis states that secure claims to property arise when the value of creating those rights is sufficiently high. This paper examines the conditions under which this holds in an anarchy equilibrium in which players may allocate labor to production, to conflict, or to the public good of secure claims to property protection. In a simultaneous choice Nash equilibrium, no secure claims to property are created. However, if players play a sequential choice game in which secure claims to property protection occurs in the first stage, then the strategic benefit of reducing others’ subsequent conflict allocation causes secure claims to property to arise. Secure claims to property in a social contract are imperfect, but for sufficiently high productivity of resources, the social contract welfare dominates autocracy.     

Public servants’ workplace learning: a reflection on the concept of communities of practice

Workplace learning is not only for the purpose of improving work skills, but also of establishing linkages between different social resources. Scholars such as Lave and Wenger (Situated Learning: Legitimate Peripheral Participation, 1991) suggest that a community of practice (CoP) is formed by members’ common interests with a friendly informal atmosphere, within which the participants may feel free, to sharpen their skills and broaden their horizons. The concept of CoPs actually highlights the importance of using social resources to optimize the knowledge within the context of organization. However, because the learning situation is very informal, some scholars suggested that learning within a CoP may be too scattered to manage it well. For this study, the researchers use the concept of CoPs to examine public servants’ workplace learning and lay the focus on shared practices in the public sector in order to reflect on the concept of CoPs. The semi-structured interview method was employed, and most of viewpoints in this study were derived from 10 personnel departments in the public sector in Taiwan including 22 interviewees. The research supports the view that shared practices which are derived from the public servants’ daily official tasks are an important key to members’ informal learning. The concept of official tasks implies a compulsory atmosphere which enables related interactions to be compelled to happen. This will hopefully provide a solution for the loose discipline learning in CoPs.     

Excess capacity: a permanent characteristic of US airlines?

This paper examines the permanence of excess capacity in the US airline industry. To avoid the problems with the standard engineering measure of capacity utilization, load factor, we define and measure capacity as an economic concept. Two measures of economic capacity utilization are then computed—one, a demand-based measure and the other an output-based measure of capacity utilization. Both measures share little in common with the standard engineering measure (load factor) and reveal some interesting attributes of airline travel demand. This paper also provides interesting new insights into the role of deregulation and the costs of excess capacity during regulation. Specifically, it is found that deregulation with the concomitant rationalization of route structures enabled airlines to move closer to their optimal levels of capacity and facilitated substantial improvements in capacity utilization and cost reductions over the period considered. © 1998 John Wiley & Sons, Ltd.     

Goodness-of-fit testing of a count time series’ marginal distribution

Popular goodness-of-fit tests like the famous Pearson test compare the estimated probability mass function with the corresponding hypothetical one. If the resulting divergence value is too large, then the null hypothesis is rejected. If applied to i. i. d. data, the required critical values can be computed according to well-known asymptotic approximations, e. g., according to an appropriate \(\chi ^2\)-distribution in case of the Pearson statistic. In this article, an approach is presented of how to derive an asymptotic approximation if being concerned with time series of autocorrelated counts. Solutions are presented for the case of a fully specified null model as well as for the case where parameters have to be estimated. The proposed approaches are exemplified for (among others) different types of CLAR(1) models, INAR(p) models, discrete ARMA models and Hidden-Markov models.     

Environmental visibility: a trigger of green organizational response?

This paper develops a typology of visibility in an environmental context. Although visibility has been neglected and ill defined in contemporary environmental management research, environmental visibility can be a useful construct for predicting green organizational response. As such, it might prove a useful tool for environmental management researchers, policy‐makers and business strategists. The paper derives a conceptual typology of visibility from previous organizational theory research. Visibility is considered both as a characteristic of an organization and as a characteristic of an issue, and at both the corporate and operating unit levels. Data collected in a recent series of interviews in 24 business units in UK PLCs are analysed to provide examples of the types of visibility in an environmental context. The resultant environmental visibility typology is used to discuss the relationship between environmental visibility and green organizational responses. This study's findings suggest that considering environmental visibility as a predictor of green organizational response should be fruitful for future empirical research, and useful for policy‐makers and business strategists. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

The consequences of a policy of necessity: Bank regulatory forbearance, 1986–1989

While it is widely recognized that bank regulators choose the policy of forbearance because of an undercapitalized bank insurance fund, a key policy question centers on what were the effects of forbearance. This study uses a survival model to track capital deficient banks from December 1986 to December 1989, a period in which regulators explicitly used forbearance in managing troubled banks. Despite the contention that forbearance returns banks to safe-and-sound practices, this study concludes that forbearance did not enable troubled banks to return to viability. Furthermore, the evidence from the survival analysis provides negligible support, if any, for the interrelationship between forbearance and too-big-to-fail doctrine.     

The dynamics of entrepreneurs’ networks in a transitioning economy: the case of Russia

Despite its theoretical and practical importance, the evolution and development of entrepreneurs’ networks has attracted a little attention of researchers. The emerging research literature on this topic found that the dynamics of entrepreneurial networks were contingent upon venture lifecycle, industry and region, and resource needs of the firm. In addition and contrast to the previous research, this article examines the effects of the initial network structure, and firm performance of previous years on the changes in entrepreneurs' network structure, relations, and resources over 4 years. The empirical data is composed of the face-to-face interviews with 75 Russian entrepreneurs in 1995, and the follow-up interviews with 56 original respondents in 1999. I found that the greater the initial network size, the less the increase in network size, strong and weak ties, and resources over time. Further, the findings indicate that revenue growth of previous years predicts the changes in networks in the reverse manner. Thus, I found that the greater the average revenue growth, the less the increase in network size, weak ties, and resources over time.     

The relative decline of a Musgrave ‘Merit Good:’ the case of public support of flagship public universities

Fifty years ago, Richard Musgrave put forward the notion of a “merit good”—one that despite its virtue would be undersupplied and under consumed in a free market economy driven by traditional notions of consumer sovereignty. Higher education is considered by many to be a merit good because they believe it generates highly desirable spin-off effects. If higher education has been a merit good, then that status appears to be disappearing. Declining state funding for higher education, increasing tuition rates and highly successful fund-raising by independent institutions have diminished public flagship universities, at least relatively. Consequently, their rankings have declined.