Cournot outcomes under Bertrand–Edgeworth competition with demand uncertainty

We provide new results for two-stage games in which firms make capacity investments when demand is uncertain, then, when demand is realized, compete in prices. We consider games with demand rationing schemes ranging from efficient to proportional rationing. In all cases, there is a subgame perfect equilibrium outcome coinciding with the outcome of the Cournot game with demand uncertainty if and only if (i) the fluctuation in absolute market size is small relative to the cost of capacity, or (ii) uncertainty is such that with high probability the market demand is very large and with the remaining probability the market demand is extremely small. Otherwise, equilibria involve mixed strategies. Further, we show under efficient rationing that condition (i) is sufficient for the unique equilibrium outcome to be an equilibrium outcome of the Cournot game with demand uncertainty.     

Purification of Bayesian–Nash equilibria in large games with compact type and action spaces

We present a purification result for incomplete information games with a large but finite number of players that allows compact metric spaces for both actions and types. We then compare our framework and findings to the early purification theorems of Rashid (1983. Equilibrium points of non-atomic games: asymptotic results. Economics Letters 12, 7–10), Cartwright and Wooders (2002 On equilibrium in pure strategies in games with many players. University of Warwick Working Paper 686 (revised 2005)), Kalai (2004. Large robust games. Econometrica 72, 1631–1665) and Wooders, Cartwright and Selten (2006. Behavioral conformity in games with many players. Games and Economic Behavior 57, 347–360). Our proofs are elementary and rely on the Shapley–Folkman theorem.     

Improving footprint calculations of small open economies: combining local with multi-regional input–output tables

In a small, open and resource-poor economy, import and export dependency have an ever-growing impact on local policy decisions, which makes local (environmental) policy-makers increasingly depend on global data. This increases the interest in models that link local production and consumption data to global production, trade and environmental data. The recent increase in availability of global environmentally extended multi-regional input-output tables (EE-MRIO tables) provides an opportunity to link them with existing local environmentally extended input-output tables (EE-RIO tables). These combined tables make it possible (1) to analyse the links between local and global production and consumption and (2) to study global value chains, material use and environmental impacts simultaneously. However, estimations using input-output (I–O) analyses contain errors due to imperfect databases. In this article the magnitude of specification, aggregation and time errors are estimated and compared. The results show the need to combine local datasets with multi-regional ones and show that highest detailed (country and sector levels) as well as time series of I–O tables are the way forward for using I–O analyses in local policy-making. The paper provides guidance on trading off investments in model adoption and/or extension and the reliability of estimation results.     

The measurement of work–family culture in Spain and some applications to other economies

This investigation adapts the scales assessing work–family culture to consider several characteristics found in Spanish organizations (e.g. extended schedules and a high value attributed to working long hours). Organizational phenomena not included in other scales are integrated into a modified instrument (e.g. managers efforts to inform about the available work–family benefits, being considered more efficient when working many hours). Suggestions on the measurement of these new features in other economies are provided. Two studies are conducted: one to develop the scale and another to validate it. The resulting instrument comprehends three components: managerial support, career consequences and supervisor support.     

First mover or higher quality? Optimal product strategy in markets with positive feedbacks

Conventional wisdom holds that in markets with positive feedbacks being first to market can matter more than product quality. In this paper, we test that intuition within a generalized Pólya urn model. We find that if we assume constant feedbacks, in the long run, higher quality products dominate the market regardless of initial market shares, contradicting the common wisdom. However, when we allow for variable feedbacks, initial advantages persist almost indefinitely. Thus, the choice of whether to rush to market or focus on quality depends on market characteristics such as whether the positive feedbacks result from more consistent returns to scale or from more variable social influences.     

A tale of two crises: Federal transfers and regional economies in Russia in 2009 and 2014–2015

We examine transfers from Russia’s federal government to the regions during the two recent economic crises. We show that while federal transfers in 2009 were large and targeted poorer regions, the 2014–2015 transfers were much smaller and not targeted. This policy shift was accompanied by a relatively greater decline in own revenues in the poorer regions and their worse economic performance overall. As a result, interregional budget expenditure inequality in Russia was significantly higher in 2014–2015 than it had been for years. This is important because regional budgets are responsible for a large share of investments, housing, education and healthcare.     

Competitive equilibria in Shapley–Scarf markets with couples

We investigate the existence and properties of competitive equilibrium in Shapley–Scarf markets involving an exogenous partition of individuals into couples. The presence of couples generates preference interdependencies which cause existence problems. For both cases of transferable and non-transferable income among partners, we establish properties for preferences that are sufficient for the existence of an equilibrium. Moreover, we show that these properties define a maximal preference domain.     

The effect of oil price uncertainty on corporate investment in the presence of growth options: Evidence from listed companies in China (1998–2019)

We empirically investigate the effect of oil price uncertainty on corporate investment in the presence of growth options using the financial data of listed firms in China from 1998 to 2019. We reveal three key findings in this paper. First, we find that oil price uncertainty has a U-shaped nonlinear effect on corporate investment. In periods of low uncertainty, oil price uncertainty negatively influences corporate investment. However, in periods of high uncertainty, oil price uncertainty positively influences corporate investment. Second, research has found that the U-shaped nonlinear effect is moderated by the irreversibility and growth opportunities of investment decisions. Third, further analyses reveal that this U-shaped nonlinear effect can be changed by a firm’s characteristics. Specifically, this nonlinear effect can only be observed in non-state-owned enterprises and small firms. We test the robustness of our findings and propose several policy suggestions.     

Truth-telling and trust in sender–receiver games with intervention: an experimental study

Recent experimental studies find excessive truth-telling in sender–receiver games. We show that this phenomenon is robust to the random intervention of a truthful regulator. In addition, intervention significantly increases the excessive trust of receivers while the overall percentage of truthful messages received does not change much with or without intervention. We offer a theoretical explanation for the behavior of senders and receivers, using a logit agent quantal response equilibrium (logit-AQRE) model incorporating a non-monetary lying cost for senders (like Peeters et al. in Scand J Econ 115(2):508–548, 2013). We show that our experimental findings are all consistent with the predictions of this model. Moreover, we find that the lying cost is significantly higher under intervention, implying that truthful intervention is beneficial for receivers and justified as a tool for policy makers acting on behalf of informationally inferior parties.     

Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups

We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopolistic and Cournotian monopolistic competition, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating it may exhibit heteroclinic orbits connecting multiple equilibria. Small transitory changes in parameters can lead to large permanent effects and there can be a poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. We apply results from the mathematics of non-smooth dynamic systems, which provide a more general framework for understanding regime switching.     

Relationships of work–family conflict with business and marriage outcomes in Taiwanese copreneurial women

This study used bidirectional interrole conflict measures to examine the permeability of work and family domains, and to further investigate the relationships of work–family conflict with business and marriage outcomes in copreneurial women. Analytical results from 202 Taiwanese copreneurial women were summarized as follows: (1) family boundaries were more permeable than work domains; (2) work–family conflict is negatively related to perceived business success and marriage satisfaction; and (3) work-to-family conflict predicts marriage satisfaction, whereas family-to-work conflict predicts perceived business success. The results were interpreted and implications were discussed in terms of consulting strategies of work–family management strategies and participative management techniques in family business.     

General existence of competitive equilibrium in the growth model with an endogenous labor–leisure choice

We prove the existence of competitive equilibrium in the canonical optimal growth model with elastic labor supply under general conditions. In this model, strong conditions to rule out corner solutions are often not well justified. We show using a separation argument that there exist Lagrange multipliers that can be viewed as a system of competitive prices. Neither Inada conditions, nor strict concavity, nor homogeneity, nor differentiability are required for existence of a competitive equilibrium. Thus, we cover important specifications used in the macroeconomics literature for which existence of a competitive equilibrium is not well understood. We give examples to illustrate the violation of the conditions used in earlier existence results but where a competitive equilibrium can be shown to exist following the approach in this paper.     

Savings and investments in the OECD, 1970–2007: A test of panel cointegration with regime changes

In this paper we test for the existence of a long-run relationship between investment and savings (the Feldstein–Horioka puzzle) in a panel of 18 OECD countries, 1970–2007, allowing for heterogenous breaks in the coefficients. For this purpose we develop a bootstrap panel cointegration with breaks robust to cross-section dependence, shown by simulation to enjoy good size and power properties provided that some care is applied in its use. The tests suggest that, even allowing for parameter shifts in the countries where capital control regulations changed in the sample period, there is no evidence of an investment–savings long-run relationship for the panel as a whole.     

The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry

This research attempts to provide an example of a hybrid method that combines both a macro and a micro approach in the academic domain of the telecommunication market and, also, to study the possible effects from this application. According to the philosophy of plural or multiple methods, this research tries to connect two studies with a methodological triangulation that sequentially uses the results of one method for planning the next method. Empirically, the implementation of this example has two sources of data: one is from an historical data bank (1989–2007) derived from the public sector; and the other is obtained from a questionnaire survey of 427 effective respondents. From the macro perspective (step 1), the differences of consumer behavior in a collective dimension were drawn between mobile telecommunication and digital services. It was found that the users of digital services were more self-motivated than the users of only mobile telecommunication. Accordingly, this result was the research motive of step 2 that investigated the consumers’ motives on the micro level. This research found that a hybrid method of design in the research of the telecommunication market discloses more possible combinations for designing research, more extensive research perspectives and findings, and increased feasibility and interest for additional investigations.     

Intention and behavior: a Bayesian meta-analysis with focus on the Ajzen–Fishbein Model in the field of environmental behavior

We employ a Bayesian normal hierarchical model to investigate the relationship between intention and behavior as it is posited by Ajzen and Fishbein’s theory of planned behavior (TPB). Area of application is the field of environmental behavior. Eleven studies reporting correlations between intention and behavior were identified. Our Bayesian hierarchical model expects a correlation of r _xy = 0.54 between those variables. This effect size is above average with regard to meta-analyses, which include other, non-environmental areas of application.     

Who's got the balance? A study of satisfaction with the work–family balance among part-time service sector employees in five western European countries

Working part-time is frequently considered a viable strategy for employees to better combine work and non-work responsibilities. The present study examines differences in satisfaction with work-family balance (SWFB) among professional and non-professional part-time service sector employees in five western European countries. Part-time employees were found to be more SWFB than full-time employees even after taking varying demands and resources into account. However, there are important differences among the part-timers. Employees in marginal part-time employment with considerably reduced working hours were the most satisfied. Professionals were found to profit less from reduced working hours and experienced lower levels of SWFB than non-professionals. No significant differences in SWFB were found between male and female part-time workers.     

If you're close with the leader,you must be a brownnose: The role of leader–member relationships in follower,leader, and coworker attributions of organizational citizenship behavior motives

Although scholars have recognized that organizational citizenship behavior (OCB) can be attributed to either self-serving or other-serving motives, little research has addressed the conditions under which different observers will make positive versus negative attributions for OCB. We draw on leader-member exchange (LMX) and attribution theories to propose that high-quality LMX relationships are associated with positive attributions of OCB motives by the follower and the leader but negative attributions of OCB motives by coworkers. We theorize that while high-quality LMX relationships are associated with attributions of pro-social and organizational concern motives by the follower and the leader, coworkers view OCB performed by those in high-quality LMX relationships as driven by impression management motives. We discuss implications for theory and research on OCB and LMX.