Arbitrage-free pricing of multi-person game claims in discrete time

We introduce a class of financial contracts involving several parties by extending the notion of a two-person game option to a contract in which an arbitrary number of parties is involved and each of them is allowed to make a wide array of decisions at any time, not restricted to simply exercising the option. The collection of decisions by all parties then determines the contract’s termination date as well as the terminal payoff for each party. We provide sufficient conditions under which a discrete-time multi-person game option has a unique arbitrage-free price, which is additive with respect to any partition of the contract. Our results are illustrated by the detailed study of a particular multi-person contract with puttable tranches.     

Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective

The objective of this study was to unravel the challenges confronting women of color (WoC)-owned small and medium-sized enterprises (SMEs) in the United States. This is based on findings that most WoC-owned SMEs fail within the first few years of establishment. The impact of the global financial crisis resulting from the COVID-19 pandemic on WoC-owned SMEs was also explored. System Dynamics (SD) is a computational modeling approach useful for understanding changes in a system over time and is applied in this study to illustrate WoC entrepreneurs' navigation through the startup and maturation of SMEs. The authors calibrated and validated the model with publicly available data. Findings revealed that more emphasis should be placed on failure reduction in the early years of establishment of these businesses. Also, there is the need for early intervention rather than focusing on the improvement of the successful business exit from the system. Results indicated that the creation of new businesses by WoC after the failure of existing businesses produced an increase in the number of failed enterprises. The authors assert that attention must be paid at the individual level through support to the entrepreneur. This study contributes to the extant literature by providing the first known SD model useful in depicting the SME system for WoC entrepreneurs in the US. The model serves as a potentially useful tool for informing effective policy making, education, and programmatic approaches to support the success of WoC entrepreneurs in the US.

     

Television-Induced Tourism: Evidence from Croatia

Atlantic Economic Journal - This paper analyzes the extent to which the filming of the popular television show Game of Thrones affected tourism in the Croatian city of Dubrovnik. Using monthly data...     

Shipbuilding administration under the Spanish Habsburg and Bourbon regimes (1590‒1834): A comparative perspective

Abstract

This article aims at understanding the evolution of the administrative methods devised by the Spanish monarchy to interact with regional private initiative for the production of warships. It also aims at understanding the practice of financing naval shipbuilding in the royal shipyards of Spain and Spanish America by public contribution, in the form of both credit and voluntary donations. These processes were largely influenced by the need of both political systems to perform efficiently in war. This article addresses the relationship between the state and local entrepreneurs and examines the reach and objectives of the Habsburg and Bourbon naval administrations, seen as variants of the ‘contractor state’.     

A Multi-level Investigation of Authentic Leadership as an Antecedent of Helping Behavior

We develop and test a trickle-down model of how authentic leadership at the department level flows down the organizational hierarchy to encourage team leader authentic leadership and consequently, promotes team and individual-level supervisor-directed helping behavior. Analyses of multi-level and multi-source data collected from a total of 487 employees comprising 122 teams, 47 departments, and 4 different working areas of a major public sector organization in Taiwan show that team leaders’ authentic leadership mediates the relationship between departmental authentic leadership and individual-level leader–member exchange (LMX). We also found that intra-team trust completely mediates the influence of team authentic leadership on both team helping behavior and individual-level supervisor-directed helping behavior. Finally, the results reveal that self-concordance mediates the influence of team authentic leadership on individual-level supervisor helping behavior as well as the influence of individual-level LMX on individual-level supervisor-directed helping behavior. Theoretical and practical implications of these findings are discussed.     

Are Authentic Leaders Always Moral? The Role of Machiavellianism in the Relationship Between Authentic Leadership and Morality

Drawing on cognitive moral development and moral identity theories, this study empirically examines the moral antecedents and consequences of authentic leadership. Machiavellianism, an individual difference variable relating to the use of the ‘end justifies the means’ principle, is predicted to affect the link between morality and leadership. Analyses of multi-source, multi-method data comprised case studies, simulations, role-playing exercises, and survey questionnaires were completed by 70 managers in a large public agency, and provide support for our hypotheses. Our findings reveal that Machiavellianism offsets the positive relationship between moral reasoning and authentic leadership. Specifically, we show that when Machiavellianism is high, both the positive relationship between moral reasoning and authentic leadership, and the positive relationship between authentic leadership and moral actions, are reversed. This study offers new insights on the underlying processes contributing to the emergence of leaders’ authentic behavior and moral action. Implications for the moral development of leaders, and directions for improved leadership training are provided.