The comparative statics of cumulative distribution function changes for the class of risk averse agents

We examine the connection between Walrasian equilibria of a limit economy (with infinitesimal firms) and the noncooperative (Cournot) equilibria of approximating finite economies (with significant firms). Following earlier work of Novshek and Sonnenschein we allow for set-up cost and permit a minimal form of mixed strategies. We depart from them by requiring that the aggregate production set exhibits some degree (however small) of decreasing returns. Contrasting with their results, it is shown that a (regular) Walrasian equilibrium of a limit economy can always be approximated by a sequence of noncooperative equilibria for the tail of the approximating (finite) economies. Thus, there is a surprising qualitative discontinuity when one passes from the Novshek-Sonnenschein case of aggregate constant returns to scale of the decreasing returns case of this paper.     

How to Construct a Random Probability Measure

This article presents an overview of several constructive methods for generating random probability measures. Applications of random probability measures include Bayesian statistics, average optimal control problems, average error bounds for numerical equation solving methods, and models for random distributions of mass in space.     

HRD in multinationals: the global/local mix

This article is concerned with how MNCs (multinational corporations) differ from indigenous organisations in relation to their human resource development (HRD) practices, and whether this relationship changes across countries. We question whether local isomorphism is apparent in the HRD practices of MNCs, or whether MNCs share more in common with their counterparts in other countries. A series of hypotheses are put forward and tested, using survey data from 424 multinational and 259 indigenous organisations based in the UK and Ireland. The results suggest a hybrid form of localisation, where MNCs adapt their practices to accommodate national differences, but that these adaptations do not reflect convergence to domestic practice. The results also indicate that MNCs are selective in the HRD practices that are adapted. Evidence from this study indicates that country differences in career traditions and labour market skill needs are key drivers in the localisation of associated HRD practice. In contrast, MNCs, irrespective of national context, adopt comparable systematic training frameworks, ie training‐need identification, evaluation and delivery.     

Developing leaders rather than managers for the global marketplace

The key to successfully competing in the global marketplace may be staffing key expatriate positions with accomplished /skilled leaders. Past research has focused on preparing managers to successfully expatriate to foreign assignment and repatriate back to the United States. The high failure rate and general lack of effectiveness of many expatriate managers may be attributed to not having a cultural match between the assignment and the leadership style of the expatriate. This article explains the complex issues associated with multicultural leadership and proposes a diagnostic leadership matrix based upon internal and external cultural constraints.     

Hidden risks of hedge accounting in financial institutions: A study of Franklin Savings Association

The hedge accounting standards for financial institutions stipulated in SFAS No. 80 impose ambiguous guidelines whose enforcement can produce detrimental effects on the financial condition of institutions. Combining these standards with the interpretive authority of regulatory agencies can subject institutions to regulatory risk-the risk of an adverse regulatory ruling resulting from disparate interpretations of the accounting standards. The accounting regulations specified in SFAS No. 80 permit financial institutions to defer derivative-contract losses over the life of the underlying asset or liability. If the hedge designation is misused, however, the capital position of the institution may potentially be misstated prior to maturity of the derivative contracts. Further, when a hedging program goes awry, the current hedge accounting standards may actually encourage the shift to what is actually a speculation program by permitting a larger asset base on which to “earn back” a portion of the hedging losses. Thus, institutional programs initially designed to mitigate interest-rate risk can instead become risk-increasing, separate profit centers. Events leading to the RTC conservatorship of Franklin Savings Association are used to illustrate the opportunities and regulatory threats inherent in hedge accounting. Subsequent analysis indicates that similar ordeals could be avoided by a clarification of hedge accounting standards, the consistent application of standards by regulators, or by increasing capital requirements for those institutions that use derivatives as separate profit centers as opposed to hedging risk exposures.     

What is a strategic acquisition? Decision modeling in support of foreclosed housing redevelopment

This paper describes and develops a model for calculating location-based strategic values of foreclosed properties considered for acquisition and redevelopment by community development corporations (CDCs). A property’s strategic value refers to its proximity to site-specific neighborhood amenities and disamenities (e.g. schools, public transit, distressed properties), given the relative importance of that proximity to CDC organizational and community objectives. We operationalize the concept of strategic value, and apply this concept to a salient public sector decision problem. Using data and value assessments from a CDC engaged in foreclosed housing redevelopment, we compute measures of strategic value for a set of acquisition candidates. We show that strategic values can differ in systematic ways depending on the types of amenities and disamenities identified as relevant for CDC acquisition decisions, the relative importance assigned to those amenities and disamenities, and the utility maximization objectives of the CDC. We conclude by proposing a multi-criteria decision model for foreclosed housing acquisition and redevelopment which incorporates a theory of residential housing impacts for which strategic value measures are a special case.     

A narrative networks approach to understanding coordination practices in emergency response

This paper examines coordination practices in emergency response by adopting a narrative networks approach (Pentland & Feldman, 2007). We apply this approach in the analysis of qualitative data collected in an empirical longitudinal study (2003–2006) of emergency response across a geographical region of Greece. We provide an in-depth narrative analysis of two different emergency incidents and the efforts to coordinate those. The paper concludes with the implications of using a narrative networks approach for understanding the temporal and situated nature of coordination, while placing emphasis on the performativity of coordination practices.