A framework for risk criteria for critical infrastructures: fundamentals and case studies in the Netherlands

Critical infrastructures are complex societal systems. For that reason, risk criteria for critical infrastructures are also ‘part’ of the risk criteria for complex societal systems. The questions to be resolved are: (1) are the societal risk criteria of complex systems defined and quantifiable; and (2) is it known how the risk criteria of critical infrastructures relate to the risk criteria of the complex system as a whole. In other words, what certainty is there that the risk criteria of critical infrastructures meet the risk criteria of complex systems as a whole. A complex system in this respect may be a society as a whole, e.g. a nation.     

ICT platforms and regulatory concerns in Europe

The rise of platforms in ICT markets invites a reappraisal of regulatory frameworks and practices. As platforms originating in entirely different sectors increasingly compete directly against each other, regulators ought to address platform competition issues regardless of their sector of origin, and taking into account the specificities of two-sided or multi-sided market business models. This paper identifies different types of such business models in ICT markets. It offers an exploration of a number of specific concerns that may arise related to specific platform types, and points at a number of instruments available to regulators to address these concerns.     

Services Markets and the Economics of Social Interaction

There is symbolically transmitted personal and cultural meaning involved in interpersonal service transactions, for which economic explanation has to account. Eanguage, symbols and in terpretations are an important context for many ‘rational’ services. The market-dynamics of many advanced services in the post-industrial economy result from rational use of these symbols and interpretations in the course of strategic economic interaction. ‘Strategic services ‘expand into the social sphere of informal, ‘communicative’ action (the process of rationalisation). In order to account for these aspects, a platform for interdisciplinary services-research has to be created. We can draw in this respect upon ideas of Habermas.     

Simultaneous search with heterogeneous firms and ex post competition

In this paper we study the allocation of workers over high and low productivity firms in a labor market with coordination frictions. Specifically, we consider a search model where workers can apply to high and or low productivity firms. Firms that compete for the same candidate can increase their wage offers as often as they like. We show that if workers apply to two jobs, there is a unique symmetric equilibrium where workers mix between sending both applications to the high and sending both to the low productivity sector. But, efficiency requires that they apply to both sectors because a higher matching rate in the high-productivity sector can then be realized with fewer applications (and consequently fewer coordination frictions) if workers always accept the offer of the most productive firm. However, in the market the worker's payoff is determined by how much the firm with the second highest productivity is willing to bid. This is what prevents them from applying to both sectors. For many configurations, the equilibrium outcomes are the same under directed and random search so our results are not driven by random search. We discuss the effects of increasing the number of applications and show that our results can easily be generalized to N-firms.     

Credit to and in acceptance sampling

A simple method of controlling average outgoing quality is discussed. It is based on a straightforward definition of credit and proved to be valid under a quite tractable condition. The special case of acceptance sampling by attributes is studied in detail.     

How do dimensions of proximity relate to the outcomes of collaboration? A survey of knowledge-intensive networks in the Dutch water sector

There is a growing body of literature on the importance of proximity for innovation and other knowledge-related outcomes. We examine the impact of geographical, social, organisational, and cognitive proximity for a heterogeneous population, including people from academia, knowledge institutes, industry, and government. We analyse data on 1020 ego–alter relationships, derived from a survey among water professionals in the Netherlands. The use of survey data allows for more refined indicators of proximity and more diverse collaboration outcomes than those common in the literature. Social and cognitive proximity have a positive effect for all outcomes examined. Geographical and organisational proximity have a negative effect on hard (tangible) outcomes yet a weak positive (if any) effect on soft (intangible) outcomes. We do not find evidence for the suggestions in the conceptual literature that proximity follows an inverted U-curve where most outcomes are achieved in relations with some but not too much proximity.     

Does advertising spending really work? The intermediate role of analysts in the impact of advertising on firm value

Both managers and investors are increasingly concerned with the impact of advertising spending on shareholder returns. This study investigates the analyst-based processes by which advertising may create firm value. Using a large longitudinal dataset with 1,052 firms over 20 years, we find that firms decreasing from the top 20% to the bottom 20% of advertising spending group when compared to all industry competitors would experience a drop of abnormal return by 4.08% in 1 year and a cumulative total of 81.6% in 20 years. Also, analyst activities partially mediate the impact of advertising on firm return and risk. These findings indicate that analysts may act to externally validate the business logic underlying the advertising expense. The more analysts factor in firm advertising spending and reflect it in their earnings forecasts, the more likely the benefits of advertising are channeled into firm value. The results bridge research interests across marketing, accounting, and finance disciplines and help managers understand how product and financial markets are united. Main Street could better align with Wall Street via corporate disclosure of advertising spending to equity analysts.     

What India Can Learn from China and Vice Versa

A partial convergence of the Indian and Chinese growth models is likely. Judging from China's experience, sustaining India's impressive economic performance of recent years will require a significant further opening of its economy (externally and internally), higher savings and investments, especially in physical infrastructure and social services, and stronger labor absorption in the modern sectors. The base of India's current economic boom - software, IT-related services and high-end manufacturing - is narrow compared to China's. Poor performance in agriculture is responsible for still significant poverty in many parts of rural India. Bilateral India-China ties, including trade and investment, are increasing rapidly and could help to bring about the structural economic changes India needs. Through its exports to China, India is becoming linked to global supply chains centered on China. The notion that India-China relations are, or are bound to become, fundamentally antagonistic, held by many in the USA, is mistaken and potentially dangerous.     

Foreign Exchange Market Contagion in the Asian Crisis: A Regression-Based Approach

This paper investigates whether, during the Asian crisis, contagion occurred from Thailand to the other crisis countries through the foreign exchange market, and, if so, determines the contribution of this contagion to the crisis. More specifically, we examine whether the effect of the exchange market pressure (EMP) of Thailand, the origin of the crisis, on the EMP of four Asian crisis countries increased during the crisis. Instead of measuring contagion by the commonly used correlation coefficients, we apply regression analysis. To control for the impact of macroeconomic fundamentals, we construct a time-varying indicator measuring the fragility of each economy. Additionally, we control for spillovers and common external shocks. We find evidence of contagion from Thailand to Indonesia and Malaysia, with 13 and 21 percent of the pressure on the respective currencies attributable to that contagion. For Korea and the Philippines there is no evidence of contagion from Thailand. JEL no. F30, F31, G15