Strategic Manipulation of Preference Information in Multi-Criteria Group Decision Methods

When group decisions involve the allocation of resources to group members, the members might have an incentive to strategically distort any information they provide in order to increase their share of resources. The paper compares several multi-criteria group decision methods with respect to this problem. We show, using a computational model, that strategic manipulation of preference information is possible in all of the methods considered, although to a different extent. Furthermore, when the solution a method generates under correct information is not Pareto-optimal, manipulation attempts might even improve the efficiency of outcomes.     

Preference Structures of Negotiators and Negotiation Outcomes

Using a database collected during about 3,000 negotiation experiments, this paper analyzes how specific features of utility functions of negotiators, like attribute weights, monotonicity and convexity of marginal utility functions, are reflected in the outcomes of negotiations. We find that compromise values are to a considerable extent influenced by the utility functions. There are also significant impacts on the likelihood of achieving a compromise, but the model fit is considerably less than for compromise values.     

Vor der Europawahl: Wie lässt sich die demokratische Legitimität verbessern?

The EU suffers from a democratic deficit that arises not first and foremost from a lack of institutional competencies, but rather from the double weakness of politics vis-à-vis economics and law at the European level. This “functional democratic deficit” renders the existing mechanisms of democratic control increasingly ineffective. Especially for its citizens, a politically integrated Europen Union might be difficult to grasp, and it may only be reached gradually through a continuous process of dynamic development; however, “United in Diversity” seems to be the better alternative, and not only for historical reasons. The direct elections for the European Parliament, although not denying deficits of democratic legitimacy and participation at the Union level, should not be underestimated in their legitimising influence for the Union as an associated structure of members without obvious hierarchies.     

Rezensionen

Ohne Zusammenfassung     

Empowerment of SME websites—Development of a web-empowerment scale and preliminary evidence

The emergence of the Internet and the World Wide Web has been argued to fundamentally reshape economic conditions and business practices of firms. It is seen as a promoter of rapid internationalisation of companies, particularly small and medium enterprises. In the aftermath of the burst of the electronic-bubble business practitioners and academics look with scrutiny on successful web-strategies, relevant dimensions of online-success and try to identify viable website practices which enable long-term rewards. The literature offers a rather patchy pattern for successful web-strategies and consumer perspectives on what is expected from websites is hardly available. Within this paper, we introduce the dimension “web-empowerment”. This is a multidimensional construct comprising of consumer views on various dimensions of relevant and successful websites. The web-empowerment scale is based on a large sample from Austria, and developed according to scale development procedures. The relevance of this construct and practical issues in the context of a cross-country sample of SME’s is empirically examined. The paper concludes by offering implications for SME practitioners and for research.     

Orthogonalized factors and systematic risk decomposition

In the context of linear multi-factor models, this study proposes an egalitarian, optimal and unique procedure to find orthogonalized factors, which also facilitates the decomposition of the coefficient of determination. Importantly, the new risk factors may diverge significantly from the original ones. The decomposition of risk allows one to explicitly examine the impact of individual factors on the return variation of risky assets, which provides discriminative power for factor selection. The procedure is experimentally robust even for small samples. Empirically we find that even though, on average, approximately eighty (sixty-five) percent of style (industry) portfolios’ volatility is explained by the market and size factors, other factors such as value, momentum and contrarian still play an important role for certain portfolios. The components of systematic risk, while dynamic over time, generally exhibit negative correlation between market, on one side, and size, value, momentum and contrarian, on the other side.     

Procurement of logistics services and sustainable development in Europe: Fields of activity and empirical results

This paper strives to answer the general question; how far purchasers of logistics services take into account aspects of sustainable development. Modeled on the German Sustainable Development Strategy, which is based on the EU Sustainable Development plan, five fields of activity are defined: the reduction of transport intensity and emission, the reduction of land use, the choice of carrier under consideration of sustainable aspects, the permanent improvement of working conditions, and the enhancement of qualified employment. Then, propositions for purchasing companies of logistics services are developed, which contribute to safeguard ecological as well as social sustainability. In order to conduct an explorative study, a questionnaire was sent to 750 purchase and logistics managers. It was found that purchasing companies place high value on ecological and social aspects. But the perceived importance is not associated with purchasing companies' own contributions to logistics service providers' sustainable activities. Additionally, it was seen that purchasing companies exert only a minor influence on logistics service providers regarding ecologically and socially sustainable actions. A fundamental precondition for a sustainably oriented procurement of logistics services can be seen in the purchasing companies' awareness of the need for integrating sustainable aspects in economic decisions.     

THE NEW INSTITUTIONAL ECONOMICS – A DIFFERENT APPROACH TO ECONOMIC ANALYSIS

The initial objective of the paper is to describe the way in which the term ‘New Institutional Economics’ (NIE) emerged in the literature and became the designation for a new field concerned with the study of various analytical techniques designed for the exploration of institutional phenomena. It is then shown how some of the more important of these techniques, transaction‐cost economics, property‐rights analysis and contract theory, have been applied in two central lines of neoinstitutional thought – the Williamsonian and the Northian. Criticisms of these two disparate theoretical positions on the NIE are considered and assessed. Next, a brief review of some of the empirical literature is undertaken so that the explanatory powers of NIE themes can be gauged. Finally, the paper offers a few general remarks on the present state of the NIE and its possible influence on the further development of economics.