Integrating art as a trans‐boundary element in a radical innovation framework

Companies have learned that radical innovations (RIs) are a prerequisite to grow organically. However, companies struggle to identify and introduce RIs, as their inherent high uncertainties and novelty challenge established organisations and management routines. To address the first challenge, companies need to take a holistic approach and design a trans‐boundary environment of creativity, trans‐disciplinary and entrepreneurial spirit. This environment attracts and retains visionary people, fosters generation of new opportunities and cultivates adaptability. By adapting evaluation metrics for RI, setting up flexible processes, and promoting trans‐disciplinary exchange, the second challenge can be addressed. Increased research has concentrated on several aspects of RI lately, but so far a combining framework is missing. Our paper bridges this gap by developing an improved theoretical framework, enhancing the existing literature and introducing art as a method to advance trans‐disciplinary interchange. In a case‐study approach, we have applied our framework to the research and development department of Vodafone Research and Development, Germany, as they integrate art methodically in their research and development process. Analysing their RI capabilities, we identify the trans‐disciplinary exchange with artists as a novel initiator and driver of RI, which has not yet been adequately considered.     

Debating liberalism: Walter Eucken,F. A. Hayek and the early history of the Mont Pèlerin Society

The Review of Austrian Economics - Walter Eucken is mostly known for his impact on establishing the Social Market Economy in post-war Germany. In this paper we identify how Eucken was highly...     

Linking customisation of ERP systems to support effort: an empirical study

The amount of customisation to an enterprise resource planning (ERP) system has always been a major concern in the context of the implementation. This article focuses on the phase of maintenance and presents an empirical study about the relationship between the amount of customising and the resulting support effort. We establish a structural equation modelling model that explains support effort using customisation effort, organisational characteristics and scope of implementation. The findings using data from an ERP provider show that there is a statistically significant effect: with an increasing amount of customisation, the quantity of telephone calls to support increases, as well as the duration of each call.     

Uncertainty in the Austrian Theory of Capital

This paper is based on the traditional Austrian Theory of Capital which deals with expected values of future returns of investments over various periods of time. The longer the time period that elapses between the beginning of a production process and its end, the higher the (expected) productivity must be due to positive time preferences of individuals. This paper focuses on the uncertainty of future returns and on uncertainty preferences, instead. Based on the Hayekian idea of the dispersion of knowledge in society, it will be shown that there is a systematic relationship between the structure of capital and uncertainty. This result will be derived for a production process characterized by complete vertical integration and one which is not completely vertically integrated. The distinction between these two settings is crucial, if one accepts the distinction between an individual and a social period of production and the planning horizon which are introduced in this paper.     

A note on allocations attainable through nash equilibria

This note reexamines the issue of attaining efficient resource allocations as noncooperative equilibria of a strategic game. Contrary to the spirit of earlier work on this subject, it is shown that there is an entire class of choice rules, aside from the Walrasian one, which are implementable in Nash equilibrium stategies.     

The graph of Lindahl correspondence as the unique von Neumann-Morgenstern abstract stable set

In this paper, we consider a continuum economy with a finite number of types of agent, and several private and public goods. The main result of the paper is that the graph of the equal-treatment Lindahl equilibria mapping is the unique abstract stable set with respect to the dominance relation in economies with crowding effects introduced by Vasil'ev et al. in 1995. The external stability of this mapping implies that, for any equal-treatment allocation x in , that is not a Lindahl equilibrium, there exists a subeconomy of such that one of its equal-treatment Lindahl allocations blocks x. This result is a counterpart of the theorem of Mas-Colell for Aumann's atomless market with private goods.     

Nearly exact sample size calculation for powerful non‐randomized tests for differences between binomial proportions

In the case of two independent samples, it turns out that among the procedures taken in consideration, BOSCHLOO'S technique of raising the nominal level in the standard conditional test as far as admissible performs best in terms of power against almost all alternatives. The computational burden entailed in exact sample size calculation is comparatively modest for both the uniformly most powerful unbiased randomized and the conservative non‐randomized version of the exact Fisher‐type test. Computing these values yields a pair of bounds enclosing the exact sample size required for the Boschloo test, and it seems reasonable to replace the exact value with the middle of the corresponding interval. Comparisons between these mid‐N estimates and the fully exact sample sizes lead to the conclusion that the extra computational effort required for obtaining the latter is mostly dispensable. This holds also true in the case of paired binary data (McNemar setting). In the latter, the level‐corrected score test turns out to be almost as powerful as the randomized uniformly most powerful unbiased test and should be preferred to the McNemar–Boschloo test. The mid‐N rule provides a fairly tight upper bound to the exact sample size for the score test for paired proportions.     

Commodity price cycles and heterogeneous speculators: a STAR–GARCH model

We propose an empirical commodity market model with heterogeneous speculators. While the power of trend-extrapolating chartists is constant over time, the symmetric impact of stabilizing fundamentalists adjusts endogenously according to market circumstances: Using monthly data for various commodities such as cotton, sugar or zinc, our STAR–GARCH model indicates that their influence positively depends on the distance between the commodity price and its long-run equilibrium value. Fundamentalists seem to become more and more convinced that mean reversion will set in as the mispricing enlarges. Commodity price cycles may thus emerge due to the nonlinear interplay between different trader types. The paper represents the authors’ personal opinion and does not necessarily reflect the views of the Deutsche Bundesbank.     

Anonymous voting and minimal manipulability

We compare the manipulability of different choice rules by considering the number of manipulable profiles. We establish the minimal number of such profiles for tops-only, anonymous, and surjective choice rules, and show that this number is attained by unanimity rules with status quo.