The declining price anomaly in sequential auctions of identical commodities with asymmetric bidders: empirical evidence from the Nephrops norvegicus market in France

The declining price anomaly for sequential sales of identical commodities challenges auction theory which predicts constant prices within a day. Among other hypotheses explaining the phenomenon stands the dual value of goods including a risk premium in early transactions. We consider that asymmetric bidder groups (primary processors, fishmongers, supermarket buyers) and seasonal landings may also affect the daily price pattern. On the basis of stylized facts and several panel data models, this hypothesis is tested on a Redundant French fish market of homogenous goods (live Nephrops norvegicus) when the time effects (high and low seasons, weekday effect) affecting the demand and supply conditions are taken into consideration. All models support the evidence of a daily declining pattern, but not to the same extent for all days and seasons, and all categories of buyers. Our results also show an earlier and steeper decline on periods of lower supply (or higher demand), supporting the theoretical hypothesis of risk‐averse behaviors of bidders, especially fishmongers with respect to primary processors and supermarkets.     

North South Trade and Supervision of the Social Quality of Goods from the South

This text presents a duopolistic North/South model where the Southern firm can choose to produce ethically or not and to lie or not about the real social quality of its production. The goods from the South are assumed to be ethically unsound (i.e. dubious social content) while those from the North ethically sound. We then study the consequences of monitoring ethics in the North on the nature (fair or unfair) and the volume of North–South trade. On the one hand, an increase in the probability of inspection of goods from the South leads to an increase in imports to the North from the South. This result goes against the idea that this kind of social monitoring is akin to a protectionist measure. On the other hand, if monitoring is large enough that leads the Southern firm to produce ethically and the trade to be fair.     

MitraClip therapy in mitral regurgitation: a Markov model for the cost-effectiveness of a new therapeutic option

Introduction Mitral regurgitation is a heart condition resulting from blood flowing from the left ventricle towards the left atrium, increasing the risk of heart failure and mortality. While surgery can greatly reduce these risks, some patients are not eligible, resulting in medication being their only therapeutic alternative. The MitraClip (Abbot Vascular) is a medical device that is percutaneously implanted and designed to eliminate leaking of the mitral valve.

Methods The efficacy of the MitraClip strategy vs medical management was assessed using a 4-state Markov model based on the mitral regurgitation grade (mitral regurgitation grade 0, I/II, and III/IV, and death). At each 1-month cycle, patients were or were not hospitalized. The model analyzed a fictional population of 1000 patients over a 5-year period from a national Health Insurance perspective. The primary end-point was the number of deaths avoided. Data from the EVEREST II High Risk Study patients were used along with a literature review.

Results At 5 years, among the 1000 patients, 276 deaths were found to be avoidable with the MitraClip strategy. The incremental cost-effectiveness ratio (ICER) was €93,363 per death avoided. The annual ICER was calculated to take into consideration excess costs resulting from the MitraClip over the first year (€29,984 vs €8557 for the reference strategy) and the reduction of costs in following years (€3122 for MitraClip vs €8557 for reference strategy). Thus, the mean ICER was calculated to be €20,720 per death avoided.

Conclusion The MitraClip is a novel alternative therapy for mitral insufficiency in patients ineligible for surgery that may offer a medico-economic advantage.     

Partial Hedging for Equity-Linked Products Using Risk-Minimizing Strategies

In this article, we consider the pricing and hedging of equity-indexed annuities (EIAs) using local risk-minimizing strategies as well as evaluating the capital requirement for these products. Since these products involve mortality as well as financial risks, we integrate mortality risk and propose partial hedging strategies that protect the insurer based on risk measures. The framework we present makes use of sequential local risk-minimizing strategies to take into account all intermediate requirements. To demonstrate the flexibility of this framework we present numerical examples featuring point-to-point EIAs with a two-state regime-switching equity model.     

Revitalising young workers' union participation: a comparative analysis of two organisations in Quebec (Canada)

This paper examines how two trade union organisations in Quebec (Canada) manage to integrate issues of concern to young members (30 years old and under) and spur changes in their agenda, structures and practices. Between 2009 and 2014, 25 interviews were conducted in these two organisations, while 41 focus group discussions were held with more than 430 members. We contend that improving young members' feeling of belonging to the union, enhancing internal network density and implementing more participatory forms of democracy are key elements when it comes to increasing their participation. Our findings reveal that unions must dare to integrate young members, without seeking to mould them to fit with the values and practices they deem to be outdated. It means not only training young members to carry the necessary message to their peers but also allowing them to challenge the strategic orientations suggested therein.     

Front-line responses to customer orientation programmes: a theoretical and empirical analysis

Programmes designed to strengthen customer orientation among front-line service workers represent one of the most common forms of culture change initiatives within service organizations. Despite their importance to contemporary management theory and practice, we know relatively little about how employees react to interventions of this kind, and why they react as they do. The paper aims to address this gap in the literature. It does this through an analysis of front line reactions to a major customer care initiative in one of the largest supermarket chains in the UK. Using data from a large-scale employee survey carried out in seven stores, we first propose a general typology of employee responses to customer care programmes. We then examine some typical employee profiles associated with the main types of response. The analysis is placed within a wider theoretical context consisting of a critical overview of the main theories which might help explain the nature of general and individual reactions to culture change programmes. To this end, we address and draw upon a variety of literatures and debates linked to various aspects of organization and management, industrial psychology, training and development and critical discourse analysis.     

A New Premium Principle for Equity‐Indexed Annuities

In this article, we introduce a premium principle for equity‐indexed annuities (EIAs). Traditional actuarial loadings that protect insurance companies against risks cannot be extended to the valuation of EIAs since these products are embedded with various financial guarantees. We proposed a loaded premium that protects the issuers against the financial and mortality risks. We first obtain the fair premium based on a fair value of the equity‐linked contract using arbitrage‐free theory. Assuming a specific risk level for hedging errors, we obtain a new participation rate based on a security loading. A detailed numerical analysis is performed for a point‐to‐point EIA.     

Capital Structure and Debt Priority

We study a defaultable firm's debt priority structure in a simple structural model where the firm issues senior and junior bonds and is subject to both liquidity and solvency risks. Assuming that the absolute priority rule prevails and that liquidation is immediate upon default, we determine the firm's interior optimal priority structure along with its optimal capital structure. We also obtain closed‐form solutions for the market values of the firm's debt and equity. We find that the magnitude of the spread differential between junior and senior bond yields is positively, but not linearly related to the total debt level and the riskiness of assets. Finally, we provide an in‐depth analysis of probabilities of default and the term structure of credit spreads.