A network experiment in continuous time: The influence of link costs

In recent work on non-cooperative network formation star-shaped networks play an important role. In a particular theoretical model of Bala and Goyal (2000) center-sponsored stars are the only strict Nash networks. In testing this theoretical model, Falk and Kosfeld (2003) do not find experimental evidence that players select the center-sponsored star. Based on a slight modification of Bala and Goyal’s model, we design a network formation experiment in which, depending on link costs, periphery-sponsored stars and the empty network are the only strict Nash networks. We observe that almost all groups not only reach a strict Nash network once but also switch the center player in periphery-sponsored stars several times. The main innovation in our experiment is to use a continuous time framework which we believe to be a more realistic setting to study behavior in network formation situations and which makes coordination on stars much easier than simultaneous strategy adaptation in discrete time. Electronic Supplementary Material Supplementary material is available in the online version of this article at http://dx.doi.org/10.1007/s10683-006-9125-1. JEL Classification C72 · C92 · D81     

PAALiativ: Technik als Chance?

Assistenztechnologie im Wohnumfeld — Die Terminalphase des Lebens in h?uslicher Umgebung verbringen zu k?nnen entspricht dem Wunsch der meisten Menschen. In Oldenburg startete mit PAALiativ ein Projekt, mit dem exemplarisch nach M?glichkeiten der technischen Unterstützung für ein selbstbestimmtes Leben Schwerstkranker gesucht wird.     

Land use and the state of the natural environment

Land use and land cover are important determinants of the state of the natural environment. As a result, measures of land use and land cover change have been widely used as indicators of environmental condition and quality. This review explores the range of measures that have been applied in the UK at national, regional and local scales, and their sensitivity to particular drivers of change. The extent to which these indicators are important properties in themselves or are surrogates for wider environmental qualities is considered.The discussion focuses on the evolving frameworks used to analyse the relationships between land use and the state of the natural environment. The limitations and strengths of the DPSIR reporting and analytical framework are explored. Recent approaches to the assessment of the impacts of future land use change on the natural environment using model-based scenario methods are examined, and the need to develop new types of aggregate measure of land use function is identified. There is also a pressing need to link assessments of trends to the analysis of sustainability thresholds or limits. It is concluded that the concept of a socio-ecological system offers a more fruitful approach to the analysis of the relationships between land use and the state of the natural environment than the simplistic cause–effect models that have been used in the past.     

Anticipatory anthropology and world peace: a view from 2050

Norman Geras has written a searing indictment of current first-world policies related to our roles in keeping the world peace and our abilities to respond to human rights violations. This paper is partly a response to Geras's book, The contract of mutual indifference: politics since the Holocaust. Thus, genocide is the peace issue I will discuss here. I will use Bosnia, because I have had two occasions to work there and have talked with Bosnians from all walks of life as well as the humanitarian agents there to help them. Second, the paper will define the character of a fully responsive anticipatory anthropology and I will sketch out the nature of some possible peace futures. A third main purpose of this paper is to contribute to the development of the social science of peace.     

Getting Shut Out of the International Capital Markets: It Doesn't Take Much*

We use a simple model of international lending to show that an emerging market borrower who might default can be shut out of international capital markets without warning. A modest haircut on obligations, for example, can shut down lending.     

Evolution of networks—an experimental analysis

It is the main aim of our paper to study network formation in experimental setups in discrete and continuous time. Our design is inspired by the theoretical model on network formation by Bala and Goyal (Econometrica, 68(5): 1181–1229, 2000) as well as the experiments by Callander and Plott (J. Public Econ., 89: 1469–1495, 2005) and Falk and Kosfeld (IEW Working Paper, University of Zürich, Zürich, Switzerland, No. 146, 2003). In particular, we analyze the role of star-shaped networks which are strict Nash-equilibria of the corresponding network formation game. Our experimental results show that strict Nash networks prove to be a good indicator for predicting network formation, particularly in continuous time. In explaining our results, it turns out that, among others, the complexity in coordinating on stars, the inequity aversion against unequal payoff distribution in the network, and the groups’ degrees of activity are the most important determinants for the formation of strict Nash networks.      

A cross-national comparison and taxonomy of DEA-based hospital efficiency studies

This paper provides the first taxonomy of hospital efficiency studies that uses data envelopment analysis (DEA) and related techniques. We provide a systematic review of 79 such studies published from 1984–2004 that represent 12 countries. Only studies written in English are considered. A cross-national comparison reveals significant differences with respect to important study characteristics such as type of DEA model selected and choice of input and output categories. Compared with US studies, European efforts are more likely to measure allocative rather than technical efficiency, use longitudinal data, and use fewer observations. We take a longitudinal perspective that illustrates the life cycle of this research, as well as its diffusion across disciplines. Our taxonomy can be used by policy makers and researchers to review past, and assemble new, DEA models.     

Do Japanese MNCs use expatriates to contain risk in Asian host countries?

We investigate the impact of host-country risk on the expatriation strategies of multinational firms, using data on Japanese subsidiary firms in manufacturing industries in 13 host countries in Asia. We find that country risk is negatively correlated with the degree of expatriation and that, rather than host-country risk, firm-specific factors (particularly capital intensity, ownership share of parent firms in subsidiaries and the age of the venture) explain most of the variation in the degree to which subsidiaries rely on Japanese expatriates. Contrary to previous studies, the capital intensity of production is a key explanatory firm-specific variable that correlates positively with the degree of expatriation. Japanese multinational companies do not rely on expatria127=tes to off-set host-country risk, but to mitigate risk to parent investment in subsidiaries.     

Does Multinationality Affect the Propensity to Innovate? An Analysis of the Third UK Community Innovation Survey

The paper is developed at the interface between internationalization and innovation studies. It utilizes data on innovation from the UK Community Innovation Surveys 3 and 2 (CIS3 and CIS2) to assess whether multinationality affects the innovation propensity of surveyed enterprises. The indicators of innovation propensity—our dependent variables—are taken from the following CIS sets of variables: innovation outputs; innovation inputs; innovation outcomes (patent applications); innovation continuity/sustainability. The latter element is considered to be the ability of the enterprise to sustain innovation over a long period of time and the relevant variable is derived from both CIS3 and 2 data. This allows the paper to introduce dynamic elements into the analysis. Four hypotheses are developed and tested. Our main hypothesis states that multinationality per se (i.e. being part of a multinational company network) affects the propensity to innovate. We also test for three sub‐hypotheses related to characteristics of multinationality: belonging to a group vs being independent; degree of multinationality; being part of a foreign vs domestic multinational. The results show that all those CIS enterprises that belong to a multinational corporation—whether UK or foreign—are more likely to exhibit innovation propensity; they are also more likely to engage in innovation activities on a continuous basis.