Accounting for optimism and pessimism in expected utility

We provide a preference foundation for decision under risk resulting in a model where probability weighting is linear as long as the corresponding probabilities are not extreme (i.e., 0 or 1). This way, most of the elegance and mathematical tractability of expected utility is maintained and also much of its normative foundation. Yet, the new model can accommodate the extreme sensitivity towards changes from 0 to almost impossible and from almost certain to 1 that has widely been documented in the experimental literature. The model can be viewed as “expected utility with the best and worst in mind” as suggested by Chateauneuf, Eichberger and Grant (Chateauneuf, Alain, Eichberger, Jürgen, Grant, Simon, 2007. Choice under uncertainty with the best and worst in mind: NEO-Additive capacities. Journal of Economic Theory 137, 538–567) or, following our preference foundation, interpreted as “expected utility with consistent optimism and pessimism”.     

Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003

The Global Entrepreneurship Monitor research program was designed as a comprehensive assessment of the role of entrepreneurship in national economic growth. The conceptual model reflected in a wide range of factors associated with national variations in entrepreneurial activity and the major contextual features. Empirical tests of the many relationships in the model required four major data collection activities: adult population surveys, unstructured interviews with national experts, self-administered questionnaires completed by national experts, and assembly of relevant standardized measures from existing cross-national data sets. Adult population surveys were implemented to identify those entrepreneurially active, which required a set of precise criteria and careful processing to ensure harmonized counts and prevalence rates across 41 countries. Existing evidence on measures of reliability indicates that the measures met contemporary standards and the project was cost-effective.     

Technik für ein langes Leben

Megatrend Ambient Assisted Living - Im Jahr 2035 wird in Deutschland jeder dritte Mensch ?lter sein als 60 Jahre. Die Nachfrage nach Dienstleistungen und unterstützenden Systemen wird steigen. Technische Assistenzsysteme für Pflegende, Pflegebedürftige und deren Angeh?rige sollen das Leben im Alter sicherer und bequemer machen.     

Evaluating,Comparing, Monitoring,and Improving Representativeness of Survey Response Through R‐Indicators and Partial R‐Indicators

Non‐response is a common source of error in many surveys. Because surveys often are costly instruments, quality‐cost trade‐offs play a continuing role in the design and analysis of surveys. The advances of telephone, computers, and Internet all had and still have considerable impact on the design of surveys. Recently, a strong focus on methods for survey data collection monitoring and tailoring has emerged as a new paradigm to efficiently reduce non‐response error. Paradata and adaptive survey designs are key words in these new developments. Prerequisites to evaluating, comparing, monitoring, and improving quality of survey response are a conceptual framework for representative survey response, indicators to measure deviations thereof, and indicators to identify subpopulations that need increased effort. In this paper, we present an overview of representativeness indicators or R‐indicators that are fit for these purposes. We give several examples and provide guidelines for their use in practice.     

Market microstructure effects on volatility at the TAIFEX

This study examines whether changes in the frequency of market clearing or changes in trading hours on competing exchanges that use different auction systems affect the volatility of futures prices. In particular, this study exploits a natural experiment in the frequency of market clearing of stock index futures contracts traded on the Taiwan Futures Exchange (TAIFEX) to assess whether successive increases in the frequency of market clearing are associated with changes in the volatility of futures prices. The impact of changes in the trading hours on the TAIFEX and on the competing Singapore Exchange (SGX) where a similar Taiwanese stock index futures contract trades under a continuous auction market regime is also examined. The evidence for the impact of an increase in the frequency of market clearing on volatility is mixed. However, the introduction of simultaneous opening times for the TAIFEX (which batches orders at the open) and the SGX (which does not) is associated with a significant reduction in the volatility in SGX Taiwanese stock index futures prices. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27:1219–1243, 2007     

The private costs and benefits of environmental self‐regulation: which firms have most to gain?

A (correctly designed) voluntary self‐regulatory scheme can – in theory – improve social welfare if the benefits to society outweigh the costs. However, businesses may not choose to participate in a voluntary scheme if their private benefits do not outweigh their costs; external benefits are irrelevant to the profit maximizing firm. This paper reviews literature on self‐regulation, primarily focusing on factors that influence the net private benefits of environmental programmes. The literature is summarized in a manner that allows one to identify characteristics of firms that are most likely to accrue positive net benefit from environmental programmes, and to determine ways in which self‐regulatory bodies might raise those benefits, thereby increasing participation rates. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

A Theoretical Model of the Effects of Public Funding on Saving Decisions by Charitable Nonprofit Service Providers

Why do charitable nonprofit, service‐providing organizations save? What are the tradeoffs between using income to build up cash reserves and serving more clients? Saving may generate income, protect the organization against a drop in donations, and increase the organization's chances of survival. Saving, though, may affect the likelihood that nonprofits receive private and public funding. We model the relationship among private and public income, economic conditions, and nonprofit savings. We find that anticipation of government help during difficult times tends to reduce the amount of saving done by the nonprofit. This effect is strengthened if government officials view unspent donations as indicative of a lack of need. Both these effects provide a strong incentive for nonprofits to spend on current consumption rather than to save for the future, and thus to increase the burden on the public purse.