Enhanced Annuities – Produktinnovation als Lösungsstrategie für das Annuity Puzzle?

The private annuity markets are traditionally small even though annuity products have many favorable properties from a theoretical point of view. In this paper, the discussed approaches to the so-called annuity puzzle are examined and evaluated. In particular, adverse selection has been repeatedly held responsible for the annuity puzzle. Thus, it is investigated if enhanced annuities can eliminate or reduce problems on the annuity markets caused by adverse selection. It is shown by a modeling approach that – depending on the superior knowledge of the insured – a first-best-solution can be implemented by offering enhanced annuities.     

The effect of mass shootings on the demand for guns

Unfortunately, mass shootings are common occurrences in the United States. When one occurs, it makes national news, becomes fodder for the ongoing national gun debate among politicians and activists, and may impact the demand for guns through fears of violence and future gun regulation. We attempt to estimate the overall effect of mass shootings on gun demand in the United States and how this effect varies across the nation, time, and other factors. Mass shootings are found to increase the national demand for firearms, with the effect lasting up to 2 months. Stronger effects are found in gun-heavy and/or Republican states but not necessarily near where the shooting occurred. Demand spikes are also larger if the shooter was White, female, or if the event took place in a rural setting, but seemingly less related to the specific venue, the shooter's age or known mental health, the number of fatalities, or weapon characteristics.     

Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore

The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evolution. We argue that networks – both local and non-local – play an important role in the development of cluster. We propose a non-linear relationship between cluster evolution phases and the type of network ties most prominent. Our study also outlines the role that embedding, expansion, and extension of ties plays in transitioning cluster from one phase to the other. The consideration of non-local ties is rather nascent in the cluster literature and promises to enhance the understanding of how clusters develop at both levels – policy as well as firm.     

Shareholder Value: Principles, Declarations, and Actions

This paper is about shareholder value. We examine whether welfare considerations justify that target and whether competitive markets force firms to pursue it. We also argue that shareholder value is strictly an ill-defined goal. We report evidence from a large sample of listed firms across the world that many managers do not even mention shareholders in their mission statements. However, firms that do disclose a commitment to shareholders seem to perform better in terms of stock price and operating performance.     

Guidelines for choosing between multi-item and single-item scales for construct measurement: a predictive validity perspective

Establishing predictive validity of measures is a major concern in marketing research. This paper investigates the conditions favoring the use of single items versus multi-item scales in terms of predictive validity. A series of complementary studies reveals that the predictive validity of single items varies considerably across different (concrete) constructs and stimuli objects. In an attempt to explain the observed instability, a comprehensive simulation study is conducted aimed at identifying the influence of different factors on the predictive validity of single versus multi-item measures. These include the average inter-item correlations in the predictor and criterion constructs, the number of items measuring these constructs, as well as the correlation patterns of multiple and single items between the predictor and criterion constructs. The simulation results show that, under most conditions typically encountered in practical applications, multi-item scales clearly outperform single items in terms of predictive validity. Only under very specific conditions do single items perform equally well as multi-item scales. Therefore, the use of single-item measures in empirical research should be approached with caution, and the use of such measures should be limited to special circumstances.     

Chasing noise

We present a simple model in which rational but uninformed traders occasionally chase noise as if it were information, thereby amplifying sentiment shocks and moving prices away from fundamental values. In the model, noise traders can have an impact on market equilibrium disproportionate to their size in the market. The model offers a partial explanation for the surprisingly low market price of financial risk in the spring of 2007.     

A resource-based view of human resource management and organizational capabilities development

The aim of this research work was to analyse the role of human resource management in the development of organizational capabilities and its influence on the firm's performance from a resource-based view. Our results, from empirical research on a nation-wide sample of Spanish savings banks, suggest that human resource decisions, integrated in a human resource system, have an important influence on the development of organizational capabilities and on the firm's performance.     

A formal model of theory choice in science

Summary. Since the work of Thomas Kuhn, the role of social factors in the scientific enterprise has been a major concern in the philosophy and history of science. In particular, conformity effects among scientists have been used to question whether science naturally progresses over time. Using neoclassical economic reasoning, this paper develops a formal model of scientific theory choice which incorporates social factors. Our results demonstrate that the influence of social factors on scientific progress is more complex than previously thought. The patterns of theory choice predicted by the model seem consistent with historical episodes of theory change. Received: April 8, 1997; revised version: April 30, 1998