A note on plurality distortion in large committees

Simple plurality voting allows the somewhat surprising possibility that a majority of a committee or an electorate may prefer one of the defeated alternatives to the plurality winner. This paradox is distinct from Condorcet's paradox and has received less attention in the literature. Recently, however, the frequency of the Borda effect anticipated under different cultures has been computed and some empirical results have also been reported. Here results are obtained for both impartial and partial cultures using a class of Polya urn models. Emphasis is on asymptotic investigations and results valid for large committees.     

Genetic risk assessment from an ethical point of view

This contribution provides analyses of four ethically problematic issues in genetic risk assessment and management. First, should we require a positive risk-benefit balance for each concerned individual, or is it sufficient that the total sum of benefits outweighs the total sum of risks? Secondly, should sensitive groups have special protection, and in that case with what types of measures? Thirdly, what types of measures should be taken to protect against the risks associated with teratogenic, embryotoxic and foetotoxic agents? Fourthly, how should we deal with the new issues relating to equity and to group-based risk assessment that genomic medicine gives rise to?     

Same but different? Similarities and fundamental differences of informal social networks in China (<Emphasis Type="Italic">guanxi</Emphasis>) and Korea (<Emphasis Type="Italic">yongo</Emphasis>)

This research reports on the similarities and distinctive differences between informal social networks in China (guanxi) and Korea (yongo). Within an analytical framework derived from social capital and institutional theory, the structural forms and characteristics of both network forms are compared. Although we observe some similarities, surprisingly, the two networks show several fundamental differences. Both are society-spanning constructs, developed and maintained by reciprocal action that creates trust and trustworthiness, and serve as a major factor in network cohesion. Both networks are relatively closed or inaccessible to outsiders, with insiders able to connect other insiders to each other (i.e., internal bridging of structural holes). However, guanxi can be characterized as being utilitarian (purpose-based), whereas yongo in principle describes cause-based ties. Furthermore, guanxi networks are somewhat accessible to outsiders and draw on a diverse base of ties; yongo networks are predefined, partly by birth, and are hence homogeneous and highly exclusive. Guanxi networks can benefit from spillover effects through bridging different networks; yongo networks often cannot, as there is antipathy, competition, and potential hostility between certain types of networks. The results add knowledge to social network theory in general and in particular on informal social networks in East Asia.     

Global Value Chains,Horizontal Intra-Industry Trade and the Heterogeneous Firm

This paper examines global value chains at the level of the heterogeneous firm. The context is a world of horizontal intra-industry trade, characterized by imperfect competition and product differentiation at the firm level. Standard microeconomic tools are employed to assess the effects of inter-firm dissimilarities in both demand and supply on firms’ responses to changes in trade policy. In this set-up, dissimilarities in firm characteristics play roles similar to factor endowments and technology differences in traditional trade models. When cross-border production sharing (“fragmentation”) is introduced into this framework, those differences in firm characteristics determine the degree to which individual firms will enter into production networks. In this context, horizontal and vertical intra-industry trade elements interact in their effects on firm decisions. Traditional comparative advantage considerations still govern the choice of off-shored activities, while direct competition between imports and exports expands the range of possible outcomes. Finally, it is shown that cross-border production sharing reduces the sensitivity of firms to variations in exchange rates, matching a phenomenon that has been observed in traditional country-level models.     

Kindergrundfreibetrag als Alternative zum geltenden Recht?

Zusammenfassung  Am 15. Oktober hat das Bundeskabinett die Erh?hung des Kindergeldes und des Kinderfreibetrags beschlossen. Zuvor war es zu einem Richtungsstreit über die Einführung eines Kindergrundfreibetrags gekommen. Wie hoch sind die Entlastungswirkungen der unterschiedlichen Konzeptionen? Welche Folgen h?tte die Einführung eines Kindergrundfreibetrags für die ?ffentlichen Haushalte? Lassen sich mit diesem Instrument die familienpolitischen Ziele besser erreichen? Dr. Sven St?whase, 31, ist Mitarbeiter des Fraunhofer-Instituts für Angewandte Informationstechnik FIT. Sankt Augustin.     

Business model innovation processes of average market players: a qualitative-empirical analysis

Business model innovation is by now mainly understood as a strategic option for firms to enhance competitiveness. As a result, business model innovation research usually focuses on outperforming firms that deliberately innovate their business models. We enhance this rather narrow perspective by analysing business model innovation processes of average market players against the background of a multiple-case study. Our findings show that average market players do at least initially not deliberately pursue business model innovation. Instead, they experience business model innovation as a highly emergent and very often unintended process. We identify four phases of this process and describe them in detail. Furthermore, we highlight factors that determine whether a firm is able to complete the process step or not. The results of our study are reflected in a newly developed process model that considerably enhances the understanding of business model innovation processes with regard to average market players and may serve as framework for future research.     

In defence of triangulation: A critical realist approach to mixed methods research in management accounting

The notion of triangulation constitutes a key component of mixed methods research but has been contested on ontological and epistemological grounds, especially where this entails integration of theories and/or methods rooted in different philosophical assumptions (or paradigms). Drawing on critical realism, this paper addresses two criticisms of the use of triangulation in mixed methods research straddling between the functionalist and interpretive paradigms, namely (1) its propensity to suppress variations in situated meanings and (2) its treatment of empirical observations as objectively verifiable rather than inherently theory-related. The modified notion of triangulation advanced in this paper counters these criticisms by re-conceptualizing it as firmly grounded in abductive reasoning. This provides a foundation for maintaining researchers’ sensitivity to context-specific variations in meanings in efforts to derive theory-related explanations. The possibilities of using such a modified notion of triangulation in management accounting research are illustrated through a review of two empirical studies straddling between the functionalist and interpretive paradigms.     

The leverage effect without leverage

We use experimental stock markets to add more evidence that Black's [1976. Proceedings of the 1976 Meeting of the Business and Economic Statistics Section. American Statistical Association, pp. 177–181] leverage effect in financial markets does not necessarily stem from the financial leverage of the firm. We surprisingly find a large number of markets in which the leverage effect is observed although the underlying asset does not exhibit any financial leverage at all.     

Governance structures in the hotel industry

This study investigates alternative governance forms in the hotel industry. Agency theory maintains that the need for control over service quality, financial risk, and the market environment affect the choice of governance form. Prior agency research emphasizes alternative governance structures that principals employ, given local market conditions, agent incentives, and risk preferences. The study augments the established principal-agent perspective with a discussion of entrepreneurial motivations to join hotel alliances. The study analyzes the choice between independent ownership and affiliation with a voluntary chain as well as the choice between integration and franchising. Data analyses from 650 hotels indicate that the hotel size, amenities, population, and distance to headquarters influence governance.