Group interaction, heterogeneity, rules, and co-operative behaviour: Evidence from a common-pool resource experiment in South Africa and Namibia

We present econometric evidence of how sociodemographic characteristics, economic background, group effects, and dynamic personal and group interactions influence the co-operative behaviour of individuals in a social dilemma situation. The data are from a framed common-pool resource experiment conducted in Namibian and South African farming communities. Our estimates suggest complex but stable social dynamics within groups over the course of the game. We conclude that group interactions may be significantly influenced by the degree of sociodemographic heterogeneity. Our study shows that the introduction of rules matters, as it improves co-operation, but that the concrete shape of such rules may be less important than the underlying social interaction.     

INTEREST RATES IN GROUP LENDING: A BEHAVIOURAL INVESTIGATION

Abstract.  Microfinance institutions (MFIs) serve more than 5 million households in developing countries. A crucial variable for MFI schemes is the interest rate to be charged from borrowers. This paper studies the behavioural impacts of the repayment burden on repayment performance. In a laboratory experiment, we vary the amount a borrower group has to repay and study how this affects free-riding behaviour. We can identify two counteracting effects: a higher repayment burden intensifies the incentives to free-ride as shirking saves more money. On the other hand, high-interest loans are less tolerant towards defaulters, which exerts a disciplining effect.     

Publication bias in the German social sciences: an application of the caliper test to three top-tier German social science journals

Systematic research reviews have become essential in all empirical sciences. However, the validity of research syntheses is threatened if the preparation, submission or publication of research findings depends on the statistical significance of these findings. The present study investigates publication bias in three top-tier journals in the German social sciences, utilizing the caliper test. For the period between 2001 and 2010, we have collected 156 articles that appeared in the Kölner Zeitschrift für Soziologie und Sozialpsychologie (KZfSS), the Zeitschrift für Soziologie (ZfS) and the Politische Vierteljahresschrift (PVS). In all three journals, we found empirical evidence for the existence of publication bias at the 10 % significance level. We also investigated possible causes linked to this bias, including single versus multiple authorship as well as academic degree. We found only weak support for the relationships between individual author characteristics and publication bias.     

Public Debt and Generational Balance in Austria

Based on Austria's fiscal stance in 1995, wecompute the generational accounts for currently living as well as future generations.The results reveal the existence of an intergenerational imbalance in favor of currentlyliving generations. Total public sector liabilities may be more than five times as high asthe officially recorded level of public debt. Without any action, future generations would facelife-time net taxes that are about 65 percent higher than the tax burden of a current newborn.If the government could fully and permanently retain the expenditure cutting andrevenue raising effects of the 1996 fiscal consolidation package and the 1997 pension reform,then it might be able to significantly reduce the intergenerational liabilities. However,enacting both the recent tax reform 2000 and the reform of the family support scheme wouldincrease again the fiscal imbalance and intergenerational bias of fiscal policy in Austria.     

Delegation and Information Sharing in Cournot Duopoly

Information sharing in oligopoly has been analyzed by assuming that firms behave as a sole economic agent. In this paper it is assumed that ownership and management are separated. Contrary to the classical result of information sharing in a Cournot duopoly with private cost information, the paper shows that information sharing is no longer always a dominant strategy and expected consumer surplus is no longer always decreased. The paper determines the circumstances under which information is exchanged and analyzes its welfare consequences.      

Betting market inefficiencies are short-lived in German professional football

In this article, we argue that potential inefficiencies on betting markets are more likely to exist at the very beginning of a season, when the available information on the teams’ playing strength is difficult to evaluate. This lack of reliable information should be particularly large in the case of recently promoted teams that have typically undergone major changes in the composition of their roster following their promotion. Without any information on the latter teams’ potential performance, they are particularly difficult to evaluate, which may eventually lead to inefficiencies and positive returns on investment in the betting market. We analyse odds from German first division Bundesliga soccer for the seasons from 2002/03 to 2015/16 to find betting market inefficiencies at the start of the season. As expected, betting on recently promoted team wins generates temporarily positive returns, especially for away games. These results suggest bookmakers to underestimate promoted teams’ ability to familiarize with the conditions in the new league, such as having to play in front of larger, often hostile crowds.     

Cost-effectiveness of grass pollen subcutaneous immunotherapy (SCIT) compared to sublingual immunotherapy (SLIT) and symptomatic treatment in Austria,Spain, and Switzerland

Background: While specific immunotherapy (SIT) has been proven to be cost-effective for the treatment of allergic rhinitis compared to symptomatic treatment, there is a lack of European studies in which sublingual (SLIT) and subcutaneous (SCIT) immunotherapy were compared. The present analysis is focused on the cost-effectiveness of SCIT compared to SLIT and symptomatic treatment of grass pollen allergy in Austria, Spain, and Switzerland. It will address specific properties of the underlying healthcare systems.

Methods: The investigation is based on a previously published health economic model calculation. This was designed as a Markov model with pre-defined health stages and a duration of 9 years covering specific preparations for SCIT (Allergovit) and SLIT (Oralair). The effectiveness was assessed as symptom-score based quality-adjusted life years (QALYs). Additionally, total cost has been determined as well as the cost-effectiveness of SCIT. The robustness of model results was proved in further sensitivity analyses.

Results: With regard to the effectiveness of both SCIT and SLIT, preparations were dominant compared to pharmacological symptomatic therapy. Both strategies were associated with additional cost, but, combined with the results on effectiveness, both have to be regarded as cost-effective. A direct comparison of the SCIT (Allergovit) and SLIT (Oralair) showed lower total costs of SCIT vs SLIT for Austria, Spain, and Switzerland (€1,368 vs €2,012, €2,229 vs €2,547, and €1,901 vs €2,220) and superior effectiveness (SCIT =8.02 QALYs; SLIT =7.98 QALYs; and symptomatic therapy =7.90 QALYs).

Conclusion: In patients with allergic rhinitis, SIT offers cost-effective treatment options compared to symptomatic treatment. When comparing SCIT (Allergovit) and SLIT (Oralair), SCIT was dominant in terms of QALYs as well as costs, in particular due to a slightly higher patient compliance and lower drug costs.     

The brand anchoring effect: A judgment bias resulting from brand awareness and temporary accessibility

Following the Selective Activation, Reconstruction, and Anchoring (SARA) and consumer‐based brand equity models, high awareness brands are expected to serve as anchors for forming impressions of co‐branded entities. Comparing the brand personality profiles of fictitious brand alliances with high and low awareness brands, the brand anchoring effect is found in Studies 1 and 2. Moreover, Study 3 shows that the effect generalizes to specific brand characteristics and results from making brand‐related information more available. Future research on brand awareness and on the brand anchoring effect is discussed. © 2009 Wiley Periodicals, Inc.     

Uncommon common sense

Global competition is intense and often thought to be for big multinationals only. Yet, Bernd Venohr and Klaus Meyer believe that mid-size firms can achieve global market leadership, as many German companies demonstrate. But, how do they do it?     

Institutional investors and stock returns volatility: Empirical evidence from a natural experiment

In this paper, we provide empirical evidence on the impact of institutional investors on stock market returns dynamics. The Polish pension system reform in 1999 and the associated increase in institutional ownership due to the investment activities of pension funds are used as a unique institutional characteristic. Performing a Markov-switching-GARCH analysis we find empirical evidence that the increase of institutional ownership has temporarily changed the volatility structure of aggregate stock returns. The results are interpretable in favor of a stabilizing effect on index stock returns induced by institutional investors.