Urban agglomerations,knowledge-intensive services and innovation: establishing the core connections

This paper investigates how resources available in urban agglomerations influence the organizational form, innovation activity and collaborative linkages of knowledge-intensive business services (KIBS) firms. Compared with their counterparts elsewhere, KIBS located in Norwegian large city labour market regions are more likely to be independent of multi-establishment business organizations and thus reliant on resources available externally, in their locations. This is most pronounced in the central and Western business districts of the capital, wherein independent KIBS exhibit high turnover of professionals and are less inclined to engage actively in innovation. Yet, those that do engage use the capital region economy as a platform for engaging with both domestic and international collaboration partners. Only by consecutively analysing these aspects and accounting for the selection processes involved is the empirical analysis able to uncover contrasting firm-level responses to the same urban economy resource base.     

Home alone and often unprepared – intercultural communication training for expatriated partners in German MNCs

This article reports the results of a study of partners who accompany the expatriated representatives of multinational corporations (MNCs) on overseas missions and identifies that they are mostly home alone and often unprepared. Following a review of the literature on issues related to expatriated partners, in particular intercultural communication training (ICT), the article presents the findings of empirical research conducted in Germany on current ICT trends for expatriated partners. The study identifies the ICT methods German MNCs use to support these partners before and during international assignments. The authors surveyed 141 German expatriated partners who went on overseas missions to 36 countries. The results of this research project indicate that traditional ICT is only provided to the minority of partners in German MNCs, follows no predictable time pattern, and is mostly perceived as rather useless by participants. Particular attention is paid, however, to the target culture in the ICT design. Non-traditional ICT methods, such as Look-&-See Trips, are rather generously taken advantage of.     

Market risks in asset management companies

This paper shows that revenues from a sample of publicly traded US asset management companies carry substantial market risks. Not only does this challenge the academic risk management literature about the predominance of operative risks in asset management, it is also at odds with current practice in asset management firms. Asset managers do not hedge market risks even though these risks are systematically built into the revenue generation process. This is surprising as shareholders would not optimally choose asset management companies as their source of market beta. They rather prefer to participate in alpha generation and fund gathering expertise of investment managers as financial intermediaries. At the very minimum, asset managers need to monitor their ‘fees at risk’ to understand what impact product design, benchmark choice and fee contract design have on revenue volatility. This calls for a much wider interpretation of the risk management function that too narrowly focuses on client risks.     

A comparison of different pay-per-bid auction formats

Pay-per-bid auctions are a popular new type of Internet auction that is unique because a fee is charged for each bid that is placed. This paper uses a theoretical model and three large empirical data sets with 44,614 ascending and 1,460 descending pay-per-bid auctions to compare the economic effects of different pay-per-bid auction formats, such as different price increments and ascending versus descending auctions. The theoretical model suggests revenue equivalence between different price increments and descending and ascending auctions. The empirical results, however, refute the theoretical predictions: ascending auctions with smaller price increments yield, on average, higher revenues per auction than ascending auctions with higher price increments, but their revenues vary much more strongly. On average, ascending auctions yield higher revenues per auction than descending auctions, but results differ strongly across product categories. Additionally, revenues per ascending auction also vary much more strongly.     

Dynamische Preissetzung — Wer profitiert?

In the context of digitalisation, recent approaches for automatic price adjustment are gaining importance. However, these approaches can affect consumer behaviour in a way which is disadvantageous for consumers, businesses and the state as a whole. In September 2016, consumer researchers met at the Heinrich Heine University in Düsseldorf in order to discuss the impact of dynamic pricing from the viewpoint of their research fields. As the articles make clear, the researchers found that dynamic pricing based on competitors’ prices is common, while personalised prices are extremely rare. The question arises as to what extent consumers consider dynamic prices unfair. The experts disagree about the necessity of a stricter legal regulatory framework. Furthermore, digital technology can be used to help consumers find their way through the complex online world. Ultimately, the question of who profits–the consumer or the trader–has not been settled. The discussants conclude that there is need for further research in many different research fields.     

Die Messung der Datenqualität im Controlling

Ohne Zusammenfassung Dr. Mathias Klier dist wissenschaftlicher Mitarbeiter am o. g. Lehrstuhl. p]Germany     

Global monitoring of international capital flows

Increasing global capital flows are principally beneficial for the improved international allocation of capital, credit and risks, but this process is not without risks for global financial stability. Expanded global monitoring of international capital flows should deepen our knowledge of the underlying reasons for increasing capital flow volatility. As part of a system of global monitoring, the portfolio and rebalancing strategies of globally active banks and institutional investors could contribute significantly to a better understanding of market dynamics, contagions, spillovers into the real economy and the vulnerabilities of countries.     

Chinese enterprises in Germany: Establishment modes and strategies to mitigate the liability of foreignness

Although China shows an impressive increase of outward foreign direct investment, research on internationalization strategies of Chinese companies is still in its infancies. It remains unclear, for example, how Chinese MNEs cope with the specific institutional hurdles of a developed country such as Germany and to reduce their liability of foreignness (LOF). Given a remarkable lack of in-depth empirical studies, we present insights from 31 semi-structured face-to-face interviews with employees belonging to seven Chinese MNEs and stakeholders. Our findings suggest that Chinese MNEs have gained international experience, whereas strategies to reduce their LOF depend on the establishment mode chosen.     

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.     

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.