Analytical approximations of local‐Heston volatility model and error analysis

This paper studies the expansion of an option price (with bounded Lipschitz payoff) in a stochastic volatility model including a local volatility component. The stochastic volatility is a square root process, which is widely used for modeling the behavior of the variance process (Heston model). The local volatility part is of general form, requiring only appropriate growth and boundedness assumptions. We rigorously establish tight error estimates of our expansions, using Malliavin calculus. The error analysis, which requires a careful treatment because of the lack of weak differentiability of the model, is interesting on its own. Moreover, in the particular case of call–put options, we also provide expansions of the Black–Scholes implied volatility that allow to obtain very simple formulas that are fast to compute compared to the Monte Carlo approach and maintain a very competitive accuracy.     

Robin L. Einhorn. American Taxation, American Slavery. Chicago, Ill.: University of Chicago Press, 2006. xii + 337 pp. ISBN 0-226-19487-6, $35.00.

Any neoconservative who rushes out to buy this book will bedisappointed. Its misleading title notwithstanding, this monographis not yet another diatribe against federal taxation, but rathera thoughtful examination of how the existence of slavery inthe young republic in the decades following the American Revolutionshaped national policies. If many Americans now trace the republic’spersistent anti-tax tendencies back to the Boston Tea Party,Robin Einhorn instead demonstrates that the origins of modernanti-government     

Cultural tendencies in negotiation: A comparison of Finland, India, Mexico, Turkey, and the United States

In this era of increased global cooperation, a growing number of negotiators conduct business in multiple countries and, therefore, need access to a systematic comparison of negotiating tendencies across a wide range of countries. Empirical work systematically comparing variations across a range of cultures is scarce. A comparative analysis of negotiating tendencies in five countries is presented. This study establishes the utility of the [Salacuse, J. (1998) Ten ways that culture affects negotiating style: Some survey results. Negotiation Journal, 14(3): 221–235] framework in identifying country differences across five countries, representing five cultural clusters. Significant differences in negotiation orientations both between and within cultures were revealed at a level of complexity not found in previous empirical studies.     

Let's reach all of the market for health administration education: design, development, and delivery issues in distance delivery

Web-based distance learning is an up and coming form of education. Web-based education delivered via a Web browser through the Internet has been found to be less expensive, more efficient, and sometimes more effective than classroom training. In the distance learning environment, the traditional "lecture and chalkboard" classroom pedagogy is completely absent. The virtual classroom becomes an "active learning" environment in which students, while utilizing technology, are able to discuss health administration concepts, analyze cases, work exercises, and discuss and share these interactively with both the instructor and fellow classmates. This method of Health Administration Education encourages students to learn from each other and promotes the open exchange of ideas and experiences. It does not require working students to put their careers on hold while they continue their studies. In this paper, we explore the opportunities and challenges of delivering web-based Health Administration courses via the Internet. Included is a discussion of the design, development, and delivery of a distance learning, web-based Health Administration Education system.     

Severity of alcohol-related motor vehicle crashes in British Columbia: case - control study

The objective of the present study was to compare the injury severity and vehicle damage severity rates of alcohol-related crashes with rates of non-alcohol-related crashes in British Columbia (BC). Injury severity rates and vehicle damage severity rates were taken from 2002 Insurance Corporation of British Columbia traffic collision data. The data were computed in order to compare the differences in injury severity and vehicle damage severity rates of alcohol-related vs. non-alcohol-related motor vehicle crashes. Case - control methods were used in this study to analyse the risk of alcohol-related crashes compared to non-alcohol-related crashes in BC. Odds ratios (OR) and 95% CI were calculated to estimate relative risks. In the case - control analysis, the risk of fatal collision was increased for those drinking and driving compared with those driving sober (OR 4.70; 95% CI 3.15 - 7.01). Risk of injury collision was increased for those drinking and driving compared with those driving sober (OR 1.32; 95% CI 1.19 - 1.37). Importantly, the risk of vehicle damage severity was increased for those drinking and driving compared with those driving sober (write-off vehicle OR 4.24; 95% CI 3.70 - 4.86, severely damaged vehicles OR 1.98; 95% CI 1.77 - 2.21). The study reinforces existing literature to suggest that current evidence is sufficient to show an increased risk of injury and fatality to drivers and occupants in alcohol-related crashes. This paper not only emphasizes this well-known relationship, but also such consequences as increased vehicle damage severity. The connection between drinking and severity of motor vehicle crashes is popularly believed and has now received substantial scientific support. There is strong justification for injury prevention experts and policy-makers to step up motor vehicle crash injury prevention advocacy by implementing evidence-based policies to reduce rates of alcohol-impaired driving in the province of BC. Most unintentional injuries in BC are related to motor vehicle crashes. Significant improvements can be made in these statistics by: increasing the use of occupant protection (safety belt and child restraint seats); reducing alcohol-related injuries through multiple strategies including corrections in the physical environment, extensive enforcement of drinking and driving laws and health promotion/education.     

Interpersonal influence and consumer innovativeness

Innovators represent a small and somewhat elusive group of consumers who are often the earliest adopters of new products. As such, marketing researchers and practitioners alike are interested in determining the personality characteristics that influence innovators to purchase a new product early in the product life cycle. This correlational study examined the relationships of three of these characteristics (susceptibility to interpersonal influence, attention to social comparison information, and role‐relaxed consumption) to individual innate innovativeness. Data were collected using self‐report surveys administered to 326 students at a large public university in the south‐east United States. The results supported hypothesized negative relationships between consumer innovativeness and both susceptibility to interpersonal influence and attention to social comparison information, as well as a positive relationship between consumer innovativeness and role‐relaxed consumption.     

Fashion consumers and fashion problem recognition style

Consumer spending over the life span of today's 18‐ to 25‐year‐old emerging adults will reach into the $10 trillion range. Emerging adults are a powerful force in shaping demand for consumer products. The problem recognition styles associated with emerging adults can help marketers understand this group of consumers and provide insight into what kinds of products, services, and messages will appeal to them as lifelong consumers. The purpose of this study was to examine differences between men and women and among fashion consumer groups in fashion problem recognition style. Participants were a convenience sample of emerging adult consumers from one Midwestern university in the US, 136 men and 158 women who completed the Measure of Fashion Innovativeness and Opinion Leadership, Fashion Problem Recognition Style Scale, and provided demographic information. Both fashion followers and men reflected a need‐based approach to problem recognition. Both fashion change agents and women reflected a want‐based approach to problem recognition. Male fashion followers differed from all other groups in indicating a need‐based approach to problem recognition. This study built on previous work by examining differences in problem recognition style owing to fashion consumer group and gender. The basic premise behind problem recognition style was validated; that is, actual state (need‐based) vs. ideal state (want‐based) approaches to fashion problem recognition did relate to fashion consumer group membership and gender.     

Bundling governance mechanisms to efficiently organize small firm loans

Bank loans are a common source of financing for small firms. While scholars have examined specific conditions that affect small firm loan approval and interest rates, practical questions remain about how these loans are structured to address characteristically acute challenges from asymmetric information. This paper suggests collateral, reputation, and relationship banking each perform unique exchange-organizing tasks, and that small firms systematically use them in predictable combinations. A multiple discriminant analysis of 796 small firm loans suggests four governance bundles are commonly employed in this setting. The implications for managers focus on how loan governance mechanisms are most efficiently bundled together.     

Performance Implications of Online Entry Timing by Store-Based Retailers: A Longitudinal Investigation

This paper utilizes Time Series Cross-Sectional (TSCS) Regression techniques to investigate long-term performance effects of the timing of online sales adoption by incumbent bricks-and-mortar retailers. Its findings support the resource-based theory of competitive advantage by showing that firm-specific resource endowments (bricks-and-mortar experience, catalog experience and firm size) determine the success of the order of online entry strategy. The study contributes to the development of strategic theory in the areas of multi-channel retailing and electronic commerce and assists managers in formulating more informed strategic objectives for achieving multi-channel competitive advantage.