Equilibrium in securities markets with heterogeneous investors and unspanned income risk

In a finite time horizon, incomplete market, continuous-time setting with dividends and investor incomes governed by arithmetic Brownian motions, we derive closed-form solutions for the equilibrium risk-free rate and stock price for an economy with finitely many heterogeneous CARA investors and unspanned income risk. In equilibrium, the Sharpe ratio is the same as in an otherwise identical complete market economy, whereas the risk-free rate is lower and, consequently, the stock price is higher. The reduction in the risk-free rate is highest when the more risk-averse investors face the largest unspanned income risk.     

A rating model for loss of profits insurance

Abstract

In this paper we present a rating model for loss of profits insurance for a production system consisting of n production units. Explicit expressions for the company's long run expected average claims expenditures are derived. A numerical example is given.     

Using vignettes to study family consumption processes

The use of vignettes for qualitative consumer research is discussed in this article. More specifically, vignettes are proposed as a useful research technique for conducting systematic and rigorous studies of consumer interaction processes, in particular as these relate to family consumption issues. Following an overview of methodological and practical problems of studying consumption interaction processes in families, a discussion of how vignettes may be used to enhance knowledge of family decision‐making processes in real‐life contexts is presented. Design implications are discussed and strategies for applying the vignette method are outlined and illustrated by two recent studies of pro‐environmental consumer behavior in a family context. The paper concludes with a discussion of the benefits and the possible pitfalls of using vignettes. © 2010 Wiley Periodicals, Inc.     

Neuroeconomics and business psychology

To determine parameters of the frontal power of executive integration for application in business, this paper reviewed neuroeconomic neuroimaging research and discussion in relation to business psychology. The results are that limbic system （L） is a centre of primary consciousness based on a mesolimbic dopamine system serving the client in the brain stem with adaptive feedback as well as generating cognition and emotions towards Neocortex in a reciprocal autonomic balance. The power of concentration （C） is a tripartite executive integrating emotions and cognition： Prefrontal analysis by semantic recollection from temporal （R） lobe is based on episodic memories. Volition in the medial prefrontal cortex （c） controls both cognitive prediction （R＇c） and emotions （L/c） for a balanced integration as a neural root of economic reasoning. An intuitive visuospatial Parietal sketchpad （I） integrates hippocampal episodic memory mismatches complementary to the cognitive prediction function. Chronic stress limiting the capacity of C is indicated by baseline serum cortisol. The conclusion is that the neuroeconomic model enables （1） operation of the theorem of economic man as an economic-bio-educational complex. Other business applications comprise, （2） a neural foundation of transactional analysis （TA） to improve corporate collaboration and management, （3） a combined health promotion/human resource development program based on simple training techniques as physical exercise, medical meditation and neurolinguistic programming （NLP）, i.e., for weight regulation.     

Fractional imputation for incomplete two-way contingency tables

Imputation procedures such as fully efficient fractional imputation (FEFI) or multiple imputation (MI) create multiple versions of the missing observations, thereby reflecting uncertainty about their true values. Multiple imputation generates a finite set of imputations through a posterior predictive distribution. Fractional imputation assigns weights to the observed data. The focus of this article is the development of FEFI for partially classified two-way contingency tables. Point estimators and variances of FEFI estimators of population proportions are derived. Simulation results, when data are missing completely at random or missing at random, show that FEFI is comparable in performance to maximum likelihood estimation and multiple imputation and superior to simple stochastic imputation and complete case anlaysis. Methods are illustrated with four data sets.     

Transformational Leadership: Managing the Twenty‐First Century Sales Force

In today's more diverse sales organizations, sales managers face important interpersonal challenges to achieving high‐quality relationships, which result in better performance within their sales force. In this article, it is argued that cultural distance can negatively influence sales manager and sales subordinate relationships. The quality of these relationships ultimately influences the level of effort that sales subordinates exert toward achieving organizational sales goals. However, despite the potential obstacle of cultural distance, sales managers can utilize transformational leadership as a means to mitigate its adverse effects on one‐to‐one relationships with members of the sales force.     

A guide map to the terrain of gift value

This article integrates a broad range of gift‐giving literature into a conceptual framework that puts the all too often overlooked construct of personal value at its core. Although there have been substantial contributions from the fields of anthropology, sociology, economics, and consumer behavior, efforts to model gift giving have failed to put the value of the gift‐giving experience at the center of the exchange. Within this article, a model of the gift‐giving experience that overcomes this critical shortcoming is proposed. The model establishes clear categories for breaking the giving process into easily examinable elements, and it is argued that although the concept of value is not a simple one, it should be central to any examination of the gift‐giving phenomenon. © 2001 John Wiley & Sons, Inc.     

Comparing the patronage selection criteria of the elderly: chronological age versus dependency

This study investigates the impact of the degree of retailer international involvement (DRII), which we define as the number of geographic regions in which a retailer operates, on retailer performance. The data cover 16 international retailers over the period 1996–2012. The findings of the study show that DRII is negatively related to retailer performance. We also find that the cultural distance between the home and host country moderates the relationship between DRII and retailer performance.     

Methodological issues in comparing injury incidence across countries

The primary objective was to describe the methodological challenges and devise solutions to compare injury incidence across countries. The research design was a mixed methods study, consisting of a consultation with an expert group and comparison of injury surveillance systems and data from ten European countries. A subset of fractures, selected radiologically verifiable fractures and a method of checking the national representativeness of sample emergency department data were devised and are proposed for further development. These methodological considerations and developments will be further refined and tested and should prove useful tools for those who need to compare injury incidence data across countries.     

Fairness in a tradeable-permit treaty for carbon emissions reductions in Europe and the former Soviet Union

This paper evaluates the distributional implications of alternative permit allocations in a tradeable permit regime for carbon emissions reductions (20% below baseline) in 2010 for a region consisting of Europe and the states of the former Soviet Union (FSU). Participation in such a regime is expected to hinge on the fairness of the distributional consequences. We find that initial permit allocations by populationand/or GDP are unlikely to induce participation by most countries of Eastern Europe and FSU because of the net costs involved. We identify a set of initial allocations that would at least compensate these countries. A fair treatment of the countries in Western Europe (WE) is here one which equalizes net costs perGDP. For a wide set of cost functions for carbon emission reductions, the cost gains that WE would reap from a tradeable permit system relative to unilateral reductions by WE as a group are found to be on the order of 85 percent. This would imply, among other things, a significant increase in WE'scapacity to make further emissions reductions.