The Influence of Riparian Protection Measures on Residential Property Values: The Case of the Oregon Plan for Salmon and Watersheds

The Oregon Plan for Salmon and Watersheds encourages residential property owners to plant riparian buffers in an effort to reduce stream temperature and thus improve fish habitat. This study estimates the change in the value of streamside residential properties in response to planting a treed riparian buffer. A hedonic pricing analysis suggests that treed riparian buffers reduce the market value of stream-front residential property in the study area.     

Speculative partnership dissolution with auctions

The literature on partnership dissolution generally takes the dissolution decision as given and examines whether the outcome is efficient. A well-known result is that $k+1$ -price auctions dissolve a partnership efficiently when the share structure is sufficiently close to equal. We extend the setup in two directions. First, we introduce complementarities by assuming a nontrivial continuation value of the partnership that is lost in case of dissolution. This makes inefficient breakups as well as continuation possible outcomes. Second, we assume that dissolution is not given, but must be triggered by a deliberate decision of at least one partner. This implies a signaling game, where calling for dissolution signals private information. We show that, in our extended setting, standard $k+1$ -price auctions cannot dissolve a two-player equal-share partnership ex post efficiently. While allowing for veto or requiring consent does not help, adding a proper reserve to the winner’s bid auction restores efficiency.     

Zielsetzungen und Instrumentarien der europäischen Verbraucherrechtspolitik: Eine Entgegnung zu dem Beitrag von Joerges

Ohne Zusammenfassung     

Transaction costs and crowding

We use industry data to determine whether crowding of the investment space is caused by portfolio construction processes typical to the investment community. In particular, this paper examines the extent that transaction cost models cause crowding of the investment space, even when the investment models are completely unrelated to one another. We find that as transaction costs become more significant in the portfolio creation process as portfolios increase in size from $500 million to $5 billion, crowding actually declines for long-only portfolios and mainly declines, but sometimes increases for market neutral portfolios. This research sheds more light on how crowding develops through actions by players within the financial system.     

A decision-theoretic model of asset-price underreaction and overreaction to dividend news

We combine new developments in decision theory with a standard consumption-based asset-pricing framework. In our model the efficient market hypothesis is violated if and only if agents’ beliefs express ambiguity about the stochastic process driving economic fundamentals. Asset price fluctuations result because agents with ambiguous beliefs are prone to a confirmatory bias in the interpretation of new information. We demonstrate that our approach gives rise to price-patterns of “underreaction” and “overreaction” to news about dividend payments. Although these empirical phenomena have received significant attention in the behavioral finance literature, we argue that our decision-theoretic underpinning of psychological attitudes has a less ad hoc flavor than existing approaches.     

Trust Formation in University–Industry Collaborations in the U.S. Biotechnology Industry: IP Policies,Shared Governance,and Champions*,†

Haggling over rights to potential inventions can be a major roadblock to successful university–industry (UI) collaborations. Yet such collaborations are critical for innovation in science‐based industries. This study examines the roles of universities' intellectual property (IP) policies and of shared governance for trust formation between academe and industry. The study also examines how UI champions moderate this process and how trust between university and industry partners affects UI collaboration outcomes. The analysis of survey data of 105 recent UI collaborations in the U.S. biotechnology industry indicates that the flexibility and transparency of university IP policies and shared governance by UI partners are both positively related to trust formation. The activities of UI champions amplify the positive effects of shared governance and at the same time reduce the importance of university IP policies for trust formation between UI partners. The amount of trust between partners is positively related to knowledge transfer and innovation performance. The findings suggest that despite widely reported industry concerns over the control of IP, UI research partners can develop a trustful environment and thereby plant the seeds for a successful collaboration. In order to enhance trust, companies should not only consider university IP policies, but also need to actively engage in shared governance with university partners. UI collaboration champions can help shift the attention of company managers from formal rules set by university IP policies toward shared project planning, coordination, and implementation with university partners.