Learning to bid: The design of auctions under uncertainty and adaptation

We examine auction design in a context where symmetrically informed adaptive agents with common valuations learn to bid for a good. Despite the absence of private valuations, asymmetric information, or risk aversion, bidder strategies do not converge to the Bertrand–Nash equilibrium strategies even in the long run. Deviations from equilibrium strategies depend on uncertainty regarding the value of the good, auction structure, the agents? learning model, and the number of bidders. Although individual agents learn Nash bidding strategies in isolation, the learning of each agent, by flattening the best-reply correspondence of other agents, blocks common learning. These negative externalities are more severe in second-price auctions, auctions with many bidders, and auctions where the good has an uncertain value ex post.     

Extending the communication process: the significance of personal influencers in UK motor markets

It has been common practice among members of the advertising community to talk of there having been fashions for particular styles of advertising at different times, but little work has been carried out to investigate the substance of this belief. To evaluate this ‘fashion’ proposition, usage levels were measured for 56 variables in 2,208 advertisements over a 46-year period in magazines from four countries; the United States, United Kingdom, Australia, and New Zealand. The findings indicated that there had been a tendency for systematic variations in the frequencies of usage in many of the variables measured. The general form of these variations was of cyclical movements about an underlying long-term trend, which were observable for all types of variable studied. While the underlying trends often appeared to reflect developments in the wider society, the cyclical variations appeared to be self-sustaining and largely independent of outside forces. Such behaviour is consistent with the ‘fashion’ hypothesis.     

Emerging realities of local government reorganization

This article reviews ministerial claims about the financial benefits of the nine new unitary councils in England and finds them wanting. The new councils' own estimates for costs and savings use a variety of assumptions, some of which are plainly wrong. The resulting figures are not comparable between authorities and are difficult to reconcile with ministerial claims. The Department of Communities and Local Government (CLG) evidently does not apply rigorous evaluation standards and has a track record of refusing to divulge the evidence upon which decisions are taken and performance claims are made.     

Nature Tourism Seminar

On the 10th and 11th November 1992, a two-day seminar on nature tourism was held at the Whitianga campus of the Bay of Plenty Polytechnic in New Zealand. The seminar attracted over 80 people from the northern half of New Zealand and included tourism operators, local government representatives, academics and interested members of the local community. Dr C. Michael Hall describes the objectives of this regional forum as well as the lessons learnt.     

A resolution to the NPV–IRR debate?

Two criteria for choosing between capital investment projects are net present value (NPV) and internal rate of return (IRR). Sometimes they provide inconsistent rankings. This inconsistency sparked a debate about which criterion is better. The debate has lasted more than 100 years.This paper describes a new approach to the debate. The time value of money equation is a polynomial, and a polynomial of order n does not have a single root. It has n roots. The result of taking into account the n solutions for IRR is a new equation for NPV that suggests a resolution to the debate.     

Do foreign institutional investors destabilize China’s A-share markets?

This paper investigates the effect of foreign institutional investors on the stability of Chinese stock markets. Previous literature views this investor group as destabilizing feedback traders. We use the abolition of ownership restrictions on A shares as a natural experiment. There is strong evidence that foreign institutions have a stabilizing effect on Chinese stock markets and contribute to market efficiency. This finding is robust across exchanges, sample periods, size quintiles and alternative model specifications. By contrast, domestic investors appear to engage in positive feedback trading. Our results have important implications for market regulation.     

Optimal tariffs,optimal taxes and economic development

Cross-section and time-series data suggest that nations substitute income taxes for tariffs as they develop. This paper confronts the data within the context of a two-country open-economy endogenous growth model in which public expenditure is financed by an optimal tariff and income tax. When the latter is subject to administrative costs, the model predicts that the government will optimally substitute the income tax for the tariff as output rises along the transition. The model is calibrated and a simulation yields time paths for the shares of total government revenue derived from the tariff and the income tax that are consistent with the data.     

Countering Service Information Challenges in the Internet of Services

Business Webs apply the idea of value networks to the WWW. The underlying delivery platform is commonly referred to as the Internet of Services and will certainly have to deal with a great variety and amount of information about services along several service information dimensions. As soon as brokerage, discovery, or community feedback parts are decentralized, there emerge a number of service information challenges (modeling the information in a holistic way, documentation, interlinkage, tool interoperability, distributed querying, inconsistent information, and cooperation of different stakeholders). In this paper, we propose to counter such service information challenges by two artifacts. First, we contribute a Service Ontology based on a sound and rigid foundational ontology. The Service Ontology provides a holistic and consistent way of capturing service information. We apply the recommendations of the W3C Semantic Web Activity whose recent standardization has already opened new possibilities for tool interoperability, interlinkage of information, and distributed querying on the web. However, building and prescribing an ontology in standardized languages is not enough to address all service information challenges. Therefore, as a second contribution, we provide a method around the ontology including a governance framework, guidelines for applying the W3C Semantic Web recommendations, a lifecycle-spanning tool chain, and different levels of applicability. We label our method Semantic Business Web approach, since we build on W3C Semantic Web standards, use and extend them in the Business Web setting. Both artifacts are constructed in an interdisciplinary way by experts participating in the German lighthouse project THESEUS/TEXO. The project’s scenario also serves as a proof of concept evaluation of the artifacts.