Hochwasservorsorge zwischen Staatshilfen und privater Versicherung

The recent flood events in Germany have demonstrated that the nation’s current system of private flood insurance is suboptimal. The article provides novel nationwide survey data on stated flood insurance penetration (suggesting that many households overestimate their own insurance coverage), damage compensation expectations (a significant share of the population expects governmental relief payments), and on the dissemination of private flood mitigation measures. Taking into account fundamental economic considerations and the empirical insights, the authors propose a limited compulsory insurance, covering only the most basic risks and leaving incentives for further private insurance and precaution.     

Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity

This study considers the impact of diversification in types of technological alliances, resulting in alliance portfolio diversity, on various dimensions of a firm's performance, as they relate to exploration and exploitation. Using a large panel of innovative firms in the Netherlands, this study shows that partner type diversity in a firm's alliance portfolio has an inverted U-shaped relationship with productivity and radical innovative performance and a positive relationship with incremental innovative performance. Moreover, the results suggest that a lower level of diversity is needed to achieve an optimal level of productivity compared to radical innovative performance, whereas for incremental innovative performance a higher level of portfolio diversity appears to give the best performance.     

Course Allocation via Stable Matching

The allocation of students to courses is a wide-spread and repeated task in higher education, often accomplished by a simple first-come first-served (FCFS) procedure. FCFS is neither stable nor strategy-proof, however. The Nobel Prize in Economic Sciences was awarded to Al Roth and Lloyd Shapley for their work on the theory of stable allocations. This theory was influential in many areas, but found surprisingly little application in course allocation as of yet. In this paper, different approaches for course allocation with a focus on appropriate stable matching mechanisms are surveyed. Two such mechanisms are discussed in more detail, the Gale-Shapley student optimal stable mechanism (SOSM) and the efficiency adjusted deferred acceptance mechanism (EADAM). EADAM can be seen as a fundamental recent contribution which recovers efficiency losses from SOSM at the expense of strategy-proofness. In addition to these two important mechanisms, a survey of recent extensions with respect to the assignment of schedules of courses rather than individual courses is provided. The survey of the theoretical literature is complemented with results of a field experiment, which help understand the benefits of stable matching mechanisms in course allocation applications.     

Antecedents of M&A success: The role of strategic complementarity,cultural fit,and degree and speed of integration

In this paper, we develop a comprehensive model of M&A success. We integrate fundamental constructs of different schools and discuss their interdependencies with M&A success. Our theoretical framework was tested empirically across a sample of 106 SME transactions in the machinery, electronic, and logistic industries in the German‐speaking part of Central Europe. The results of our study support the demand for an integrative perspective and theory on M&A. M&A success is a function of strategic complementarity, cultural fit, and the degree of integration. Strategic complementarity also positively influences cultural fit and the degree of integration. Cultural fit positively influences M&A success, but surprisingly has a negative impact on the speed and degree of integration. The degree of integration is positively related to speed of integration. Copyright © 2013 John Wiley & Sons, Ltd.     

Market Liberalization,Regulatory Uncertainty,and Firm Investment

This paper analyzes the effects of regulatory uncertainty regarding labor costs on investment in a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology), and establish that regulatory uncertainty affects these margins differently, encouraging market entry, but discouraging technological investment. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is a combination of these two countervailing forces.     

Self‐Determination Theory and Word of Mouth about Energy‐Saving Behaviors: An Online Experiment

The growing community concern for the environment, and rising energy costs to consumers, has led many power utility companies to adopt strategies aimed at reducing energy consumption in the home and workplace. These strategies have typically been based on extrinsically regulated pricing mechanisms. Although more intrinsically driven interventions have been examined, they are often complex and expensive to implement due in part to the high level of human interaction involved. This two‐part study suggests simpler more cost‐efficient alternatives to enhancing energy saving. It does this via two separate but related studies that examined the application of self‐determination theory (SDT) and word of mouth (WOM) within online communities. The findings suggest a significant increase in reported energy‐saving behaviors over time supporting the role of SDT. There was also evidence that positive WOM increases satisfaction of the three psychological needs of autonomy, competence, and relatedness, further enhancing energy‐saving behavior. These findings have important implications for marketers in terms of behavior change.     

Culture and evaluation of service quality — a study of the service quality gaps in a Taiwanese setting

This research is built upon the work of Parasuraman, Zeithaml and Berry (1985) by exploring the service quality gap within a Taiwanese hospitality setting and reports the findings from 164 interviews among hotel managers, service staff, and hotel guests. One motive for the research was whether concepts derived from an American‐Euro‐centric conceptualisation of service relationships was transferable to another cultural setting. It was found that the influence of national, ethnic culture on perception of service is limited, but the factor of kuan‐hsi (personal relationship) and mien‐tsu (face) had some role to play in guest‐staff relationships. However, it is concluded that the globalisation of hotel corporate modes of operation have more influence in shaping expectations and thus the ServQual model has validity in such settings.     

Richard H. Thaler — Wirtschaftsnobelpreisträger 2017

Richard H. Thaler was awarded this year’s Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel “for his contributions to behavioural economics”. He studied systematic departures of human behaviour from the standard “homo oeconomicus” assumption. His famous work on boundedly rational behaviour considers both cognitive limitations and limited self-control. The cognitive limitations he studied are in particular the endowment effect, i.e. the observation that individuals assign a higher value to an object if they possess it, and mental accounting, a collection of theories regarding how individuals think about money. Furthermore, he provided path-breaking evidence on the nature of social preferences, which laid the groundwork for the development of several widely used economic theories incorporating altruism, fairness and reciprocity.     

Deutsche Mark–Dollar Volatility: Intraday Activity Patterns, Macroeconomic Announcements, and Longer Run Dependencies

This paper provides a detailed characterization of the volatility in the deutsche mark–dollar foreign exchange market using an annual sample of five-minute returns. The approach captures the intraday activity patterns, the macroeconomic announcements, and the volatility persistence (ARCH) known from daily returns. The different features are separately quantified and shown to account for a substantial fraction of return variability, both at the intraday and daily level. The implications of the results for the interpretation of the fundamental driving forces behind the volatility process is also discussed.