A dynamic limit order market with fast and slow traders

This paper considers the role of high-frequency trading in a dynamic limit order market. Fast traders? ability to revise their quotes quickly after news arrivals helps to reduce the inefficiency that is rooted in the risk of being picked off, which increases trade. However, their presence induces slow traders to strategically submit limit orders with a lower execution probability, thereby reducing trade. Because speed is a source of market power, it enables fast traders to extract rents from other market participants and triggers a costly arms race that reduces social welfare. The model generates a number of testable implications concerning the effects of high-frequency trading in limit order markets.     

Elicitation effects in a multi-stage bargaining experiment

We examine elicitation effects in a multi-stage bargaining experiment with escalating stakes conducted under direct-response and strategy-method elicitation. We find a significantly greater incidence of decisions leading to bargaining failure under direct responses. In addition, the predictive power of alternative risk attitude measures differs between the elicitation methods. Potential sources of the effects and resulting implications are discussed.     

Study of Commitment Antecedents: The Dynamic Point of View

This study adopted a dynamic perspective in investigating the effects of employees’ perception of equity (PoE) and perception of organizational politics (POP) on their trust in organizations and the subsequent effect of such on their commitment. Data were collected from 216 employees from various industries. The positive effect of PoE and negative effect of POP on employees’ trust were confirmed in this study. It is also found that employees’ trust in organizations has a positive effect on their organizational commitment. This study also confirmed the mediation of employees’ trust on the relationships between POP, PoE, and organizational commitment. Besides, the moderation of employees’ trust on the relationships between POP, PoE, and organizational commitment was not confirmed. Implications and suggestions for future research are discussed.     

Sen after Putnam

Modern classical economic theory, originally austere and minimalist (as in Sraffa and Neumann), has entered a second, more enriched phase. Inspired by Adam Smith, Amartya Sen has drawn out the moral implications of formal classical models. But Sen remains open to neoclassical attack on the grounds that science must be value free. In his book The Collapse of the Fact/Value Dichotomy and Other Essays , Hilary Putnam rebuts the view that "fact is fact and value is value and never the twain shall meet". This paper explores consequences of this argument for classical theory. It explains the nature and significance of the entanglement of facts, analysis and values; and the impact of this entanglement on the concept of rationality, on capability theory, on the relationship between human needs and Sraffa basics, on Pasinetti's transformational growth, and on Sen's analysis of the disabled and most wretched. Supporting Sen's approach to human development, it opens the possibility of an enriched classical analysis, which can absorb Martha Nussbaum's analysis of tragedy using a logically and morally coherent political economy.     

Die nächste Ausgabe von Controlling &; Management erscheint am 13.08.07

Vorschau / 4/07

Die n?chste Ausgabe von Controlling & Management erscheint am 13.08.07     

Long-term health-related burden of adult congenital heart diseases in Hong Kong

Aims: This study aimed to examine the long-term clinical and economic burden of adults with congenital heart disease (ACHD) in Hong Kong.

Methods: It retrospectively analyzed 336 consecutive ACHD patients who attended the Adult Congenital Heart Clinic between January 1, 2009 and December 31, 2014. Direct medical costs and clinical outcomes over the 5 years were calculated and documented. The economic evaluation was from the hospital’s perspective.

Results: The median age of ACHD patients was 47 (31–62) years old, with female predominance (61.5%). Ventricular and atrial septal defects accounted for 70% and severe ACHD for 10% of the study cohort. The prevalence of arrhythmia and heart failure increased with the complexity of CHD. The total mean annual cost for managing each ACHD patient was USD 2,913. The annual cost of management of simple ACHD was USD 2,638 vs complex ACHD (USD 6,425) (p?=?0.013).

Conclusions: This study demonstrated severe ACHD patients accounted for higher cardiovascular morbidities in arrhythmias and heart failure with a higher cost of management.     

Uncertainty,supply risk management and their impact on performance

The purpose of this research is to identify the antecedents of supply risk management performance. Speed consortium benchmarking is used to explore the concepts of supply risk monitoring and mitigation. In addition, a survey yielding 207 responses is used to test our hypothesized antecedents of supply risk management performance. Findings indicate that the transaction cost constructs environmental- and behavioral uncertainty have a negative effect on supply risk management performance. In addition, supply risk mitigation and supply risk management process maturity positively influence supply risk management performance, the latter having the strongest influence. Furthermore, supply risk monitoring, supply risk mitigation and supply risk management process maturity all moderate the effect of environmental uncertainty, whereas only risk monitoring has an influence on the relationship between behavioral uncertainty and supply risk management performance. This research identified not only the antecedents of supply risk management performance, but also the moderating effect of different supply risk management principles on the relation between uncertainty and supply risk management performance. Most importantly, our study shows the relevance of developing general supply risk management structures and capabilities (i.e. supply risk management process maturity) in order to manage supply risks successfully. Our findings indicate that even more important than the proper selection of individual risk monitoring and mitigation strategies is the implementation of a risk management process.     

State of the Art der Forschung zum Interkulturellen Konsumentenverhalten. Eine Analyse der Literatur von 2005 bis 2010

Companies entering different country markets frequently face the challenge of adapting their marketing-mix to specific value orientations. Cross-cultural consumer research aims at supporting this adaption process. Therefore, research tries to develop theories that explain under which circumstances consumer behavior is culture-free or culture-bound. The present article conducts a literature review in order to examine how the field has developed from 2005 to 2010. The review systematically evaluates 92 relevant studies considering the research approach, the selection of cultural units, the operationalization of culture, and the type of consumer behavior. The analysis reveals that the field is growing in terms of quantity and variety. Additionally, recent studies have overcome some methodological problems of cross-cultural research. The article condenses the most relevant findings and derives implications for further research.     

Comparing French and US hospital technologies: a directional input distance function approach

French and US hospital technologies are compared using directional input distance functions. The aggregation properties of the directional distance function allow comparison of hospital industry-level performance as well as standard firm-level performance with regard to productive efficiency. In addition, the underlying constituents of efficiency?–?in the short run, congestion and technical inefficiency, and in the long run, scale inefficiency?–?are analysed by decomposing the overall measure. By virtue of using the directional distance function, it is also possible to obtain an estimate of a lower bound on allocative inefficiency. It is found that French and US hospitals use quite different technologies. Long run scale inefficiencies cause most of the French hospitals’?inefficiency, while short run technical inefficiency is the main source of overall productive inefficiency in the US hospitals.