Character and Virtue Ethics in International Marketing: An Agenda for Managers, Researchers and Educators

This article examines the applicability of character and virtue ethics to international marketing. The historical background of this field, dimensions of virtue ethics and its relationship to other ethical theories are explained. Five core virtues – integrity, fairness, trust, respect and empathy – are suggested as especially relevant for marketing in a multicultural and multinational context. Implications are drawn for marketing scholars, practitioners and educators.     

Asset allocation in markets with contagion: The interplay between volatilities,jump intensities,and correlations

We study the impact of financial contagion on the dynamic asset allocation problem of a CRRA investor facing an incomplete market with two risky assets. We apply a Markov chain regime-switching framework with state-dependent jump intensities, diffusion volatilities and diffusion correlations. The key model feature that a switch to the bad contagion regime is triggered by a loss in one of the risky assets allows for the implementation of a hedging demand against contagion risk. Moreover, a state-dependent diffusion correlation combined with heterogeneity in jump intensities and volatilities can, e.g., generate a flight to quality effect upon a systemic jump.     

The Impact of No-Fault Legislation on Automobile Insurance

Abstract

Since its inception, the effectiveness of no-fault legislation has been highly debated. Although some research suggests that no-fault laws are effective in reducing costs, other evidence suggests that the current no-fault systems may not meet the original objectives. This study provides a detailed assessment of the relation of no-fault laws and automobile insurance losses for the period 1994 to 2007. By examining total automobile insurance losses along with liability and personal injury protection losses, we are able to determine if and how specific provisions of the laws are related to claims costs. We find a negative relation between the presence of a no-fault law and total losses, which suggests that no-fault systems are associated with lower losses than the traditional tort system. In addition, an examination of no-fault-only states suggests that specific provisions of no-fault laws, such as thresholds and limitations on benefits, have some effect on losses. With the sunset of Colorado’s no-fault legislation in 2003, the recent passage of Personal Injury Protection Reform in Florida, and proposed federal choice legislation, the overall impact of no-fault as well as the specific components of the laws are of heightened importance to consumers, insurers, and lawmakers.     

Rank reduction of correlation matrices by majorization

A novel algorithm is developed for the problem of finding a low-rank correlation matrix nearest to a given correlation matrix. The algorithm is based on majorization and, therefore, it is globally convergent. The algorithm is computationally efficient, is straightforward to implement, and can handle arbitrary weights on the entries of the correlation matrix. A simulation study suggests that majorization compares favourably with competing approaches in terms of the quality of the solution within a fixed computational time. The problem of rank reduction of correlation matrices occurs when pricing a derivative dependent on a large number of assets, where the asset prices are modelled as correlated log-normal processes. Such an application mainly concerns interest rates.     

Monitoring the future. Building an early warning system for the Dutch Ministry of Justice

To determine the sustainability of the policy, an Early Warning System (EWS) has been developed for the Dutch Ministry of Justice. An EWS is used to monitor various developments and to place them within the perspective of future scenarios. Without actually predicting the future, this makes it possible to determine which scenario is the most relevant at any given moment, allowing the department to adapt its policies. Regular modifications to the EWS make it possible to monitor in the direction of which scenario society appears to be moving. This creates a path to the future with which the sustainability of (new) policies can be tested periodically.     

Is there a forest transition outside forests? Trajectories of farm trees and effects on ecosystem services in an agricultural landscape in Eastern Germany

Most industrial countries have experienced a transformation of land use: from decreasing to expanding forest areas, the so-called forest transition. Outside closed forests, European rural landscapes exhibit a diversity of tree-based agricultural systems, but the question of whether this forest transition has also affected ‘trees outside forests’ has rarely been studied. The aim of this study is to analyze the spatial-temporal dynamics of farm trees and woodlands in an agricultural landscape in Eastern Germany from 1964 to 2008, based on aerial photographs and digital orthophotos. Taking a landscape ecological perspective, we quantify farm tree dynamics, disentangle processes of gain and loss in the socialist and post-socialist periods of Eastern Germany, and assess differences in ecosystem services provided by farm trees. A substantial increase of overall tree cover by 24.8% was observed for the selected time period, but trajectories have been disparate across different farm tree classes. The increase in tree cover was stronger in steep valleys than on hills and plateaus, indicating a significant interdependence between topography and trajectories of change. Patch numbers of farm trees did not increase, which suggests that the expansion of tree cover is mostly due to a spatial expansion of previously existing tree patches. Overall net gains in tree cover were rather similar during the socialist and post-socialist eras. The general increase in tree cover was accompanied by increase in agriculture-related ecosystem service provision, but the increase in pollination and pest control services was much lower than that in water purification services. These findings present the first empirical evidence from an industrialized country that there is also an ongoing ‘forest transition’ outside closed forests. Potential, partially counteracting drivers of change during the socialist and post-socialist periods have mainly been related to farm policies and the environmental consciousness of land users and society as a whole.     

Evaluating change in European industrial relations: research evidence on trends at organizational level

This paper uses evidence from organizations with more than 200 employees in several countries across Europe to explore the proposition that industrial relations in Europe is becoming more convergent around a non-union HRM model. The evidence indicates that, although there are some similar moves taking place, national patterns remain distinctive, the IR/HRM distinction may not be sustainable in Europe and there are significant elements of continuity in industrial relations in Europe alongside the changes that are taking place.     

From demand management to monetary control, sustainable budgets and supply-side policy

The monetarist revolution displaced Keynesian management in the 1970s and early 1980s. But because of the shift in thinking to rational expectations, the idea that information is used efficiently in forming beliefs about the economy, monetarism has evolved into a general policy preoccupation with proper budgeting and the supply side as well as with monetary-policy rules that will both control inflation and help to stabilize the economy.     

Using Simulation and Data Envelopment Analysis to Compare Assembly Line Balancing Solutions

This paper presents a technique for comparing the results of different assembly line balancing strategies by using Data Envelopment Analysis (DEA). Initially, several heuristics--which can be thought of as assembly line balancing strategies--were used to solve seven line-balancing problems. The resulting line balance solutions provided two pieces of information that were of particular interest: the number of workers needed and the amount of equipment needed. These two items were considered inputs for DEA. The different line balance solutions were then used as layouts for simulated production runs. From the simulation experiments, several output performance measures were obtained which were of particular interest and were used as outputs for DEA. The analysis shows that DEA is effective in suggesting which line balancing heuristics are most promising.