Technologie, Innovation und Corporate Governance

This article shows that empirical research supports the existence of a relationship between corporate governance and technological change. This relationship can be split into two parts: a strategic choice relationship, where governance impacts technological change, and a technological imperative relationship, where the reverse can be observed. These relationships modify the direct influences of technological change as well as corporate governance on economic success. Therefore, regulators should be aware that by shaping governance structures they also affect the competitiveness of corporations. However, since not enough knowledge is available to design optimum governance systems that would fit all sorts of corporate objectives, it is argued that corporations should be allowed to choose from a pre-defined set of governance structures without having to change the location of their headquarters. The proof for the existence of the two relationships in question is marred by numerous problems of measurement and analysis. Thus, substantial research into this field is suggested.     

Infrastructure provision and international market share rivalry

The paper examines a model of strategic infrastructure investment. Two oligopolistic firms compete on home and foreign product markets for market shares. The national governments support the firms in the market rivalry by providing cost reducing public infrastructure services that are financed out of taxing an input used in the production process. It is shown, that infrastructure policy can be used as an instrument for strategic trade policy. However, governments are facing the problem of balancing the burden of taxation and the benefits of infrastructures. The theoretical model also raises some critical issues with respect to the policy relevance of recent empirical infrastructure research.     

Increasing life expectancy and optimal retirement in general equilibrium

We analytically assess the effects of changes in longevity on the interest rate, the consumption-savings behavior, and the optimal retirement decision within a dynamic general equilibrium setting. We derive a simple sufficient condition for which the optimal retirement age always increases with life expectancy. Numerical assessment reveals that for realistic parameter values that reflect the situation in industrialized countries, the optimal retirement age indeed increases with life expectancy and the sufficient condition tends to be fulfilled. Together with the fact that the actual retirement age did not increase in industrialized countries over the last decades, while there have been large improvements in longevity, this leads us to conclude that strong monetary and institutional incentives for early retirement exist and these counteract the effects of increasing life expectancy. Our policy conclusion is that the retirement age should be partially linked to life expectancy and that incentives for early retirement should be removed.     

Low price signals high capacity

We study pricing in a model where buyers are homogeneous and sellers have either capacity one or two. We show that if buyers observe prices but not capacities then an equilibrium exists where sellers of capacity two post lower prices than sellers of capacity one. The equilibrium satisfies the intuitive criterion.     

Trees and decisions

Summary. The traditional model of sequential decision making, for instance, in extensive form games, is a tree. Most texts define a tree as a connected directed graph without loops and a distinguished node, called the root. But an abstract graph is not a domain for decision theory. Decision theory perceives of acts as functions from states to consequences. Sequential decisions, accordingly, get conceptualized by mappings from sets of states to sets of consequences. Thus, the question arises whether a natural definition of a tree can be given, where nodes are sets of states. We show that, indeed, trees can be defined as specific collections of sets. Without loss of generality the elements of these sets can be interpreted as representing plays. Therefore, the elements can serve as states and consequences at the same time.Received: 23 January 2003, Revised: 2 November 2003, JEL Classification Numbers: C72, D70. Correspondence to: Klaus RitzbergerWe are grateful to Larry Blume, Ariel Rubinstein, Jörgen Weibull, an anonymous referee, and seminar participants at the universities of Vienna, Salamanca, and Heidelberg for helpful comments. Financial support from the Austrian Science Fund (FWF) under project P15281 is also gratefully acknowledged.     

Market power in Austrian food retailing: the case of milk products

An increasing market concentration in food retailing has generated concerns about the market power of retailers towards consumers and input suppliers. This is especially true for countries such as Austria, which has a CR-3 in food retailing greater than 75%. Based on a New Empirical Industrial Organization model we estimate the market power of food retailers towards consumers and input suppliers with respect to three groups of dairy products (drinking milk, cheese, butter including others). Our empirical results suggest that market power of retailing exists towards consumers (in particular in the case of drinking milk) and towards input suppliers (in particular in the case of butter and other milk products). Market power is more significant (in statistical terms) downstream than upstream. However, the impact of oligopsony power on input prices is stronger than the impact of oligopoly power on consumer prices.     

Relative concerns of rural-to-urban migrants in China

As their environment changes, migrants constitute an interesting group to study the effect of relative income on subjective well-being. This paper focuses on the huge population of rural-to-urban migrants in China. Using a novel dataset, we find that the well-being of migrants depends on several reference groups: it is negatively affected by the income of other migrants and workers of home regions; in contrast, we identify a positive, ‘signal’ effect vis-à-vis urban workers: larger urban incomes indicate higher income prospects for the migrants. These effects are particularly strong for migrants who wish to settle permanently, decline with years since migrations and change with other characteristics including work conditions and community ties.     

Technology management in the company of the future

This paper develops new conceptual ideas on the role of technology management in future companies. It draws consequences for their operatins, and it suggests new perspectives that arise from current trends in company development. It argues that technology management needs to address, in a differentiated manner, the problems which airse during the development process of companies and markets. Particular emphasis is placed on the demand of systems producers on technology management.