On the existence of expected multi-utility representations

We prove the following facts related to the expected multi-utility representation of an affine preorder: If the prize space is not compact and if the lottery set consists of all probabilities on the prize space, standard independence and continuity axioms do not guarantee the existence of a (continuous) representation. If the prize space is σ-compact and lotteries have compact support, a representation exists. When the preorder in question is bounded, this result extends to the set of lotteries that consists of all probabilities on the prize space. For the case of monetary lotteries, the boundedness assumption in this last result can be dropped, provided that the preference relation at hand is monotone and risk-averse.     

(Interstate) Banking and (interstate) trade: Does real integration follow financial integration?

We conjecture that banks present in two regions charge the appropriate risk premiums for trade-related projects between these markets, whereas higher rates are charged for projects involving shipments to markets where they are absent. These differences affect regional trade flows. US interstate banking deregulation serves as a natural experiment to test our model's implication with the Commodity Flow Survey data. Difference-in-differences estimates suggest that the trade share of state-pairs that allowed pairwise interstate entry increased by 14% over 10 years relative to non-integrated state-pairs. Instrumental variables estimates suggest that an actual increase in bank integration from zero to 2.28% (the mean) increases trade 17% to 25%.     

An empirical study on the nexus between the emotional intelligence of top managers and their assessment of intellectual capital

This study considers intellectual capital based on the assumption that this capital, which possesses social aspects, is related to the emotional capacities (i.e., emotional intelligence) of an organization’s members. A literature review indicates that this relationship has been previously noted and studied, and researchers agree that the emotional intelligence of the members of an organization affects the organization’s intellectual capital. Based on this analysis, this relationship is examined in the Turkish business context. Data are collected from top managers, who can affect the intellectual capital oftheir businesses and who, as human beings, are emotional. Thus, in this study, the emotional intelligence of top managers and their opinions regarding the intellectual capital of their businesses are considered to be related, with interesting results. When all of the factors of emotional intelligence that are likely to affect opinions regarding intellectual capital are examined using a multivariate model, the effect of emotional intelligence is revealed. Primarily, three factors of the emotional intelligence—empathy and communication skill, self-awareness and sociability—affect the participants’ opinions regarding the intellectual capital of their businesses. Univariate models are used to evaluate the effect of each emotional intelligence factor on the participants’ opinions regarding the intellectual capitalof their businesses. Empathy and communication skills affect opinions about the quality of human capital. Self-awareness affects opinions about the organizational commitment of workers. Sociability can affect opinions about information technology and information sharing. In summary, emotional intelligence affects opinions about human capital quality, information technology and information sharing.     

Exploring the connections among spiritual leadership,altruism, and trust in family businesses

The purpose of this study is to test the claim that the top manager family members’ altruism and trust with regard to other family members should be connected with these top managers’ spiritual leadership feature. Data are collected from the top manager family members, who are in charge of their family businesses in Beylikduzu Organized Industrial Zone. Many instruments’ items are used for spiritual leadership, altruism and trust. The scope of spiritual leadership is wider than those of altruism and trust; besides references to the family, spiritual leadership also includes references to the participants, their subordinates and their businesses. The participants’ spiritual leadership factors are powerfully and positively related with their altruism and trust with regard to other family members. If altruism and trust are posited to affect spiritual leadership factors, this effect is partly achieved. Only some items of altruism and trust can affect spiritual leadership feature. The literature points out that spiritual leadership is suitable for family businesses on the grounds that intra-family altruism and trust can be related with spiritual leadership feature. The current study proves this relationship. Such knowledge can be used for family business succession, mentoring and coaching applications in family businesses, conflict management towards the issues related with both the family and the business, and structuring family’s involvement in the business.     

On the multi-utility representation of preference relations

We develop the ordinal theory of (semi)continuous multi-utility representation for incomplete preference relations. We investigate the cases in which the representing sets of utility functions are either arbitrary or finite, and those cases in which the maps contained in these sets are required to be (semi)continuous. With the exception of the case where the representing set is required to be finite, we find that the requirements of such representations are surprisingly weak, pointing to a wide range of applicability of the representation theorems reported here. Some applications to decision theory under uncertainty and consumer theory are also considered.     

Theorems on the core of an economy with infinitely many commodities and consumers

It is known that the classical theorems of Grodal [Grodal, B., 1972. A second remark on the core of an atomless economy. Econometrica 40, 581–583] and Schmeidler [Schmeidler, D., 1972. A remark on the core of an atomless economy. Econometrica 40, 579–580] on the veto power of small coalitions in finite dimensional, atomless economies can be extended (with some minor modifications) to include the case of countably many commodities. This paper presents a further extension of these results to include the case of uncountably many commodities. We also extend Vind’s [Vind, K., 1972. A third remark on the core of an atomless economy. Econometrica 40, 585–586] classical theorem on the veto power of big coalitions in finite dimensional, atomless economies to include the case of an arbitrary number of commodities. In another result, we show that in the coalitional economy defined by an atomless individualistic model, core–Walras equivalence holds even if the commodity space is non-separable. The above-mentioned results are also valid for a differential information economy with a finite state space. We also extend Kannai’s [Kannai, Y., 1970. Continuity properties of the core of a market. Econometrica 38, 791–815] theorem on the continuity of the core of a finite dimensional, large economy to include the case of an arbitrary number of commodities. All of our results are applications of a lemma, that we prove here, about the set of aggregate alternatives available to a coalition. Throughout the paper, the commodity space is assumed to be an ordered Banach space which has an interior point in its positive cone.     

Does post-crisis restructuring decrease the availability of banking services? The case of Turkey

This study examines the relationship between post-crisis bank consolidation and the number of bank branches in Turkey. Using a unique data set, the analysis addresses several issues related to the impact of market characteristics on branching behavior. The findings suggest that sales of failed institutions by the central authority lead to branch closures in small and uncompetitive markets where the buyer does not have a prior presence. Contrary to popular belief, mergers between healthy institutions do not always cause a decrease in the number of branches; rather, they are shown to increase the availability of banking services in concentrated markets.     

Islam,entrepreneurship, and embeddedness

This study centers on the premise that entrepreneurship is an embedded process. Although “the entrepreneur” is inherently an “individual,” entrepreneurship can never be fully disembedded from the more general social settings within which any business venture is situated. An Islamic‐based economic discursive framework should be cognizant of the different forms of sociality, spatiality, and community as well as the various norms, codes, and symbols that define society more generally. The work of Karl Polanyi on embeddedness is engaged and juxtaposed with Islam's understanding of the ideal mode of economic discursive practices. Islamic economic models and Polanyi are both critical of the corrosive effects of unbridled capitalism and individualism that ultimately lead to reification and exploitation. The conclusion recommends more small‐N case studies by researchers and entrepreneurial educational materials that emphasize the importance of networks and local embeddedness.     

Why Do Payday Lenders Enter Local Markets? Evidence from Oregon

This study analyzes payday lenders’ entry strategies in the state of Oregon in order to look for changes in the nature of the industry and its relationship to traditional financial institutions. The results of fixed-effects logit regressions suggest that payday lenders have started to enter areas already being served by banks. Furthermore, the presence of “incumbent advantage” in entry decisions may also have implications concerning the level of competition in the industry. Finally, since payday lenders also enter areas with large Hispanic populations, it is still possible that payday loans represent the sole source of credit for certain segments of the population.