Risk aversion and the dynamics of optimal liquidation strategies in illiquid markets

We consider the infinite-horizon optimal portfolio liquidation problem for a von Neumann–Morgenstern investor in the liquidity model of Almgren (Appl. Math. Finance 10:1–18, 2003). Using a stochastic control approach, we characterize the value function and the optimal strategy as classical solutions of nonlinear parabolic partial differential equations. We furthermore analyze the sensitivities of the value function and the optimal strategy with respect to the various model parameters. In particular, we find that the optimal strategy is aggressive or passive in-the-money, respectively, if and only if the utility function displays increasing or decreasing risk aversion. Surprisingly, only few further monotonicity relations exist with respect to the other parameters. We point out in particular that the speed by which the remaining asset position is sold can be decreasing in the size of the position but increasing in the liquidity price impact.      

Bringing the brand to life: Structural conditions of brand-consistent employee behavior

Continuous brand success can be realized only if the brand promise that is communicated through mass media campaigns is lived up to by customer contact employees. In fact, discrepancies in brand experience may lead to customer confusion and dissatisfaction. However, what does that mean to brand managers? A survey among marketing managers shows that a reorganization of brand management routines is needed in order to bring the brand to life: informal management techniques and employee empowerment are required instead of formal management activities. In this article, we elaborate first steps for the implementation and maintenance of behavioral branding considering findings of our survey as well as implications from management focus groups and best practice examples.     

Mitkunden als wertschöpfer — creating community value

Dienstleistungen werden h?ufig in und für Gruppen erbracht. Insbesondere Kunden von Erlebnisdienstleistungen sind auch vor oder nach dem Konsum eine relativ enge und oft homogene Interaktionsgemeinschaft bzw. Community. Communities bieten je nach Dienstleistungs- und Kundenart eine wichtige Quelle von Wertsch?pfung im Sinne eines wahrgenommenen Wertes für den Kunden. Durch Kooperation von Kunden untereinander und mit dem Dienstleistungsunternehmen generieren sie nachfrageseitige Netzeffekte. Dieser Beitrag untersucht auf der Basis einer empirischen Analyse wie, d. h. über welche Mechanismen und Funktionen, Communities Wert für den Kunden generieren k?nnen. Es zeigt sich unter anderem, dass Koh?renz, Sozialit?t und Koh?sion positiv auf die Entstehung von wahrgenommenem Kundenwert von Communities wirken.     

Multi-population mortality models: fitting,forecasting and comparisons

We review a number of multi-population mortality models: variations of the Li & Lee model, and the common-age-effect (CAE) model of Kleinow. Model parameters are estimated using maximum likelihood. Although this introduces some challenging identifiability problems and complicates the estimation process it allows a fair comparison of the different models. We propose to solve these identifiability problems by applying two-dimensional constraints over the parameters. Using data from six countries, we compare and rank, both visually and numerically, the models’ fitting qualities and develop forecasting models that produce non-diverging, joint mortality rate scenarios. It is found that the CAE model fits best. But we also find that the Li and Lee model potentially suffers from robustness problems when calibrated using maximum likelihood.     

Career patterns of top management team members in five countries: an optimal matching analysis

This paper introduces optimal matching analysis (OMA) to the field of top management research. With this method, we develop six career patterns of top management team (TMT) members from five countries based on their international experience, organizational tenure and professional experience. The results provide strong support for the significance of these patterns, since each country (Denmark, Germany, Japan, the United Kingdom and the United States) shows one to four predominant career patterns of their managers and the occurrence of these patterns also differs significantly between the fields of activity within the TMT (chairperson, head of a division, primary activities and support activities).     

The Narrow and Broad Approaches to Evolutionary Modeling in Economics

Some models in evolutionary economics rely on direct analogies to genetic evolution, assuming a population of firms with routines, technologies, and strategies on which forces of diversity generation and selection act. This narrow conception can build upon previous findings from evolutionary biology. Broader concepts of evolution allow many or just one adaptive entity, instead of necessarily requiring a population. Thus, an institution or a society can also be understood as an evolutionary entity. Both the narrow and broad approaches have been extensively used in the literature, albeit in different literature traditions. I provide an overview of the conception and development of both approaches to evolutionary modeling, and argue that a generalization is needed to realize the full potential of evolutionary modeling.