infonet-economy

According to the widely used Managerial Power Model, a higher hierarchical position with associated higher power leads to higher compensation. In contrast, the Compensating Wage Differentials Model argues that there is a non-positive relationship between positional power and total compensation. Both power and income yield utility and in equilibrium managers are prepared to trade-off…

This paper analyzes economic fluctuations in an overlapping generations economy with productive capital in which random shocks in aggregate productivity are present. Under specific assumptions we obtain an explicit solution of the model. Applying random dynamical systems theory, we can prove that the long-run behavior of the economy is uniquely described by an asymptotically stable…

Problemstellung: In den letzten Jahren haben sich Realoptionen zunehmend als fruchtbarer Ansatz im Capital Budgeting und bei der Unternehmensbewertung erwiesen. Zudem hat sich die von Finanzoptionen bekannten Replikationsportfolios als hilfreich für die Bewertung auch von Realoptionen herausgestellt. So entsteht die Frage, ob es Parallelen zwischen Finanzoptionen und Realoptionen…

"Employees are motivated intrinsically as well as extrinsically. Intrinsic motivation is crucial when tacit knowledge in and between teams must be transferred. Organizational forms enable different kinds of motivation and have different capacities to generate and transfer tacit knowledge. Since knowledge generation and transfer are essential for a firm’s sustainable…

"The measurement of individual happiness challenges the notion that revealed preferences only reliably reflect individual utility. Reported subjective well-being is a broader concept than traditional decision utility; it also includes concepts like experience and procedural utility. Micro- and macroeconometric happiness functions offer new insights on determinants of life…

"Due to its formality and highly analytic thinking, economics is often attributed a leading role among the social sciences and a prominent position as contributor to economic or social issues in the real world. Fact is, however, that the empirical proof for such a claim is either missing or anecdotal. This paper aims to outline the ""economics of economics”.…

This paper analyzes a model of oligopolistic competition with ongoing investment. It incorporates the following models as special cases: incremental investment, patent races, learning-by-doing, and network externalities. We investigate circumstances under which a firm with low costs or high quality will extend its initial lead through further cost-reducing or quality-improving…

This paper examines how the presence of a non-negligible fraction of reciprocally fair actors changes the provision of incentives through contracts. We provide experimental evidence that principals have a strong preference for less complete contracts although the standard self-interest model predicts that they should prefer the more complete contract. Our theoretical analysis shows…

Not available in German. The paper studies the returns from enterprise-related continuous vocational training on individual earnings, unemployment probabilities, and other labour market indicators in East Germany after unification. It attempts to solve the intrinsic identification problem of such evaluation problems nonparametrically by using restrictions produced by unification as…