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Self-reinforcing market dominance

Are initial competitive advantages self-reinforcing, so that markets exhibit an endogenous tendency to be dominated by only a few firms? Although this question is of great economic importance, no systematic empirical study has yet addressed it. Therefore, we examine experimentally whether firms with an initial cost advantage are more likely to invest in marginal cost reductions than...

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English / 04/07/2009

Long-run labour market and health effects of individual sports activities

This microeconometric study analyzes the effects of individual leisure sports participation on long-term labour market variables, on socio-demographic as well as on health and subjective well-being indicators for West Germany based on individual data from the German Socio-Economic Panel study (GSOEP) 1984 to 2006. Econometric problems due to individuals choosing their own level of...

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English / 04/07/2009

Disentangling Specific Subsets of Innovations: An Empirical Analysis for German Firms

Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities,...

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English / 02/07/2009

A model of corporate sustainability

The discussion of corporate sustainability (CS) is hindered by a lack of definitional clarity of the concept of CS and neighboring concepts. Therefore in this paper a framework of corporate sustainability is construdted from information derived from guidelines concerning corporate sustainability. Within this framework, a differentiation between sustainability performance and its...

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English / 02/07/2009

Cortical plasticity of audio-visual object representations

Several regions in human temporal and frontal cortex are known to integrate visual and auditory object features. The processing of audio-visual (AV) associations in these regions has been found to be modulated by object familiarity. The aim of the present study was to explore training-induced plasticity in human cortical AV integration. We used functional magnetic resonance imaging...

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English / 01/07/2009

Merger negotiations and ex-post regret

We consider a setting in which two potential merger partners each possess private information pertaining
both to the profitability of the merged entity and to stand-alone profits, and we investigate the extent to
which this private information makes ex-post regret an unavoidable phenomenon in merger negotiations.
To this end, we consider ex-post incentive compatible...

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English / 01/07/2009

Influence of dopaminergically mediated reward on somatosensory decision-making

Reward-related dopaminergic influences on learning and overt behaviour are well established, but any influence on sensory decision-making is largely unknown. We used functional magnetic resonance imaging (fMRI) while participants judged electric somatosensory stimuli on one hand or other, before being rewarded for correct performance at trial end via a visual signal, at one of four...

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English / 01/07/2009

Concurrent brain-stimulation and neuroimaging for studies of cognition

Neuroimaging can address activity across the entire brain in relation to cognition, but is typically correlative rather than causal. Brain stimulation can target a local brain area causally, but without revealing the entire network affected. Combining brain stimulation with concurrent neuroimaging allows a new causal approach to how interplay between extended networks of brain...

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English / 01/07/2009

Lottery pricing under time pressure

This paper investigates how subjects determine minimum selling prices for lotteries. We design an experiment where subjects have at every moment an incentive to state their minimum selling price and to adjust the price if they believe that the price that they stated initially was not optimal. We observe frequent and sizeable price adjustments. We find that random pricing models can...

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English / 01/07/2009

GPs' preferences: What price fee-for-service?

In mixed health care systems a crucial condition for the success of Managed Care (MC) plans is to win over a su±cient number of general practitioners (GPs) acting as gatekeepers. This contribution reports on GPs' willingness-to-accept (WTA) or compensation asked, respectively, for changing from conventional fee-for-service to MC practice. Some 175 Swiss GPs participated in...

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English / 01/07/2009

Simulating WTP Values from Random-Coefficient Models

Discrete Choice Experiments (DCEs) designed to estimate willingness-to-pay (WTP) values are very popular in health economics. With increased computation power and advanced simulation techniques, random-coefficient models have gained an increasing importance in applied work as they allow for taste heterogeneity. This paper discusses the parametrical derivation of WTP values from...

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English / 01/07/2009

"The Changing Role of Business in a Global Society: New Challenges and Responsibilities"

This special issue assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts

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English / 01/07/2009

Globalization as a Challenge for Business Responsibilities

This paper assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts. The argument is based, among other
things, on the declining capacity of nation state institutions to regulate socially desirable corporate behavior as well as the growing corporate exposure to heterogeneous social, cultural and political values in...

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English / 01/07/2009

Two are better than one!: individuals' contributions to "unpacked" public goods

We experimentally demonstrate how "unpacking" provides a possible approach for mitigating the dilemma of public goods provision through private contributions. Subjects' total contributions increase when a single public good is split into two identical public goods.

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English / 01/07/2009

Debt and Equity: What's the Difference? A Comparative View

The divide between debt and equity belongs to the focal points of national and international tax law. Under domestic individual income tax law, it is crucial for the distinction between a creditor-debtor relationship and a full partnership of taxpayers jointly carrying on a business. Under domestic corporate income tax law, it is decisive for the application of a two-layer taxation...

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English / 01/07/2009

An Extended Stein's Lemma for Asset Pricing

Stein's lemma is extended to the case where asset returns have skewed and leptokurtic distributions. The risk premium is still the negative of the covariance of the excess return with the log stochastic discount factor. The risk-neutral distribution has a simple form but is a nontrivial transformation of the physical distribution.

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English / 24/06/2009

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