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Knowledge transfer between and within alliance partners: Private versus collective benefits of social capital

This article examines the process through which multilevel network structures translate into knowledge acquisition from alliance partners. The degree of knowledge transfer a multidivisional company achieves from its network of alliance partners is determined not only by the organization's external network structure, but also by the structure of relationships among its business...

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English / 15/07/2007

De-Constructing the 'Soft Skills' Fashion in Organizations

In recent years it has become increasingly popular in the German speaking part of Europe to train individuals in so called 'social competences' or 'soft skills', thus presumably enabling both individuals and organizations to better relate with each other and thus 'function' more efficiently and effectively - at least this seems to be the inherent promise...

English / 11/07/2007

Supplementary health insurance as a tool for risk-selection in mandatory basic health insurance markets

As the share of supplementary health insurance (SI) in health care finance is likely to grow, SI may become an increasingly attractive tool for risk-selection in basic health insurance (BI). In this paper, we develop a conceptual framework to assess the probability that insurers will use SI for favourable risk-selection in BI. We apply our framework to five countries in which risk-...

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English / 02/07/2007

Legal and economic aspects of best execution in the context of the Markets in Financial Instruments Directive (MiFID)

This paper explores the implications for investment firms and clients that arise out of an interpretation of the Market in Financial Instruments Directive (MiFID) best execution requirements from a law and economics perspective. While best execution is often framed as a matter of investor protection, research on market microstructure suggests that there is, in fact, an efficiency...

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English / 01/07/2007

Risk and Rationality: Uncovering Heterogeneity in Probability Distortion

It has long been recognized that there is considerable heterogeneity in individual risk taking behavior but little is known about the distribution of risk taking types. We present a parsimonious characterization of risk taking behavior by estimating a finite mixture regression model for three different experimental data sets, two Swiss and one Chinese, over a large number of real...

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English / 01/07/2007

Competition, Cooperation, and Corporate Culture

Teamwork and cooperation between workers can be of substantial value to a firm, yet the level of worker cooperation often varies between individual firms. We show that these differences can be the result of labor market competition if workers have heterogeneous preferences and preferences are private information. In our model there are two types of workers: selfish workers who only...

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English / 01/07/2007

Terrorism and Business

Deterrence has been a crucial element in fighting terrorism, both in politics and in rational choice analyses of terrorism. However, there are two strategies that are superior to deterrence. The first one is to make terrorist attacks less devastating and less attractive to terrorists through decentralization. The second one is to raise the opportunity cost – rather than the material...

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English / 01/07/2007

Why does context matter? Attraction effects and binary comparisons

A large experimental and empirical literature on asymmetric dominance and attraction effects shows that the probability that an alternative is chosen can increase if additional alternatives become available. Hence context matters and choices and, therefore, market shares can not be accurately described by standard choice models where individuals choose the alternative that yields the...

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English / 01/07/2007

All said and done? The understanding of doing gender and its discontents

‘Doing gender' is a popular concept when studying gender, work and organisations and many studies in the field have used this concept. However what is actually meant by ‘doing gender' in different contexts is often quiet diverse. In this article the understanding of ‘doing gender' in empirical research on gender, work and organisations is critically interrogated. The...

English / 27/06/2007

The performance implications of timing of entry and involvement in multi-partner alliances

We examined the distribution of benefits to partners in multipartner alliances by concentrating on dynamics of partner entry and involvement. Testing hypotheses in the Wi-Fi Alliance, we observed heterogeneity of benefits. In particular, the extent of organizational involvement in this alliance enhanced partners' reputation and market success with related product introductions...

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English / 15/06/2007

Stochastic expected utility theory

A new decision theory is proposed to explain the violations of expected utility theory through the role of random errors. The main premise of the new theory is that individuals make random errors when they compute the expected utility of a risky lottery. When being distorted by error, the expected utility of a lottery should neither exceed the utility of the highest possible outcome...

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English / 01/06/2007

How to make the clean development mechanism sustainable — The potential of rent extraction

The clean development mechanism (CDM) should foster sustainable development and greenhouse gas emission reductions. The design of the CDM and first experience suggest that it may not achieve these goals. Developing countries hosting CDM projects may lose cheap emission reduction possibilities for their own future use, and sustainable development and technology transfer may not take...

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English / 01/06/2007

Relative Performance in Bilateral Trade

Concerns for relative performance are integrated into a model of contractual renegotiation in bilateral trade. It is shown that concernsnfor relative performance do never impede efficient trade. Moreover, conditional on renegotiation to occur, concerns for relative performance tend to mitigate material rent expropriation. However, concerns for relative performance make the occurrence...

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English / 01/06/2007

Age and Choice in Health Insurance: Evidence from Switzerland

Elements of regulation inherent in most social health insurance systems are a uniform package of benefits and uniform cost sharing. Both elements risk to burden the population with a welfare loss if preferences differ. This suggests introducing more contracted choice; however, it is widely believed that this would not benefit the aged. This study examines the relationship between age...

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English / 01/06/2007

On the Geographic and Cultural Determinants of Bankruptcy

This paper examines the role of geography and culture in explaining bankruptcy. We adopt survival analyses to model the bankruptcy risk of a firm, allowing for time-varying covariates. Based on a large sample from all major sectors of the Swiss economy, we find the following results: (i) The geographic location of a firm, which is characterized using a core-periphery approach, has a...

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English / 01/06/2007

The outperformance of family firms: the role of variance in earnings per share and analyst forecast dispersion on the Swiss market

Recent studies provide empirical evidence that family firms are outperforming their non-family counterparts in terms of stock market performance. For the Swiss stock market we find that family firms indeed outperform their non-family counterparts after controlling for firm size and beta. In addition, our data shows that family firms display more stable earnings per share in contrast...

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English / 01/06/2007

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