infonet-economy

While business model innovations are critical to a company’s long-term survival, they are still poorly understood compared to other kinds of innovations. In this paper, we investigate prior research and reframe business model innovation through a practitioner lens. We report on a content analysis of interviews with CEOs of small and medium enterprises in the technology industry, with...

Internationalization speed currently receives once again substantial attention in the internationalization literature. Internationalization speed already formed an integral part of the incremental approach to internationalization 40 years ago. It received center stage position in the more recent born global and international new venture debate. However, there are new developments in...

This paper explores the extent to which Idiosyncratic risk of the target increases acquires shareholders wealth in cross-border takeovers. Using a sample on 15,619 cross-border takeovers, we find that cross-border add value to target firms stockholders. Our results show that the well documented superior acquirer gains in cross-border deals do not persist for firms with low...

We show that a one-off incentive to bias advice has persistent effects. In an experiment, advisers were paid a bonus to recommend a lottery which only risk-seeking individuals should choose to a less informed client. Afterwards, they had to choose for themselves and make a second recommendation to another client, without any bonus. These advisers choose the risky lottery and...

While smooth exact potential games are easily characterized in terms of the cross-derivatives of players' payoff functions, an analogous differentiable characterization of ordinal or generalized ordinal potential games has been elusive for a long time. In this paper, it is shown that the existence of a generalized ordinal potential in a smooth game with multi-dimensional...

Throughout human history, informal sanctions by peers were ubiquitous and played a key role in the enforcement of social norms and the provision of public goods. However, a considerable body of evidence suggests that informal peer sanctions cause large collateral damage and efficiency costs. This raises the question whether peer sanctioning systems exist that avoid these costs and...

Die Kündigungsfreiheit wird durch eine Reihe von zeitlichen und sachlichen Vorschriften beschränkt. Die interessierenden Art. 336–336b OR befassen sich mit dem sachlichen Kündigungsschutz. Dieser bleibt unter dem europäischen Standard. Untersagt ist lediglich die missbräuchliche Kündigung. Wer das Arbeitsverhältnis aus Gründen kündigt, die das Gesetz als missbräuchlich bezeichnet,...

We study optimal incentive contracts with multiple agents when performance evaluation is delegated to a reviewer. The reviewer may be biased in favor of the agents, but the degree of the bias is unknown to the principal. We show that a contest, which is a contract in which the principal determines a set of prizes to be allocated to the agents, is optimal. By using a contest, the...

We provide a rationale for imposing counter-cyclical capital ratios on banks. In our simple model, bankers cannot pledge the entire future revenues to investors, which limits borrowing in good and bad times. Complete markets do not sufficiently stabilize credit fluctuations, as banks allocate too much borrowing capacity to good states and too little to bad states. As a consequence,...