scholarly journals Relational Contracts with Private Information on the Future Value of the Relationship: The Upside of Implicit Downsizing Costs

2019 ◽  
Vol 11 (4) ◽  
pp. 33-58
Author(s):  
Matthias Fahn ◽  
Nicolas Klein
Keyword(s):  
Private Information ◽  
Alternative Explanation ◽  
Relational Contracts ◽  
Truth Telling ◽  
Relational Contract ◽  
Bonus Payments ◽  
The Future ◽  
Short Run ◽  
Future Value ◽  
The Relationship

We analyze a relational-contracting problem, in which the principal has private information about the future value of the relationship. In order to reduce bonus payments, the principal is tempted to claim that the value of the future relationship is lower than it actually is. To induce truth-telling, the optimal relational contract may introduce distortions after a bad report. For some levels of the discount factor, output is reduced by more than would be sequentially optimal. This distortion is attenuated over time even if prospects remain bad. Our model thus provides an alternative explanation for indirect short-run costs of downsizing. (JEL D23, D82, D86)

Relational Contracts and the Value of Relationships

2012 ◽  
Vol 102 (2) ◽  
pp. 750-779 ◽  
Author(s):  
Marina Halac
Keyword(s):  
Private Information ◽  
Bargaining Power ◽  
Principal Agent ◽  
Relational Contracts ◽  
Outside Option ◽  
The Relationship

This article studies optimal relational contracts when the value of the relationship between contracting parties is not commonly known. I consider a principal-agent setting where the principal has persistent private information about her outside option. I show that if the principal has the bargaining power, she wants to understate her outside option to provide strong incentives and then renege on promised payments, while if the uninformed agent has the bargaining power, the principal wants to overstate her outside option to capture more surplus. I characterize how information is revealed, how the relationship evolves, and how this depends on bargaining power. (JEL C78, D82, D83, D86)

scholarly journals Bayesian markets to elicit private information

2017 ◽  
Vol 114 (30) ◽  
pp. 7958-7962 ◽  
Author(s):  
Aurélien Baillon
Keyword(s):  
Financial Markets ◽  
Private Information ◽  
Prior Information ◽  
Alternative Methods ◽  
Prediction Markets ◽  
Truth Telling ◽  
The Future ◽  
Subjective Judgments ◽  
Election Results

Financial markets reveal what investors think about the future, and prediction markets are used to forecast election results. Could markets also encourage people to reveal private information, such as subjective judgments (e.g., “Are you satisfied with your life?”) or unverifiable facts? This paper shows how to design such markets, called Bayesian markets. People trade an asset whose value represents the proportion of affirmative answers to a question. Their trading position then reveals their own answer to the question. The results of this paper are based on a Bayesian setup in which people use their private information (their “type”) as a signal. Hence, beliefs about others’ types are correlated with one’s own type. Bayesian markets transform this correlation into a mechanism that rewards truth telling. These markets avoid two complications of alternative methods: they need no knowledge of prior information and no elicitation of metabeliefs regarding others’ signals.

A Meta-Analysis of Interviews and Cognitive Ability

2013 ◽  
Vol 12 (4) ◽  
pp. 157-169 ◽  
Author(s):  
Philip L. Roth ◽  
Allen I. Huffcutt
Keyword(s):  
Cognitive Ability ◽  
Meta Analysis ◽  
Incremental Validity ◽  
Employment Interviews ◽  
Moderator Analysis ◽  
The Future ◽  
Research Questions ◽  
Meta Analyses ◽  
The Relationship

The topic of what interviews measure has received a great deal of attention over the years. One line of research has investigated the relationship between interviews and the construct of cognitive ability. A previous meta-analysis reported an overall corrected correlation of .40 ( Huffcutt, Roth, & McDaniel, 1996 ). A more recent meta-analysis reported a noticeably lower corrected correlation of .27 ( Berry, Sackett, & Landers, 2007 ). After reviewing both meta-analyses, it appears that the two studies posed different research questions. Further, there were a number of coding judgments in Berry et al. that merit review, and there was no moderator analysis for educational versus employment interviews. As a result, we reanalyzed the work by Berry et al. and found a corrected correlation of .42 for employment interviews (.15 higher than Berry et al., a 56% increase). Further, educational interviews were associated with a corrected correlation of .21, supporting their influence as a moderator. We suggest a better estimate of the correlation between employment interviews and cognitive ability is .42, and this takes us “back to the future” in that the better overall estimate of the employment interviews – cognitive ability relationship is roughly .40. This difference has implications for what is being measured by interviews and their incremental validity.

Using the alveograph in developing requirements for the quality of flour for wafer sheet production

2020 ◽  
Vol 29 (12) ◽  
pp. 52-58
Author(s):  
E.P. Meleshkina ◽  
◽  
S.N. Kolomiets ◽  
A.S. Cheskidova ◽  
◽  
...  
Keyword(s):  
Rheological Properties ◽  
Quality Indicators ◽  
Wheat Flour ◽  
Mathematical Statistics ◽  
Intended Purpose ◽  
The Future ◽  
Relationship Of ◽  
The Relationship

Objectively and reliably determined indicators of rheological properties of the dough were identified using the alveograph device to create a system of classifications of wheat and flour from it for the intended purpose in the future. The analysis of the relationship of standardized quality indicators, as well as newly developed indicators for identifying them, differentiating the quality of wheat flour for the intended purpose, i.e. for finished products. To do this, we use mathematical statistics methods.

Editor’s Pick: Regulatory and Ethical Issues in the New Era of Radiomics and Radiogenomics

EMJ Radiology ◽  
2020 ◽  
Author(s):  
Filippo Pesapane
Keyword(s):  
Ethical Issues ◽  
Medical Images ◽  
Practical Significance ◽  
Innovative Technology ◽  
New Era ◽  
Naked Eye ◽  
Disease Characteristics ◽  
The Future ◽  
Using Data ◽  
The Relationship

Radiomics is a science that investigates a large number of features from medical images using data-characterisation algorithms, with the aim to analyse disease characteristics that are indistinguishable to the naked eye. Radiogenomics attempts to establish and examine the relationship between tumour genomic characteristics and their radiologic appearance. Although there is certainly a lot to learn from these relationships, one could ask the question: what is the practical significance of radiogenomic discoveries? This increasing interest in such applications inevitably raises numerous legal and ethical questions. In an environment such as the technology field, which changes quickly and unpredictably, regulations need to be timely in order to be relevant.  In this paper, issues that must be solved to make the future applications of this innovative technology safe and useful are analysed.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

ANALISIS PENGARUH EKSPOR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2017 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ari Mulianta Ginting
Keyword(s):  
Economic Growth ◽  
Export Performance ◽  
Descriptive Analysis ◽  
Correction Model ◽  
Administration System ◽  
Long Run ◽  
Short Run ◽  
Available Information ◽  
Increasing Trends ◽  
The Relationship

Ekspor merupakan salah satu faktor terjadinya peningkatan pertumbuhan ekonomi suatu negara, sejalan dengan hipotesis export-led growth (ELG). Penelitian ini menganalisis perkembangan ekspor dan pertumbuhan ekonomi Indonesia periode kuartal I 2001 sampai dengan kuartal IV 2015. Penelitian ini menggunakan analisis deskriptif dalam menggambarkan perkembangan pertumbuhan ekonomi serta ekspor dan analisis kuantitatif metode Error Correction Model (ECM) dalam menganalisis efek jangka panjang dan jangka pendek dari ekspor terhadap pertumbuhan ekonomi. Pada periode penelitian, data yang ada menunjukkan bahwa ekspor dan pertumbuhan ekonomi Indonesia sama-sama mengalami peningkatan. Hasil regresi ECM menunjukkan bahwa ekspor memiliki pengaruh yang positif dan signifikan secara statistik terhadap pertumbuhan ekonomi Indonesia, yang mendukung hipotesis bahwa ELG berlaku untuk Indonesia. Berdasarkan hasil penelitian ini, maka untuk mendorong pertumbuhan ekonomi Indonesia diperlukan peningkatan kinerja ekspor Indonesia. Peningkatan kinerja ekspor Indonesia dapat dilakukan dengan berbagai cara, salah satunya adalah dengan perbaikan sistem administrasi ekspor, peningkatan riset dan pengembangan produk Indonesia, peningkatan sarana dan prasarana infrastruktur, stabilitas nilai tukar dan perluasan pasar non tradisional, termasuk perbaikan struktur ekspor komoditas. Export is one of the factors behind the economic growth which is in line with the export-led growth hypotesis (ELG). This research analyzes the relationship between economic growth and export of Indonesia during first quarter of 2001 until fourth quarter of 2015. It employs descriptive analysis to describe export movement and economic growth during the study period and ECM model to analyze the long run and the short run effects of export on the economic growth. The available information indicated that, during the study period, both export and economic growth showed similar increasing trends. The result of the ECM model revealed that export had a positive and statistically significant relationship with the economic growth, supporting the hypotesis of ELG in Indonesia. Hence, to accelerate economic growth, efforts are required to boost the export performance in Indonesia. The Export performance can be increased by several way, such as improving the export administration system, increasing the research and development of Indonesian products, improving the facilities and infrastructure, exchange rate stability and the non-tradisional markets expansion, and including improvement of the export commodity structure.

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