Leveling the Playing Field for Risk-Averse Agents in Security-Bid Auctions

2021 ◽  
Author(s):  
Andrés Fioriti ◽  
Allan Hernandez-Chanto
Keyword(s):  
Allocative Efficiency ◽  
Technical Condition ◽  
Risk Averse ◽  
Security Design ◽  
Call Option ◽  
Equilibrium Behavior ◽  
Playing Field ◽  
Price Auction ◽  
Auction Format ◽  
The Relationship

We introduce risk-averse bidders in a security-bid auction to analyze how the security design affects bidders’ equilibrium behavior and, as a result, the revenue and efficiency of the auction. We show that steeper securities provide more insurance because they allow bidders to smooth payoffs across realizations. Such insurance levels the playing field for more-risk-averse bidders, inducing them to bid more aggressively. As a consequence, the auction’s allocative efficiency weakly increases when the seller switches from a flatter to a steeper security. Furthermore, we prove that when bidders are homogeneously and sufficiently risk averse, the only security that guarantees Pareto efficiency is the steepest, that is, a call option. We also determine the relationship between the security design and the auction format. In particular, we show that for convex and superconvex families of securities, the first-price auction yields higher expected revenues, provided a technical condition, whereas for subconvex families, the second price yields higher expected revenues, provided that bidders are moderately risk averse. Finally, we show that steeper securities also attract higher entry from an ex ante perspective, when entry is costly, and discuss the effects that the presence of risk aversion has on informal auctions. This paper was accepted by Gustavo Manso, finance.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

The (Mis) Education of Immigrant Children in Today’s America

2019 ◽  
Vol 5 (2) ◽  
pp. 32
Author(s):  
Gabriela E. Gui
Keyword(s):  
General Education ◽  
Immigrant Students ◽  
Geographical Location ◽  
Personal Characteristics ◽  
Immigrant Children ◽  
Playing Field ◽  
Survey Interviews ◽  
The Individual ◽  
The Relationship ◽  
General Education Classrooms

In today’s America, not every child starts on a level playing field, and very few children move ahead based solely on hard work or talent. Generational poverty and a lack of cultural capital hold many students back, robbing them of the opportunity to move up professionally and socially. Children of immigrants are especially at-risk because, in addition to facing poverty, race, geographical location or economic disadvantages, they are also confronted with failure due to their limited or non-existent English proficiency. This study focuses on the degree to which teachers in a mid-sized urban school district take into consideration the individual needs of immigrant children in the process of their education. The study also examines the preparation teachers have had to equip them with knowledge of best practices in teaching immigrant children, and the relationship between teachers’ practices, beliefs, and their demographic and personal characteristics (age, gender, years of experience, level of education, etc.). Quantitative data was collected via a survey. Interviews with teachers and one central office administrator provided data for the qualitative section of the study. The findings revealed that teachers, in general, appeared to lack knowledge of specific policies for mainstreaming immigrant students into general education classrooms; their use of effective teaching practices for working with immigrant children were limited; and most of the teachers had not participated actively in professional development that focused on teaching immigrant children.

scholarly journals Correlation between Defects and Technical Wear of Materials Used in Traditional Construction

Materials ◽  
2021 ◽  
Vol 14 (10) ◽  
pp. 2482
Author(s):  
Jarosław Konior ◽  
Mariusz Rejment
Keyword(s):  
Residential Buildings ◽  
Descriptive Analysis ◽  
Technical Condition ◽  
Water Penetration ◽  
Major Drawback ◽  
Wear Process ◽  
Materials Used ◽  
Traditional Construction ◽  
The Relationship ◽  
Measurable Property

The degree of technical wear of old buildings, which are made of basic materials (cement, concrete, steel, timber, plaster, brick) using traditional technology, is expressed by the size and intensity of damage to their elements. The topic of the research concerns old residential buildings from the turn of the 19th and 20th centuries, which are located in the downtown district of Wroclaw, Poland. The descriptive analysis and the analysis of the definitions of defects that occur in the elements of residential buildings, which were performed as random analyzes, do not allow defects to be considered as measurable variables at a level of visual investigation. The major drawback of the method that is used by experts when assessing the technical condition of civil engineering buildings is that it does not numerically express the magnitude (strength) of the defects. Therefore, an attempt was made to numerically express the relationship (if such a relationship exists) between the occurred defects of buildings and the extent of their technical wear process. When calculating the strength of this relationship, the method of determining the point biserial correlation coefficient for the measurable property and the dichotomous property was used. It was found that the direction of the relation is right-hand for all the tested building elements, but the strength of the correlation between the detected defects and technical wear shows a considerable span and depends on the conditions of the apartment house’s maintenance. As a rule, damage caused by water penetration and moisture penetration always shows correlations of at least moderate strength.

The interpreters’ point of view on ELF at the European Commission: “A completely uneven playing field”

2020 ◽  
Vol 9 (2) ◽  
pp. 195-215
Author(s):  
Cristina Scardulla
Keyword(s):  
European Commission ◽  
Target Population ◽  
Point Of View ◽  
Lingua Franca ◽  
Playing Field ◽  
Successful Communication ◽  
European Institutions ◽  
Promising Solution ◽  
The Relationship ◽  
Communicative Effectiveness

AbstractThe use of English as a Lingua Franca is a promising solution to the overcoming of language barriers in a wide variety of contexts and, despite being formally governed by the principle of multilingualism, the European institutions are no exception. This paper aims at shedding light on the perception on the use of ELF within the European Commission, by presenting the results of a questionnaire carried out within the framework of a broader PhD project. The target population is that of interpreters working for the European Commission. The analysis focuses on two specific questions, which address interpreters in their role as communication experts, inviting them to momentarily set aside their opinion on the relationship between ELF and interpretation and rather assess ELF in terms of “communicative effectiveness,” considered as an essential component to a successful communication. Results confirm previous ITELF (Interpreting, Translation and English as a Lingua Franca) studies, in that interpreters believe that ELF tends to decrease the level of communicative effectiveness and that, based on their direct experience, less than half of the speakers in these meetings succeed at expressing themselves effectively when using ELF. Most importantly, they elaborate on what this loss of effectiveness entails in terms of communication quality, interlocutors’ participation rights and multilingualism.

Loyalty program in Africa: risk-seeking and risk-averse adventurers

2014 ◽  
Vol 69 (2) ◽  
pp. 137-157 ◽  
Author(s):  
Shogo Mlozi
Keyword(s):  
Consumer Behavior ◽  
Consumer Products ◽  
Loyalty Programs ◽  
Risk Averse ◽  
Loyalty Program ◽  
Content Type ◽  
Risk Seeking ◽  
Proposed Model ◽  
First Time ◽  
The Relationship

Purpose – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Design/methodology/approach – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Findings – The findings for overall model differed from the moderating factors of high risk, low risk, first-time visit and repeat visit. Also, the results are interesting when satisfaction is tested as a mediator. Practical implications – Practitioners could consider the fact that repeat visits may change tourists’ perceptions toward destination and may even increase their inclination to take on risks. This may impact innovation of consumer products in tourism. Also, policy makers could benefit on how loyalty programs can be developed to increase performance. Originality/value – The study offers specific strategic recommendations toward different groups of tourists (i.e. first-time, repeat visitors, risk averse, risk seeking) and proposes logic for setting up a loyalty program as a long-term strategy for success.

STUDY ON THE RELATIONSHIP BETWEEN VEHICLE MAINTENANCE AND FUEL CONSUMPTION

2021 ◽  
Vol 113 ◽  
pp. 163-172
Author(s):  
Olha SAKNO ◽  
Ievgen MEDVEDIEV ◽  
Tatiana KOLESNIKOVA
Keyword(s):  
Fuel Consumption ◽  
Partial Solution ◽  
Technical Condition ◽  
Clear Correlation ◽  
Technical Solution ◽  
Maintenance And Repair ◽  
Service Lifetime ◽  
Urban Conditions ◽  
The Relationship

A contemporary road vehicle (RV) is a rather complex system, consisting of a large number of subsystems, assemblies, units, and elements (parts). While operating, an RV interacts with the environment, and its elements interact with each other. Consequently, the properties (parameters) of these elements change in the process - hardness, roughness, size, relative position, gapping, etc. A partial solution to the presented problems can be the search for a technique for assessing the RV technical condition by a generalised criterion, which is quite sensitive to changes in the technical state. One of these criteria may be fuel consumption in litres per 100 kilometres. This paper investigates the possibilities of using the fuel consumption indicator as a criterion for assessing the technical condition of the vehicle and the vehicle maintenance and repair technologies have been generalised to obtain a given technical solution. Thus, the possibility of using the fuel consumption indicator as a criterion for assessing the technical condition of the vehicles was explored using the Volkswagen Touran 1.9 TDI operating in urban conditions using a driving cycle. A clear correlation between the fuel consumption and the service lifetime of the vehicle has been established; therefore, it depends on the frequency and quality of the maintenance and repair (MR). The vehicle MR technology has been generalised to obtain a specified technical solution. The process of creating an RV MR Technology model is implemented based on an iterative approach (repetition) with the possibility to specify their features.

Booms, Busts, and Changing Labor Markets

2017 ◽  
Author(s):  
James E. Coverdill ◽  
William Finlay
Keyword(s):  
Labor Markets ◽  
Great Recession ◽  
Risk Averse ◽  
The Great Recession ◽  
The Relationship

This chapter explores three issues. First, it shows why the Great Recession affected headhunting so severely: both the hiring rate and the quitting rate declined sharply. Second, it shows how this recession changed the relationship between headhunters and their clients, as the latter became increasingly difficult to please when presented with candidates, because they wanted “perfect” candidates only due to there being a supposed “buyer’s market.” Third, it explains why the recession made employees so reluctant to become candidates and why employee wounds became less effective in turning them into job-changers; candidates, especially those with secure jobs, were now far more risk averse. The Great Recession, notwithstanding the claims that it had created a buyer's market for employers, was not a bonanza for them or for headhunters.

Thoughts for the Future

2006 ◽  
pp. 147-165
Author(s):  
Andrew Colarik
Keyword(s):  
Information Infrastructure ◽  
Global Information ◽  
Security Design ◽  
User Privacy ◽  
Data Usage ◽  
The Future ◽  
Taking Action ◽  
The Relationship ◽  
Global Information Infrastructure ◽  
Cyber Criminals

Briefly put the previous information presented into a context for taking action. Ö Understand the relationship between user privacy and data usage. Ö Be aware of the relationship between security design and user features. Ö Present some of the major issues in securing the global information infrastructure. Ö Identify seven solutions for safeguarding the global information infrastructure from cyber criminals and cyber terrorists alike.

Why the Reserve Price Should Not Be Kept Secret

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Karine Brisset ◽  
Florence Naegelen
Keyword(s):  
Price Policy ◽  
Risk Averse ◽  
Relative Risk Aversion ◽  
Reserve Price ◽  
Bayesian Equilibrium ◽  
Ascending Auctions ◽  
Price Auction ◽  
Second Price Auction ◽  
Optimal Reserve ◽  
Secret Reserve Price

This paper considers the optimality of setting a secret reserve price in ascending auctions. Contrary to intuition, an ascending auction is no longer equivalent to a second price auction when the reserve price is secret. We determine the seller's optimal reserve price policy when the bidders' values are private and independently distributed and when the bidders are risk averse. We show that an optimal secret reserve price policy can dominate an optimal public reserve price policy when the bidders' degree of constant relative risk aversion is sufficiently high and when the seller can commit to a reserve price policy before learning her type. In contrast, a secret reserve price policy can never be part of a Bayesian equilibrium when the seller is informed.

The Determinants of Risk Aversion: The Role of Intergenerational Transmission

2013 ◽  
Vol 14 (2) ◽  
pp. 214-234 ◽  
Author(s):  
Maria De Paola
Keyword(s):  
Risk Aversion ◽  
Intergenerational Transmission ◽  
Individual Characteristics ◽  
Risk Attitudes ◽  
Risk Averse ◽  
The Public ◽  
Measures Of Risk ◽  
High Ability Students ◽  
The Relationship

AbstractThis article studies the relationship between risk attitudes and individual characteristics focusing on the intergenerational transmission of risk preferences. We use a dataset of a sample of Italyn students which allows us to build different measures of risk aversion based, respectively, on a survey asking students about their willingness to invest in a risky asset and about their preferences for job security and on the results of an entry test using explicit penalty points in the case of incorrect answers. In line with the findings highlighted by the existing literature, we find that women are more risk averse than men, more patient subjects are more risk averse, while high-ability students are less risk averse. As far as intergenerational transmission of preferences is concerned, it emerges that students whose fathers are entrepreneurs have a higher propensity to take risks, while students whose fathers are employed in the public sector are more risk averse. Only fathers matter with regards to their children’s risk attitudes. These results are robust to different measures of risk aversion and to different specifications of our model.

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