Venture investment under multi-stage incentive model based on fairness concerns

PurposeThis study explores the impact of EN's (venture entrepreneurs, simplified as EN) jealousy fairness concerns coefficient on two-stage venture capital decision-making in cases of symmetrical and asymmetrical information. It discusses the equilibrium solution of two-stage venture.Design/methodology/approachThe principal-agent model was established based on multiple periods, and differentiated contracts were established at different stages. The validity of the models and the contract was verified by numerical simulation.FindingsThe results suggest that with the increase in the EN fairness concerns coefficient, the effort level of EN decreases continuously and decreases faster in the second stage because this is the last stage. The level of VC's (venture capitalist, simplified as VC) effort declines first and then increases; that is, VC will increase the effort level when the fairness concerns coefficient increases to a certain threshold. To motivate EN to pay more effort, VC will increase the incentive to EN in the first stage. However, it will reduce the level of incentive to EN in the second stage. In the limited stage of venture investment, consider that the fairness concerns of EN do not make the profits of EN and VC achieve Pareto improvement simultaneously.Originality/valueFirst, the authors implanted fairness concerns into multi-stage venture capital and discussed the impact of fairness concerns on the efforts and returns of both parties. Second, among the influencing factors of the project output, the authors consider the bilateral efforts of EN and VC, the working capacity of EN, the initial investment scale, and the external uncertain environment.

Volatilitas Pasar Bawang Merah di Kabupaten Probolinggo Provinsi Jawa Timur

<strong>English</strong><br />Shallot is an agricultural strategic commodity. Understanding the market dynamics is necessary in formulating the market management policy. This study aims to analyze the volatility magnitude and <em>spillover</em> of shallot production, import, and consumption. This study was conducted in Probolinggo Regency, a major shallot production center, using monthly time series data of 2013-2019 period. Volatility was analyzed using the ARCH/GARCH method, spillover was analyzed using the EGARCH method. The results showed low volatility in production quantity and producers price. High volatility was found for quantity of consumption, import price and consumer price. Volatility spillover was found between producer’s price and production quantity as well as between consumer’s price and consumption quantity. There was no volatility spillover between producer’s price and consumer’s price or between quantity of production and consumption. The findings indicate the existence of asymmetrical information between producers’ market and consumers’ market. Therefore, market stabilization intervention should be focused in the consumers’ market. Price reference may be used as a benchmark in market intervention which includes market operations and import controls. Government should develop market information system to prevent asymmetrical information between the producers’ market and the consumers’ market.<br /><br /><br /><strong>Indonesian</strong><br />Bawang merah adalah salah satu komoditas pertanian strategis. Pemahaman tentang dinamika pasar sangat penting dalam perumusan kebijakan pengelolaan pasar. Penelitian ini bertujuan untuk menganalisis besaran dan <em>spillover</em> volatilitas produksi, impor dan konsumsi bawang merah. Penelitian dilakukan di Kabupaten Probolinggo, salah satu sentra produksi bawang merah dengan menggunakan data bulanan deret waktu selama tahun 2013–2019. Untuk menganalisis volatilitas harga, produksi, dan konsumsi digunakan metode ARCH/GARCH, sedangkan untuk menganalisis volatilitas <em>spillover</em> digunakan metode EGARCH. Hasil analisis menujukkan volatilitas rendah untuk kuantitas produksi dan harga konsumen. Volatilitas tinggi ditemukan untuk kuantitas konsumsi, harga impor, dan harga konsumen<em>.</em> Volatilitas <em>spillover</em> terjadi antara harga produsen dan kuantitas produksi serta antara harga konsumen dan kuantitas konsumsi. Volatilitas <em>spillover</em> tidak terjadi antara harga produsen dan konsumen maupun antara kuantitas produksi dan konsumsi<em>. </em>Temuan ini<em> </em>mengindikasikan adanya asimetri informasi antara pasar produsen dan pasar konsumen. Karena itu, upaya stabilisasi harga bawang merah sebaiknya difokuskan di pasar konsumen. Kebijakan referensi harga dapat dijadikan sebagai acuan dalam melaksanakan intervensi pasar yang mencakup operasi pasar dan pengendalian impor. Pemerintah perlu pula membangun sistem informasi pasar untuk menghilangkan masalah asimetri informasi antara pasar produsen dan pasar konsumen.

Legitimizing military action through statistics and discourse in the 2014 IDF assault on Gaza

This article analyses the way statistics were used by select British and South African news outlets in the coverage of the 2014 Israeli assault on Gaza. Taking asymmetrical warfare as their primary theoretical framework, we used a content analysis and interviews with journalists to uncover specific patterns and imbalances in the coverage. Within the text of the articles, we observed the way numbers served to legitimize Israeli attacks and de-legitimize attacks from Gaza. This can partially be explained by aspects of news production. Journalists described Israeli public relations as highly attuned to news production practices on the conflict. Taken as a whole, we argue that the use of numbers in the Israeli–Palestinian conflict can be conceptualized within an asymmetrical information context. In doing so, we emphasize the need to examine text as well as production when researching this war and other conflicts.

Goals of Care or Goals of Life? A qualitative study of clinicians’ and patients’ experiences of hospital discharge using Patient-Oriented Discharge Summaries (PODS)

Background : Recognizing the need for improved communication with patients at the point of hospital discharge, a group of clinicians, patients, and designers in Toronto, Canada collaborated to develop a standardized tool known as the Patient-Oriented Discharge Summary (PODS). Although quantitative results suggest PODS helps mitigate gaps in knowledge, a qualitative inquiry from the clinician and patient perspective of hospital discharge using PODS has not been widely explored. Methods : We used a qualitative research design to explore clinicians’ and patients’ experiences with PODS. We used convenience sampling to identify and invite potential participants at the Center for Addiction and Mental Health in Toronto, Canada to participate in semi-structured interviews. Data was analyzed using a thematic analysis approach to develop descriptive themes. Results : The themes that emerged based on PODS experience was influenced by the asymmetrical information advantaged that clinicians had with the discharge planning process. Thus, the themes from the data between clinicians and patients were both different and complementary. Clinicians described PODS using the concept of “goals of care.” They relayed their experiences with PODS as a discrete event and emphasized its role in meeting their “goals of care” for discharge planning. Patients provided more of a “goals of life” perspective on recovery. They characterized PODS as only one facet of their recovery journey and not necessarily as a discrete or memorable event. Patients focused on their outcomes post-discharge and situated their experiences with PODS through its relation to their overall recovery. Conclusions : PODS was experienced differently by clinicians and patients. Clinicians experienced PODS as helpful in orienting them to the fulfillment of goals of care. Patients did not experience PODS as a particularly memorable intervention. Due to the asymmetrical information advantage that clinicians have about PODS, it is not surprising that clinicians and patients experienced the PODS differently. Despite that an asymmetrical relationship exists between clinician and patients, it did not detract from the potential benefits of PODS for the patient. This study expanded our understanding of hospital discharge from clinicians and patients perspectives, and suggests that there are additional areas that need improvement.

Institutional Arrangement for Food Price Stabilization and Market Distribution System: Study of Chili Commodity in Banyuwangi Regency

The fluctuating development of chili prices implies that the maintained supply of chili is very important to maintaining the stability of food prices. The value chain integration of the chili commodity from upstream to downstream supported by the availability of adequate infrastructure and institutions is the main prerequisite in increasing the productivity of chili commodities. The purpose of this study is (1) to give a description of the chili commodity marketing chain in Banyuwangi Regency; (2) analyze the determinants of structure, conduct, and performance of the chili commodity market in Banyuwangi Regency. The analytical method used consists of the Autoregressive Integrative Moving Average (ARIMA) and Structure Conduct Performance (SCP) models.The results of the study show that price determination was based on market mechanisms and collective agreements for farmers who partner with collectors and food processing industries. However, the lack of price and knowledge information in market analysis and projections of price movements and the absence of special institutions that deal with chili governance and limited use of technology have led to the emergence of asymmetrical information from chili businesses and the growth of new players in the trade system that dominates the chili trade. The chili market structure tends to oligopsony, which has the power to influence market prices and is concentrated, causing little competition between chili traders in Banyuwangi Regency.

New institutional economics: contributions to international business studies

Purpose The purpose of this paper is to analyze the main contributions of the new institutional economics to the international business (IB) arena. It also intends to show how the NIE is being incorporated to both eclectic paradigm and Uppsala school’s view, and how it is modifying them. Design/methodology/approach A range of IB articles, which contained an institutional view and also discussed the eclectic paradigm or the Uppsala school, provides the background to build a framework. Findings This paper proposes a framework showing the impact of the institutional variables on the internationalization of firms, by addressing both the OLI paradigm and Uppsala school. It also concludes that the institutional theory has been a point of intersection between the OLI paradigm and Uppsala school, since both have been renewed to understand the transaction costs borne by the firms in their international learning process and in the search for less asymmetrical information. Research limitations/implications This paper provided a brief discussion about the institutional components. Practical implications This study is a useful source of information for those who want to discuss the institutional impact in the IB arena and emerging markets. Originality/value This paper summarizes how the OLI paradigm and Uppsala school encompassed the institutional variables. It also presents a framework that allows new study possibilities since the understanding of the influence of institutional variables on the international movements of firms is still cloudy.

A Comparative Study between Informal and Formal Finance: A Literature Review

The informal credit system is a prevailing form of economic exchange in emerging countries. It is the predominant form of credit in rural communities because it is based on a culture of reciprocity (Family participation-relatives-Loyalty-friends-Neighbour). Informal finance contributes significantly to the growth of small and medium-sized enterprises (SMEs). The present study justifies the wide application of informal finance. We find that these projects suffer from the problem of asymmetrical information. They also offer few guarantees. Informal financiers have an advantage over formal financial organizations, in gathering information on lenders in SMEs. The aim of our study was to explore formal and informal credit systems and to explain the prevalence of informal systems in developing countries. The study concluded that credit from informal sources is superior to credit from formal sources because it results in low rates of default on loans. The study also showed that informal finance and commercial credit have a positive impact on the performance of private companies, measured using the rate of return on assets.

Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns

The importance of behavioral factors in the process of decision making is widely recognized in literature and practice. The aim of this paper is to examine the influence of collectors’ multiple fairness concerns on pricing decisions in a closed-loop supply chain (CLSC), which consists of one manufacturer, one retailer, and two collectors. Specifically, the collectors are concerned with both distributional fairness and peer-induced fairness. By considering fairness concerns and selecting Nash bargain solution as the reference point of fairness distribution, this paper studies the equilibrium solution of Stackelberg game models in the CLSC with symmetrical and asymmetrical information of fairness concerns, respectively. The results show that in the former case, distributional fairness is always at the cost of sacrificing the manufacturer’s profits, which is a means of gaining more benefits for the collectors. In the latter case, the profits of both the manufacturer and the collectors turn into a loss. No matter in which case, the collector who is concerned with both distributional and peer-induced fairness is always in a passive position. Generally speaking, whether the decision maker concerns fairness and whether it can be perceived by the CLSC members both impact the members’ decision making. Additionally, the utilities of both the manufacturer and the collectors receive Pareto improvement under the proposed incentive contract.