Publication database

The book chapter analyzes the EU-UK Trade and Cooperation Agreement's (TCA) Chapter on future thematic cooperation on cybersecurity. It explains the broader political, technological and regulatory context of cybersecurity cooperation at the international and the EU levels. It then analyzes the TCA's passages individually and within this broader context. Finally, it provides an evaluation and outlook on future EU-UK cooperation on cybersecurity.

The rapid adoption of AI technologies by many organizations has recently raised concerns that AI may even-tually replace humans in certain tasks. In fact, when used in collaboration, machines can significantly enhancethe complementary strengths of humans. Indeed, because of their immense computing power, machines canperform specific tasks with incredible accuracy. In contrast, human decision-makers (DM) are flexible andadaptive but constrained by their limited cognitive capacity. This paper investigates how machine-basedpredictions may affect the decision process and outcomes of a human DM. We study the impact of thesepredictions on decision accuracy, the propensity and nature of decision errors as well as the DM’s cognitiveefforts. To account for both flexibility and limited cognitive capacity, we model the human decision-makingprocess in a rational inattention framework. In this setup, the machine provides the DM with accurate butsometimes incomplete information at no cognitive cost. We fully characterize the impact of machine inputon the human decision process in this framework. We show that machine input always improves the overallaccuracy of human decisions, but may nonetheless increase the propensity of certain types of errors (such asfalse positives). The machine can also induce the human to exert more cognitive efforts, even though its inputis highly accurate. Interestingly, this happens when the DM is most cognitively constrained, for instance,because of time pressure or multitasking. Synthesizing these results, we pinpoint the decision environmentsin which human-machine collaboration is likely to be most beneficial. Our main insights hold for differentinformation and reward structures, and when the DM mistrust the machine.

View all ESMT Working Papers in the ESMT Working Paper Series here. ESMT Working Papers are also available via SSRN, RePEc, EconStor, and the German National Library (DNB).

We illustrate conditions under which a trade platform selling its own products alongside third-party sellers benefits or harms consumers. This benefits consumers by lowering prices in a suite of models: a gatekeeper platform facing a competitive fringe of sellers, when fringe sellers also have their own channels perfectly or imperfectly substitutable to the platform; when the gatekeeper platform with fringe sellers competes against a big seller with market power on a differentiated alternative channel; and when the gatekeeper platform hosts only a big seller with market power. Platform product entry might harm consumers when a big firm sells both on the platform and on its alternative channel. The platform selling its own products harms consumers when consumers have heterogenous tastes for variants of products and the platform can control the access of fringe sellers via its commission and own product price. We also review the recent literature to highlight other channels via which benefits and harm arise from the platform selling its own products in its marketplace.

With permission of Elsevier

This thesis investigates how the social embeddedness of Chief Executive Officers (CEOs) impacts their firms’ decisions.

The book chapter "Digital Identity" in the Handbook "Digitization of the State and Public Administration" analyzes digital identification and authentification technologies and their impact in public administration and society. First, it introduces and defines the concept of digital identity. Second, it gives an overview of the technologies' applications in public administration and beyond. Third, it analyzes their governance and implementation in Europe and Germany. Fourth, it presents perspectives for the future development of digital identity in increasingly networked societies.

Even if we strive for an organizational learning culture that does not punish mistakes and failure, implementation is difficult. Especially when damage has been done, people are quick to talk about "culprits" and "sanctions," but this benefits no one. Analysis of the failure usually reveals that several factors played a role. Talking openly about this requires that the employees feel psychologically safe.
In aviation, openly dealing with mistakes is not only tolerated, but actively demanded. There, it is not the error that is the problem, but the unrecognized – or worse – the unreported error. This leads to the seemingly paradoxical result that, in the area of a high-risk organization of all places, the open, non-punitive handling of errors is the norm. The focus is on learning from mistakes in order to be able to avoid them henceforth. This principle should also apply to companies that want to reduce the errors that occur in their projects and processes.