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ESMT Working Paper

Marginality, dividends, and the value in games with externalities

ESMT Working Paper No. 19-01
Frank Huettner, André Casajus (2019)
Subject(s)
Economics, politics and business environment; Management sciences, decision sciences and quantitative methods
Keyword(s)
Shapley value, potential, restriction operator, partition function form game, externalities
JEL Code(s)
C71, D60
In the absence of externalities, marginality is equivalent to an independence property that rests on Harsanyi‘s dividends. These dividends identify the surplus inherent to each coalition. Independence states that a player‘s payoff stays the same if only dividends of coalitions to which this player does not belong to change. We introduce notions of marginality and independence for games with externalities. We measure a player‘s contribution in an embedded coalition by the change in the worth of this coalition that results when the player is removed from the game. We provide a characterization result using efficiency, anonymity, and marginality or independence, which generalizes Young‘s characterization of the Shapley value. An application of our result yields a new characterization of the solution put forth by Macho-Stadler et al. (J Econ Theor, 135, 2007, 339-356) without linearity, as well as for almost all generalizations put forth in the literature. The introduced method also allows us to investigate egalitarian solutions and to reveal how accounting for externalities may result in a deviation from the Shapley value. This is exemplified with a new solution that is designed in a way to not reward external effects, while at the same time it cannot be assumed that any partition is the default partition.

 

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).

Pages
23
ISSN (Print)
1866–3494
Journal Article

HAL: The missing piece of the puzzle for hardware reverse engineering, trojan detection and insertion

IEEE Transactions on Dependable and Secure Computing 16 (3): 498–510
Marc Fyrbiak, Sebastian Wallat, Pawel Swierczynski, Max Hoffmann, Sebastian Hoppach, Matthias Wilhelm, Tobias Weidlich et al. (2019)
Subject(s)
Information technology and systems
Keyword(s)
Hardware reverse engineering, hardware Trojans, hardware Trojan detection
Volume
16
Journal Pages
498–510
ISSN (Print)
1545-5971
Commentary

Commentary 3.1.b to Case 3.1: The coach wears Zorro's cape

In Complex situations in coaching: A critical case-based approach, 56–59. Abingdon: Routledge.
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Executive coaching, boundaries in coaching, rescuer syndrome
Secondary Title
Complex situations in coaching: A critical case-based approach
Pages
56–59
ISBN
978-0367173234
Book Chapter

Digitale SouverÀnitÀt durch rechtliche Gestaltung von Technik? [Digital sovereignty through regulatory shaping of technology?]

In Brauchen wir eine neue Staatskunst?, edited by Henning LĂŒhr, 182–192. Bremen: Kellner Verlag.
Martin Schallbruch (2019)
Subject(s)
Economics, politics and business environment
Keyword(s)
Digital transformation, sovereignty, lawmaking
The article addresses the question of the digital dependencies of the public sector and the way in which government performs its tasks in the digital sphere. It examines the use of ICT and digital platforms, the development of digital competencies in public authorities and the overall ability to manage digital sovereignty. In particular, it highlights the role of the law and proposes three approaches for shaping regulation to strengthen digital sovereignty.

[Der Beitrag beschĂ€ftigt sich mit der Frage der AbhĂ€ngigkeiten des Staates und staatlicher AufgabenerfĂŒllung im digitalen Raum. Er untersucht die Nutzung von IKT und digitalen Plattformen, die Kompetenzentwicklung in Behörden und die ĂŒbergreifende FĂ€higkeit zum Management digitaler SouverĂ€nitĂ€t. Besonders intensiv beleuchtet er die Rolle des Rechts und schlĂ€gt drei AnsĂ€tze vor, die Weiterentwicklung der Regulierung zur StĂ€rkung digitaler SouverĂ€nitĂ€t zu nutzen.]
Secondary Title
Brauchen wir eine neue Staatskunst?
Pages
182–192
ISBN
978-3-95651-211-7
Journal Article

When age does not harm innovation and job outcomes: Testing organizational collaboration as a social buffer

Human Resource Management 58 (3): 301–316
Laura Guillén, Florian Kunze (2019)
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Age, innovative behavior, inter-departmental collaboration, personnel outcomes
Although the topic of aging at work is receiving increasing research attention, it remains unclear if aging employees are less innovative at work and what consequences this relation entails. We integrate the literature on aging with research on innovation to gain a better understanding of whether—and if so, when—employees’ aging harms their professional outcomes via decreased innovative behavior. Multi-source, time-lag data on 305 project managers provides support for the idea that age does not always go hand in hand with low innovative behavior and, subsequently, low professional outcomes. Rather, inter-departmental collaboration works as a social buffer for these negative effects. Specifically, aging employees with low inter-departmental collaboration are less innovative and subsequently less successful. In contrast, the “age handicap” vanishes when aging employees collaborate with other members in their organizations. Our results highlight the importance for organizations to foster collaboration among their members, either formally or informally.
© 2019 Wiley Periodicals, Inc.
Volume
58
Journal Pages
301–316
Book Chapter

It's all about scaling, stupid!

In Europa kann es besser, edited by Sven AfhĂŒppe, 143–149. Freiburg im Breisgau: Verlag Herder.
Subject(s)
Economics, politics and business environment; Finance, accounting and corporate governance; Technology, R&D management
Keyword(s)
Financial market integration, European Union, scaling, platform-driven business models
Secondary Title
Europa kann es besser
Pages
143–149
ISBN
978-3451393600
ESMT Case Study

Recognizing leadership styles

ESMT Case Study No. ESMT-419-0181-1
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Leadership styles, leadership, leadership development
This is a set of six vignettes (presented in a paper version and in a video version) designed to help undergraduate and graduate students, as well as participants in executive education programs recognize the differences between six leadership styles identified by the work of Litwin & Stringer (1971) and further popularized by Goleman (2000), Goleman, Boyatzis, & McKee (2013), and Korn & Ferry (2017). The vignettes present employee descriptions of their superior’s behaviors that are indicative of one of the six leadership styles: directive, visionary, affiliative, participative, pacesetting, and coaching. The vignettes, each describing a typical application of a particular style, can be used in class for the purpose of developing students’ leadership style diagnostic skills, as a group discussion material, or as test material for post-class examination.
This case study contains a video that is available with English, Chinese and Russian subtitles.
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Journal Article

Idea rejected, tie formed: Organizations' feedback on crowdsourced ideas

Academy of Management Journal 62 (2): 503-530
Henning Piezunka, Linus Dahlander (2019)
Subject(s)
Strategy and general management; Technology, R&D management
Keyword(s)
Crowdsourcing, innovation, tie formation, networks, rejection
When organizations crowdsource ideas, they ultimately select only a small share of the submitted ideas for implementation. Organizations generally provide no feedback on ideas they do not select. Contributors whose ideas are not selected for implementation tend to forego submitting ideas in the future. We suggest that organizations can increase contributors’ willingness to submit ideas in the future by giving a thus far understudied form of feedback: rejections. Drawing on social network theory, we develop the overarching argument that rejections lead contributors to bond with the organization, increasing their willingness to continue to interact with the organization. While it may be counterintuitive to associate rejections with bonding, we hypothesize that rejections indicate to contributors that the organization is interested both in receiving their ideas and in developing a relationship with them. This effect, we argue, is particularly pronounced when rejections provide newcomers with explanations that suggest to them that they and the organization are a good match. To test our theory, we examine the crowdsourcing efforts of 70, 159 organizations that receive ideas from 1,336,154 contributors. Using large-scale content analysis, we examine differences in how rejections are written in order to disentangle the mechanisms through which rejections affect contributors’ willingness to continue to interact with an organization. We find that getting a rejection has a positive effect on a newcomer’s willingness to submit idea in the future. The effect is stronger if the rejection includes an explanation, and is particularly pronounced if the explanation accompanying the rejection matches the original idea in terms of linguistic style.
With permission of the Academy of Management
Volume
62
Journal Pages
503-530
Online article

Economic perspectives on recommunalization in the energy sector

Notes Internacionals
Subject(s)
Economics, politics and business environment; Entrepreneurship
Keyword(s)
Energy sector, recommunalization, management of utilities, infrastructure policies, infrastructure services, regulatory models
The paper discusses economic perspectives on recommunalization in the energy sector. When privatization and deregulation of public infrastructure services became the dominant paradigm of public policy in the 1980s and 1990s, it was considered an adequate measure to increase efficiency, enable consumer choice, and foster a cultural change towards more competitive practices among the management of utilities. In retrospect, the move towards market principles and privatization in infrastructure policies has not yielded regulatory convergence towards a liberalized system architecture. On the contrary, it can be observed that in some infrastructure sectors liberalization has succeeded as the dominant design, whereas other infrastructure services have by and large remained in public ownership and under strict government control (Observation #1). An analysis of the electricity sector shows that a broad spectrum of diverse regulatory models co-exists – across world regions, countries, and even individual states, such as in the USA (Observation #2). The recent wave of recommunalizations may be interpreted as a backlash to free-market principles in infrastructure services. In bottom-up initiatives, citizens intend to reclaim (at least partial) control of public infrastructure services. These initiatives operate in a larger context of private individuals and associations entering the electricity sector in a new form of dispersed private ownership (Observation #3). In the future all the diverse models might co-exist while digitalization will provide transparency for the actors involved.
Pages
5
Online article

Why engineers are choosing startups over established firms

Engineers Journal
Subject(s)
Entrepreneurship; Human resources management/organizational behavior; Technology, R&D management
Keyword(s)
Entrepreneurship, human capital