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on Evolutionary Economics |
| By: | Vanacker, T.; Manigart, S.; Meuleman, M. (Vlerick Leuven Gent Management School) |
| Abstract: | Using multiple longitudinal case studies of young biotechnology firms, we study differences in the financing process between high and low performing firms. Findings suggest that initial differences in the specialization of the investors with whom entrepreneurs affiliate early on, affect the ease with which firms attract (specialized) follow-on financing and firm performance. We demonstrate the role of the social context in shaping initial financing outcomes, as entrepreneurs limit their search for financing to one or a few investors with whom they have pre-existing ties. Additionally, our research provides a dynamic view of the financing process. We identify isolating mechanisms, including entrepreneurial learning and homophily and network considerations in investor syndication, which limit entrepreneurs when trying to adopt successful financing strategies implemented by competitors later on. A core contribution is that we theorize on evolutionary processes in the financing process. This new perspective advances our knowledge on dynamics in the financing process and opens multiple avenues for future research. |
| Keywords: | entrepreneurship; new venture finance; financing process; venture capital; performance |
| Date: | 2008–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2008-09&r=evo |
| By: | Gächter, Simon (University of Nottingham); Nosenzo, Daniele (University of Nottingham); Sefton, Martin (University of Nottingham) |
| Abstract: | We investigate the effects of pay comparison information (i.e. information about what co-workers earn) and effort comparison information (information about how co-workers perform) in experimental firms composed of one employer and two employees. Exposure to pay comparison information in isolation from effort comparison information does not appear to affect reciprocity toward employers: in this case own wage is a powerful determinant of own effort, but co-worker wages have no effect. By contrast, we find that exposure to both pieces of social information systematically influences employees’ reciprocity. A generous wage offer is virtually ineffective if an employee is matched with a lazy co-worker who is also paid generously: in such circumstances the employee tends to expend low effort irrespective of her own wage. Reciprocity is more pronounced when the co-worker is hard-working, as effort is strongly and positively related to own wage in this case. Reciprocity is also pronounced when the employer pays unequal wages to the employees: in this case the co-worker’s effort decision is disregarded and effort decisions are again strongly and positively related to own wage. On average exposure to social information weakens reciprocity, though we find substantial heterogeneity in responses across individuals, and find that sometimes social information has beneficial effects. We suggest that group composition may be an important tool for harnessing the positive effects of social comparison processes. |
| Keywords: | reciprocity, gift-exchange, social information, social comparisons, pay comparisons, peer effects |
| JEL: | A13 C92 J31 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3639&r=evo |
| By: | Tigran Melkonyan (Department of Resource Economics, University of Nevada, Reno); Mark Pingle (Department of Economics, University of Nevada, Reno) |
| Abstract: | Using a relatively mild restriction on the beliefs of the MMEU-apreference functional, in which the decision maker’s degree of ambiguity and degree of pessimism are each parameterized, we present a rather general theory of religious choice in the decision theory tradition, one that can resolve dilemmas, address the many Gods objection, and address the inherent ambiguity. Using comparative static analysis, we are able to show how changes in either the degree of ambiguity or the degree of pessimism can lead a decision maker to “convert” from one religion to another. We illustrate the theory of religious choice using an example where the decision maker perceives three possible religious alternatives. |
| Keywords: | Religion; Decision Theory; Ambiguity; Optimism; Pessimism |
| JEL: | C44 D81 D83 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:unr:wpaper:08-002&r=evo |
| By: | Tigran Melkonyan (Department of Resource Economics, University of Nevada, Reno); Mark Pingle (Department of Economics, University of Nevada, Reno) |
| Abstract: | We examine the implications of decision theory for religious choice and evangelism, under the assumption that people choose their religion. The application of decision theory leads us to a broad definition of religion and a particular definition of faith, each related to the uncertainty associated with what happens to a person after death. We examine two extremes: total ambiguity and no ambiguity. For total ambiguity, we show there is “designer religion,” which is a religion that will capture all decision makers applying any one of the standard decision criteria. For no ambiguity, we characterize when a decision maker will find new religious information more valuable and we characterize a “miracle” in a specific way. |
| Keywords: | Religion; Decision Theory; Ambiguity; Optimism; Pessimism |
| JEL: | C44 D81 D83 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:unr:wpaper:08-003&r=evo |
| By: | Hans Oluf Hansen (Department of Economics, University of Copenhagen) |
| Abstract: | Is variation in empirical mortality across populations consistent with a hypothesis of selec-tion? To examine this proposition an extended frailty mortality model is put forward; incor-porating biological frailty; a common non-parametric hazard, joint for men and women, rep-resenting endogenous mortality in terms of degenerative aging (senescence); and environ-mental influence on survivorship. As the model is fitted to empirical cohort mortality exhibit-ing extreme variation, biological aging is identified up to a multiplicative factor. Mortality of elected cohorts born in Sweden, Denmark, and Iceland during the past 250 years and in Japan any ten years between 1950 and 1990 is approached appropriately by the model. Reduced natural selection may account for a substantial part of the empirical mortality change in the course of the demographic transition. Survivorship in the late nineteenth and the twentieth century ties selection to major medical advances and rapid recent mortality decline, probably with consequences for future health and survivorship. |
| Keywords: | biodemography; congenital frailty; selection; heterogeneity; cohort mortality; stochastic micro-simulation; longevity |
| JEL: | C6 C8 I12 J1 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:0818&r=evo |