nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2006‒03‒25
three papers chosen by
Walter Frisch
University Vienna

  1. Theoretical and Methodological Foundations for Personality Research in the Context of Business-to-Business Relationships: the Case of Financial Services By Katrin Kull
  2. Artificial Neural Networks in Financial Modelling By Crescenzio Gallo; Giancarlo De Stasio; Cristina Di Letizia
  3. Markets vs. Government when Rationality Is Unequally Bounded: Some Consequences of Cognitive Inequalities for Theory and Policy By Pelikan, Pavel

  1. By: Katrin Kull (School of Economics and Business Administration, Tallinn University of Technology)
    Abstract: The current study defines the platform for approaching the subject of marketing financial services to businesses. The relationship between a financial institution and its business customer has been analyzed in the framework of relationship marketing. The author proposes that there are multiple models within the satisfaction process, which are moderated by product, person and situational factors. While reviewing the history and current trends of marketing financial services to businesses, the author claims that it would be most useful to be aware of metatheoretical positions and cross-examine the already existent data in order to develop the concepts instead of coming up with new approaches. Theories of personality research have been gone through to study the foundations of the self, role and identity, whereby the author comes to the conclusion that the theories lead us to a set of broad dimensions that characterize individual differences and that can be measured in a reliable way, but the „why“ of personality is something else. After conducting an interviews-based research, there would be good grounds for further discussion of the subject.
    Keywords: marketing, financial services, relationship, business-to-business relationship, relationship marketing, marketing financial services to businesses, personality research
    JEL: M19 M39
    Date: 2005
  2. By: Crescenzio Gallo; Giancarlo De Stasio; Cristina Di Letizia
    Abstract: The study of Artificial Neural Networks derives from first trials to translate in mathematical models the principles of biological “processing”. An Artificial Neural Network deals with generating, in the fastest times, an implicit and predictive model of the evolution of a system. In particular, it derives from experience its ability to be able to recognize some behaviours or situations and to “suggest” how to take them into account. This work illustrates an approach to the use of Artificial Neural Networks for Financial Modelling; we aim to explore the structural differences (and implications) between one- and multi- agent and population models. In one-population models, ANNs are involved as forecasting devices with wealth-maximizing agents (in which agents make decisions so as to achieve an utility maximization following non-linear models to do forecasting), while in multipopulation models agents do not follow predetermined rules, but tend to create their own behavioural rules as market data are collected. In particular, it is important to analyze diversities between one-agent and one-population models; in fact, in building one-population model it is possible to illustrate the market equilibrium endogenously, which is not possible in one-agent model where all the environmental characteristics are taken as given and beyond the control of the single agent.
    Keywords: artificial neural network, financial modelling, population model, market equilibrium.
    JEL: C53 C69 C90 D58
    Date: 2006–01
  3. By: Pelikan, Pavel (Prague University of Economics and The Ratio Institute)
    Abstract: In addition to recognizing that human rationality has bounds, these are recognized to be unequal across individuals. Unequally bounded rationality is found to be a special scarce resource, tied to individuals and used for deciding on its own uses. In consequence, its allocation to uses in society cannot approach efficiency without a trial-and-error evolution. Important differences are found between the institutions (“the rules of the game”) that can shape this evolution on markets and the ones that can shape it within governments. The policy implications appear ideologically mixed: against all national planning, selective industrial policies, and government ownership of enterprises in production, but for some paternalism and redistribution in final consumption.
    Keywords: Rationality; institutions; organizations; entrepreneurs: owners
    JEL: A10 D61 G10 H10 O16 P51
    Date: 2006–03–21

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