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”Thanks in Advance”
(2019)
This paper studies the effect of the commonly used phrase “thanks in advance” on compliance with a small request. In a controlled laboratory experiment we ask participants to give a detailed answer to an open question. The treatment variable is whether or not they see the phrase “thanks in advance.” Our participants react to the treatment by exerting less effort in answering the request even though they perceive the phrase as polite.
What Makes an Employer?
(2019)
As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to better understand which variables influence the first hiring decision and which ones influence the subsequent survival as an employer. Using the German Socio-economic Panel (SOEP), we analyze what role individual characteristics of entrepreneurs play in sustainable job creation. While human and social capital variables positively influence the hiring decision and the survival as an employer in the same direction, we show that none of the personality traits affect the two outcomes in the same way. Some traits are only relevant for survival as an employer but do not influence the hiring decision, other traits even unfold a revolving door effect, in the sense that employers tend to fail due to the same characteristics that positively influenced their hiring decision.
The Role of Bargaining Power
(2019)
Neoclassical theory omits the role of bargaining power in the determination of wages. As a result, the importance of changes in the bargaining position for the development of income shares in the last decades is underestimated. This paper presents a theoretical argument why collective bargaining power is a main determinant of workers’ share of income and how its decline contributed to the severe changes in the distribution of income since the 1980s. In order to confirm this hypothesis, a panel data regression analysis is performed that suggests that unions significantly influence the distribution of income in developed countries.
The public encounter
(2019)
This thesis puts the citizen-state interaction at its center. Building on a comprehensive model incorporating various perspectives on this interaction, I derive selected research gaps. The three articles, comprising this thesis, tackle these gaps. A focal role plays the citizens’ administrative literacy, the relevant competences and knowledge necessary to successfully interact with public organizations. The first article elaborates on the different dimensions of administrative literacy and develops a survey instrument to assess these. The second study shows that public employees change their behavior according to the competences that citizens display during public encounters. They treat citizens preferentially that are well prepared and able to persuade them of their application’s potential. Thereby, they signal a higher success potential for bureaucratic success criteria which leads to the employees’ cream-skimming behavior. The third article examines the dynamics of employees’ communication strategies when recovering from a service failure. The study finds that different explanation strategies yield different effects on the client’s frustration. While accepting the responsibility and explaining the reasons for a failure alleviates the frustration and anger, refusing the responsibility leads to no or even reinforcing effects on the client’s frustration. The results emphasize the different dynamics that characterize the nature of citizen-state interactions and how they establish their short- and long-term outcomes.
In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short-run effects of this new minimum wage on a wide set of socio-economic outcomes, such as employment and working hours, earnings and wage inequality, dependent and self-employment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non-compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide-reaching policy.
As digital media infiltrate an increasingly greater proportion of our lives, concern about the possibility of various forms of technology addictions has emerged. For technology addiction, researchers have developed a variety of self-reported scales in areas such as Internet, smartphones, videogames, social network sites (SNS) or television. However, no uniform criteria or definition exists for technology addiction. Utilized dimensions of technology addiction, to measure specific outcomes, lack a conceptual standard. Therefore, linkages between technology areas dimensions have not been examined in a broader way by the research community, in order to develop a uniform technology addiction scale.
In this regard, firstly, a theoretical model was developed in order to extract common technology dimensions. Secondly, a systematic literature review in the areas of Internet, smartphone, video games and SNS was conducted in order to extract the dimensions used. To identify relevant studies, nine databases (GoogleScholar, ScienceDirect, PubMed, EmeraldInsight, Wiley, SpringerLink, ACM, iEEE and JSTOR) were searched, producing 4698 results, and 50 studies met the inclusion criteria. Thirdly, the developed theoretical model was utilized in order to determine the dimension in each of the identified scales.
Based on analysis of the dimensional distributions, the findings suggest that there are common dimensions across areas of technology such as “compulsive use” and “negative outcomes” but also differences in dimensions across areas such as “social comfort” and “mood regulation”, which are more used in the area of SNS. Moreover, new dimensions such as “cognitive absorption” or “utility and function loss" for technology addiction were extracted, which should be considered as these have not yet been researched in a broader way. In addition, no gold standard for the conceptual criteria or definition for technology addiction has been developed yet.
Being ignorant of key aspects of a strategic interaction can represent an advantage rather than a handicap. We study one particular context in which ignorance can be beneficial: iterated strategic interactions in which voluntary cooperation may be sustained into the final round if players voluntarily forego knowledge about the time horizon. We experimentally examine this option to remain ignorant about the time horizon in a finitely repeated two-person prisoners’ dilemma game. We confirm that pairs without horizon knowledge avoid the drop in cooperation that otherwise occurs toward the end of the game. However, this effect is superposed by cooperation declining more rapidly in pairs without horizon knowledge during the middle phase of the game, especially if players do not know that the other player also wanted to remain ignorant of the time horizon.
In this study, we analyze the forecast accuracy and profitability of buy recommendations published in five major German financial magazines for private households based on fundamental analysis. The results show a high average forecast accuracy but with a very high standard deviation, which indicates poor forecast accuracy with regard to individual stocks. The recommendation profitability slightly exceeds the performance of the MSCI World index. Considering the involved risk, which is represented by a high standard deviation, the excess returns appear to be insufficient.
This paper challenges the solely rational view of the scenario technique as a strategy and foresight tool designed to cope with uncertainty by considering multiple possible future states. The paper employs an affordance-based view that allows for the identification and structuring of hidden, emergent attributes of the scenario technique beyond the intended ones. The suggested framework distinguishes between affordances (1) that are intended by the organization and relate to its goals, (2) that emergently generate organizational benefits, and (3) that do not relate to organizational but individual interests. Also, constraints in the use of scenarios are discussed. Affordance theory’s specific lens shows that the emergence of such attributes depends on the users’ specific intentions.
We use panel data from Germany to analyze the effect of population density on urban air pollution (nitrogen oxides, particulate matter and ozone). To address unobserved heterogeneity and omitted variables, we present long difference/fixed effects estimates and instrumental variables estimates, using historical population and soil quality as instruments. Our preferred estimates imply that a one-standard deviation increase in population density increases air pollution by 3-12%.