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Journal Article
Journal of Financial Services Research
Alexei Alexandrov, Özlem Bedre-Defolie, Daniel Grodzicki
Subject(s)
Economics, politics and business environment
Keyword(s)
Credit card demand reactions to fees, late fee regulation, limited attention
We introduce a model of a rational credit card user's rather complex usage choices and develop an empirical framework to test its predictions. Employing a large national database of U.S. card accounts, we estimate how prices impact card usage and find that price effects are mostly well explained within our model. An exception is less borrowing in response to declining late-fees among low credit-score (subprime) users. Extension of our model based on "focusing theory" predicts this behavior. It also implies substantial indirect benefits of the CARD Act's late-fee cap due to subprime users re-focusing toward reducing their debt.
Book Chapter
In Handbuch Digitalisierung in Staat und Verwaltung, 2nd ed., edited by Tanja Klenk, Frank Nullmeier, Göttrik Wewer, Wiesbaden: Springer VS.
Subject(s)
Technology, R&D management
Keyword(s)
Digital identity, digitization, public administration, European Union

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.
Secondary Title
Handbuch Digitalisierung in Staat und Verwaltung
Edition
2nd ed.,
Journal Article
eLife
Balazs Aczel, Barnabas Szaszi, Gustav Nilsonne, Olmo R van den Akker, Casper J Albers, Martin Schweinsberg, Eric-Jan Wagenmakers
Subject(s)
Human resources management/organizational behavior
Keyword(s)
multi analyst studies, open science, data, analytical variability, analyst analytics
Any large dataset can be analyzed in a number of ways, and it is possible that the use of different analysis strategies will lead to different results and conclusions. One way to assess whether the results obtained depend on the analysis strategy chosen is to employ multiple analysts and leave each of them free to follow their own approach. Here, we present consensus-based guidance for conducting and reporting such multi-analyst studies, and we discuss how broader adoption of the multi-analyst approach has the potential to strengthen the robustness of results and conclusions obtained from analyses of datasets in basic and applied research.
Subject(s)
Management sciences, decision sciences and quantitative methods; Product and operations management; Technology, R&D management
Keyword(s)
Data, machine learning, data product, pricing, incentives, contracting
This paper explores how firms that lack expertise in machine learning (ML) can leverage the so-called AI Flywheel effect. This effect designates a virtuous cycle by which, as an ML product is adopted and new user data are fed back to the algorithm, the product improves, enabling further adoptions. However, managing this feedback loop is difficult, especially when the algorithm is contracted out. Indeed, the additional data that the AI Flywheel effect generates may change the provider's incentives to improve the algorithm over time. We formalize this problem in a simple two-period moral hazard framework that captures the main dynamics among ML, data acquisition, pricing, and contracting. We find that the firm's decisions crucially depend on how the amount of data on which the machine is trained interacts with the provider's effort. If this effort has a more (less) significant impact on accuracy for larger volumes of data, the firm underprices (overprices) the product. Interestingly, these distortions sometimes improve social welfare, which accounts for the customer surplus and profits of both the firm and provider. Further, the interaction between incentive issues and the positive externalities of the AI Flywheel effect has important implications for the firm's data collection strategy. In particular, the firm can boost its profit by increasing the product's capacity to acquire usage data only up to a certain level. If the product collects too much data per user, the firm's profit may actually decrease, i.e., more data is not necessarily better.
Copyright © 2022, INFORMS
Subject(s)
Unspecified
Keyword(s)
attorney perceptions, sexual violence, coercive tactics, measurement, cross-cultural research
In order to study sexual violence internationally, it is helpful to understand similarities and differences in how sexual violence is conceptualised across countries. The current study examined prosecuting attorneys’ judgments about which sexual tactics legally qualify as sexual violence in two countries. Attorneys from the U.S. (n = 28) and Colombia (n = 24) evaluated whether 36 tactics would qualify as a sexual offense in their jurisdiction. Although Colombian and U.S. attorneys agreed on the legality of many tactics, Colombian attorneys judged more behaviours as criminal, on average, than U.S. attorneys. Within-country variations suggested that differences were due not only to different legal statutes, but also to different interpretations of laws. Open-ended responses illustrated sources of ambiguity, including lack of clarity about how much coercion is required and which behaviours indicate nonconsent. This suggests that vagueness within legal definitions may allow attorney judgements to be influenced by stereotypes and prejudices.

Practical Impact Statement: This study illustrates the vagueness of legal definitions of sexual violence in two countries—the United States and Colombia. This vagueness provides prosecuting attorneys with substantial power to interpret the law, and in this study, some attorney judgements of legality seemed to be influenced by stereotypes. Greater training for law students and attorneys about the realities of sexual violence may be helpful in undermining belief in rape myths that may inhibit attorneys from prosecuting certain sexual violence cases.
ISSN (Online)
1742-6545
ISSN (Print)
1355-2600
Subject(s)
Entrepreneurship; Technology, R&D management
Keyword(s)
Autonomy, teams, ideas, entrepreneurial performance, natural field experiment
Scholars have suggested that autonomy can lead to better entrepreneurial team performance. Yet, there are different types of autonomy and they come at a cost. We shed light on whether two fundamental organizational design choices—granting teams autonomy to (1) choose project ideas to work on and (2) choose team members to work with—affect performance. We run a natural field experiment involving 939 students in a lean startup entrepreneurship course over 11 weeks. The aim is to disentangle the separate and joint effects of granting autonomy over choosing teams and choosing ideas compared to a baseline treatment with pre-assigned ideas and team members. We find that teams with autonomy over choosing either ideas or team members outperform teams in the baseline treatment as measured by pitch deck performance. The effect of choosing ideas is significantly stronger than the effect of choosing teams. However, the performance gains vanish for teams that are granted full autonomy over choosing both ideas and teams. This suggests the two forms of autonomy are substitutes. Causal mediation analysis reveals that the main effects of choosing ideas or teams can be partly explained by a better match of ideas with team members’ interests and prior network contacts among team members, respectively. While homophily and lack of team diversity cannot explain the performance drop among teams with full autonomy, our results suggest that self-selected teams fall prey to overconfidence and complacency too early to fully exploit the potential of their chosen idea. We discuss the implications of these findings for research on organizational design, autonomy, and innovation.
© 2021, INFORMS
Journal Article
Journal of Applied Psychology
Julija N. Mell, Eric Quintane, Giles Hirst, Andrew Carnegie
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Boundary spanning, supervisor undermining, territoriality, advice seeking

JEL Code(s)
M12
Journal Article
Manufacturing and Service Operations Management
Subject(s)
Management sciences, decision sciences and quantitative methods
Keyword(s)
Service operations, rational inattention, strategic customers, rational queueing, information costs, system throughput, social welfare
Problem description: Classical models of queueing systems with rational and strategic customers assume queues to be either fully visible or invisible while service parameters are known with certainty. In practice, however, people only have “partial information” on the service environment in the sense that they are not able to fully discern prevalent uncertainties. This is because assessing possible delays and rewards is costly as it requires time, attention, and cognitive capacity which are all limited. On the other hand, people are also adaptive and endogenously respond to information frictions. Methodology: We develop an equilibrium model for a single-server queueing system with customers having limited attention. Following the theory of rational inattention, we assume that customers optimize their learning strategies by deciding the type and amount of information to acquire and act accordingly while internalizing the associated costs. Results: We establish the existence and uniqueness of a customer equilibrium and delineate the impact of service characteristics and information costs. We numerically show that when customers allocate their attention to learn uncertain queue length, limited attention of customers improves throughput in a congested system that customers value reasonably highly, while it can be detrimental for less popular services that customers deem rather unrewarding. This is also reflected in social welfare if the firm's profit margin is high enough, although customer welfare always suffers from information costs. Managerial implications: Our results shed light on optimal information provision and physical design strategies of service firms and social planners by identifying service settings where they should be most cautious for customers' limited attention. Academic/practical relevance: We propose a microfounded framework for strategic customer behavior in queues that links beliefs, rewards, and information costs. It offers a holistic perspective on the impact of information prevalence (and information frictions) on operational performance and can be extended to analyze richer customer behavior and complex queue structures, rendering it a valuable tool for service design.
© 2021 INFORMS
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
Mandatory disclosure, voluntary disclosure, information spillovers, crowding-out
JEL Code(s)
M41, M48, G38
We predict and find that regulated firms’ mandatory disclosures crowd out unregulated firms’ voluntary disclosures. Consistent with information spillovers from regulated to unregulated firms, we document that unregulated firms reduce their own disclosures in the presence of regulated firms’ disclosures. We further find that unregulated firms reduce their disclosures more the greater the strength of the regulatory information spillovers. Our findings suggest that a substitutive relationship between regulated and unregulated firms’ disclosures attenuates the effect of disclosure regulation on the market-wide information environment.
Subject(s)
Technology, R&D management
Keyword(s)
R&D incentives, tax incentives, innovation, technology
This article provides a structured overview on the most important features of the new German legislation awarding tax breaks for R&D active companies.
ISSN (Print)
1868-2979