Determinants of acquisition completion: a relational perspective

The strategic literature on relatedness in the context of mergers and acquisitions (M&As) is extensive, yet we know little about whether or how relatedness has an influence on the announcement to completion stage of the M&A process. Drawing on research on intra-industry competition and relational capabilities, we seek to shed light on the relatedness debate by examining the strategic forces that affect the completion of an announced related M&A, accounting for financial and organizational factors. We also explore additional strategic forces that might amplify or attenuate the negative effect of relatedness on deal completion. We test and find support for our hypotheses using longitudinal data from a sample of the largest M&A announcements in the world from 1991 to 2001.

Airline Consolidation and the Distribution of Traffic between Primary and Secondary Hubs

Several airline consolidation events have recently been completed both in Europe and in the United States. The model we develop considers two airlines operating hub-and-spoke networks, using different hubs to connect the same spoke airports. We assume the airlines to be vertically differentiated, which allows us to distinguish between primary and secondary hubs. We conclude that this differentiation in air services becomes more accentuated after consolidation, with an increased number of flights being channeled through the primary hub. However, congestion can act as a brake on the concentration of flight frequency in the primary hub following consolidation. Our empirical application involves an analysis of Delta s network following its merger with Northwest. We find evidence consistent with an increase in the importance of Delta s primary hubs at the expense of its secondary airports. We also find some evidence suggesting that the carrier chooses to divert traffic away from those hub airports that were more prone to delays prior to the merger, in particular New York s JFK airport. Keywords: primary hub; secondary hub; airport congestion; airline consolidation; airline networks JEL Classi fication Numbers: D43; L13; L40; L93; R4

CB1 cannabinoid receptor modulates MDMA acute responses and reinforcement

Background: 3, 4-methylenedioxymethamphetamine (MDMA) is a popular recreational drug widely abused by young people. The endocannabinoid system is involved in the addictive processes induced by different drugs of abuse. However, the role of this system in the pharmacological effects of MDMA has not been yet clarified.Methods: Locomotion, body temperature and anxiogenic-like responses were evaluated after acute MDMA administration in CB1 knockout mice. Additionally, MDMA rewarding properties were investigated in the place conditioning and the intravenous self-administration paradigms. Extracellular levels of DA in the nucleus accumbens were also analyzed after a single administration of MDMA by in vivo microdialysis. Results: Acute MDMA administration increased locomotor activity, body temperature and anxiogenic-like responses in wild type mice, but these responses were lower or abolished in knockout animals. MDMA produced similar conditioned place preference and increased dopamine extracellular levels in the nucleus accumbens in both genotypes. Nevertheless, CB1 knockout mice failed to self-administer MDMA at any of the doses used. Conclusions: These results indicate that CB1 cannabinoid receptors play an important role in the acute prototypical effects of MDMA, and are essential in the acquisition of an operant behavior to self-administer this drug.

Free-and open source software for a course on network management: authoring and enactment of scripts based on collaborative learning strategies

This paper describes a Computer-Supported Collaborative Learning (CSCL) case study in engineering education carried out within the context of a network management course. The case study shows that the use of two computing tools developed by the authors and based on Free- and Open-Source Software (FOSS) provide significant educational benefits over traditional engineering pedagogical approaches in terms of both concepts and engineering competencies acquisition. First, the Collage authoring tool guides and supports the course teacher in the process of authoring computer-interpretable representations (using the IMS Learning Design standard notation) of effective collaborative pedagogical designs. Besides, the Gridcole system supports the enactment of that design by guiding the students throughout the prescribed sequence of learning activities. The paper introduces the goals and context of the case study, elaborates onhow Collage and Gridcole were employed, describes the applied evaluation methodology, anddiscusses the most significant findings derived from the case study.

Irregular to regular sampling, denoising and deconvolution

We propose a restoration algorithm for band limited images that considers irregular(perturbed) sampling, denoising, and deconvolution. We explore the application of a family ofregularizers that allow to control the spectral behavior of the solution combined with the irregular toregular sampling algorithms proposed by H.G. Feichtinger, K. Gr¨ochenig, M. Rauth and T. Strohmer.Moreover, the constraints given by the image acquisition model are incorporated as a set of localconstraints. And the analysis of such constraints leads to an early stopping rule meant to improvethe speed of the algorithm. Finally we present experiments focused on the restoration of satellite images, where the micro-vibrations are responsible of the type of distortions we are considering here. We will compare results of the proposed method with previous methods and show an extension tozoom.

Mining and exploiting domain-specific corpora in the PANACEA platform

The objective of the PANACEA ICT-2007.2.2 EU project is to build a platform that automates the stages involved in the acquisition,production, updating and maintenance of the large language resources required by, among others, MT systems. The development of a Corpus Acquisition Component (CAC) for extracting monolingual and bilingual data from the web is one of the most innovative building blocks of PANACEA. The CAC, which is the first stage in the PANACEA pipeline for building Language Resources, adopts an efficient and distributed methodology to crawl for web documents with rich textual content in specific languages and predefined domains. The CAC includes modules that can acquire parallel data from sites with in-domain content available in more than one language. In order to extrinsically evaluate the CAC methodology, we have conducted several experiments that used crawled parallel corpora for the identification and extraction of parallel sentences using sentence alignment. The corpora were then successfully used for domain adaptation of Machine Translation Systems.

Paternal involvement and children's developmental stages in Spain

How does fathering change across children’s developmental stages and how do these changes vary by educational levels and women’s employment? To investigate this, I use the „2003 Spanish Time Use Survey‟ (N = 2,941) for a sample of heterosexual couples with children of different ages. I differentiate between physical (i.e. feeding, supervising, putting children to bed) and interactive child care activities (i.e. speaking to, playing with, teaching the child). Fathers‟ education strongly influences how much fathers participate in physical care in families with preschoolers, a stage in which these activities are particularly important for children’s physical, social, and emotional development. For interactive care, a significant education gradient emerges when the youngest child is aged 3 to 5, when the acquisition of complex linguistic, conceptual, and social skills is critical for later school success. Mother’s employment significantly influences father’s physical child care with preschoolers. This suggests that empowering Spanish women to participate in the labor market promotes gender equity in the household division of child care.

The development of intercultural awareness and changes of beliefs: the effects of studying abroad on learners of English as a second language

The present study examines the development of interculturality and changes of beliefs, by analyzing 106 compositions produced by 53 advanced level university students of translation studies at a university in Spain before and shortly after a stay-abroad (SA) period. The study draws on data collected at two different times: before (T1) and after the SA (T3). In addition, we compared the results with the writings produced by a control group of 10 native English speakers on SA too. Data were collected by means of a composition which tried to elicit the learners’ opinion about cultural habits maintenance. The results reveal significant changes between T1 and T3 in the degree of better attitudes and intercultural acquisition.

Language acquisition during a stay abroad period following formal instruction: temporal effects on oral fluency development

This study investigates the development of fluency in 30 advanced L2 learners of English over a period of 15 months. In order to measure fluency, several temporal variables and hesitation phenomena are analyzed and compared. Oral competence is assessed by means of an oral interview carried out by the learners. Data collection takes place at three different times: before (T1) and after (T2) a six-month period of FI (80 hours) in the home university, and after a three-month SA term (T3). The data is analyzed quantitatively. Developmental gains in fluency are measured for the whole period, adopting a view of complementarity between the two learning contexts. From these results, a group of high fluency speakers is identified. Correlations between fluency gains and individual and contextual variables are executed and a more qualitative analysis is performed for high fluency speakers' performance and behavior. Results show an overall development of students' oral fluency during a period of 15 months favored by the combination of a period of FI at home followed by a 3-months SA.

Noise and aggregation of information in large markets

We study a novel class of noisy rational expectations equilibria in markets with largenumber of agents. We show that, as long as noise increases with the number of agents inthe economy, the limiting competitive equilibrium is well-defined and leads to non-trivialinformation acquisition, perfect information aggregation, and partially revealing prices,even if per capita noise tends to zero. We find that in such equilibrium risk sharing and price revelation play dierent roles than in the standard limiting economy in which per capita noise is not negligible. We apply our model to study information sales by a monopolist, information acquisition in multi-asset markets, and derivatives trading. Thelimiting equilibria are shown to be perfectly competitive, even when a strategic solutionconcept is used.

Merger failures

This paper proposes an explanation as to why some mergers fail, based on the interactionbetween the pre- and post-merger processes. We argue that failure may stem from informationalasymmetries arising from the pre-merger period, and problems of cooperation andcoordination within recently merged firms. We show that a partner may optimally agree tomerge and abstain from putting forth any post-merger effort, counting on the other partnerto make the necessary efforts. If both follow the same course of action, the merger goesahead but fails. Our unique equilibrium allows us to make predictions on which mergers aremore likely to fail.

Bundling electronic journals and competition among publishers

Site licensing of e-journals has been revolutionizing the way academicinformation is distributed. However, many librarians are concerned aboutthe possibility that publishers might abuse site licensing by practicingbundling. In this paper, we analyze the private and social incentives forthe publishers to use bundling in the context of STM electronic journalmarket. In the short run in which the number of journals is exogenouslygiven, we find a strong conflict between the two incentives: each publisherfinds bundling optimal and bundling increases the industry profit butreduces social welfare. However, in the long run we find that publishersmight have higher incentives to introduce new journals under bundlingthan without bundling and, in this case, bundling can reduce the industryprofit while increasing social welfare. Finally, we examine publishers incentive to provide links to the websites of the rival publishers underbundling and show that even asymmetric publishers have incentive tointerconnect.

Overconfidence and market efficiency with heterogeneous agents

We study financial markets in which both rational and overconfident agents coexist and make endogenous information acquisition decisions. We demonstrate the following irrelevance result: when a positive fraction of rational agents (endogeneously) decides to become informed in equilibrium, prices are set as if all investors were rational, and as a consequence the overconfidence bias does not aect informational efficiency, price volatility, rational traders expected profits or their welfare. Intuitively, as overconfidence goes up, so does price infornativeness, which makes rational agents cut their information acquisition activities, effectively undoing the standard effect of more aggressive trading by the overconfident.

Expertise and finance: Mergers motivated by technological change

This paper argues that a large technological innovation may lead to a merger wave by inducing entrepreneurs to seek funds from technologically knowledgeable firms -experts. When a large technological innovation occurs, the ability of non-experts (banks) to discriminate between good and bad quality projects is reduced. Experts can continue to charge a low rate of interest for financing because their expertise enables them to identify good quality projects and to avoid unprofitable investments. On the other hand, non-experts now charge a higher rate of interest in order to screen bad projects. More entrepreneurs, therefore, disclose their projects to experts to raise funds from them. Such experts are, however, able to copy the projects and disclosure to them invites the possibility of competition. Thus the entrepreneur and the expert may merge so as to achieve product market collusion. As well as rationalizing mergers, the model can also explain various forms of venture financing by experts such as corporate investors and business angels.

Complementarity between technology make and buy in innovation strategies: Evidence from Belgiam manufacturing firms

This paper characterizes the innovation strategy of manufacturing firms andexamines the relation between the innovation strategy and importantindustry-, firm- and innovation-specific characteristics using Belgiandata from the Eurostat Community Innovation Survey. In addition to importantsize effects explaining innovation, we find that high perceived risks andcosts and low appropriability of innovations do not discourage innovation,but rather determine how the innovation sourcing strategy is chosen. Withrespect to the determinants of the decision of the innovative firm toproduce technology itself (Make) or to source technology externally (Buy),we find that small firms are more likely restrict their innovation strategyto an exclusive make or buy strategy, while large firms are more likely tocombine both internal and external knowledge acquisition in their innovationstrategy. An interesting result that highlights the complementary nature ofthe Make and Buy decisions, is that, controlled for firm size, companies forwhich internal information is an important source for innovation are morelikely to combine internal and external sources of technology. We find thisto be evidence of the fact that in-house R&D generates the necessaryabsorptive capacity to profit from external knowledge acquisition. Also theeffectiveness of different mechanisms to appropriate the benefits ofinnovations and the internal organizational resistance against change areimportant determinants of the firm's technology sourcing strategy.