Endogenous managerial compensation contracts in experimental quantity-setting duopolies

Given the ongoing debate on managerial compensation schemes, our paper offers empirical insights on the strategic choice of firms' owners over the terms of a managerial compensation contract, as a commitment device aiming at gaining competitive advantage in the product market. In a quantity setting duopoly we experimentally test whether firms' owners compensate their managers through contracts combining own profits either with revenues or with relative performance, and the resulting managerial behaviour in the product market. Prominent among our results is that firms' owners choose relative performance over profit revenue contracts more frequently. Further, firms' owners successfully induce a more aggressive behaviour by their managers in the market, by setting incentives which deviate from strict profit maximization.

Agenda power in Brazil's Câmara dos Deputados , 1989 to 1999

This paper examines the structure of agenda power in the Brazilian Câmara dos Deputados (Chamber of Deputies). Our main question concerns when consistent agenda control by a single majority coalition, as opposed to agenda control by shifting majorities, has emerged in the post-1988 Câmara. Consistent agenda control emerges routinely in parliamentary regimes: the government commands a majority in the assembly; the legislative agenda is negotiated among the governing parties, typically with each able to “veto” the placement of bills on the agenda. However, the Câmara faces an external executive, the president, with substantial formal powers to set its agenda. Consistent agenda control thus can emerge only if the president chooses to ally with a majority coalition in the assembly. If the president always chose to form such an alliance—a presidentially-led agenda cartel—then one would expect some consistently parliamentary patterns in Brazil: the appointment of legislative party leaders to the cabinet; the use of statutes rather than decrees to achieve policy goals; the avoidance of bills that would pass and split the governing coalition. We find that only the Cardoso presidency displays consistent evidence of such a presidentiallyled agenda cartel. In this sense, our argument differs from that of Figueiredo and Limongi (1999; 2000), who argue that presidents have consistently pursued a parliamentary mode of governance in Brazil. Yet it also differs from those who argue that presidents have consistently pursued a shifting-coalitions strategy. Our results suggest that presidents make a strategic choice, with much hinging on that choice.

Management practices and influences on IT architecture decisions: a case study in a telecom company

The study aims to analyze the IT architecture management practices associated with their degree of maturity and the influence of institutional and strategic factors on the decisions involved through a case study in a large telecom organization. The case study allowed us to identify practices that led the company to its current stage of maturity and identify practices that can lead the company to the next stage. The strategic influence was mentioned by most respondents and the institutional influence was present in decisions related to innovation and those dealing with a higher level of uncertainties.

The shaping of foreign policy: Vietnamese grand strategy after the Cold War

This study examines the case of Vietnam and uses the method of process tracing to explore the sources of foreign policy choice and change. Foreign policy is derived from grand strategy, which refers to the full package of a state’s domestic and foreign policies. I argue that a state’s grand strategy results from the interaction of four factors—its society’s historical experience, social motivation, international power, and political contest among domestic groups. Grand strategies emerge as a response to perceived shifts in the balance of international economic, political, and military power. However, this is not to say that international pressures and incentives are translated into foreign policy. Rather, pressures and incentives are given meaning by worldviews, which reflect a society’s historical experiences of its place in the international system at traumatic junctures of its encounter with the outside world. Strategic changes in foreign policy follow what I call the “strategic algorithm,” which incorporates four major mechanisms—balancing against threat, bandwagoning with power, learning, and survival by transformation. This case study generates hypotheses for a theory of strategic choice, a theory of foreign policy transformation, and a theory of grand strategy emergence.

Intraspecific Behavioural Diversity in a Freshwater Zooplankton: A study of the fitness consequences of vertical migration behaviour for distinct morphs of Daphnia pulicaria

The literature on niche separation and coexistence between species is large, but there is widespread variation in behavioural strategy between individuals of the same species that has received much less attention. Understanding what maintains this diversity is important because intraspecific behavioural diversity can affect population dynamics and community interactions. Multiple behavioural strategies can arise either as phenotype-dependent ‘conditional strategies’, where phenotypic variation causes individuals to adopt different strategies for optimizing fitness, or as internally-independent ‘alternative strategies’, where multiple fitness peaks exist for individuals and strategic ‘choice’ remains plastic. Though intraspecific variation in stable phenotypes is known to maintain intraspecific behavioural diversity through conditional strategies, when internal conditions are highly plastic or reversible, it is not clear whether individual behaviours are maintained as conditional strategies, or as alternative strategies of equal fitness. In this study, I combine an observational and experimental approach to identify the likely mechanisms maintaining behavioural diversity between hemoglobin-rich and hemoglobin-poor morphs in a natural population of Daphnia pulicaria. In Round Lake, individuals with low hemoglobin migrate daily from the hypolimnion to the epilimnion, whereas individuals with high hemoglobin remain in the hypolimnion. Using high-resolution depth and time sampling, I discovered behavioural diversity both within and among hemoglobin phenotypes. I tested the role of hemoglobin phenotype in maintaining behavioural diversity using automated migration robots that move individuals across the natural environmental gradients in the lake. By measuring the fitness of each morph undergoing either a natural migration behaviour, or the migration of the opposite morph, I found that the fitness of hemoglobin rich and poor morphs in their natural behaviour does not differ, but that Hb-rich individuals can obtain equal fitness from either behaviour, while Hb-poor morphs suffer substantial drops in survivorship in the alternate migration behaviour. Thus, migration behaviour in this system exists as a conditional strategy for some individuals, and as alternative strategies of equal fitness for others. The results of this study suggest that individual limits in the expression of highly flexible internal conditions can reinforce intraspecific behavioural diversity. Few studies have measured the fitness consequences of switching migration strategies and this study provides a rare example in the field.

No change in the Russian Caucasus. The Winter Olympics amid a local war. OSW Study 47/2014

The North Caucasus has been the most unstable region of the Russian Federation since the collapse of the Soviet Union. Considering the scale of violence, the conflict in the region should be regarded as a local civil war between the Salafi Islamic armed underground and the secular authorities of the North Caucasus republics, supported by the security services. The Chechen leader Ramzan Kadyrov, who has made himself de facto independent from Moscow, holds a particularly strong position in the region and his ambition is to gain control of the neighbouring territories. The Russian leadership, which sees the security of the Winter Olympics in Sochi as its top priority, is facing a strategic choice between trying to integrate the North Caucasus with the rest of the federation, or isolating the region and accepting the existence of an informal "internal abroad” within Russia. The cultural processes taking place in the region, including Islamisation, de-modernisation and de-Russification, have been driving the North Caucasus ever further away from the rest of Russia, strengthening a mutual sense of foreignness.

Lukashenka has to choose: reforms or concessions to Russia. OSW Commentary No. 42, 2010-10-27

The most serious crisis in the history of Russian-Belarusian relations has been taking place over the past few months. In 2007 Russia started the process of depriving Belarus of subsidies in the form of supplies of fuels at low prices, which have for more than a decade guaranteed the stability of the Belarusian economic model, and is continuing this process now at an accelerated rate. At the same time, the Russian media started attacks on Alyaksandr Lukashenka from the middle of this year. This toughening up of Russia’s measures indicates that the Kremlin is determined to implement its goals regarding Belarus, including first of all taking over its strategic economic assets, which would result in a significant weakening of Lukashenka’s position. The Belarusian government has been consistently avoiding meeting Russian demands, while at the same time insisting on the reinstatement of preferential conditions of co-operation. If the Belarusian leader continues resisting Russian demands, the crisis in Russian- -Belarusian relations will be aggravated, and a conflict over energy issues around the turn of 2011 cannot be ruled out. The reduction in preferences offered by Russia in the energy sector has significantly impaired the condition of the Belarusian economy, and may lead to its breakdown in a year or two. As his country comes under increasing pressure from Russia, Alyaksandr Lukashenka will soon have to make a strategic choice between yielding to the Kremlin’s demands and embarking upon an at least partial restructuring of the economy.

Approaches to sharing knowledge in group problem structuring

Problem-structuring techniques are an integral aspect of 'Soft-OR'. SSM, SAST, Strategic Choice, and JOURNEY Making, all depend for their success on a group developing a shared view of a problem through some form of explicit modelling. The negotiated problem structure becomes the basis for problem resolution. Implicit to this process is an assumption that members of the group share and build their knowledge about the problem domain. This paper explores the extent to which this assumption is reasonable. The research is based on detailed records from the use of JOURNEY Making, where it has used special purpose Group Support software to aid the group problem structuring. This software continuously tracks the contributions of each member of the group and thus the extent to which they appear to be 'connecting' and augmenting their own knowledge with that of other members of the group. Software records of problem resolution in real organisational settings are used to explore the sharing of knowledge among senior managers. These explorations suggest a typology of knowledge sharing. The implications of this typology for problem structuring and an agenda for future research are considered.

Rebuilding the city:a focus for European industrial policy?

While the city offers the potential of dynamic agglomeration economies which can spur the achievement of economic growth and act as an engine that powers the economy, it often appears as a centre of crisis in mature ‘developed’ regions and countries, even before the most recent economic downturn. This paper attempts to reconcile these two seemingly paradoxical observations by bringing in a strategic choice perspective to explain how concentrated strategic decision making in the corporate entities that dominate our cities has diminished the very diversity that Jacobs identified as being essential for cities to flourish and develop. The industrial policy implications for cities are subsequently explored in terms of building new industrial districts, developing high skill ecosystems, and fostering multinational webs of cities, all with the aim of ensuring the conditions exist in cities for creativity and development to flourish, notably a diverse and democratic economic system.

Patterns in the lottery game

The present study is based on the analysis and results of a close to 5 years’ study in the frame which we used a “Lottery Game” in the "Decision Making Skills" subject taught at Corvinus Business School, Corvinus University of Budapest. In the frame of the "game", the students (Hungarians (n=231) and foreigners (n=267) alike) have to mark 6 numbers on a 7x7 lottery ticket. The winner is the student whose numbers differ the most from those of all the other students’. Upon analyzing the results (irrespectively of nationality) the authors have noted something notable: the winning combinations - rather than being located randomly on the ticket, characteristically resemble a geometric form. In our study we wanted to detect the relevance of geometry in this kind of choices. It is hypothesized that in such games (lottery type, related to numeric combination choice), where the players decide upon their strategy (choice of numbers) by also taking into consideration others’ expected choices, the winning strategy is characteristically some consciously chosen scheme or pattern as opposed to a random one. The study presents the results of the available samples (Hungarian students: n=231, foreign students: n=267), the winning combinations, the most often designated numbers, as well as the least “popular” numbers and their presentation on a "heat map". In the case of the majority of the winning tickets we found the use of conscious strategic choice to be more useful. These conscious strategic decisions were reflected in identifiable geometric forms. Based on the results, we hypothesize that in the "hidden lottery" game – in contrast with random choice – the most effective strategy of choice is the conscious ordered one in which the player marks the numbers on the lottery ticket in some modified geometric pattern. The goal of the paper is to propose further research on the field.

Strategy for Hospitality Businesses in the Developing World

The purpose of this paper is to present an alternate framework for evaluating strategic decisions of hospitality businesses in developing nations, particularly small- and medium-sized enterprises (SMEs). While strategy literature is extensive and diverse, it remains focused on developed nation contexts. By default, so is the case with hospitality strategy literature. This has created a paucity of research for hospitality businesses in developing nations; these businesses are largely SMEs in dynamic environments seldom similar to the ones in developed nations. Therefore, the proposed framework emphasizes the role of environment, and its relationship to strategic choice, resource allocation, and strategy evaluation. A set of research questions is also proposed.

Intraspecific Behavioural Diversity in a Freshwater Zooplankton: A study of the fitness consequences of vertical migration behaviour for distinct morphs of Daphnia pulicaria

The literature on niche separation and coexistence between species is large, but there is widespread variation in behavioural strategy between individuals of the same species that has received much less attention. Understanding what maintains this diversity is important because intraspecific behavioural diversity can affect population dynamics and community interactions. Multiple behavioural strategies can arise either as phenotype-dependent ‘conditional strategies’, where phenotypic variation causes individuals to adopt different strategies for optimizing fitness, or as internally-independent ‘alternative strategies’, where multiple fitness peaks exist for individuals and strategic ‘choice’ remains plastic. Though intraspecific variation in stable phenotypes is known to maintain intraspecific behavioural diversity through conditional strategies, when internal conditions are highly plastic or reversible, it is not clear whether individual behaviours are maintained as conditional strategies, or as alternative strategies of equal fitness. In this study, I combine an observational and experimental approach to identify the likely mechanisms maintaining behavioural diversity between hemoglobin-rich and hemoglobin-poor morphs in a natural population of Daphnia pulicaria. In Round Lake, individuals with low hemoglobin migrate daily from the hypolimnion to the epilimnion, whereas individuals with high hemoglobin remain in the hypolimnion. Using high-resolution depth and time sampling, I discovered behavioural diversity both within and among hemoglobin phenotypes. I tested the role of hemoglobin phenotype in maintaining behavioural diversity using automated migration robots that move individuals across the natural environmental gradients in the lake. By measuring the fitness of each morph undergoing either a natural migration behaviour, or the migration of the opposite morph, I found that the fitness of hemoglobin rich and poor morphs in their natural behaviour does not differ, but that Hb-rich individuals can obtain equal fitness from either behaviour, while Hb-poor morphs suffer substantial drops in survivorship in the alternate migration behaviour. Thus, migration behaviour in this system exists as a conditional strategy for some individuals, and as alternative strategies of equal fitness for others. The results of this study suggest that individual limits in the expression of highly flexible internal conditions can reinforce intraspecific behavioural diversity. Few studies have measured the fitness consequences of switching migration strategies and this study provides a rare example in the field.

Nya utmanare – nya strategier? : Etablerade partier bemöter ny konkurrens

The purpose of this study is to examine the strategic choice of mainstream parties in relation to the competition of voters posed by a niche party and their most important issue, in this case radicalist rightwing populists and the migration issue. The study uses a comparative approach to examine the mainstream parties Social Democrats and Moderates reaction to the niche parties New Democracy 1991-1994 and Sweden Democrats 2010-2015. Using Meguid´s PSO-theory and by performing an qualitative analyse of the parties rhetoric and political suggestions in the parliamentary debates as well as in government bills and reservations in committee reports, the study aims to describe mainstream parties position on the issue and if and how they change position and strategy. The results of the study shows that both mainstream parties over all applies an adversarial strategy, aiming to maintain distance to the niche party and its position but with time and due to changes in the political environment, changes in position and strategy takes place and the mainstream parties applies a slightly more accommodative strategy.

Nya utmanare – nya strategier? : Etablerade partier bemöter ny konkurrens

The purpose of this study is to examine the strategic choice of mainstream parties in relation to the competition of voters posed by a niche party and their most important issue, in this case radicalist rightwing populists and the migration issue. The study uses a comparative approach to examine the mainstream parties Social Democrats and Moderates reaction to the niche parties New Democracy 1991-1994 and Sweden Democrats 2010-2015. Using Meguid´s PSO-theory and by performing an qualitative analyse of the parties rhetoric and political suggestions in the parliamentary debates as well as in government bills and reservations in committee reports, the study aims to describe mainstream parties position on the issue and if and how they change position and strategy. The results of the study shows that both mainstream parties over all applies an adversarial strategy, aiming to maintain distance to the niche party and its position but with time and due to changes in the political environment, changes in position and strategy takes place and the mainstream parties applies a slightly more accommodative strategy.