Optimal Delegation, Unawareness, and Financial Intermediation

We study the delegation problem between an investor and a financial intermediary. The intermediary has private information about the state of the world that determines the return of the investment. Moreover, he has superior awareness of the available investment opportunities and decides whether to reveal some of them to the investor. We show that the intermediary generally has incentives to make the investor aware of investment opportunities at the extremes, e.g. very risky and very safe projects, while leaving the investor unaware of intermediate investment options. We study how the extent to which the intermediary reveals available investment opportunities to the investor depends on the investor's initial awareness and the degree of competition between intermediaries in the market.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech

Developing alternatives for optimal representation of seafloor habitats and associated communities in Stellwagen Bank National Marine Sanctuary

The implementation of various types of marine protected areas is one of several management tools available for conserving representative examples of the biological diversity within marine ecosystems in general and National Marine Sanctuaries in particular. However, deciding where and how many sites to establish within a given area is frequently hampered by incomplete knowledge of the distribution of organisms and an understanding of the potential tradeoffs that would allow planners to address frequently competing interests in an objective manner. Fortunately, this is beginning to change. Recent studies on the continental shelf of the northeastern United States suggest that substrate and water mass characteristics are highly correlated with the composition of benthic communities and may therefore, serve as proxies for the distribution of biological biodiversity. A detailed geo-referenced interpretative map of major sediment types within Stellwagen Bank National Marine Sanctuary (SBNMS) has recently been developed, and computer-aided decision support tools have reached new levels of sophistication. We demonstrate the use of simulated annealing, a type of mathematical optimization, to identify suites of potential conservation sites within SBNMS that equally represent 1) all major sediment types and 2) derived habitat types based on both sediment and depth in the smallest amount of space. The Sanctuary was divided into 3610 0.5 min2 sampling units. Simulations incorporated constraints on the physical dispersion of sampling units to varying degrees such that solutions included between one and four site clusters. Target representation goals were set at 5, 10, 15, 20, and 25 percent of each sediment type, and 10 and 20 percent of each habitat type. Simulations consisted of 100 runs, from which we identified the best solution (i.e., smallest total area) and four nearoptimal alternates. We also plotted total instances in which each sampling unit occurred in solution sets of the 100 runs as a means of gauging the variety of spatial configurations available under each scenario. Results suggested that the total combined area needed to represent each of the sediment types in equal proportions was equal to the percent representation level sought. Slightly larger areas were required to represent all habitat types at the same representation levels. Total boundary length increased in direct proportion to the number of sites at all levels of representation for simulations involving sediment and habitat classes, but increased more rapidly with number of sites at higher representation levels. There were a large number of alternate spatial configurations at all representation levels, although generally fewer among one and two versus three- and four-site solutions. These differences were less pronounced among simulations targeting habitat representation, suggesting that a similar degree of flexibility is inherent in the spatial arrangement of potential protected area systems containing one versus several sites for similar levels of habitat representation. We attribute these results to the distribution of sediment and depth zones within the Sanctuary, and to the fact that even levels of representation were sought in each scenario. (PDF contains 33 pages.

A bioregional classification of the continental shelf of northeastern North America for conservation analysis and planning based on representation

Understanding how well National Marine Sanctuaries and other marine protected areas represent the diversity of species present within and among the biogeographic regions where they occur is essential for assessing their conservation value and identifying gaps in the protection of biological diversity. One of the first steps in any such assessment should be the development of clearly defined and scientifically justified planning boundaries representing distinct oceanographic conditions and faunal assemblages. Here, we propose a set of boundaries for the continental shelf of northeastern North America defined by subdivisions of the Eastern Temperate Province, based on a review and synthesis (i.e. meta-analysis) of the scientific literature. According to this review, the Eastern Temperate Province is generally divided into the Acadian and Virginian Subprovinces. Broad agreement places the Scotian Shelf, Gulf of Maine, and Bay of Fundy within the Acadian Subprovince. The proper association of Georges Bank is less clear; some investigators consider it part of the Acadian and others part of the Virginian. Disparate perspectives emerge from the analysis of different groups of organisms. Further, while some studies suggest a distinction between the Southern New England shelf and the rest of the Mid-Atlantic Bight, others describe the region as a broad transition zone with no unique characteristics of its own. We suggest there exists sufficient evidence to consider the Scotian Shelf, Gulf of Maine, Georges Bank, Southern New England, and Southern Mid-Atlantic Bight as distinct biogeographic regions from a conservation planning perspective, and present a set of proposed mapped boundaries. (PDF contains 23 pages.

Bringing a network perspective into research on technological transfers and other interorganizational relationships

International interorganizational relationships have exploded in the last decade (U.S. News and World Report, June 20, 1988: 48) and not surprisingly researchers have become increasingly interested in this phenomenon. A strong foundation of research grounded in strategic and transaction cost approaches is emerging on dyads at the organizational and industry level. This article proposes that a network perspective which considers the constellation of relationships these dyads are embedded in could enhance this research stream by bringing issues of power, resource dependence and exchange to the forefront. Applications using data on U.S./Japan linkages are used to illustrate a network approach. Implications for future research on interorganizational relationships are considered

Penetration without dependence: A network analysis of Japanese economic activity in the U.S.

Economic activity between the U.S. and Japan has skyrocketed in the last decade, yet there is little cross-industry research exploring entry patterns of multiple forms of investment. This study explores the form and occurrence of new Japanese investment across the U.S. economy in 1984. In the first part of the paper, a conceptual scheme for classifying investments is developed and then compared to the results generated from an empirical classification using structural equivalence analysis. The second part of the paper predicts and maps where the three key forms, direct investment (DI), high resource investment linkages (HRIL's), and low resources investment linkages (LRIL's) predominate. The results show that LRIL's are found primarily in less predictable environments with rapidly changing technologies. HRIL's are found in stable environments with difficult barriers to entry. DIs are found in more accessible, profitable environments, often providing suppliers for Japanese companies already established in the U.S. Implications for theory and policy are highlighted

The relationship of industry evolution to patterns of technological linkages, joint ventures, and direct investment between the U.S. and Japan

The patterns of technological linkages, joint ventures, and direct investment between U.S. and Japan were predicted for emerging, growing, maturing, and declining industries based on an analysis of the key characteristics of each stage of industry evolution and the costs and benefits of each form of resource investment. A first model predicting peak activity for technological linkages in emerging industries, joint ventures in growing industries, and direct investment in maturing industries was supported as was a second model which customized prediction for all forms at each stage of evolution. Implications and suggestions for future research are discussed

The DNA-binding domain of human papillomavirus type 18 E1. Crystal structure, dimerization, and DNA binding

High risk types of human papillomavirus, such as type 18 (HPV-18), cause cervical carcinoma, one of the most frequent causes of cancer death in women worldwide. DNA replication is one of the central processes in viral maintenance, and the machinery involved is an excellent target for the design of antiviral therapy. The papillomaviral DNA replication initiation protein E1 has origin recognition and ATP-dependent DNA melting and helicase activities, and it consists of a DNA-binding domain and an ATPase/helicase domain. While monomeric in solution, E1 binds DNA as a dimer. Dimerization occurs via an interaction of hydrophobic residues on a single alpha-helix of each monomer. Here we present the crystal structure of the monomeric HPV-18 E1 DNA-binding domain refined to 1.8-A resolution. The structure reveals that the dimerization helix is significantly different from that of bovine papillomavirus type 1 (BPV-1). However, we demonstrate that the analogous residues required for E1 dimerization in BPV-1 and the low risk HPV-11 are also required for HPV-18 E1. We also present evidence that the HPV-18 E1 DNA-binding domain does not share the same nucleotide and amino acid requirements for specific DNA recognition as BPV-1 and HPV-11 E1

Adherence to the Balanced Scorecard in public and private companies

Diversos estudos têm apontado que a busca das empresas abertas em atender às expectativas dos acionistas pode muitas vezes ter como conseqüência a tomada de decisões com foco no lucro imediato. Isso teria como conseqüência a perda de oportunidades de investimento em projetos mais lucrativos, com retorno a médio e longoprazo. Alguns pesquisadores entendem que esse fato pode ser sanado com o uso de instrumentos de gestão que proporcionem o equilíbrio entre aspectos financeiros e não-financeiros na empresa. Dentre esses pesquisadores, Kaplan e Norton afirmam ser essa a principal virtude do Balanced Scorecard (BSC). Considerando o problema a que esse instrumento visa a solucionar, o presente estudo buscou identificar se as suas características são mais aderentes às empresas abertas do que às fechadas. A questão foi investigada através de uma survey envolvendo a participação de executivos de 77 empresas com faturamento acima de R$10 milhões. Análises de distribuições de freqüência, testes qui-quadrado e testes Phi e Cramérs V foram realizados com o apoio da ferramenta SPSS. Os resultados indicam que as características do BSC são mais aderentes às empresas abertas do que às fechadas, sendo os aspectos financeiros predominantes nas empresas com ações negociadas na Bolsa de Valores.Various studies have indicated that public companies search to meet shareholder expectations can often lead to decision making with a short-term profit focus. This would lead to the loss of investment opportunities in more profitable medium and long-term return projects. Some researchers believe that this problem can be solved by using management tools that favor a balance between financial and non-financial aspects in the company. Among these researchers, Kaplan and Norton argue that this is the main virtue of the Balanced Scorecard (BSC). Considering the problem BSC intends to solve, this study aims to identify if its characteristics are more adherent to public than to private companies. The problem was investigated through a survey involving executives from 77 companies with annual revenues above R$10 million. Frequency distribution analyses, chi-square tests and Phi and Cramérs V tests were applied, with the support of SPSS software. The results indicate that BSC characteristics are more adherent to public than to private companies, with financial aspects prevailing in companies whose shares are negotiated in the Stock Exchange