Locating Decision Rights: Evidence from the Mutual Fund Industry

Mutual fund advisors make portfolio decisions for their funds on a daily basis. We examine the location of these portfolio decision rights on two dimensions. First, we consider the geographic location of the decision rights. Second, we consider whether the decision rights remain with an advisor or are allocated to an independent sub-advisor. We argue that the allocation of portfolio decision rights involves a tradeoff between the opportunity cost of not matching decision rights with specific knowledge, and the agency costs associated with moving the decision rights to the specific knowledge. The patterns in the location of decision rights are consistent with the tradeoff being a meaningful determinant of the allocation of decision rights in the mutual fund industry. We also find that funds that are predicted to be sub-advised and are sub-advised outperform those that are predicted to be sub-advised but are not

Online learning : towards enabling choice

Education is rapidly evolving from an opportunity that was provided mainly for an elite to one that is available to a mass markets and as such is prone to the forces generated by this environment. Where, in the established pattern, commercial interest was limited mainly to the use of skills developed during the educational process, the future model of educational provision will involve extensive commercial activity in the production, delivery and marketing of material. Already there are a number of commercial companies offering framework products enabling "off the shelf solutions" for the construction and delivery of web based courses in any subject area. The commercialisation of education is underway and it is inevitable that it will be viewed, by entrepreneurs and customers alike, as any other commercial product. It would seem reasonable that the consumer should be able to evaluate the performance of these new modes of working in a similar manner to other commercial products. This paper draws together current thinking on the problems associated with evaluating computer and communication based learning

Cloud Compute-and-Forward with Relay Cooperation

We study a cloud network with M distributed receiving antennas and L users, which transmit their messages towards a centralized decoder (CD), where M>=L. We consider that the cloud network applies the Compute-and-Forward (C&F) protocol, where L antennas/relays are selected to decode integer equations of the transmitted messages. In this work, we focus on the best relay selection and the optimization of the Physical-Layer Network Coding (PNC) at the relays, aiming at the throughput maximization of the network. Existing literature optimizes PNC with respect to the maximization of the minimum rate among users. The proposed strategy maximizes the sum rate of the users allowing nonsymmetric rates, while the optimal solution is explored with the aid of the Pareto frontier. The problem of relay selection is matched to a coalition formation game, where the relays and the CD cooperate in order to maximize their profit. Efficient coalition formation algorithms are proposed, which perform joint relay selection and PNC optimization. Simulation results show that a considerable improvement is achieved compared to existing results, both in terms of the network sum rate and the players' profits.Comment: Submitted to IEEE Transactions on Wireless Communication

Investor Behavior in the Mutual Fund Industry: Evidence from Gross Flows

Using a large sample of monthly gross flows from 1997 to 2003, we uncover several previously undocumented regularities in investor behavior. First, investor purchases and sales produce fund-level gross flows that are highly persistent. Persistence in fund flows dominates performance as a predictor of future fund flows. More importantly, failing to account for flow persistence leads to incorrect inferences with respect to the relation between performance and flows. Second, we document that investors react differently to performance depending on the type of fund, and that investor trading activity produces meaningful differences in the persistence of fund flows across mutual fund types. Third, at least some investors appear to evaluate and respond to mutual fund performance over much shorter time spans than previously assessed. Additionally, we document differences in the speed and magnitude of investors’ purchase and sales responses to performance