Exploring the Bounds of Pygmalion Effects: Congruence of Implicit Followership Theories Drives and Binds Leader Performance Expectations and Follower Work Engagement

The topic of work engagement is moving up on the managerial agenda as it sets the stage for numerous beneficial outcomes for both organizations and their employees. It is clear, however, that not all employees are equally engaged in their job. The current study taps into theory on positive self-fulfilling prophecies induced by leaders’ high expectations of followers (i.e., the Pygmalion effect) and examines their potential to facilitate follower work engagement. By integrating literature on implicit followership theories with the Pygmalion model, we investigate the assumption that leaders’ high expectations are universally perceived as and therefore foster the same desirable results for all employees. We argue and find that the extent to which followers’ work engagement benefits from high leader expectations de

The Costs of Implementing a Unilateral One-Sided Exchange Rate Target Zone

In the aftermath of the recent financial crisis, the central banks of small open economies such as the Czech National Bank and the Swiss National Bank (SNB) both implemented a unilateral one-sided exchange rate target zone vis-a-vis the euro currency to counteract deflationary pressures. Recently, the SNB abandoned its minimum exchange rate regime of CHF 1.20 per euro, arguing that after having analyzed the costs and benefits of this non-standard exchange rate policy measure, it was no longer sustainable. This paper proposes a model that allows central banks to estimate ex-ante the costs of implementing and maintaining a unilateral one-sided target zone and to monitor these costs during the period where it is enforced. The model also offers central banks a tool to identify the right timing for the discontinuation of a minimum exchange rate regime. An empirical application to the Swiss case shows the actual size of these costs and reveals that these costs would have been substantial without the abandonment of the minimum exchange rate regime, which accords with the official statements of the SNB

The Joint Influence of Intra- and Inter-Team Learning Processes on Team Performance: A Constructive or Destructive Combination?

In order for teams to build a shared conception of their task, team learning is crucial. Benefits of intra-team learning have been demonstrated in numerous studies. However, teams do not operate in a vacuum, and interact with their environment to execute their tasks. Our knowledge of the added value of inter-team learning (team learning with external parties) is limited. Do both types of team learning compete over limited resources, or do they form a synergistic combination? We aim to shed light on the interplay between intra- and inter-team learning in relation to team performance, by including adaptive and transformative sub-processes of intra-team learning. A quantitative field study was conducted among 108 university teacher teams. The joint influence of intra- and inter-team learning as well as structural (task interdependence) and cultural (team efficacy) team characteristics on self-perceived and externally rated team performance were explored in a path model. The results showed that adaptive intra-team learning positively influenced self-perceived team performance, while transformative intra-team learning positively influenced externally rated team performance. Moreover, intra-team and inter-team learning were found to be both a constructive and a destructive combination. Adaptive intra-team learning combined with inter-team learning led to increased team performance, while transformative intra-team learning combined with inter-team learning hurt team performance. The findings demonstrate the importance of distinguishing between both the scope (intra- vs. inter-team) and the level (adaptive vs. transformative) of team learning in understanding team performance

An alternative integral representation for the product of two parabolic cylinder functions

Recently, [Veestraeten D. An integral representation for the product of parabolic cylinder functions. Integral Transforms Spec Funct. 2017;28(1):15–21] derived an integral representation for Dν(x)Dμ(y) with Re(ν+μ)<1 that was expressed in terms of the Gaussian hypergeometric function. This paper obtains an alternative expression for Dν(x)Dμ(y) in which the integrand contains the parabolic cylinder function itself with the condition for convergence being at Re(ν)<0. The latter property is subsequently used to generate a new integral representation for Dμ(y) in which restrictions on the order μ are absent

On the multiplicity of option prices under CEV with positive elasticity of variance

The discounted stock price under the Constant Elasticity of Variance model is not a martingale when the elasticity of variance is positive. Two expressions for the European call price then arise, namely the price for which put-call parity holds and the price that represents the lowest cost of replicating the call option’s payoffs. The greeks of European put and call prices are derived and it is shown that the greeks of the risk-neutral call can substantially differ from standard results. For instance, the relation between the call price and variance may become non-monotonic. Such unfamiliar behavior then might yield option-based tests for the potential presence of a bubble in the underlying stock price