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Stock ownership and incentive options are used by companies to retain and motivate employees and managers. These grants usually come with vesting features which require grantees to hold the assets for certain periods. This vesting requirement makes the grantee's total wealth highly undiversified. As a result, as shown by previous researchers, grantees tend to value these incentive securities below market. In this case, grantees will have a strong desire to hedge away the firm-specific risk. Facing the restrictions of direct hedges such as shorting the firm's stock, employees may implement a partial hedge by taking positions in an asset highly correlated with the firm's stock, such as an industry index. In this chapter, we investigate the effects of such a partial hedge. Using the continuous-time, consumption-portfolio framework as a backdrop, we demonstrate that the hedging index can enhance the employee's optimal portfolio holding and increase his intertemporal utility. Consequently, his private valuations of these grants are higher than that without the partial hedging. However, because the partial hedge makes the employee's total wealth less sensitive to the firm's stock price, it will also undermine the incentive effects. Therefore, the presumed incentive effects of these restricted assets should not be taken for granted.

Adolescents, because of the unique developmental stage they occupy, are particularly sensitive to their socio-cultural environment. Adolescents often define behaviors in light of prevailing attitudes, values, and norms (i.e. culture) established across primary social domains. Specifically, overarching social structures (e.g. economic, political, religious, etc.), working through the local landscape (e.g. neighborhood, school, peer networks, and family), play a vital role in shaping adolescent development and influencing psychological, behavioral, and social outcomes (Arnett & Arnett-Jensen, 1994; Greenberger et al., 2000; Grob et al., 1996; McArdle et al., 2000). For youth, definitions of normative behavior vary, yet socio-cultural context continues to be important in defining who they are and what they do. Culture defines accepted standards of behavior, lifestyles, and life chances. As such, socio-cultural influences have been particularly strong predictors of health-compromising behaviors for this population subgroup (Fitzpatrick, 1997; Fitzpatrick & LaGory, 2000; Gibbons et al., 1995; Graham et al., 1991).

This chapter proposes a new mixture model which allows for heterogeneity in sensitivities and decision rules across decision makers and attributes.

A new mixture model is put forward in which the different latent classes make use of different decision rules, where the use of generalised random regret minimisation kernel allows for within class heterogeneity in the decision rules applied across attributes.

Our theoretical developments are supported by the findings of an empirical application using data from a typical stated choice survey.

Existing work has looked at heterogeneity in decision rules and sensitivities across respondents. Other work has focused on the possibility that different decision rules apply to different attributes. This chapter puts forward a model that combines these two directions of research and does so in a way that lets the optimal specification be driven by the data rather than being imposed by the analyst.

Global virtual teams (GVTs) – composed of members in two or more countries who work together primarily using information and communication technologies – are increasingly prevalent in organizations today. There has been a burgeoning of research on this relatively new organizational unit, spanning various academic disciplines. In this chapter, we review and discuss the major developments in this area of research. Based on our review, we identify areas in need of future research, suggest research directions that have the potential to enhance theory development, and provide practical guidelines on managing and working in GVTs.

Past research on collectivist-democratic organizations has attributed their distinctiveness to their socio-political goals and democratic decision-making and largely ignored their work processes. This ethnographic study examines how such organizations resist alienating forms of work even in the face of direct competition with for-profit companies. It focuses on Scopix, a French cooperative sheet-metal factory where the first author spent one year as a shop-floor worker. Cooperators there developed various practices to retain an emancipatory dimension to their work, regularly putting forward “craft ethics” as a counterweight to the sheet-metal industry’s drive to rationalize work processes. Drawing on the sociology of worth, the authors analyze how these practices emerged from the arrangements that workers made between the industrial world on the one side and the domestic and inspired worlds on the other. This study contributes to the literature into two main ways. First, the authors refine the sociology-of-worth framework by conceptualizing the emancipatory dimension of work as the result of ad hoc arrangements between different worlds. Second, the authors highlight the need for the literature on collectivist-democratic organizations to increase its focus on work, introducing the concept of work degeneration as a step in that direction.

Firms are increasingly organizing cross-regional R&D collaborations among different units. Such collaborations should promote knowledge flows across distance and bring new knowledge to the local communities. However, the nature of cross-regional collaborations varies widely depending on the organizations within which they are organized. Compared with collaborations within small firms, collaborations in large firms tend to be routinized, which reduces the need for interpersonal interactions and increases the dependence on organizational structure. As a result, additional spillover from cross-regional collaboration is likely to be lower if the collaboration is within large firms. We extend this argument to the regional level and hypothesize that regions with a higher level of cross-regional collaborations tend to generate more valuable technologies, but when large firms dominate the formation of such collaborations, the marginal benefits of cross-regional collaboration are significantly reduced. Using a data set from the pharmaceutical industry between 1975 and 2001, we find support for our hypotheses. We conduct a series of robustness tests to check the consistency of our results.