In this study, an investigation is conducted into the phenomenon of price clustering in Bitcoin (BTC) denominated in the Japanese yen (JPY). It answers two questions using tick-by-tick data. The first is whether price clustering exists in BTC/JPY transactions, and the other is how the scale of price clustering varies throughout a trading day. With the assistance of statistical measures, the last two digits of BTC price were discovered to cluster at the numbers that end with ’00’. In addition, the scales of BTC/JPY clustering at ’00’ tended to decline at the specific hour intervals. This study contributes to the emerging literature on price clustering and investor behavior.
We consider the implementation problem for incomplete information and private values. We investigate double implementability of social choice functions in dominant strategy equilibria and ex-post equilibria. We define a new strategic axiom that implies “strategy-proofness” and that is implied by “secure strategy-proofness,” but the converse of these relationships does not hold. We call it “weak secure-strategy-proofness.” We show that a social choice function is doubly implementable if and only if it is weakly securely-strategy-proof .
This study theoretically examines the effect of common ownership on emission levels when firms can use environmental CSR as a commitment device to soften competition. Specifically, we investigate how common ownership (or the extent of cooperation in an industry) affects firms’ voluntary commitment to emission restrictions and emissions abatement activities in an oligopoly. The results show that common ownership reduces emissions by reducing output and may stimulate emissions abatement activities if the degree of common ownership is small. However, significant common ownership always reduces emissions abatement activities. Additionally, common ownership may or may not improve welfare, depending on the implicit carbon cost.
We examine a discrete–time optimal pair–trade execution problem with generalized cross–impact. This research is an extension of Fukasawa et al. (2020b), which considers the price impact of aggregate random orders posed by small traders with a Markovian dependence. We focus on how a risk–averse large trader optimally executes two correlated assets to maximize his/her expected utility from the terminal wealth over a finite horizon. A Markov decision process modeling constitutes the basis for the formulation of the optimal pair–trade execution problem. Then, under some regularity conditions, the backward induction method of dynamic programming enables us to derive the optimal pair–trade execution strategy and its associated optimal value function. The trading orders of each risky asset posed by small traders do affect the optimal execution volume of both risky assets. Moreover, numerical results with simulation experiments show that the cross–impact affects the optimal execution strategy and a round–trip trade exists for the large trader to utilize a ‘statistical’ arbitrage and to increase his/her expected utility under our model setting of cross–impact.
Voters sometimes vote for seemingly less-qualified candidates. To explain this fact, we develop a political agency model with sequential elections in which a voter elects a politician among candidates with different competence (valence) levels, considering that politicians’ representation of voters’ preferences depends on their competence levels. We show that a negative relationship exists between politicians’ competence and their representation when a future challenger is likely to be incompetent and the reward for politicians is small. We also highlight voters’ private information on how they evaluate candidates’ competence, demonstrating that voters’ demand for incompetent candidates can be a self-fulfilling prophecy.
Guilt aversion, which describes the tendency to reduce the discrepancy between a partner’s expectation and his/her actual outcome, is a key driving force for cooperation in both the East and West. A recent study based on functional magnetic resonance imaging and online behavioral experiments reported that men show stronger guilt aversion than women and also suggested that men’s predominance in guilt aversion arises from stronger sensitivity to social norms. However, since the participants of that study were all Japanese, it remains unaddressed how common the gender difference in guilt aversion is. Here, we conducted online behavioral studies on people from Korea and the UK (Korea; n = 294, UK; n = 347) using the same trust game. We confirmed that men exhibit stronger guilt aversion than women in both countries. Furthermore, consistent with the Japanese study, our Lasso regression analysis for UK participants revealed that Big Five Conscientiousness (rule-based decision) correlated with guilt aversion in men. In contrast, guilt aversion in Korean men correlated with Big Five Neuroticism. Thus, our results suggest that gender differences in guilt aversion are universal but the underlying cognitive processes may be influenced by cultural differences.
When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which foreign multinationals and local firms in the host country are interacted through input-output linkages. When natural disasters seriously hit local firms and thus increase the cost of sourcing local intermediate inputs, most multinationals may leave the host country. However, they are likely to stay if they are tightly linked with local suppliers and face low trade costs of importing foreign intermediates. We further provide a number of extensions of the basic model to incorporate, for example, multinationals with heterogeneous productivity and disaster reconstruction.
This study examines how foreign direct investment (FDI) affects domestic employment by using unique division‐level data of Japanese firms. Contrary to most previous studies focusing on the effect of FDI on net employment growth, we decompose it into job creation (JC) and job destruction (JD) for each individual firm. We find that FDI destination plays an important role: FDI to Asia increases JC, whereas FDI to Europe/North America decreases it; furthermore JD decreases, regardless of FDI destination. A frictional search‐and‐matching model with heterogeneous jobs can explain the differential effects. The model provides additional predictions on JC and JD by job type, which are also empirically confirmed.
Although multivariate stochastic volatility models usually produce more accurate forecasts compared to the MGARCH models, their estimation techniques such as Bayesian MCMC typically suffer from the curse of dimensionality. We propose a fast and efficient estimation approach for MSV based on a penalized OLS framework. Specifying the MSV model as a multivariate state space model, we carry out a two‐step penalized procedure. We provide the asymptotic properties of the two‐step estimator and the oracle property of the first‐step estimator when the number of parameters diverges. The performances of our method are illustrated through simulations and financial data.
We set up a simple model of tax competition for mobile, highly-skilled and overconfident managers. Firms endogenously choose the compensation scheme for managers, which consists of a fixed wage and a bonus payment in the high state. Managers are overconfident about the probability of the high state and hence of receiving the bonus, whereas firms and governments are not. When governments maximize tax revenues, we show that overconfidence unambiguously reduces the bonus tax rate that governments set in the non-cooperative tax equilibrium, while increasing tax revenues. When the government objective incorporates the welfare of resident managers, however, bonus taxes also serve a corrective role and may rise in equilibrium when overconfidence is increased.
This study investigates the effects of entrepreneurial leadership on supply chain innovation and supply chain adaptability. Based on theoretical foundations of the upper echelon theory and the dynamic capability theory, it also assesses the mediating role played by supply chain innovation in the relationship between entrepreneurial leadership and supply chain adaptability. Partial least squares structural equation modeling (PLS-SEM) was performed on survey data collected from 139 firms in Sudan, Japan, and China. The results reveal that entrepreneurial leadership had positive effects on supply chain innovation and supply chain adaptability despite varying business environments. The results also provided interesting findings regarding the moderating role of supply chain innovation as a mediator of the relationship between entrepreneurial leadership and supply chain adaptability. The findings of the study stress the importance of entrepreneurial leadership for firms’ adaptability across nations. Although the number of countries included in this study was limited, these countries exhibit different cultural and structural settings. These findings suggest the possibility of the generalizability of the results. The findings also imply that firms should place greater emphasis on improving their supply chain processes and upgrading relevant technologies in order to facilitate the development of adaptable supply chains.
This study examines whether using virtual reality (VR) with older adults with mild cognitive impairment (MCI) or mild to moderate dementia with a family member who lives at a distance can improve the quality of life of the older adult and the family member. Twenty-one older adults in a senior living community and a family member (who participated in the VR with the older adult from a distance) engaged in a baseline telephone call, followed by three weekly VR sessions. The VR was associated with improvements in older adults' affect and stress, relationship with their family member, and overall quality of life, compared to baseline. Family members' negative affect, depressive symptoms, and caregiver burden also decreased and their mental health improved after using the VR, compared to baseline. Using the VR, however, did not change their relationship with the older adult. In addition, older adults and family members who experienced the VR sessions as more socially engaging reported better psychological and relational well-being, with older adults also experiencing greater improvements in overall quality of life. Finally, preliminary results suggest that older adults with dementia and their family members might benefit even more from using the VR than older adults with MCI and their family members.
In this study, we present a dynamic theory of management cycles under which firms endogenously switch between management regimes with different levels of profitability over time. Firms accumulate managerial capital as intangible assets such as managerial knowledge, know-how, and skills over time subject to limited contract enforcement. We show that the current managers of a firm are disciplined by not only the managerial capital accumulated through past business operations but also the market valuation of the future profitability of the firm. Through such dynamic interactions, we show that management cycles endogenously emerge and persist over time.
Fiscally constrained governments prefer imposing tariffs instead of providing subsidies, despite tariffs distorting markets more than subsidies. Japan’s price adjustment program is designed to support the domestic sugar industry by imposing a tariff on imports and by subsidizing domestic production using tariff revenues. This study compared the program and a subsidy scheme using benefit/cost ratios and the degree of trade distortion. The main findings and their policy implications are as follows: 1) because the benefit/cost ratio for the program is greater than one, the program would be beneficial for Japanese people, 2) the ratios and trade distortions for the two policies are similar, thus the program works well when fiscal spending is constrained, as it requires less government spending, 3) using tariffs instead of the other two policies results in a smaller benefit/cost ratio and greater market distortion, 4) people are uncertain about their preference for the program, making them more accepting of it.
Background: In response to anticipated increased health needs as a consequence of aging populations, and associated rising co-morbidity and medicines use, in both Japan and the UK potential extended roles for community pharmacy are part of health policy agendas. It is widely perceived that community pharmacists do not fully utilize their expertise, which may limit their contribution to health care in their communities and also impact negatively on their own job satisfaction. Purpose: The aim of this qualitative study was to identify operations that are perceived as opportunities to demonstrate expertise (ODE) and/or sources of job satisfaction by pharmacists in Japan and England, and explore associated system and contextual factors. Methods: Data were gathered with purposively selected pharmacists in Japan and England. An initial questionnaire was forwarded which guided subsequent face-to-face semi-structured interviews. These were audio-recoded to enable qualitative analytical procedures. Results: There were 18 participants in England and 13 in Japan. There was a notable association between ODE and job satisfaction. However, ODE was not a sufficient condition for job satisfaction. Conclusion: In order for pharmacists to be satisfied with their jobs, not only ODE but also additional contextual factors, i.e. recognition of professionalism, autonomy and positive collaboration were also needed. The findings can inform initiatives in the development of pharmacy services that would be positive for pharmacists whilst potentially contributing to wider public health objectives.
Guilt aversion, which describes the tendency to reduce the discrepancy between a partner’s expectation and his/her actual outcome, is a key driving force for cooperation in both the East and the West. A recent study based on functional magnetic resonance imaging and online behavioral experiments reported that men show stronger guilt aversion than women and also suggested that men’s predominance in guilt aversion arises from stronger sensitivity to social norms. However, since the participants of that study were all Japanese, it remains unaddressed how common the gender difference in guilt aversion is. Here, we conducted online behavioral studies on people from Korea and the U.K. (Korea; n = 294, U.K.; n = 347) using the same trust game. We confirmed that men exhibit stronger guilt aversion than women in both countries. Furthermore, consistent with the Japanese study, our Lasso regression analysis for U.K. participants revealed that Big Five Conscientiousness (rule-based decision) correlated with guilt aversion in men. In contrast, guilt aversion in Korean men correlated with Big Five Neuroticism. Thus, our results suggest that gender differences in guilt aversion is universal but the underlying cognitive processes may be influenced by cultural differences.
This study explores the welfare implications of mitigating investment uncertainty in the context of Easley and O’Hara (Rev Financ Stud 22:1817–1843, 2009) While one may expect welfare gains by encouraging participation in financial markets by ambiguity-averse investors, we formally show that it hurts other investors and thus is not Pareto-improving without appropriate income transfers. We also examine the welfare effects of income redistribution among heterogeneous investors and government spending on investor education.
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