Maximization Theory Research Articles

Vacua and Gaugings of Maximal D = 4 Supergravity

I review an effective method to find vacua of gauged supergravity and apply it to the maximal theory in four dimensions. This leads in particular to new Anti de Sitter and Minkowski vacua with broken supersymmetry, as well as new gauge theories. Interesting links between different gaugings, their vacuum solutions and the stability properties as well as the allowed values of the cosmological constant are outlined.

Belief, Degrees of Belief, and Assertion

Starting from John MacFarlane's recent survey of answers to the question ‘What is assertion?’, I defend an account of assertion that draws on elements of MacFarlane's and Robert Brandom's commitment accounts, Timothy Williamson's knowledge norm account, and my own previous work on the normative status of logic. I defend the knowledge norm from recent attacks. Indicative conditionals, however, pose a problem when read along the lines of Ernest Adams' account, an account supported by much work in the psychology of reasoning. Furthermore, there seems to be no place for degrees of belief in the accounts of belief and assertion given here. Degrees of belief do have a role in decision-making, but, again, there is much evidence that the orthodox theory of subjective utility maximization is not a good description of what we do in decision-making and, arguably, neither is it a good normative guide to how we ought to make decisions.

Cross-nested logit model for the joint choice of residential location, travel mode, and departure time

This paper aims to describe the joint choice of residential location, travel mode, and departure time. First, based on random utility maximization theory, the Cross-Nested Logit model and traditional NL models are formulated respectively. House price, travel time, travel cost, and factors depicting the individual socio-economic characteristics are defined as exogenous variables, and the model choice sets are the combination of residential location subset, departure time subset, and travel mode choice subset. Second, using Beijing traffic survey data of 2005, the model parameters are estimated, and the direct and cross elasticity are calculated to analyze the change of alternatives probability brought by factors variation. Estimation results show the Cross-Nested Logit model outperforms the three kinds of NL model. It is also found by estimation results that decision makers will change first their departure times, then their travel modes, and finally their residential locations, when exogenous variables alter. Moreover, elasticity analysis results suggest that, for long-distance commuting, it is difficult to decrease car travels even if additional charges are imposed on car users. The effect on choice probability by variations in travel time of other travel mode can be considered as negligible for alternatives within 5km commuting distance, and this effect are greatest for alternatives between 10 and 20km commuting distance. These findings have important implications for transport demand management and residence planning.

Risk and rationalization—The role of affect and cognitive dissonance for sexual risk taking

In spite of increased awareness of HIV/AIDS, high levels of sexual risk taking persist among individuals in HIV susceptible groups. The lack of behavioral change has long puzzled both researchers and policy makers. In this paper, an attempt is made to disentangle mechanisms underlying excessive sexual risk taking. Drawing on ideas from psychology, related to decision-making processes and risk evaluation, an intertemporal model is developed and analyzed. More specifically, the theoretical model merges psychological theories of affect-induced myopia and cognitive dissonance with economic theory of utility maximization. The results of the theoretical analysis suggest that, if sexual arousal is associated with shortsighted behavior, the fear of an HIV infection may reduce the effect of HIV information campaigns via the effect of cognitive dissonance. The results further suggest that policy aimed to increase awareness of rationalization tendencies may constitute an important complement to existing AIDS policies.

Asymptotic Stability Analysis of E-speed Start Congestion Control Protocol for TCP

All the proposed window based congestion control protocols use a single slow start algorithm. It has been shown in literature that slow start inefficiently utilizes bandwidth in a network with high bandwidth delay product (BDP). A multiple startup algorithm (E- speed start) was proposed in this work. E-speed start specifies a multiple selectable startup for Transmission Control Protocol (TCP). It is proposed that startup speed for TCP be selectable from n-arry startup algorithms. In E-speed start, a binary start was implemented based on a calculated value β which depends on the available bandwidth and other network conditions. A model for E- speed start was derived using utility maximization theory and the principle of decentralised solution. The model derived was shown to be stable by linear approximation, Laplace transform and by using the concept of Nyquist Stability criterion.

Environments, Externalities and Ethics: Compulsory Multinational and Transnational Corporate Bonding to Promote Accountability for Externalization of Environmental Harm

Developing nations often look to their bounty of natural resources or willing labor as a means of attracting international investors. While national and local governments frequently perceive the arrival of a multinational corporate presence as a boon to their economy, the potential for government instability, ineffectiveness or corruption may facilitate environmentally exploitive corporate practices. Furthermore, residents of the subject nation may be left without proper legal recourse. Legislators have made various efforts in both the United States and abroad to propound Corporate Codes of Conduct to address such concerns, but despite laudable intentions, features of the increasingly global economy “accentuate the difficulties of relying upon law as an external constraint to correctly structure the corporate relationship.” Furthermore, absent an international sovereign, national taxing authorities are often impotent to effectively tax corporations to raise money for social welfare or environmental protection efforts, and the law is often insufficient to provide redress once the damage is done.Both American and alien litigants have sought to utilize the Alien Tort Statute (“ATS”) (or Alien Tort Claims Act (“ATCA”)) to address instances of corporate malfeasance, though the ATS has not yet proven an effective remedy capable of sanctioning multinational corporations for their illegal or unethical behavior. As voluntary codes of business ethics and United Nations guidelines have also proven ineffective, the United States must develop or support a legal regime capable of providing an effective civil or criminal remedy to the victims of illegal or unethical corporate activity.Under the current understanding of the shareholder primacy paradigm, companies will never fully internalize the environmental and social costs of their productive processes and labor relationships in a globalized economy, without an ultimate sovereign. Any practicable regime capable of coercing internalization of environmental costs must transcend mere optimistic reliance on the shareholder wealth maximization theory — as it is currently understood — within constraints of domestic law and private contractual arrangements. This Article suggests that exploitative corporate behavior stems largely from a fundamental misconception of the shareholder wealth maximization theory, and proposes that the United States create a bonding system under which a federal regulatory agency would compel multinational corporations doing business in America to contribute to an environmental remediation bond, administered by the United States.

Accommodating Risk Attitudes in Freight Transport Behaviour Research

Behavioural choice modelling is growing in interest as a framework to understand the decision-making of shippers, freight forwarders and other freight agents. Since the 1980s, we have witnessed an increasing number of freight behaviour studies, primarily the freight mode choice, where the roles of one or more freight decision-makers has been addressed, which was neglected in the traditional aggregate approach to freight demand modelling. Stated preference techniques have become a main approach to establishing the role of attributes that define the key drivers in the freight distribution chain. The underlying theory of choice is based on the neoclassical economic assumption that a decision-maker, in choosing, acts as if they are a utility maximizer (working to deliver a profit maximization or cost minimization outcome for the freight business), and this utility maximizing behaviour engenders a population theory of Random Utility Maximization (RUM). Despite the continuing appeal of the RUM framework in applied travel choice studies, a number of specific application assumptions have been questioned by studies in psychology and behavioural economics, arguing that the decisions made by agents are often conditioned on a number of underlying psychological components, one of which is risk attitude. This paper reviews recent freight behaviour studies established on RUM, and presents a major limitation of adopting a risk-neutral assumption through its linear utility specification. Using an existing freight stated choice data set, a nonlinear utility model is estimated which reveals risk-taking attitudes of transporters and shippers. An alternative behavioural paradigm, Rank-Dependent Utility Theory (RDUT), is introduced and incorporated to better accommodate trip time variability, a feature of growing importance in transport systems (passenger and freight). The proposed attribute-specific extended RDUT framework that accommodates the attitude towards risk and preference in freight transport behaviour modelling requires new data, which we detail.

Valuing biodiversity attributes and water supply using choice experiments: a case study of La Campana Peñuelas Biosphere Reserve, Chile

The main objective of this study is to assess public economic preferences for biodiversity conservation and water supply and to analyse the factors influencing those preferences. A survey based on the choice experiment method was carried out at Peñuelas National Reserve, Chile, an area that is threatened by both occasional forest fires and the growing housing market. The input of local administrators was used to define environmental attributes of the area related to biodiversity conservation and water supply. Attributes were selected for analysis by the choice experiment. The selected attributes were the following: existence of endemic orchid species, chances of observing animals with scenic attraction, additional protection for an endemic amphibian, and availability of drinkable water in the future. A monetary variable consisting of an increase in the rate for entry to the area was also incorporated to estimate willingness to pay (WTP) for additional protection for the selected attributes. Three hundred four Chilean visitors to the reserve were randomly selected for interviews. Econometric analysis based on the Theory of Utility Maximization shows that visitors are willing to pay to protect the selected attributes. WTP values for the attributes range from CHP $2,600 ($5.4) to $6,600 ($14) per person per visit. The results of this research provide reserve managers information about tradeoffs that could be used to enhance public support and maximise the social benefits of nature conservation management programmes.

Politeness in the Holy Quran: A sociolinguistic and pragmatic perspective

This study investigates politeness in the Holy Quran from a socio-pragmatic perspective. Drawing on politeness theory, we examine the text-building mechanisms and functions of a large number of chapters and verses selected from the Holy Quran. Data is analyzed in terms of both Brown and Levinson's theory of politeness and Leech's maxims of politeness. These two theoretical frameworks have been, so far, attested against data collected from various sources, but no single study has yet used data from any of the Holy books. This paper addresses this issue in light of data drawn from the Holy Quran. The data were analyzed in two main parts: The first included the verses that are concerned with the God-man relationship and the second with the man-man (i.e., interpersonal) relationship. By analyzing the structural and functional features of the verses, the study found a range of various politeness strategies employed for conveying a huge number of divine ethical messages. The study concludes that such a variety of politeness strategies relates strongly to the type of information being conveyed to the addressees. From a theoretical perspective, this paper contributes to the discussions of God-man communication and man-man communication in relation to the negotiation of politeness meaning in the context of religion. The findings presented here bear on orientations toward the importance of studying politeness as a socio-pragmatic phenomenon in relation to religion and morality.

Towards a quantification model: the accountability of the for-profit and non-profit organisations in the High Mountains of Sinai Peninsula

Under four consecutive economical transition phases in 1967 to 2011 CE, the eco-cultural mass tourism strengthened its position as the main economical activity in the High Mountains of Sinai Peninsula (i.e., UNESCO WHS No. 954). The interchanging relation between different stakeholders on one hand, and mass tourism on the other hand; in addition to the domestic mass urbanisation and modernisation policies; all caused a series of impacts on the socioeconomic life, environmental resources and cultural heritage. Based on ten years of research and survey work (i.e., Sinai Peninsula Research 2000 to 2010 CE), this paper presents a model, defining the key aspects and the role of mass tourism as a key component of sustainable development and rural-urban regeneration. It introduces a newly developed version of quality function deployment (QFD) in order to quantify the immeasurable aspects in an era of uncertainty (i.e., accountability of the for-profit and non-profit organisations), providing a mid-ground between the profit maximisation theory and sustainability theory in practice.

Managers with Blank Checks: The Agency Problems of Corporate Philanthropy

Agency theory and profit maximization theory offer competing views on corporate philanthropic activities. Using hand-collected data, I evaluate these theories and find evidence more consistent with the agency theory. CEOs’ relation with nonprofit institutions, weaker alignment incentives of managers and weaker governance structure increase the likelihood and amount of corporate giving in general and foundation giving (which is a more stable source of donations) in particular. To analyze whether private benefits of corporate giving are optimally factored into CEO compensation, I develop an instrumental variable framework to address the direction of relation between compensation and firm donations. By using natural disasters as an instrument of corporate giving, I find that CEOs use firm donations to insulate their compensation particularly by supporting causes related to directors’ interests. Results also show that corporate giving reduces stock returns by lowering the marginal dollar value of cash. Lastly, negative stock price reaction to the news of unexpected firm donations further confirms the agency theory of corporate giving.

Enterprise Risk Management Practices in Slovenia and Their Impact on Performance

Article deals with perceived corporate risk management determinants of Slovene firms. There are quite some theoretical explanations of reasonable behavior of corporate financial managers in financial literature. I briefly introduce maximization of wealth theory (Smith and Stulz, 1985; Froot, Scharfstein and Stein, 1993) and agency theory (Tufano, 1998) and point to different techniques firms can use to better decrease various exposures. After the introduction reach empirics should provide deeper insights into this challenging topic. In the first empirical part I follow some aspects of well-cited article of Graham and Harvey (2001) dealing with modern corporate finance practices of US firms. Paper reveals the determinants of different types of risk Slovene firms consider as crucial. In the second empirical part, it tests hypotheses about performance of 137 surveyed Slovene firms differentiated by risk management practices. Those have been uniquely profiled using the answers acquired in the survey of corporate finance practices of Slovene Institute of Auditors and Research Center of Faculty of Economics. Generally, surveyed Slovene firms do not frequently use CAPM as a common base for risk premium determination. Differences are not significant between groups of small and large firms. However, large surveyed firms pay more attention to information about exchange rate movements, which also holds true in the case of the firms recording substantial proportion of foreign sales. Analysis sheds light on the degree of leverage and firms' behavior. Levels of debt are dependent upon degree of operating leverage. However, total debt to a much lesser extent than long-term debt only. This effect comes at least to some extent to a surprise, since during transition short-term debt served as close substitute for long-term debt of Slovene firms and had being systematically rolled over. Relation is not significantly stronger by firms that are more aware of the need to employ risk management techniques. However, I argue that more risk aware firms show better financial performance, manage assets more efficiently, reach higher productivity and liquidity levels, and use more debt. That means Slovene corporate reality rather supports wealth maximization theory. What seems to be more of a puzzle are significant differences with counterintuitive direction by efficiency ratios mean comparisons. Firms with more sophistication in the area of risk management have lower total assets- and fixed assets turnover, and employ more assets per employee. Even though efficiency rises with risk awareness, many firms seem to be classified as most risk aware because of the type of assets. The reason in fact comes from the need of more capital-intense firms to better deal with risks.

Public avoidance and epidemics: Insights from an economic model

In this paper, we present a mathematical model of infectious disease transmission in which people can engage in public avoidance behavior to minimize the likelihood of acquiring an infection. The framework employs the economist's theory of utility maximization to model people's decision regarding their level of public avoidance. We derive the reproductive number of a disease which determines whether an endemic equilibrium exists or not. We show that when the contact function exhibits saturation, an endemic equilibrium must be unique. Otherwise, multiple endemic equilibria that differ in disease prevalence can coexist, and which one the population gets to depends on initial conditions. Even when a unique endemic equilibrium exists, people's preferences and the initial conditions may determine whether the disease will eventually die out or become endemic. Public health policies that increase the recovery rate or encourage self-quarantine by infected people can be beneficial to the community by lowering disease prevalence. However, it is also possible for these policies to worsen the situation and cause prevalence to rise since these measures give people less incentive to engage in public avoidance behavior. We also show that implementing policies that result in a higher level of public avoidance behavior in equilibrium does not necessarily lower prevalence and can result in more infections.

Impact Of Merger And Acquisition On Debt Management Ratio: A Case Study In Malaysian Banking Sectors

This study based on efficiency theory of shareholders wealth maximization of acquisition principle attempted to investigate the debt management ratio of ten Malaysian anchor banks after undergoing mega merger and acquisition program which was completed in the year of 2000. As efficiency theory consists of three elements that are financial synergy, operation synergy and managerial synergy, the study will primarily focus its analysis on financial synergy (debt management). Using accounting technique (financial statement analysis) to draw the implication, the study results highlighted the performance of those anchor banks from the year 2000 to 2004. The ratio analysis tools employed covered total liabilities to total assets, total liabilities to total equity, times interest earned, and cash debt coverage ratio. The findings shows that in general, the anchor banks recorded improvement in term of debt management; yet more comprehensive strategies have to be executed to further enhance the financial synergy. The generalization however shall be done in more cautious as the study inherits several limitations including the application of financial statement which based on historic cost rather than reflecting the current market situation. The study perhaps can be extended to include the analysis of earnings performance ratios and market/investor perception toward the resilience of those anchor banks after completing the merger and acquisition mega program.

Same-Day Mode Choice Modeling with Household Vehicle Usage Simulation in Developing Countries

This paper presents a model of same-day mode choice at the household level for developing countries. A rule-based algorithm combining classical random utility maximization theory within a microsimulation framework is used. Modeling of private vehicle usage (including vehicle allocation and sharing use in household) is an essential component of this model because vehicle deficiency is common in developing countries. This model consists of four steps: (a) the allocation of private vehicles (car, motorcycle, and bicycle) in a household, (b) the mode choice of private vehicle users specified in the first step, (c) vehicle sharing in a household, and (d) the mode choice of individuals who do not use private vehicles. The adaptability of the model was improved by simulations on car, motorcycle, and bicycle usage. Discrepancies in the mode choice behavior of household members with and without the use of private vehicles are captured in this paper through different modeling methods. The rule-based algorithm, binary logit model, multinomial logit model, and mixed logit model were applied together in this four-step model. Travel diary survey data from 2007 from Bengbu, China, were used as an example for the validation test of this model. The results demonstrate that this model can accurately predict the mode choice of all household members in an internally self-consistent and theoretically credible manner for a midsize city in China. The proposed model is highly conducive to travel demand forecasting and transportation policy making.

The spatial impact of revitalization on the likelihood of homeownership: a look at Washington, DC

This study examines whether the distance between a neighborhood with revitalization activity and the adjacent non-revitalized neighborhoods is a significant determinant of the likelihood of homeownership in those adjacent neighborhoods. Given that a household maximizes its utility by consuming housing services and all other goods and services, this study hypothesizes that in some neighborhoods, distance from amenities created through revitalization contributes to housing services consumed, utility derived, and housing tenure. The model in this study has its theoretical underpinnings in utility maximization theories. To determine the likelihood of homeownership, a logit model is used to examine the factors that influence the odds in favor of homeownership. Ordinary least squares estimation, consistent with earlier studies, is used to examine the relationship between distance, income and the relative cost of renting and owning and the F test is used to ascertain if there is a structural change in the relationship between distance and the likelihood of homeownership between 1990 (pre-revitalization) and 2000 (post-revitalization). The empirical results reveal that Ward 5 in Washington DC is the only neighborhood in which there is a structural change in the distance coefficient. The results of this study suggest that the type of amenity being developed can influence the likelihood of homeownership and that the activity in one ward does not have a significant impact on homeownership in neighboring wards.

Why does Viola hondoensis (Violaceae) shed its winter leaves in spring?

Viola hondoensis is a perennial herb that inhabits the understory of temperate, deciduous forests. It is an evergreen plant with a leaf life span that is shorter than a year. Its summer leaves are produced in spring and shed in autumn; winter leaves are produced in autumn and shed in spring. Here we asked why the plant sheds its winter leaves in spring, though climate conditions improve from spring to summer. We proposed four hypotheses for the cause of shedding: (1) changes in seasonal environment such as day length or air temperature, (2) shading by canopy deciduous trees, (3) self-shading by taller summer leaves, and (4) competition for nutrients between summer and winter leaves. • To test these hypotheses, we manipulated the environment of winter leaves: (1) plants were transplanted to the open site where there was no shading by canopy trees. (2) Petioles of summer leaves were anchored to the soil surface to avoid shading of winter leaves. (3) Sink organs were removed to eliminate nutrient competition. • Longevity of winter leaves was extended when shading by summer leaves was eliminated and when sink organs were removed, but not when plants were transplanted to the open site. • We conclude that the relative difference in light availability between summer and winter leaves is a critical factor for regulation of leaf shedding, consistent with the theory of maximization of the whole-plant photosynthesis.

Exact welfare measurement for double-log demand with partial adjustment

This paper demonstrates that a double-log demand with partial adjustment (DLPA) is consistent with the theory of consumer utility maximization. It offers an approach for calculating the compensating variation (CV), the exact welfare effect of a change in a price series when a DLPA is employed. Significant bias may result if the CV is based on a static double-log demand when a DLPA function is appropriate. We revisit a recent study of demand for gasoline in the U.S., finding that the CV based on the static double-log would overstate the welfare effect of a 6-month temporary gasoline tax by 7.5%.

A Model of Weekly Labor Participation for a Belgian Synthetic Population

This paper presents a model of labor participation calibrated on a weekly basis; part-time and full-time employments are also considered. By applying the theory of random utility maximization we model households’ choices. In order to have a good temporal and spatial coverage the model is calibrated on three datasets, extracted from both national and regional travel surveys. The results are applied to synthetic households that reproduce the Belgian population. The proposed innovative methodology simulates synthetic agents by accounting both for households’ and individuals’ characteristics, while not suffering from the problem of the “zero cell value”. The results indicate that there is major day-to-day variability in working activity participation; in particular, on Wednesdays and Fridays the number of households working part-time or not working is particularly high. This is consistent with what was expected by the analysts. Working participation is a fundamental component in activity based models where work is considered a skeletal activity. The tools developed here can be useful to study how changes in population characteristics (i.e. increases of flexible working arrangements and of the number of women in the work force) affect activity participation and travel patterns.

The Relation between Stakeholder Management, Firm Value, and CEO Compensation: A Test of Enlightened Value Maximization

Whether firms pursue shareholder value maximization or the maximization of stakeholder welfare is a controversial issue whose outcomes seem irreconcilable. We propose that firms are likely to compensate their executives for pursuing the firm's goal be it shareholder value maximization or the maximization of stakeholder welfare. In this paper, we examine the correlation between firm value, stakeholder management, and compensation. We find that stakeholder management is positively related to firm value. However, firms do not compensate managers for having good relationships with its stakeholders. These results do not support stakeholder theory. We also find an endogenous association between compensation and firm value. Our results are consistent with Jensen's (2001) enlightened value maximization theory. Managers are compensated for achieving the firm's ultimate goal, value maximization. However, managers optimize interaction with stakeholders to accomplish this objective.