Contributions in Merlin

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Does CEO overconfidence help to explain merger decisions? Overconfident CEOs over-estimate their ability to generate returns. As a result, they overpay for target companies and undertake value-destroying mergers. The effects are strongest if they have access to internal financing. We test these predictions using two proxies for overconfidence: CEOs’ personal over-investment in their company and their press portrayal. We find that the odds of making an acquisition are 65% higher if the CEO is classified as overconfident. The effect is largest if the merger is diversifying and does not require external financing. The market reaction at merger announcement (-90 basis points) is significantly more negative than for non-overconfident CEOs (-12 basis points). We consider alternative interpretations including inside information, signaling, and risk tolerance.

Fully decentralized peer-to-peer (P2P) systems do not have a central control mechanism. Thus, different forms of control mechanisms are required to deal with selfish peers. One type of selfish behavior is the consumption of resources without providing sufficient resources. Therefore, incentive schemes encourage peers to share resources while punishing selfish peers. A well-known example of an incentive scheme is Tit-for-Tat (TFT), as used in BitTorrent. With this scheme, a peer can only consume as much resources as it provides. TFT is resilient to collusion due to relying on private histories only. However, TFT can only be applied to peers with direct reciprocity. This paper presents a private and shared history (PSH) based incentive mechanism, which supports transitive relations (indirect reciprocity). Furthermore, it is resilient to collusion and it combines private and shared histories in an efficient manner. The PSH approach uses a shared history for identifying transitive relations. Those relations are verified using private histories. Simulations show that the PSH mechanism has a higher transaction success ratio than TFT.

Peer-to-peer (P2P) applications have the potential to improve net- work scalability and create a community in which resources are under the shared responsibility of its members. Current popular solutions target specific applications, such as file sharing and VoIP (Voice-over-IP), but important challenges prevent P2P technology from having wider acceptance in other services. Overwhelmed by interdomain traffic generated by P2P applications that build overlays asymmetric to the network topology, ISPs offer at a home user level only connections with asymmetric bandwidth. This measure efficiently hinders P2P applications. This paper introduces a new incentive model for overlay applications and ISPs to collaborate and to create at the same time a win-win situation. The approach combines two principles: (1) ISPs and P2P applications communicate to correct overlay asymmetry and (2) ISPs diminish bandwidth asymmetry by providing users additional bandwidth reserved for intradomain traffic.

Many environmental, scientific, technical or medical database applications require effective and efficient mining of time series, sequences or trajectories of measurements taken at different time points and positions forming large temporal or spatial databases. Particularly the analysis of concurrent andmultidimensional sequences poses newchallenges in finding clusters of arbitrary length and varying number of attributes. We present a novel algorithm capable of finding parallel clusters in different subspaces and demonstrate our results for temporal and spatial applications. Our analysis of structural quality parameters in rivers is successfully used by hydrologists to develop measures for river quality improvements.

BACKGROUND: There is lack of neuroscientific studies investigating music processing with naturalistic stimuli, and brain responses to real music are, thus, largely unknown. METHODOLOGY/PRINCIPAL FINDINGS: This study investigates event-related brain potentials (ERPs), skin conductance responses (SCRs) and heart rate (HR) elicited by unexpected chords of piano sonatas as they were originally arranged by composers, and as they were played by professional pianists. From the musical excerpts played by the pianists (with emotional expression), we also created versions without variations in tempo and loudness (without musical expression) to investigate effects of musical expression on ERPs and SCRs. Compared to expected chords, unexpected chords elicited an early right anterior negativity (ERAN, reflecting music-syntactic processing) and an N5 (reflecting processing of meaning information) in the ERPs, as well as clear changes in the SCRs (reflecting that unexpected chords also elicited emotional responses). The ERAN was not influenced by emotional expression, whereas N5 potentials elicited by chords in general (regardless of their chord function) differed between the expressive and the non-expressive condition. CONCLUSIONS/SIGNIFICANCE: These results show that the neural mechanisms of music-syntactic processing operate independently of the emotional qualities of a stimulus, justifying the use of stimuli without emotional expression to investigate the cognitive processing of musical structure. Moreover, the data indicate that musical expression affects the neural mechanisms underlying the processing of musical meaning. Our data are the first to reveal influences of musical performance on ERPs and SCRs, and to show physiological responses to unexpected chords in naturalistic music.