Tomás Lagos, Junyeong Choi, Brittany Segundo, Jianbang Gan, Lewis Ntaimo, Oleg A Prokopyev, Bilevel optimization approach for fuel treatment planning, European Journal of Operational Research, Vol. 320 (1), 2025. (Journal Article)
Various fuel treatment practices involve removing all or some of the vegetation (fuel) from a landscape to reduce the potential for fires and their severity. Fuel treatments form the first line of defense against large-scale wildfires. In this study, we formulate and solve a bilevel integer programming model, where the fuel treatment planner (modeled as the leader) determines appropriate locations and types of treatments to minimize expected losses from wildfires. The follower (i.e., the lower-level decision-maker) corresponds to nature, which is adversarial to the leader and designs a wildfire attack (i.e., locations and time periods, where and when, respectively, wildfires occur) to disrupt the leader’s objective function, e.g., the total expected area burnt. Both levels in the model involve integrality restrictions for decision variables; hence, we explore the model’s difficulty from the computational complexity perspective. Then, we design specialized solution methods for general and some special cases. We perform experiments with semi-synthetic and real-life instances to illustrate the performance of our approaches. We also explore numerically the fundamental differences in the structural properties of solutions arising from bilevel model and its single-level counterpart. These disparities encompass factors like the types of treatments applied and the choice of treated areas. Additionally, we conduct various types of sensitivity analysis on the performance of the obtained policies and illustrate the value of the bilevel solutions. |
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Fynn Bachmann, Cristina Sarasua, Abraham Bernstein, Fast and Adaptive Questionnaires for Voting Advice Applications, In: Machine Learning and Knowledge Discovery in Databases. Applied Data Science Track, Springer, Cham, 2024-09-09. (Conference or Workshop Paper published in Proceedings)
The effectiveness of Voting Advice Applications (VAA) is often compromised by the length of their questionnaires. To address user fatigue and incomplete responses, some applications (such as the Swiss Smartvote) offer a condensed version of their questionnaire. However, these condensed versions can not ensure the accuracy of recommended parties or candidates, which we show to remain below 40%. To tackle these limitations, this work introduces an adaptive questionnaire approach that selects subsequent questions based on users’ previous answers, aiming to enhance recommendation accuracy while reducing the number of questions posed to the voters. Our method uses an encoder and decoder module to predict missing values at any completion stage, leveraging a two-dimensional latent space reflective of political science’s traditional methods for visualizing political orientations. Additionally, a selector module is proposed to determine the most informative subsequent question based on the voter’s current position in the latent space and the remaining unanswered questions. We validated our approach using the Smartvote dataset from the Swiss Federal elections in 2019, testing various spatial models and selection methods to optimize the system’s predictive accuracy. Our findings indicate that employing the IDEAL model both as encoder and decoder, combined with a PosteriorRMSE method for question selection, significantly improves the accuracy of recommendations, achieving 74% accuracy after asking the same number of questions as in the condensed version. |
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Tim Schluchter, Nimra Ahmed, Elaine Huang, ""It Actually Affected My Relationship"": A Qualitative Analysis of Affordances and Attitudes Towards Mental Health Content on TikTok, In: Proceedings of Mensch Und Computer 2024, Association for Computing Machinery, New York, NY, USA, 2024. (Conference or Workshop Paper published in Proceedings)
This paper investigates the factors and platform-specific affordances that contribute to the popularity of mental health (MH) content on TikTok, a topic of growing importance within Human-Computer Interaction (HCI) due to its impact on public MH literacy and individual well-being. Diverging from studies that focus predominantly on the ""For You Page"" algorithm, this research employs qualitative methods to explore a broader array of features that facilitate the platform’s success in MH discussions. Through semi-structured interviews with fourteen TikTok users, including viewers and creators, this study examines how TikTok’s community, algorithmic recommendations, interactive features, and engaging environment support the sharing and consumption of MH content. Additionally, it explores user perceptions and attitudes towards TikTok as an MH platform, revealing various opinions, impacts, and experiences. Our findings highlight how TikTok fosters a unique space for MH discussions and provide design considerations for optimizing such platforms for MH communication. |
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David P Newton, Steven Ongena, Ru Xie, Binru Zhao, Firm ESG reputation risk and debt choice, European financial management, Vol. 30 (4), 2024. (Journal Article)
Using a novel sample covering 3783 US public firms from 2007 to 2020, we examine how negative media coverage of firm‐level environmental, social, and governance (ESG) practices affects a firm's debt choice. We find that firms with higher ESG reputation risk rely more on public bond than bank loan. The social and governance components, in particular, matter. Moreover, firms that receive more negative news coverage display a higher propensity to issue new bonds as opposed to securing new bank debt. Overall, our study presents empirical evidence on the relation between firm ESG reputation risk and debt financing. |
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Liudmila Zavolokina, Ingrid Bauer-Hänsel, Janine Hacker, Gerhard Schwabe, Organizing for value creation in blockchain information systems, Information and Organization, Vol. 34 (3), 2024. (Journal Article)
Many blockchain consortia have been established to build blockchain information systems. While the developed blockchain information systems were promising, few have reached market entry. Indeed, blockchain consortia often lost development focus due to high system complexity and a lack of understanding of how to create a system that will serve the needs and bring value to all stakeholders. Thus, stakeholders struggled to leverage blockchain information systems' full value. Prior studies demonstrated that blockchain systems pose not only technical but also organizational challenges. Analysing six blockchain consortia, we identify their value mechanisms, organizational problems, and organizational solutions that successful blockchain consortia experience while organizing themselves for value. As a result, we propose a new organizational form, i.e., a layered organization, for blockchain consortia to achieve better value creation. |
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Linda Weigl, Tamara Roth, Alexandre Amard, Liudmila Zavolokina, When public values and user-centricity in e-government collide – A systematic review, Government Information Quarterly, Vol. 41 (3), 2024. (Journal Article)
User-centricity in e-government is a double-edged sword. While it helps governments design digital services tailored to the needs of citizens, it may also increase the burden on users and deepen the digital divide. From an institutional perspective, these fundamental conflicts are inevitable. To better understand the role and effect of user-centricity in e-government, this paper analyses academic literature on user-centricity and public values. The analysis leads to three main insights: First, there is a conflict in citizen representation that may result from the normative dominance of decision-makers. Second, we identify an accountability conflict that can prevent user-centric innovation from thriving in a highly institutionalized environment. Third, we identify a pluralism conflict that emerges from a clash between the reality of a diverse society and the assumed homogeneity of actors. The need to address these conflicts increases with rapid technological innovation, such as distributed ledger technologies, artificial intelligence, and trust infrastructures. These technologies put the user at the center stage and permeate aspects of social life beyond government. In response to these insights, we outline suggestions for further research and practice. |
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Piotr P Brud, Jan Cieciuch, Temperamental underpinnings of borderline personality disorder and its facets, Personality and Mental Health, Vol. 18 (3), 2024. (Journal Article)
Temperament is claimed to be the basis for personality; therefore, discovering the temperamental underpinnings of borderline personality disorder and its facets is crucial for understanding this personality disorder. In this article, we explore these underpinnings by using a new model of temperament, based on the Regulative Theory of Temperament, the Big Two of temperament, and the Circumplex of Personality Metatraits. Two studies were conducted on adults—the first was in a general population sample (N = 315) and the second was in a clinical sample (N = 113) in people with a diagnosis of borderline personality disorder. The following measurements were used: The Screening Instrument for Borderline Personality Disorder (SI‐Bord), the Five‐Factor Borderline Inventory‐Short Form (FFBI‐SF), and the Temperament Metadimensions Questionnaire (TMQ). General borderline was explained by Reactivity (high Sensitivity) and Activity (high Dynamism). At the facet level, the Borderline Internalizing Facet was mainly explained by Reactivity (high Sensitivity), while the Borderline Externalizing Facet was explained by Activity (high Dynamism) in addition to Reactivity (high Sensitivity). The results of our study revealed specific temperamental underpinnings of borderline and its facets. Reactivity underlies all borderline facets, while Activity differentiates between the Borderline Externalizing Facet and Borderline Internalizing Facet. |
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Manthos D Delis, Kathrin De Greiff, Maria Iosifidi, Steven Ongena, Being stranded with fossil fuel reserves? Climate policy risk and the pricing of bank loans, Financial markets, institutions & instruments, Vol. 33 (3), 2024. (Journal Article)
Do banks price the risk of stranded fossil fuel reserves? To address this question, we hand collect global data on corporate fossil fuel reserves from 2002 to 2016, match it with syndicated loans, and subsequently compare the loan rate charged to fossil fuel firms - along their climate policy exposure - to other firms. We find that banks price climate policy exposure, especially after 2015. We also uncover that our main effect further increases for loans with longer maturity, that loan size to fossil fuel firms increases, and that ‛Green’ banks also charge higher loan rates to fossil fuel firms. |
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Jochen Reiner, Julia Wamsler, Torsten Bornemann, Martin Natter, EXPRESS: How Insurance Prices Affect Consumers’ Purchase Decisions: Insurance Price as a Risk Signal, Journal of Marketing Research, 2024. (Journal Article)
Retailers, service providers, and manufacturers have discovered that complementary optional insurance is an attractive source of profit and frequently charge substantial insurance prices compared to the price of the product to be insured. The implicit assumption behind this pricing strategy is that product purchase decisions are independent of the insurance offer. The authors question this assumption and propose that consumers interpret the price of insurance as a risk signal with respect to the underlying product. Perceived risk, in turn, negatively affects consumers’ decision to purchase the product in a given purchase situation. The results of a survey, three online experiments, and two studies using transactional data provide evidence for the proposed insurance price risk signal. The findings reveal that perceived risk mediates the link between the relative insurance price level and consumers’ decision to purchase the underlying product. Offering other optional add-ons and providing objective risk information weakens the insurance price risk signal. |
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Lucia Malär, Andrea Giuffredi-Kähr, The Dark Triad of brand personality: Scale development and validation, Psychology & Marketing, 2024. (Journal Article)
Despite the considerable magnitude of negative brand personalities in the marketplace, prior research has disproportionately focused on positive personality traits. To address this research gap, the authors present a conceptual and empirical approach that draws from the Dark Triad of psychology and applies it to the branding domain. They conceptualize and validate the Dark Triad of brand personality which comprises brand narcissism, Machiavellianism, and psychopathy dimensions. Through a multiphase scale development process, a reliable and valid 12‐item brief version of the Dark Triad of brand personality is created, enabling its assessment in both research and management contexts. Examining the Dark Triad in branding is crucial as it provides a unique lens to understand the rise of negative, dark brand personalities. It accounts for brand personality aspects not yet captured by existing scales, including manipulation, exploitation, grandiosity, and lack of empathy. This introduction of the Dark Triad brand personality opens new avenues for research into brand transgressions and ethics in brand management. In terms of managerial implications, insights from this research can inform strategic brand management, enabling companies to better manage their brand's image. |
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Nathan Eugster, Christian Ewerhart, Rules in International Tennis Tournaments: A Game Theoretic Perspective, Journal of Sports and Games, Vol. 6 (1), 2024. (Journal Article)
This article presents a comprehensive analysis of the evolving rules in international tennis tournaments, focusing on the sport’s adaption to technological advancements, shifts in playing styles, and the increasing need to enhance global spectatorship. Tracing the progression from the historical “Jeu de paume” to modern play, the strategic depth of its scoring system and potential future implications are examined. Reviewing statistical analysis and recent research, this study documents modifications to the scoring system, including the no-ad game and proposed “short games,” designed to shorten match lengths while simultaneously boosting competitiveness and spectator involvement. These innovations seek to balance tradition with modern audience expectations. Central to the analysis is the game-theoretic perspective, which offers insights into the trade-off between game complexity and spectator satisfaction. Through an extensive review, the article discusses the adaptability and continuous evolution of the rule system. This is shown by an examination of the strategic significance of the serve and potential rule changes such as single-service games or granting starting advantages to lower-ranked players. |
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Tarek Alakmeh, David Reich, Lena Jäger, Thomas Fritz, Predicting code comprehension: a novel approach to align human gaze with code using deep neural networks, In: ACM International Conference on the Foundations of Software Engineering, 2024-07-17. (Conference or Workshop Paper published in Proceedings)
The better the code quality and the less complex the code, the easier it is for software developers to comprehend and evolve it. Yet, how do we best detect quality concerns in the code? Existing measures to assess code quality, such as McCabe’s cyclomatic complexity, are decades old and neglect the human aspect. Research has shown that considering how a developer reads and experiences the code can be an indicator of its quality. In our research, we built on these insights and designed, trained, and evaluated the first deep neural network that aligns a developer’s eye gaze with the code tokens the developer looks at to predict code comprehension and perceived difficulty. To train and analyze our approach, we performed an experiment in which 27 participants worked on a range of 16 short code comprehension tasks while we collected fine-grained gaze data using an eye tracker. The results of our evaluation show that our deep neural sequence model that integrates both the human gaze and the stimulus code, can predict (a) code comprehension and (b) the perceived code difficulty significantly better than current state-of-the-art reference methods. We also show that aligning human gaze with code leads to better performance than models that rely solely on either code or human gaze. We discuss potential applications and propose future work to build better human-inclusive code evaluation systems. |
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Gianluca De Nard, Robert F Engle, Bryan Kelly, Factor-mimicking portfolios for climate risk, Financial Analysts Journal, Vol. 80 (3), 2024. (Journal Article)
We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices through textual analysis of newspapers. Second, we present a new approach to compute factor-mimicking portfolios to build climate risk hedge portfolios. The new mimicking portfolio approach is much more efficient than traditional sorting or maximum correlation approaches by taking into account new methodologies of estimating large-dimensional covariance matrices in short samples. In an extensive empirical out-of-sample performance test, we demonstrate the superior all-around performance delivering markedly higher and statistically significant alphas and betas with the climate risk indices. |
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Erich Walter Farkas, Patrick Lucescu, Modeling Risk Sharing and Impact on Systemic Risk, Mathematics, Vol. 12 (13), 2024. (Journal Article)
This paper develops a simplified agent-based model to investigate the dynamics of risk transfer and its implications for systemic risk within financial networks, focusing specifically on credit default swaps (CDSs) as instruments of risk allocation among banks and firms. Unlike broader models that incorporate multiple types of economic agents, our approach explicitly targets the interactions between banks and firms across three markets: credit, interbank loans, and CDSs. This model diverges from the frameworks established by prior researchers by simplifying the agent structure, which allows for more focused calibration to empirical data—specifically, a sample of Swiss banks—and enhances interpretability for regulatory use. Our analysis centers around two control variables, CDSc and CDSn, which control the likelihood of institutions participating in covered and naked CDS transactions, respectively. This approach allows us to explore the network’s behavior under varying levels of interconnectedness and differing magnitudes of deposit shocks. Our results indicate that the network can withstand minor shocks, but higher levels of CDS engagement significantly increase variance and kurtosis in equity returns, signaling heightened instability. This effect is amplified during severe shocks, suggesting that CDSs, instead of mitigating risk, propagate systemic risk, particularly in highly interconnected networks. These findings underscore the need for regulatory oversight to manage risk concentration and ensure financial stability. |
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Maya Tamir, Atsuki Ito, Yuri Miyamoto, Yulia Chentsova-Dutton, Jeong Ha Choi, Jan Cieciuch, Michaela Riediger, Antje Rauers, Maria Padun, Min Young Kim, Nevin Solak, Jiang Qiu, Xiaoqin Wang, Aldo Alvarez-Risco, Yaniv Hanoch, Yukiko Uchida, Claudio Torres, Thiago Gomes Nascimento, Asghar Afshar Jahanshahi, Rakesh Singh, Shanmukh V Kamble, Sieun An, Vivian Dzokoto, Adote Anum, Babita Singh, Gianluca Castelnuovo, Giada Pietrabissa, María Isabel Huerta-Carvajal, Erika Galindo-Bello, Verónica Janneth García Ibarra, Emotion regulation strategies and psychological health across cultures, American Psychologist, Vol. 79 (5), 2024. (Journal Article)
Emotion regulation is important for psychological health and can be achieved by implementing various strategies. How one regulates emotions is critical for maximizing psychological health. Few studies, however, tested the psychological correlates of different emotion regulation strategies across multiple cultures. In a preregistered cross-cultural study (N = 3,960, 19 countries), conducted during the COVID-19 pandemic, we assessed associations between the use of seven emotion regulation strategies (situation selection, distraction, rumination, cognitive reappraisal, acceptance, expressive suppression, and emotional support seeking) and four indices of psychological health (life satisfaction, depressive symptoms, perceived stress, and loneliness). Model comparisons based on Bayesian information criteria provided support for cultural differences in 36% of associations, with very strong support for differences in 18% of associations. Strategies that were linked to worse psychological health in individualist countries (e.g., rumination, expressive suppression) were unrelated or linked to better psychological health in collectivist countries. Cultural differences in associations with psychological health were most prominent for expressive suppression and rumination and also found for distraction and acceptance. In addition, we found evidence for cultural similarities in 46% of associations between strategies and psychological health, but none of this evidence was very strong. Cultural similarities were most prominent in associations of psychological health with emotional support seeking. These findings highlight the importance of considering the cultural context to understand how individuals from diverse backgrounds manage unpleasant emotions. (PsycInfo Database Record (c) 2023 APA, all rights reserved) |
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Thomas Puschmann, Valentyn Khmarskyi, Green fintech: developing a research agenda, CSR, Sustainability, Ethics & Governance, Vol. 31 (4), 2024. (Journal Article)
Digitalization and sustainability have been the core drivers of transformation of the financial industry in recent years. In this context, green fintech plays a major role, which, however, is still an unexplored field in business, information systems and finance research. This paper conducts a systematic literature analysis and develops a research agenda based on a framework, which is derived from clustering 74 academic research papers. The framework consists of the four clusters strategy, organization, technology, and potentials along nine dimensions. The research agenda reveals that green fintech is still a very premature field of research. The analysis shows that areas like customer- and government-related services, insurance-oriented approaches and SDGs which focus on life on land and life below water are still rare and that most of the approaches focus on blockchain technology, while other financial technologies like artificial intelligence are still underrepresented. |
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Ibrahim Al-Hazwani, Tiantian Luo, Oana Inel, Francesco Ricci, Mennatallah El-Assady, Jürgen Bernard, ScrollyPOI: A Narrative-Driven Interactive Recommender System for Points-of-Interest Exploration and Explainability, In: ACM Conference on User Modeling, Adaptation and Personalization (UMAP), ACM Digital library, 2024-07-01. (Conference or Workshop Paper published in Proceedings)
Recommender systems can help web users find more relevant content, improve their online experience, and support them in the discovery of new Points-of-Interest (POI). Yet, challenges persist in dealing with the cold-start problem and in recommendation explainability. To address these, we have created ScrollyPOI, an interactive POI recommender system based on Data Humanism principles. Utilizing scrollytelling, we address the cold-start problem by engaging users in reflecting on previous positive experiences. Additionally, ScrollyPOI enhances explainability through input and output explanations. The system uses stacked bar charts and word clouds to explain how user preferences inform recommendations (input). Finally, ScrollyPOI employs a multi-layered approach to explain why specific POIs are recommended (output). We have evaluated ScrollyPOI’s interface and experience through a preliminary study, highlighting its potential for transparent explanations in the POI recommendation domain. Our findings underscore ScrollyPOI’s efficacy in collecting preferences and enhancing recommendation transparency, positioning it as a platform for studying explainability goals in the POI domain. |
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Alexandre Garel, Arthur Romec, Zacharias Sautner, Alexander Wagner, Do investors care about biodiversity?, Review of Finance, Vol. 28 (4), 2024. (Journal Article)
This article introduces a new measure of a firm’s negative impact on biodiversity, the corporate biodiversity footprint (CBF), and studies whether it is priced in an international sample of stocks. On average, the CBF does not explain the cross-section of returns between 2019 and 2022. However, a biodiversity footprint premium (higher returns for firms with larger footprints) began emerging in October 2021 after the Kunming Declaration, which capped the first part of the UN Biodiversity Conference (COP15). Consistent with this finding, stocks with large footprints lost value in the days after the Kunming Declaration. The launch of the Taskforce on Nature-related Financial Disclosures (TNFD) in June 2021 had a similar effect. These results indicate that investors have started to require a risk premium upon the prospect of, and uncertainty about, future regulation or litigation to preserve biodiversity. |
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Giacomo Bressan, Anja Đuranović, Irene Monasterolo, Stefano Battiston, Asset-level assessment of climate physical risk matters for adaptation finance, Nature Communications, Vol. 15, 2024. (Journal Article)
Climate physical risk assessment is crucial to inform adaptation policies and finance. However, science-based and transparent solutions to assess climate physical risks are limited, compounding the adaptation gap. This is a main limitation to fill the adaptation gap. We provide a methodology that quantifies physical risks on geolocalized productive assets, considering their exposure to chronic and acute impacts (hurricanes) across the scenarios of the Intergovernmental Panel on Climate Change. Then, we translate asset-level shocks into economic and financial losses. We apply the methodology to Mexico, a country highly exposed to physical risks, recipient of adaptation finance and foreign investments. We show that investor losses are underestimated up to 70% when neglecting asset-level information, and up to 82% when neglecting tail acute risks. Therefore, neglecting the asset-level and acute dimensions of physical risks leads to large errors in the identification of adaptation policy responses, investments and finance tools aimed to build resilience to climate change. |
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Damiano Pregaldini, Uschi Backes-Gellner, How middle-skilled workers adjust to immigration: the role of occupational skill specificity, International Journal of Manpower, 2024. (Journal Article)
Purpose
Our study explores the effects of immigration on the employment of native middle-skilled workers, focusing on how this effect varies with the specificity of their occupational skill bundles.
Design/methodology/approach
Exploiting the 2002 opening of the Swiss labor market to EU workers and using register data on the location and occupation of these workers, our findings provide novel results on the labor market effects of immigration.
Findings
We show that the inflow of EU workers led to an increase in the employment of native middle-skilled workers with highly specific occupational skills. This finding could be attributed to immigrant workers reducing existing skill gaps, enhancing the quality of job-worker matches, and alleviating firms' capacity restrictions. This allowed firms to create new jobs, thereby providing increased employment options for middle-skilled workers with highly specialized skills.
Originality/value
Previous literature has predominantly highlighted the disadvantages of specific occupational skills compared to general skills in the context of labor market shocks. However, our findings reveal that workers with specific occupational skills can benefit from an immigration-driven labour market shock. These results suggest that policy conclusions regarding the role of specific occupational skills should be more nuanced. |
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