Bruno S. Frey, Margit Osterloh. Rankings Games

Research rankings based on publications and citations today dominate governance of academia. Yet they have unintended side effects on individual scholars and academic institutions and can be counterproductive. They induce a substitution of the taste for science by a taste for publication. We suggest as alternatives careful selection and socialization of scholars, supplemented by periodic self-evaluations and awards. Neither should rankings be a basis for the distributions of funds within univers...

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Olivier Ledoit, Michael Wolf. Optimal Estimation of a Large-Dimensional Covariance Matrix under Stein’s Loss

This paper revisits the methodology of Stein (1975, 1986) for estimating a covariance matrix in the setting where the number of variables can be of the same magnitude as the sample size. Stein proposed to keep the eigenvectors of the sample covariance matrix but to shrink the eigenvalues. By minimizing an unbiased estimator of risk, Stein derived an ‘optimal’ shrinkage transformation. Unfortunately, the resulting estimator has two pitfalls: the shrinkage transformation can change the ordering ...

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Christian Ewerhart. Cournot Games with Biconcave Demand.

For useful comments and discussions, I would like to thank Rabah Amir, Luis Corchon, Paul Klemperer, Dan Kovenock, Koji Okuguchi, Burkhard Schipper, Armin Schmutzler, and Pierre von Mouche. Valuable advice has been received from an advisory editor and three anonymous referees. Earlier versions of this paper have been presented at St. Gallen, at the EEA meetings 2010 in Glasgow, at the Econometric Society World Congress 2010 in Shanghai, and at the Oligo2013 Workshop in Budapest. For excelle...

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