This is a picture of ESMT books and working papers

Publications

ESMT Berlin publishes in international academic journals, which are first-class in their respective fields. Research also provides cutting-edge and profound insights for the business community as well as the classroom through managerial publications and case studies. This rare integration of research and practice makes ESMT Berlin an outstanding location for generating relevant and ground-breaking knowledge.

Journal Article

Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects

Journal of Financial Economics 100 (3): 556–578
Manju Puri, Jörg Rocholl, Sascha Steffen (2011)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): bank lending channel, loan supply, consumer lending, credit rationing, relationships
JEL Code(s): G01, G21, F34

This paper examines the broader effects of the U.S. financial crisis on global lending to retail
customers. In particular we examine retail bank lending in Germany using a unique dataset of
German savings banks during the period 2006 through 2008 for which we have the universe of
loan applications and loans granted. Our experimental setting allows us to distinguish between
savings banks affected by the U.S. financial crisis through their holdings in Landesbanken with
substantial subprime exposure and unaffected savings banks. The data enable us to distinguish
between demand and supply side effects of bank lending and find that the U.S. financial crisis
induced a contraction in the supply of retail lending in Germany. While demand for loans goes
down, it is not substantially different for the affected and non-affected banks. More importantly,
we find evidence of a significant supply side effect in that the affected banks reject substantially
more loan applications than non-affected banks. This result is particularly strong for smaller and
more liquidity-constrained banks as well as for mortgage as compared to consumer loans. We
also find that bank-depositor relationships help mitigate these supply side effects.

With permission of Elsevier

Volume 100
Issue 3
Pages 556–578

Journal Article

Return on Marketing - Unternehmenswert im Fokus

Marketing Review St. Gallen 28 (3): 8–12
Mario Rese, Daniel Weber, Ulrich Linnhoff (2011)
Abstract:
Subject(s): Marketing
Keyword(s): return on marketing
Volume 28
Issue 3
Pages 8–12

Journal Article

Estimating level effects in diffusion of a new technology: Barcode scanning at the checkout counter

Applied Economics 43 (14): 1737–1748
Jonathan Beck, Michał Grajek, Christian Wey (2011)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): diffusion, information technology, retail competition
JEL Code(s): L5, L81, O33
Volume 43
Issue 14
Pages 1737–1748

Journal Article

Umgang mit Emotionen in Verhandlungen (Teil 1) [Dealing with emotions in negotiations]

Zeitschrift für Konfliktmanagement 2: 40–44
K.P. Berger, M. Bernhardt, Andreas Bernhardt (2011)
Abstract:
Subject(s): Strategy and general management
Volume 2
Pages 40–44

Journal Article

Die Organisation als Kunstwerk

Personalwirtschaft 4: 34–36
Jörg Reckhenrich, Martin Kupp (2011)
Abstract:
Subject(s): Strategy and general management
Volume 4
Pages 34–36

Journal Article

Career entrepreneurship

Organizational Dynamics 40 (2): 127–135
Konstantin Korotov, Svetlana Khapova, Michael B. Arthur (2011)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): careers, career entrepreneurship, career coaching, career management

This article introduces "career entrepreneurship," a rapidly spreading phenomenon in the global knowledge-driven economy. Career entrepreneurship involves taking an entrepreneurial approach to managing our careers. It means doing things that seem "illegitimate" to other people and contradict socially-recognized and accepted sequences of work experiences in terms of age, education, or socio-economic progression. This kind of behavior challenges established norms about typical career development. The evidence presented in this article suggests new possibilities for thinking about the way individuals invest in their careers, new insights for organizations interested in capturing the potential of career entrepreneurship, and new ideas for career and life coaches to support people embracing the phenomenon. The article offers a primer on career entrepreneurship to all three groups of readers, calling for more effective collaborative relationships and more effective leveraging of individuals' career investments.

With permission of Elsevier

Volume 40
Issue 2
Pages 127–135

Journal Article

How to measure patent thickets: A novel approach

Economics Letters 111 (1): 6–9
Georg von Graevenitz, Dietmar Harhoff, Stefan Wagner (2011)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): patenting, patent thickets, patent portfolio races, complexity
JEL Code(s): L13, L20, O34

The existing literature identifies patent thickets indirectly. In this paper we propose a novel measure based on patent citations which allows us to measure the density of patent thickets directly. We discuss the algorithm which generates the measure and present descriptive results validating it. Moreover, we identify technology areas which are particularly impacted by patent thickets.

With permission of Elsevier

Volume 111
Issue 1
Pages 6–9

Journal Article

Other-regarding preferences in general equilibrium

Review of Economic Studies 78 (2): 613–639
Martin Dufwenberg, Paul Heidhues, Georg Kirchsteiger, Frank Riedel, Joel Sobel (2011)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): markets, other-regarding preferences, self-interest, welfare theorems
JEL Code(s): D50, D62, D64

We study competitive market outcomes in economies where agents have other-regarding preferences (ORPs). We identify a separability condition on monotone preferences that is necessary and sufficient for one's own demand to be independent of the allocations and characteristics of other agents in the economy. Given separability, it is impossible to identify ORPs from market behaviour: agents behave as if they had classical preferences that depend only on own consumption in competitive equilibrium. If preferences, in addition, depend only on the final allocation of consumption in society, the Second Welfare Theorem holds as long as any increase in resources can be distributed in a way that makes all agents better off. The First Welfare Theorem generally does not hold. Allowing agents to care about their own consumption and the distribution of consumption possibilities in the economy, the competitive equilibria are efficient given prices if and only if there is no Pareto-improving redistribution of income.

© The Author 2011. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.

Volume 78
Issue 2
Pages 613–639

Journal Article

Think again: Entrepreneurs on a dance floor

Business Strategy Review 22 (1): 65–68
Jamie Anderson, Martin Kupp, Jörg Reckhenrich (2011)
Abstract:
Subject(s): Strategy and general management
Keyword(s): competitive strategy, competitive advantage, madonna, customer analysis

The business world has a healthy appetite for learning from unusual role models. In this article from the 2006 archives, Jamie Anderson, Martin Kupp and Jorg Reckhenrich reveal the entrepreneurial side of an entertainment legend.

© 2011 London Business School

Volume 22
Issue 1
Pages 65–68

Journal Article

Organizing contests for status: The Matthew effect versus the Mark effect

Management Science 57 (3): 439–457
Matthew S. Bothner, Joel M. Podolny, Edward Bishop Smith (2011)
Abstract:
Subject(s): Strategy and general management
Keyword(s): networks, graphs, theory, organizational studies, design, effectiveness, performance, status, leadership

What is the best way to design tournaments for status, in which individuals labor primarily for the esteem of their peers? What process, in other words, should organizers of status-based contests impose upon those who covet peer recognition? We propose a formal model of status-based competition that contrasts two competing alternatives. The first, following Merton, is the "Matthew Effect," according to which a tournament's architect directs slack resources to elite actors and thus widens the distribution of rewards by favoring cumulative advantage. The second is the "Mark Effect," under which a tournament's designer instead pushes slack resources to marginal actors and thus tightens the distribution of rewards. Our results suggest that although the Mark Effect is better for the social welfare of most tournaments, the Matthew Effect is preferable in two distinct contexts: in small tournaments where variation in underlying ability translates into acute advantages for the most capable contestants; and in large tournaments whose contestants face constant, rather than rising, marginal costs-a condition we relate to contestants' perception of their work as intrinsically valuable. Our contributions are twofold: We find, counter to the thrust of Merton's work, that cumulative advantage is not invariably optimal for the functioning of status contests; and we identify circumstances in which the production of superstars is likely to make contests for status better off in aggregate. Implications for future research on status and management are discussed.

© 2011 INFORMS

Volume 57
Issue 3
Pages 439–457

Journal Article

A framework for monitoring relational quality in B2B technology partnerships

Business Management Review 1 (1): 34–43
Francis Bidault, Manfred Lüth, Olaf Plötner (2011)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): technology partnerships, trust, relational quality
Volume 1
Issue 1
Pages 34–43

Journal Article

Marketing and society: Preface to special section on volunteerism, price assurances, and direct-to-consumer advertising

Journal of Business Research 64 (1): 59–60
Easwar S. Iyer, CB Bhattacharya (2011)
Abstract:
Subject(s): Ethics and social responsibility, Marketing
Keyword(s): societal welfare, stakeholder welfare, social responsibility, consumption, volunteerism, price, direct advertising

We discuss the reasons why this call for papers was issued and describe the process of selecting the three articles presented in this special section. We argue that maximizing stakeholder welfare and not just consumption maybe a new goal for marketing that will be consistent with emerging societal trends. Three articles on volunteerism, price assurances, and direct-to-consumer advertising result from our call and are presented in this section. This introduction is an overview of the three articles.

With permission of Elsevier

Volume 64
Issue 1
Pages 59–60

Journal Article

The German Cement Cartel case and the trade-off between accuracy and practicality

Concurrences 1: 24–26
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): cartels
Volume 1
Pages 24–26

Journal Article

Exploiting naivete about self-control in the credit market

American Economic Review 100 (5): 2279–2303
Paul Heidhues, Botond Kőszegi (2010)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): consumer, contracts, regulation, consumer protection
JEL Code(s): D14, D18, D49, D86

We analyze contract choices, loan-repayment behavior, and welfare in a model of a competitive credit market when borrowers have a taste for immediate gratification. Consistent with many credit cards and subprime mortgages, for most types of nonsophisticated borrowers the baseline repayment terms are cheap, but they are also inefficiently front loaded and delays require paying large penalties. Although credit is for future consumption, nonsophisticated consumers overborrow, pay the penalties, and back load repayment, suffering large welfare losses. Prohibiting large penalties for deferring small amounts of repayment-akin to recent regulations in the US credit-card and mortgage markets-can raise welfare.

Copyright © 2012 by the American Economic Association.

Volume 100
Issue 5
Pages 2279–2303

Journal Article

Good business makes poor customers good customers

Business Strategy Review 21 (4): 46–51
Jamie Anderson, Martin Kupp, Sandra Vandermerwe (2010)
Abstract:
Subject(s): Strategy and general management
Keyword(s): strategy, bottom of the pyramid, CSR, Nigeria, mobile phone

To date, few firms have used a customer-focused approach to serve the world's poorest people - a full two-thirds of the world's total population at the so-called 'bottom of the economic pyramid' (BOP). Much more prevalent has been a mass-produced approach that assumes that the poor in developing economies can only afford basic, cheap products emphasising functionality. In this classic product approach, often little more is done than push existing or barely adapted products onto shantytown dwellers and rural villagers. Consequently, real value that opens up new market spaces for companies and produces longer-term value for the customer has been lost.
Our research reveals that contemporary enterprises that have taken the leap to the customer-focused way of doing business in the developing world grow markets and their stake in them, outperforming traditional enterprise and industry product approaches. The crucial steps in this approach are becoming better known but deserve much more attention.

© 2010 London Business School

Volume 21
Issue 4
Pages 46–51

Pages