Seminar by Dr. Georg Blind, University of Zurich
Event details
| Date | 31.03.2017 |
| Hour | 12:00 › 13:30 |
| Speaker | Dr. Georg Blind, University of Zurich |
| Location | |
| Category | Conferences - Seminars |
"Modelling the 'Visitors to Rome'-effect: Reputation-building in Anglo-Saxon buyout funds in Japan"
Stereotypes pose a major challenge to agents entering a foreign market. For overcoming stereotype, visitor agents may decide to emulate domestic behavior. We develop a simple model of reputation building in transactions with revealed identities and show that such tendency may even imply over-assimilation if stereotypes are sticky and assimilation efforts are not overly costly.
For testing our model predictions we use data on private equity-led buyout transactions in Japan from 1998 to 2015. While we find early transactions of Anglo-Saxon investors with marked differences, we identify a strong tendency toward approximation of domestic standards, which eventually leads into over-compensation.
Stereotypes pose a major challenge to agents entering a foreign market. For overcoming stereotype, visitor agents may decide to emulate domestic behavior. We develop a simple model of reputation building in transactions with revealed identities and show that such tendency may even imply over-assimilation if stereotypes are sticky and assimilation efforts are not overly costly.
For testing our model predictions we use data on private equity-led buyout transactions in Japan from 1998 to 2015. While we find early transactions of Anglo-Saxon investors with marked differences, we identify a strong tendency toward approximation of domestic standards, which eventually leads into over-compensation.
Practical information
- General public
- Free