Vertical and Horizontal Trust Networks in Bureaucracies: Evidence from the Third Reich

In a seminal contribution to the literature on bureaucracy, Breton and Wintrobe (The Logic of Bureaucratic Conduct: An Economic Analysis of Competition, Exchange, and Efficiency in Private and Public Organization. New York, NY: Cambridge University Press, 1982) develop a model wherein subordinates and superiors in a bureaucratic structure trade with each other to advance the objectives of the superiors. The success of such an organizational arrangement (for superiors) is based upon the development of vertical trust networks in a way that facilitates the promise of informal payments by superiors in return for informal services provided by their subordinates. Breton and Wintrobe [Journal of Political Economy 94 (1986) 905] also provide a theoretical application of their model by describing the Nazi bureaucracy as a conglomeration of competing agencies that zealously carried out the Final Solution to the Jewish question. As an extension, this note develops two compelling empirical examples of vertical and horizontal trust networks within the Nazi regime: Einsatzgruppen As (Special Action Detachments) attempt to liquidate all Lithuanian Jews after the German invasion of the U.S.S.R. in 1941 and the 20 July 1944 attempt to assassinate Adolf Hitler.JEL Classification: D23, D73.     

Do Financial Institutions Matter?

In standard asset pricing theory, investors are assumed to invest directly in financial markets. The role of financial institutions is ignored. The focus in corporate finance is on agency problems. How do you ensure that managers act in shareholders' interests? There is an inconsistency in assuming that when you give your money to a financial institution there is no agency problem, but when you give it to a firm there is. It is argued that both areas need to take proper account of the role of financial institutions and markets. Appropriate concepts for analyzing particular situations should be used.     

Marketing research for public health: A demonstration of differential responses to advertising

This study illustrates the use of marketing research techniques outside of the traditional limits of marketing. It examines awarencess of two distinct promotional themes promoting venereal disease prevention. The study is done with a relatively homogeneous sample and shows the need for a segmentation strategy in promoting this critical public health issue. Both attitudes and media behavior of respondents are examined and it is shown that the different promotional appeals are recalled by persons with different sets of values and different media habits. This study was supported by grants from the Graduate School, University of Missouri-St. Louis and the School of Business, University of Missouri-St. Louis.     

“Learning” and grade expectations: A study of instructor evaluations

This study examines instructor evaluations as used in introducing marketing classes. The report attempts to see if a student's increase in the knowledge of marketing is related to his/her eveluation of the instructor. “Learning” does not appear to be related to the student's evaluation of the instructor, but expected grades for the course and changes in anticipated grades are related to the student's perception of the instructor's effectiveness.