Friedrich Hayek's Theory of Spontaneous Order: Two Problems

The paper finds Hayek's basic building block, the natural/artificialcontrast, to be illuminating. But the manner in which Hayek classifiesentities according to the contrast generates two major problemsin his socio-economic theory. First, Hayek's concept designconfuses the technical construction of, e.g., a chair with thedeliberate organization of division of labor within the firm.Second, Hayek's notion spontaneous order fails to note twokinds of natural order — firms and markets.     

Etzioni versus Becker: Do Moral Sentiments differ from Ordinary Tastes?

There are two competing definitions of economics. One, exemplified in Etzioni's work, stipulates that economics is the study of one kind of ends, the pursuit of material benefits (welfare). This definition entails that material ends are incommensurable with moral ends. The other, expressed in Becker's work, registers that economics is the analysis of one aspect of all ends, optimization. This definition implies that material and moral ends are commensurable. The paper finds that each definition has its own shortcomings. The paper outlines an alternative view, illustrated by the difference between gifts and grants, which promises to supplant the shortcomings of each definition.     

Nonlinear Thermodynamics and Social Science Modeling: Fad Cycles, Cultural Development and Identificational Slips

The paper argues that the application of nonlinear dynamics borrowed from thermodynamics for the study of the evolution of institutions amounts to an identificational slip. While the paper welcomes the importation of techniques from the natural sciences, thermodynamic feedback is simply an inappropriate technique for the study of evolutionary change. Thermodynamic feedback is only appropriate for the study of social dynamics like mob behavior, stock market gyrations, and fad cycles. One should rather appeal to the evolution of species-as recorded by change of gene frequency and phenotypic traits—as the appropriate metaphor for the study of evolution of culture—as manifested by change of rules and principles and their consequent order.     

A new test for D-stability

A sufficient condition for D-stability of an n × n matrix A is the existence of a positive diagonal matrix P such that PA + A′P is negative definite. The search for P is replaced by solving a convex minimization problem.     

Holocaust concentration camp memorial sites: an exploratory study into expected emotional response

This study explored Dutch people's expected intensity of emotional responses of a potential visit to a concentration camp memorial site in the Netherlands. A total of 1050 online panel members participated in a questionnaire that contained a 33-item emotion scale. Results reveal that individuals with a closeness to the Holocaust expect to feel most emotions more intensely, specifically emotions that are traditionally considered ‘positive’, such as pride, love, joy, inspiration, excitement and affection. Overall, respondents expect to feel disgust, shock, compassion and sadness the strongest. Those who look from the viewpoint of the offenders mainly expect to feel emotions that are traditionally considered ‘negative’, whereas those who took the point of view of the victims also expect a more ‘positive’ emotional reaction to the visit. Managerial implications address aspects of education, storytelling and authenticity.     

Natural selection and rational decision: two concepts of optimization

There are two different kinds of optimization: “selection” and “rationality” optimization. Selection optimization characterizes competition in human and nonhuman societies sharing the same market or niche. “Rationality optimization”, on the other hand, characterizes human and nonhuman decision making processes. The two kinds of optimization generate the same result: agents end up behaving efficiently. Nonetheless, we should not downplay the differences between the two kinds of optimization. Otherwise, we would fail to capture the role of rationality in the development of the organism and possibly its implication for evolution.

Foreign institutional ownership and demand for accounting conservatism: evidence from an emerging market

Review of Quantitative Finance and Accounting - This paper investigates the ‘price–concentration’ relationship in pricing syndicated loans. By measuring bank concentration at a...     

The adoption of blockchain technology in the financial sector during the era of fourth industrial revolution: a moderated mediated model

Quality & Quantity - Blockchain technology is considered a core technology in the financial sector with promising prospects like economic development, financial innovation, and internet...     

Ownership structure and returns to defensive stock repurchase

This study investigates the wealth effect of defensive common stock repurchase (CSR) on outside shareholders. It is found that the impact varies with the type of corporate control activity that precipitates the repurchase. Outside shareholders suffer wealth losses when a CSR announcement follows an unsolicited bid for the firm. The impact of the CSR announcement following a partial acquisition is negative but not as strong. However, outside shareholders benefit from CSR following antitakeover charter amendments. This study also documents a nonlinear relationship between managerial equity ownership and changes in the value of the firm at the announcement of a defensive CSR.