Trading costs for listed options: The implications for market efficiency

This paper reexamines the anomalous evidence concerning the efficiency of the listed options exchanges. We focus on the structure of trading costs in that market, and note several costs which generally have been ignored, the largest of which is the bid-ask spread. When we adjust the published trading rules for our estimates of these trading costs, the reported abnormal returns are eliminated.     

The effect of experimenter bias in a cola taste test

In a simulated cola taste test, experimenters' nonverbal behaviors influenced subjects' cola choices, although subjects expressed no awareness of the experimenters' impact. Nonverbal intimacy behaviors may make subjects feel comfortable in same-sex pairs and uncomfortable in mixed-sex pairs, resulting in an association of these internal states with cola preferences.     

Assessing hierarchical differences in job-related attitudes and turnover among retail managers

A model of organizational turnover is expended from previously reported models to include an extraorganizational antecedent and comparison across two different hierarchical levels of management. Role ambiguity, role conflict, and work-family conflict were used as antecedents of job satisfaction, organizational commitment, intent to leave, and actual turnover. The basic model of turnover was supported in both levels of management. In addition, several additional relationships that have been found in previous studies were tested. Implications of these results for retail managers are discussed. She received her Ph.D. from Oklahoma Stae University. Her research interests include retail turnover, socialization of entry-level management trainees, the role of social support in reducing employee stress, consumer distribution systems in Russian and Poland, and motivation of Russian and Polish employees. Her articles have appeared inJournal of Retailing, International Marketing Review, andMarketing Education Review. He received his Ph.D. from Ohio State University. His research interests include attitude-behavior relationships, information processing, and the use of structural equations in marketing. His research has appeared in theJournal of Marketing, Journal of Marketing Research, Journal of Experimental Social Psychology, Journal of Advertising, andJournal of Business Research. He received his Ph.D. from University of Utah. He has extensive experinece in computer applications in marketing and business and has conducted research and seminars for a variety of companies. His major interests are in quantitative methods and sales manamgement. His articles have appeared inJournal of Retailing, Journal of Marketing, Journal of Personal Selling and Sales Management, Business Horizons, Journal of Public Policy and Marketing, andJournal of Business Logistics and Business.     

Raiders or saviors? The evidence on six controversial investors

Carl Icahn, Irwin Jacobs, Carl Lindner, David Murdock, Victor Posner, and the late Charles Bluhdorn are usually portrayed as corporate ‘raiders’. The evidence here, however, shows that between 1977 and 1982 when it was first announced that they had purchased stock in a given firm, stock prices on average increased significantly. The investors' activities in target firms for the two years following the initial stock purchase are likewise inconsistent with ‘raiding’. We discuss two hypotheses that are consistent with the evidence: first, these investors improve the management of target firms; second, they are systematically able to identify under-priced stocks.     

Rate Design Arbitrage: The Case for Value-Based Peaking Services

Journal of Regulatory Economics -     

Situational effects on brand preferences for image products

The purpose of the study was to provide evidence for the influence of situational variables on consumer preferences toward the image product of men's fragrances, and to illustrate how these situational variables can be used to create positioning strategies. In a 3 × 3 experimental design, male and female subjects provided purchasing preference ratings for, and rated each cologne on, a number of scales related to price, brand image and packaging, scent, and inferred characteristics of the typical consumer. ANOVAs and a constrained unfolding analysis using GENFOLD2 were used to analyze the data. The analyses revealed that subjects' preferences were influenced by the purchasing target (self or others), and suggested that people's preferences may be mediated by person prototypes and situation prototypes. © 1995 John Wiley & Sons, Inc.     

Optimal credit rationing in not‐for‐profit financial institutions*

We examine the dynamic optimization problem for not‐for‐profit financial institutions (NFPs) that maximize consumer surplus, not profits. We characterize the optimal dynamic policy and find that it involves credit rationing. Interest rates set by mature NFPs will typically be more favorable to customers than market rates, as any surplus is distributed in the form of interest rate subsidies, with credit rationing being required to prevent these subsidies from distorting loan volumes from their optimal levels. Rationing overcomes a fundamental problem in NFPs; it allows them to distribute the surplus without distorting the volume of activity from the efficient level.