Hayek's Geldtheoretische Untersuchungen: New insights from a 1925–29 typescript

German Ferdinand Tönnies (1855?-?1936) and American Thorstein Veblen (1857?-?1929) are influential figures in the history of the social sciences, whose intellectual relationship has been ignored. However, there are important and illuminating similarities and differences in their critiques of Karl Marx (1818?-?83), as well as in the transition from community to modernity in Western culture and society. This article begins with their account of the nature of the Western community in the Middle Ages and its passage to modernity via the Enlightenment and the Industrial Revolution. It culminates with their critiques of Marx and his and their mutual efforts to construct an ersatz community to replace the one that was lost.     

Common waters and private lands: Distributional impacts of floodplain aquaculture in Bangladesh

Aquaculture continues to diversify and develop rapidly in Bangladesh. A major change has taken place in parts of Bangladesh due to the growth of floodplain aquaculture (FPA) projects. FPA involves the enclosure by the landholders of parts of the floodplain through the creation of embankments and sluice gates. The enclosed water body is stocked with fish seed and the benefits are distributed amongst those who own land in the impounded area. This study has found that FPA tends to exclude a large number of poor households and adversely affects them through the attenuation of their common property rights over the floodplains, besides skewing the distribution of benefits amongst those who directly benefit from it. They have been further marginalised in project institutions that are captured by rural elites. This paper suggests a more precautionary approach to the growth of the FPA and compensation to, or inclusion of the losers.     

Endogenously chosen travel costs and the travel cost model: an application to mountain biking at Moab,Utah

The travel cost model is frequently used to estimate net willingness to pay for recreation at remote sites by using the visitor's travel costs as a proxy for the price of recreation. However, some concern has been raised over the validity of using the visitor's stated travel costs as a proxy for price. This paper addresses some of these concerns, by examining the possible over-estimation of consumer surplus due to endogenously chosen travel costs. This paper extends past theoretical work for the linear model by developing a correction for endogenously chosen travel costs in more commonly used nonlinear models such as the Poisson or count data model. Also provided is the first empirical test of the presence of endogeneity and an estimate of the magnitude of the error from ignoring endogeneity in travel costs. After applying this test and the correction to data that was gathered for mountain biking at Moab, Utah the estimate of consumer surplus falls from US $153 to US $135, which is a 12% reduction.     

14-Week quarters

Many firms define their fiscal quarters as 13-week periods so that each fiscal year contains 52 weeks, which leaves out one or two day(s) a year. To compensate, one extra week is added every fifth or sixth year and, consequently, one quarter therein comprises 14 weeks. We find evidence of predictable forecast errors and stock returns in 14-week quarters, suggesting that analysts and investors do not, on average, adjust their expectations for the extra week. The ease with which 14-week quarters can be predicted, and expectations adjusted, suggests a surprising lack of effort on the part of analysts and investors.     

Biased recommendations from biased and unbiased experts

When can you trust an expert to provide honest advice? We develop and test a recommendation game where an expert helps a decision maker choose among two actions that benefit the expert and an outside option that does not. For instance, a salesperson recommends one of two products to a customer who may instead purchase nothing. Subject behavior in a laboratory experiment is largely consistent with predictions from the cheap talk literature. For sufficient symmetry in payoffs, recommendations are persuasive in that they raise the chance that the decision maker takes one of the actions rather than the outside option. If the expert is known to have a payoff bias toward an action, such as a salesperson receiving a higher commission on one product, the decision maker partially discounts a recommendation for it and is more likely to take the outside option. If the bias is uncertain, then biased experts lie even more, whereas unbiased experts follow a political correctness strategy of pushing the opposite action so as to be more persuasive. Even when the expert is known to be unbiased, if the decision maker already favors an action the expert panders toward it, and the decision maker partially discounts the recommendation. The comparative static predictions hold with any degree of lying aversion up to pure cheap talk, and most subjects exhibit some limited lying aversion. The results highlight that the transparency of expert incentives can improve communication, but need not ensure unbiased advice.     

Effects of outdoor advertising: Does location matter?

The growth and success of outdoor advertising is in large part due to the medium's ability to reach an increasingly elusive and mobile consumer. However, this success has come with a price. Public pressure and regulation have begun to eliminate or curtail many outdoor advertising locations, leading practitioners to question the effectiveness of the remaining outdoor advertising sites. Using associative learning techniques, these studies investigate what effect, if any, the environment in which outdoor advertising appears has on the attitudes, beliefs, and purchase intent of the advertised brand. The results of four experiments presented here suggest that the background environment does not impact advertising effectiveness, and practitioner concern of such may be unfounded. © 2011 Wiley Periodicals, Inc.