Hollywood Ethics: Developing Ethical Issues ... HollywoodStyle

Hollywood has yet to produce a BusinessEthics epic. Between the special effects andcartoon characters, however, ethical issues dosurface, and, on occasion, Hollywood featuresintriguing and complex characters and plotsladen with moral freight. Some of these can beturned to student advantage, and this articlewill explore films that may become excellentteaching tools.     

Option price without expected utility

We consider the meaning of the option price, commonly acknowledged as the preferred ex ante welfare measure, in the rank-dependent expected utility (RDEU) framework. The importance of this pertains to performing benefit-cost analysis when RDEU maximizers are prevalent in society.     

Networking in the Russian aerospace industry

This paper examines and explains the nature of networking in the Russian aerospace industry under the centrally administered innovation system and the impact on the network of the changes that have arisen post-perestroika. The context, pre-August 1991, was a centrally administered innovation system with the dominance of the military in resource allocation in a 'shortage' economy.
The network was made up of the ministry of defence, design bureaux, manufacturing plants, research institutes, specialist universities and testing centres and the Aircraft Certification Authority. The focal actor was the aircraft design bureaux.
The role and relationships between the actors concerned with aircraft design, development, manufacturing and marketing are determined by the activities that they perform in the seven stage innovation process, the resources available and the strategies that they adopt.
Post-perestroika the need for new customers, international certification, western collaboration, and the presence of supply chain disruption and the funding crisis are reshaping the network. The new actors, post-perestroika, include new customers, financiers, the Department of Aviation Industry, International Certification Authorities, the ICAO and 'nearest and furthest abroad' subcontractors. A major change has been the linking together of the design bureaux, aircraft manufacturing, engine and avionics plants, subcontractors, financial institutions and aircraft export agencies into joint stock Complexes, or Financial Industrial Groups (FIGS).     

ADVERSE SELECTION,INVENTORY‐HOLDING COSTS,AND DEPTH

We examine whether specialist depth quotes are related to the adverse‐selection and inventory‐holding‐cost components of the spread. Consistent with theory that predicts an inverse relation between depths and informed trading risk, we find that depth quotes are strongly inversely related to the adverse‐selection component of the spread. We also find that depth quotes are inversely related to the inventory‐holding‐cost component, though this relation is weaker than the relation between depths and adverse selection. Our evidence suggests cross‐sectional variation in depths is driven primarily by variation in informed trading risk, as proxied for by the adverse‐selection component, rather than by inventory concerns. JEL classification: G10, G14     

ON THE U.S. BUDGET DEFICIT

By the end of 1985 the USA will bo the most heavily indebted nation on the planet. Professor G. K. Shaw of the University of Buckingham and Geoffrey Wood of the City University Business School differ on Reagan's budgetary policy.     

The consequences of public and private research and development

We investigated the relationship of research and development to higher productivity and industrial efficiency. After reviewing the economic literature and finding no conclusive evidence on this subject we then proceeded to test the hypothesis that R&D does in fact promote increases in productivity which may be expected to lead to higher earnings. We found that until 1963 output per manhour and R&D expenditures in manufacturing industries were significantly related. However, for the last quinquennium (1963–1968) no statistically significant relationship could be shown. The hypothesis that the lack of correlation in the last period was due to Federally financed projects was deemed incorrect. However, it is possible that the lack of correlation was due to a poor choice of projects by the private sector or to an increase in projects which were designed to raise profits by reducing tax liabilities or simply due to activities which emphasized product development rather than efficiency generating research.