Gender differences in proclivity for unethical behavior

This paper explores possible connections between gender and the willingness to engage in unethical business behavior. Two approaches to gender and ethics are presented: the structural approach and the socialization approach. Data from a sample of 213 business school students reveal that men are more than two times as likely as women to engage in actions regarded as unethical but it is also important to note that relatively few would engage in any of these actions with the exception of buying stock with inside information. Fifty percent of the males were willing to buy stock with insider information. Overall, the results support the gender socialization approach.Michael Betz is Professor of Sociology at the University of Tennessee in Knoxville. He has published articles on income inequality, accountability, gender and work, and job satisfaction. Currently he is working on the effect of gender on ethical decision making and accountability as a mechanism of social control.Lenahan O'Connell is Assistant Professor of Sociology at Carson-Newman College. His research focuses on gender differences in work experience. He is currently studying discrimination law enforcement in addition to continuing research with Michael Betz and Jon Shepard on ethics at work.Jon M. Shepard is currently Chairman of the Department of Management and Professor of Sociology at the University of Kentucky. His research interests include comparative management (particularly Japanese and American), ethics in business, the social responsibility of business, and the accountability of institutions in industrial society.     

Environmental accidents under moral hazard and limited firm liability

We study optimal government policy when firms' operations involve a risk of a large environmental accident, firms do not have sufficient assets to cover such costs, and the risk is affected by firms' efforts which are unobservable to outsiders. When firms' profits and government revenues have equal weights in the social welfare function, a first best can be implemented and requires that the firm be subsidized heavily when operating with no accident, and all its assets confiscated in the event of an accident. With a lower weight on firm profits the solution is always second best, with lower subsidies to the firm, and a firm effort lower than at the first-best solution. When firm investments affect both the required accident-preventing effort for given risk and the work effort required for a given output, the first best never involves specific investment subsidies, while a second-best solution generally always does.The paper is part of the research project Environmental policy under asymmetric information', at the SNF Centre for research in economics and business administration, Department of Economics, University of Oslo. I thank, without implicating, Mikael Hoel, Jean-Charles Rochet, Jean Tirole, and two anonymous referees for helpful comments on a preliminary version.     

The Financial Crisis of 1929 Reexamined: The Role of Soaring Inequality

The financial crisis of 1929 that triggered the Great Depression has been endlessly studied. Still there is little consensus regarding what caused it. This article claims that wage stagnation and exploding inequality fueled three dynamics that set the stage for a financial crisis. First, consumption was constrained by the smaller share of total income accruing to workers, thereby restricting investment opportunities in the real economy. Flush with greater income and wealth, the elite flooded financial markets with credit, helping keep interest rates low and encouraging the creation of new credit instruments, some of which recycled the rich's surplus assets as debt to those less well off. Second, greater inequality pressured households to find ways to consume more in order to maintain their relative social status, resulting in reduced household saving, greater household debt, and possibly longer work hours. Third, as the rich took larger shares of income and wealth, they gained relatively more command over everything, including ideology. Reducing taxes on the rich, favoring business over labor, and failing to regulate newly evolving credit instruments flowed out of this ideology.     

An Empirical Comparison of "Frisch" and "Time Series" Demand price Elasticities for individual Commodities

In a classical article in 1959, Ragnar Frisch [8] developed a procedure, which, under the assumption of want independence¹ and given commodity budget shares, income elasticities, and one own-price elasticity, allows one to calculate a complete matrix of own and cross price elasticities. Between broad commodity groups such an assumption (want independence) has becme increasingly accepted and in fact under the label of separability has formed the basis for a family of demand models that are increasingly used to estimate demand elasticities for broad commodity groups (the linear expenditure system, the Rotterdam model, etc.). At the individual commodity level however, the assumption of want independence seems less viable, e.g., the utility one derives from pork is in general not considered independent from one's consumption of beef. However, it has become increasingly common (and apparently acceptable) to find the Frisch methodology utilized to develop demand price elasticity estimates for individual agricultural commodities [4, 7, 17].     

Business Ethics – to Teach Or Not to Teach?

While some studies have explored the effects of taking business ethics classes on business students, several shortcomings in them invite greater scrutiny of this critical issue (cf. Robertson, 1993). In contrast to previous research, this study more directly assesses the impact of taking business ethics class on ethical decisions made by future business executives. To determine if teaching business ethics modifies behaviors or behavioral intentions, the current study examines decisions made in ethical situations rather than inferring the same by measuring attitudes, values, etc. Furthermore, these were measured in three different business contexts: whistle blowing, recruitment, and industrial espionage, to enhance the generalizability of the findings. Finally, unlike most previous studies, a within-subject's design was chosen to eliminate confounds that may be caused by not controlling for individual differences (Glenn, 1992). The current results indicate that business ethics classes have minimal effect on ethical decision making in any of the three contexts investigated, empirically providing support for Wolfe's (1993) and Wynd and Mager's (1989) position that teaching business ethics may have limited benefits.     

Are movie theaters doomed? Do exhibitors see the big picture as theaters lose their competitive advantage?

After three straight years of decline, movie theaters in the US may have recently ended a period of crisis with an increase in annual admissions (+ 3%) in 2006. This article argues, however, that major problems are not over for the industry. Most movie theaters in the multiplex era have adopted a remarkably similar strategy, one which is also very vulnerable to recent trends such as the explosion of home cinema, pay TV, video-on-demand (VOD), discounting by mass merchandisers of DVDs, computer games, and the collapse of video windows. Just as technological convergence has created a challenge for movie theaters, as it has in the past, so too can new technologies and creative use of assets (combined with multiple target marketing) offer a counter measure for at least some movie theaters; at least, until the next challenge arises. What is unlikely to succeed is the status quo, especially when so many multiplexes offer the same format as their competitors, appear to adopt a narrow definition of what business they are in, and manifest a ‘one-size-should-fit-all’ approach to customers. The industry has employed differentiation and niche marketing much less than other industries. As the extensive variety of necessary strategies cannot comprehensively be explored herein, this article focuses on two new technologies from the IMAX Corporation, DMX and MPX, as an example of how a theater operator might counter audience declines.     

An Empirical Examination of the Relationship Between Ethical Climate and Ethical Behavior from Multiple Levels of Analysis

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.     

Quantifying the costs of a nationwide public safety wireless network

The existing US public safety wireless infrastructure consists of thousands of disparate systems built by separate local agencies. Problems with interoperability, cost, spectral efficiency, and limited functionality plague these systems but could be significantly reduced through the deployment of a single nationwide network that serves all public safety personnel. Two major efforts towards such a nationwide network are the federal-government-only Integrated Wireless Network (IWN) and an FCC-led effort to create a public-private partnership in the 700 MHz band; the future of both projects is uncertain due in part to concerns surrounding cost. This paper presents a model to estimate cost for two fundamental approaches to a nationwide network: a public-safety-only network and a public–private partnership which serves both public safety and commercial subscribers. We apply this general model to four network scenarios which differ in the amount and band of spectrum allocated as well as the number and type of subscribers (public-safety-only versus commercial and public safety) under three traffic scenarios: voice-only, data-only, and voice and data. We demonstrate that the nation's many small systems could be replaced with a single nationwide network with a small fraction of the tower sites and spectrum. The cost of building this new infrastructure is comparable to what is likely to be spent in just a few years on upgrading and maintaining the existing infrastructure. In addition, we show that these cost estimates are highly dependent on some key system design parameters including the public safety capacity required and signal coverage reliability, which must therefore be well-defined in advance.