The challenges of using ranks to estimate sales

Researchers have frequently used data on product ranks to estimate nonpublic sales quantities, believing that there is a power-law-induced linear relationship between logged sales ranks and logged sales. Using essentially complete data on book sales, the most commonly used product in this literature, we find that the (double-logged) relationship between sales ranks and quantity sold is not linear, but robustly concave. We demonstrate that this concavity is likely to cause very poor sales predictions in many instances. We provide two concrete examples where applying this linear method to the concave relationship has led to serious errors in sales estimates. First, in the claim that the Internet's greater product variety in books has a large positive impact on social welfare, and second, in a claim about relative sales levels in top 20 and top 50 music “charts.” We also explore the use of nonlinear specifications as an alternative method to predict sales from ranks and find a simple specification that provides much better sales estimates. Finally, we examine the possibility that a particular type of biased sample might allow reasonable linear estimates of industry sales and conclude that it is possible but quite unlikely.     

Public policy and promoting manufacturing under licensing

Licensing is widely acknowledged as having a key role to play in development of a manufacturing sector. Our article identifies several approaches that public agencies can use to encourage licensing activity among manufacturing firms. It uses data gathered from a mail questionnaire sent to New Brunswick manufacturers. The data show licensing as typically associated with superior firm performances and as a subject on which little awareness generally exists among manufacturers. Our findings indicate that public policy should focus on educating manufacturers about licensing and providing licensing information to specific groups of firms. We provide ten recommendations to achieve this objective.     

Uber Drivers and Employment Status in the Gig Economy: Should Corporate Social Responsibility Tip the Scales?

As the gig economy continues to grow, the legal status of its workers remains a source of confusion and controversy. Uber and other transportation network companies (TNCs) typically disclaim employee status, depriving drivers of social insurance among other benefits. Further, such companies typically deny liability to third party victims for damages due to auto accidents, sexual assaults, and other negative outcomes arising out of their business. Legal and regulatory systems in the U.S. and elsewhere continue to struggle with how to determine and apply a consistent standard as to employee classification. We argue that corporate social responsibility should figure prominently in the equation. Private companies already are required to cover social costs of doing business in a variety of contexts (e.g., workers compensation, family leave, public and workplace accommodations for disabled individuals), and it makes sense that they also should be required to underwrite other important implications associated with employee status as part of their responsibilities to society. This is especially so where, as with Uber and other TNCs, a company’s core profit-making operations include activities that carry the direct potential for causing substantial harm both to individual clients and to the public at large.     

Familiarity breeds growth: The impact of factional ties on local cadres’ economic performance in China

Some attribute China's rapid economic growth to a cadre promotion system that rewards economic performance. Others argue that political promotion in China hinges on factionalism. Extant empirical studies often assume that performance can be measured independently from the effect of factionalism. We test the validity of this assumption by examining whether local cadres’ economic performance would change as a result of losing vertical ties to a higher authority. We find an immediate increase in the growth rates of local GDP and government revenue. However, the performance change is mediated by the type of succeeding leaders, as it occurs only under locally promoted leaders who have existing ties with the local cadres. We further examine various channels through which a leader's insider status may affect local economic performance and find that newly appointed outsider leaders would cut fiscal transfers to the local level, which may explain the drop in their short‐term performance.     

What makes a physician revenue cycle tick

Hospitals should boost the revenue cycle performance of acquired physician practices by: Effectively assimilating the physician practice into the overall organization. Standardizing revenue cycle processes, policies, and tools between the hospital and physician practice. Enhancing physician/patient scheduling policies and procedures. Regularly auditing physician documentation and periodically comparing hospital charges against practice charges. Improving procedures for responding to denials.     

Comparative Analysis of Text Data in Successful Face-to-Face and Electronic Negotiations

Various combination of Natural Language Processing and Machine Learning methods offer ample opportunities wherever texts are an important element of an application or a research area. Such methods discover patterns and regularities in the data, seek generalization and in effect learn new knowledge. We have employed such methods in learning from a large amount of textual data. Our application is electronic negotiations. The genre of texts found in electronic negotiations may seem limited. It is an important research question whether our methods and findings apply equally well to texts that come from face-to-face negotiations. In order to confirm such more general applicability, we have analyzed comparable collections of texts from electronic and face-to-face negotiations. We present our findings on the extent of similarity between these two related but distinct genres. In this study we have analyzed similarities in the text data of electronic and face-to-face negotiations. The results show that – in certain conditions – vocabulary richness, language complexity and text predictability are similar.This is an expanded version of a paper published in the Proceedings of FINEXIN 2005 (Workshop on the Analysis of Formal and Informal Information Exchange during Negotiations), 31–42, Ottawa, Canada, May 2005.     

Testing the profitability of moving-average rules as a portfolio selection strategy

One of the main difficulties in evaluating the profits obtained using technical analysis is that performance of trading rules depends upon the judicious choice of rule parameters. In this paper, popular moving-average (or cross-over) rules are applied to a cross-section of Australian stocks and the signals from the rules are used to form portfolios. The performance of the trading rules across the full range of possible parameter values is evaluated by means of an aggregate test that does not depend on the parameters of the rules. The results indicate that for a wide range of parameters moving-average rules generate contrarian profits (profits from the moving-average rules are negative). In bootstrap simulations the return statistics are significant indicating that the moving-average rules pick up some form of systematic variation in returns that does not correlate with the standard risk factors.     

HRM and the legitimacy market

This article develops and proposes the concept of the legitimacy market as a counterpoint to the product market in strategic FIRM analysis and practice. It is driven by three major concerns. First, in much of the contemporary literature, internal efficiency pursuits and product market equirements appear to be the dominant reference points in HRM analysis and practice. Criteria of environmental legitimacy are scarcely recognized.

Second, despite the many claims that HRM is novel and distinctive, there appears to have been little social science development in the field of HRM. Third, the dominance of the strategic management paradigm in HRM has obscured the distinctiveness of HRM in organizations, especially its role in reflecting the external social and cultural environment. These concerns are addressed through the concept of the legitimacy market. The concept, it is argued, should help to conceptualize and analyse more effectively the environmental determinants of HRM, in particular culture and ideology, as well as suggesting alternatives for practitioners to follow. The core proposition upon which the article is predicated is that legitimacy and efficiency are the two central concerns of management.     

Post-9/11 Backlash in the Workplace: Employer Liability for Discrimination against Arab- and Muslim- Americans Based on Religion or National Origin

In the wake of the September 11, 2001 terrorist attacks, discrimination and violence directed toward American immigrants in general, and Arab- and Muslim-Americans in particular, increased markedly. Yet, despite a November, 2001 joint initiative undertaken by the EEOC, the Justice Department, and the Labor Department to increase sensitivity to and combat instances of potential discrimination or harassment against individuals who are—or are perceived to be—Muslim, Arab, Afghani, Middle Eastern, or South Asian, EEOC charge statistics for workplace discrimination claims involving religion, ethnicity, national origin, and citizenship indicate that the reported incidence of such conduct has continued to increase. This paper examines recent federal court cases that involve employment discrimination claims by Arab- and Muslim-Americans at both the trial court and appellate court levels to identify problematic fact patterns that may give rise to employer liability and to better understand judicial treatment of the legal issues when such cases are taken up on appeal. Management guidance for reducing potential liability when such situations arise in the workplace is developed based on recent findings in the case law. Analogous international implications are also discussed.