Auction versus Negotiated Sale: Evidence from Real Estate Sales

We offer a theoretical and empirical comparison of auctions and negotiated sales. We first build a simple model to show that auctions generate a higher relative price than negotiated sales when demand for the asset is strong, when the asset is more homogeneous and when the asset attracts buyers with higher valuations. Using data from property sales in Singapore, we find support for our theoretical predictions. In addition, we find that auctions do not necessarily generate a higher price premium for foreclosed properties than for nonforeclosed properties.     

The appointment qualifications of Muslim accountants in the Middle Ages

Historically, accountants and accounting have played a very important role in Muslim societies. Accountants, who were known as Al-Kateb (accountants/bookkeepers/accounts clerks), held very prestigious positions in government, business and society. They were the advisors and decision-makers for the rulers, business peoples and society at large. The primary objective of accounting was the ascertainment of the adequacy of the transactions from the religious view point and the appropriate calculation of Zakat (religious levy). The role and responsibilities of Al-Kateb were much broader than those that exist in many instances today. The expanded role and status of Al-Kateb resulted in the establishment of comprehensive and demanding appointment criteria. Some of these criteria were of a compulsory nature while others were optional and were known as recommended appointment requirements. This paper examines the mandatory appointment requirements that were, at large, based on Shari'ah Islami'iah (Islamic teachings) that reflects the role of Islam as a comprehensive code of life for Muslims. Technical competence was also a mandatory requirement that had to serve the religious requirements in the process of recording and interpreting business transactions. Some of the mandatory appointment requirements of Al-Kateb are, in essence, similar to current Western practices. The similarity could have been prompted by historical business relationships between Muslim and Europeans (especially Italians) since the twelfth century.     

Men, women, and competition: An experimental test of behavior

This study reports a series of experiments that examine outcomes when agents are able to choose between a payment scheme that rewards based on absolute performance (i.e., piece rate) and a scheme that rewards based on relative performance (i.e., a tournament). We test for the presence and persistence of gender differences in performance and the rate of entry into the tournament option and whether these differences are sensitive to the structure of the tournament rewards. In the winner-take-all (WTA) condition, only the best performer in the tournament for each round received a payment ($4.50). In the graduated tournament condition, the same payment ($4.50) was divided among the first, second, and third finishers in the tournament. In the WTA condition, men showed significantly lower forecast errors than women. In addition, a clear sorting effect occurs in the WTA condition. In early rounds of the WTA condition, male entrants into the tournament show significantly lower forecast errors than female tournament entrants. However, the difference disappears over time. After controlling for forecasting skill, gender did not predict entry into the tournament for the WTA condition. However, lower forecasting skill reduced the probability of entry. In the graduated tournament, the situation was reversed. Men entered the tournament at significantly higher rates, even after controlling for skill. Forecasting skill had no impact on the decision to enter the tournament. While the average male entrant to the tournament had lower forecast errors than the average female entrant, the men entered at much higher rates. As a consequence, men were much more likely than women to enter the tournament too frequently.     

Testing the exogeneity of economic time series: an application of innovation accounting

This paper proposes and presents an testable sufficient condition for testing the exogeneity of economic time series using Sims' (1980a) innovation accounting within an unconstrained vector autoregressive model. It is demonstrated that if each explanatory variable of a model is sequentially placed in the last position of the ordering of variables during orthogonalization, then strict exogeneity of the dependent variable with respect to each explanatory variable can be tested without any a priorirestrictions. The test is not biased by conditional correlations of other variables included in the model. The empirical demonstration within the VAR framework is based on a set of variables obtained by solving a macroeconomic model.     

Dimensionality of advertising attitudes: cross-national insights

A consensus emerging from writings about attitudes towards advertising in general is that such attitudes consist of two dimensions: the social and economic effects. However, as is the case with other marketing concepts and propositions, the findings pertaining to the structure of advertising attitudes are primarily based on American research. This study investigates the dimensionality of advertising attitudes in a non-US setting. The results obtained from a survey of Saudi adult consumers suggest that advertising attitudes do indeed decompose into social and economic effects dimensions as espoused in the US-based literature. The measures developed to capture the two dimensions demonstrate satisfactory internal consistency reliability and pass the tests for convergent, discriminant and concurrent validity. The implications of the findings are discussed and suggestions for future research are provided.     

A Case for Percentage Commission Contracts: The Impact of a “Race” Among Agents

In standard principal-agent problems, the issue at hand is how to align the interests of the agent with those of her principal. A commonly used contract involves the principal paying the agent a percentage of the sale price as commission. With respect to real estate brokerage contracts, it has been argued that percentage commission contracts fail to provide sufficient incentives to the agent. This paper re-evaluates the standard solution to a one seller, one agent agency problem by introducing more than one agent. It is shown that percentage commission contracts can induce first-best effort levels from agents. The result is due to the negative externalities created by the winner-takes-all race among agents. The optimal commission rates in this model are inconsistent, however, with the observed uniformity in commission rates across markets in the USA.     

Measuring the technical efficiency of cooperative societies in Kuwait

This study employs bootstrap data envelopment analysis to measure the technical efficiencies of 48 Kuwaiti retail cooperative societies (coops) during the years 2012–2015. Average profit efficiency falls substantially from 84% to 70% after applying a bootstrap correction. The bias is larger for coops originally identified as being on the efficient frontier. The average coop is too small, but both profitability and efficiency are negatively related to the number of direct branches (mini‐marts). Also, coops can increase profitability through greater equity capitalization, whereas better control of labor costs leads to higher profit efficiency.     

Saying it without words: a qualitative study of employee voice in the Iranian building sector

Abstract

The primary aim of this study is to examine the nature, extent and workplace experiences of voice in an industry characterized by vulnerable workers with precarious term of employment. Using qualitative data on the practice of voice and participation among a sample of construction and building materials & products manufacturing firms, we found that the motivation of workers to fulfil their basic human needs take precedence over other needs such as voice and participation intention. The extent to which employee voice was embedded in the organizational policies was found to rely primarily upon the need for compliance with minimum labor legislation and ISO quality management factory regime. Our findings also suggest that voice and participation beyond regulatory and ISO quality compliance remain at the sole discretion of the management that advocated a carrot and stick orientation. The article concludes with the discussion of theoretical and practical implications of the findings and identification of a number of new avenues for future research.