Insider Trading 2.0? The Ethics of Information Sales

The sale of faster access to financial market data has recently generated public controversy. NY Attorney General Eric Schneiderman has referred to such fast data feeds as “Insider Trading 2.0”. For example, Thomson Reuters sold the University of Michigan’s Consumer Sentiment Index to computerized trading firms 2 seconds before releasing its data to its other paying clients. This paper explores the ethical issues involved in the sale of such information. Is selling faster access ethically the same as traditional insider trading, which generally involves a breach of fiduciary duty or the use of misappropriated information? Such practices are extremely different from traditional insider trading as there is neither a breach of fiduciary duty nor misappropriation of inside information. The ethical issues are similar to other market segmentation and price discrimination issues, in which different prices are charged to different customers. The ability to price discriminate across segments can actually benefit large segments of the population who may receive lower prices because others, such as the high-speed traders, are paying more. The sale of faster access to information, especially by exchanges, raises additional ethical issues. There may be adverse effects on market quality that must be addressed. The moral distaste for the practice expressed by some stems from the seeming unfairness of a modern market structure that provides advantages to a small group of computerized traders.     

Career paths and labour mobility in the conventions and exhibitions industry in eastern Australia: results from a preliminary study

The Conventions and Exhibitions Industry has undergone substantial economic growth worldwide and is seen as an excellent provider of new employment opportunities. The sector is recognised and considered attractive for both new and existing employees and provides excellent career prospects. However careers within the sector are relatively new with little information available as to potential progression or pathways. In an industry that is subject to high mobility rates and labour turnover this paper presents the preliminary findings of a study that is focused on establishing the potential career paths, patterns and strategies of managers in the convention and exhibition industry in Australia. Copyright © 2001 John Wiley & Sons, Ltd.     

Partnerships,management systems and the search for innovative regulation in the vehicle body shop industry

This article examines innovative approaches to regulating the environmental performance of vehicle body shops, in the state of Victoria, Australia. Based on field research, this provides a useful opportunity to not only identify the limitations of the environmental management practices (including regulatory resistance, a lack of resources and cultural obstacles), but also the failure of conventional regulatory approaches to adequately address and overcome problematic characteristics typical of small and medium sized enterprises (numerous, geographically dispersed, environmentally unsophisticated and, collectively, a substantial source of pollution). Particular focus is given to cleaner production, partnerships and environmental management systems in improving environmental performance. We also consider the potential role of ‘regulatory surrogates’ as an adjunct to a mix of government regulatory initiatives. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.     

A model of entry–exit decisions and capacity choice under demand uncertainty

Many investment decisions of agribusiness firms, such as when to invest in an emerging market or whether to expand the capacity of the firm, involve irreversible investment and uncertainty about demand, cost or competition. This paper uses an option‐value model to examine the factors affecting an agribusiness firm's decision whether and how much to invest in an emerging market under demand uncertainty. Demand uncertainty and irreversibility of investment make investment less desirable than the net present value (NPV) rule indicates. The inactive firm is more reluctant to enter the market when it takes into account demand uncertainty because it preserves the opportunity of making a better investment later. The active firm is more reluctant to abandon the investment because there is an option value of keeping the operation alive. There is a greater distance between the entry and exit thresholds under the option‐value approach than under the NPV rule due to demand uncertainty. The results have implications for agribusiness decision‐making.     

Due Process Procedures in Faculty Grievance Codes

The purpose of this paper is to analyze what some private universities are doing in the area of mediation and other alternative ways of solving faculty complaints – what some term "alternative dispute resolution." Special attention will be given to one of the most important ethical issues in this area at the operating level of individual universities – the due process procedures with respect to the processing of the grievances of individual faculty members in nonunionized colleges. The paper concludes with recommendations for university administrators and faculty senates, as well as recommendations for future research.     

Reciprocity and Social Order: What Do Experiments Tell us About the Failure of Economic Growth?

This paper makes three observations for policy-makers, interested in promoting economic growth, based on the experimental work done at the Interdisciplinary Center for Economic Science. First, safeguards must be put into place to protect impersonal exchange from our innate desire for personal exchange. Second, policy must take into account the heterogeneity of individual cognitive strategies that are observed in economics laboratories. Third, policy must be test-bedded in economic experiments where the status quo is modeled as an ecologically rational response to the economic environment and the proposed policy change occurs in an environment where individuals have access to a full repertoire of personal exchange behaviors.JEL classification: C93     

Sales Concessions in the US Housing Market

This article examines the use of concessions in the US housing market, specifically payments for closing costs, home warranties, and structural repairs. This is the first study to examine the motivations and characteristics of homeowners that utilize concessions. It also examines the impact concessions have on transaction prices and marketing durations. While the literature has attempted to determine if concessions can reduce marketing durations or increase transaction prices, the evidence is tainted by endogeneity and sample issues. Additionally, we find that relative bargaining power between buyers and sellers has a fundamental effect on how concessions alter prices and marketing durations. This aspect has been considered only narrowly in the extant literature. Our results demonstrate that when sellers have bargaining power, transactions including concessions exhibit higher prices and shorter marketing durations. Conversely, when buyers have greater negotiation leverage, transactions including concessions experience lower prices and longer marketing periods.     

How source cues impact consumer evaluations of direct and indirect persuasion attempts

This research demonstrates how the directness of a persuasion attempt by a sales agent, in this case flattery, changes how source cues influence consumers’ evaluation of the shopping experience. When the persuasion attempt is direct, source cues do not influence consumer evaluations. However, when an indirect persuasion attempt is used, it is only effective when positive source cues are present. In particular, when the persuasion attempt is indirect, evaluations are more effective when the sales agent is attractive to or shares similar opinions with the consumer. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.