The genetics of investment biases

For a long list of investment “biases,” including lack of diversification, excessive trading, and the disposition effect, we find that genetic differences explain up to 45% of the remaining variation across individual investors, after controlling for observable individual characteristics. The evidence is consistent with a view that investment biases are manifestations of innate and evolutionary ancient features of human behavior. We find that work experience with finance reduces genetic predispositions to investment biases. Finally, we find that even genetically identical investors, who grew up in the same family environment, often differ substantially in their investment behaviors due to individual-specific experiences or events.     

The Doha Round of the World Trade Organization and Agricultural Markets Liberalization: Impacts on Developing Economies

We investigate the impacts of multilateral removal of all border taxes and farm programs and their distortions on developing economies, using a world agriculture partial equilibrium model. We quantify changes in prices, trade flows, and production locations. Border measures and farm programs both affect world trade, but trade barriers have the largest impact. Following removal, trade expansion is substantial for most commodities, especially dairy, meats, and vegetable oils. Net agricultural and food exporters emerge with expanded exports; net importing countries with limited distortions before liberalization are penalized by higher world prices and reduced imports. We draw implications for current World Trade Organization negotiations.     

Towards a model of dynamic capabilities in innovation-based competitive strategy: Insights from project-oriented service firms

With the growing significance of services in most developed economies, there is an increased interest in the role of service innovation in service firm competitive strategy. Despite growing literature on service innovation, it remains fragmented reflecting the need for a model that captures key antecedents driving the service innovation-based competitive advantage process. Building on extant literature and using thirteen in-depth interviews with CEOs of project-oriented service firms, this paper presents a model of innovation-based competitive advantage. The emergent model suggests that entrepreneurial service firms pursuing innovation carefully select and use dynamic capabilities that enable them to achieve greater innovation and sustained competitive advantage. Our findings indicate that firms purposefully use create, extend and modify processes to build and nurture key dynamic capabilities. The paper presents a set of theoretical propositions to guide future research. Implications for theory and practice are discussed. Finally, directions for future research are outlined.     

Rethinking Internal Consistency in Cronbach's Alpha

Stress is one byproduct of hectic and busy lives. Therefore, examining active living and leisure in relation to stress and coping offers an important area of study. This paper presents key findings from a multi-year qualitative study of stress and coping. A series of focus groups were conducted with diverse residents of a western Canadian city including: (a) Aboriginal individuals with diabetes, (b) individuals with disabilities, and (c) people who identified as gay or lesbian. The findings emphasized that active leisure is more than physical activity, and that less physical forms of leisure should not be undervalued in the conceptualization of active living and leisure. Coping with stress using active leisure encompassed a wide range of meanings (e.g., spiritual, social, cultural, altruistic, empowerment).     

An Extension and Further Validation of the Potential for Conflict Index

The Potential for Conflict Index (PCI) was developed to facilitate understanding and applicability of leisure, recreation, and human dimensions findings to managerial concerns. The PCI ranges from 0 (minimal potential for conflict) to 1 (maximum potential for conflict) and simultaneously describes a variable's central tendency, dispersion, and shape using a graphic display. This article (a) describes applications of the original formulation of the PCI (PCI₁) to illustrate the statistic's practical utility, (b) introduces the second generation of the PCI (PCI₂) and discusses enhancements incorporated in this version, (c) describes efforts to validate the PCI₂, and (d) offers suggestions for continuing the empirical validation process. Programs for calculating, graphing, and comparing PCI₂ values are freely available from http://welcome.warnercnr.colostate.edu/~jerryv.     

Restorative advertising in the airline sector

It is sometimes contended that large airlines cut their advertising expenditure in reaction to major accidents and postpone it until after the memories of accidents have dissipated. This paper assesses the relationship between safety perceptions and airline advertising expenditure based on the assumption that consumers have updating beliefs and dissipating memories. The results suggest that large airlines do not vary their advertising in reaction to accidents resulting in minor or serious injuries, but appear to decrease advertising expenditure in response to fatal accidents.