When Ethics are Compromised by Ideology: The Global Competitiveness Report

The Global Competitiveness Report raises ethical issues on multiple levels. The traditional high ranking accorded the US is largely attributable to fallacies, poor science and ideology. The ideological bias finds expression in two ways: the inclusion of indices that do not provide competitive advantage, but that fit the Anglo/US ideology; and the exclusion of indices that are known to offer competitive advantage, but that do not fit the Anglo/US ideology. This flaw is compounded by methodological problems that raise further doubt as to the reliability and validity of the survey results. The resultant false high ranking of the US, a strong proponent of Anglo/US capitalism, pseudo-legitimizes the propensity of US-dominated institutions and entities to persuade, coerce and, in the worst-case force other countries and their constituents to adopt Anglo/US practices and behaviours. This is ethically reprehensible because research shows that these practices and behaviours, when compared with other approaches, are sub-optimal in the results they produce for individuals, corporations and nations. The report also unjustly and unnecessarily stigmatizes entire groups of countries with little conceivable benefit to anyone. Given the report’s gravitas through the profound global influence it exerts on the decisions of top government and business leaders, these are serious ethical and economic issues.     

Lancaster,Kent M. and Thomas C. Martin (1988). ADLAB,Gainesville, FL: University of Florida, 31 Pp. and software for IBM,Macintosh, and compatibles. $12.00

Abstract

Prior research on advertising literature consists primarily of studies of journal article authorship and author productivity, journal content and quality, and citation patterns. Absent from this stream of research is direct evidence of the influence of individual authors and their works in the form of peer evaluation and readership. For this study, a priori lists of influential books and articles were used in a survey of U.S. advertising educators and academic researchers. The results reveal a core of research-based and practice-oriented contributions of widely recognized importance and influence. The findings also provide (1) valuable lists of readings for current and future students and educators; (2) direct evidence of the quality of individual literary contributions; and (3) useful insights into the theoretical, intellectual, and practical foundations of the field.     

Strategic Jump Bidding in English Auctions

This paper solves for equilibria of sequential bid (or English) auctions with affiliated values when jump bidding strategies may be employed to intimidate one's opponents. In these equilibria, jump bids serve as correlating devices which select asymmetric bidding functions to be played subsequently. Each possibility of jump bidding provides a Pareto improvement for the bidders from the symmetric equilibrium of a sealed bid, second-price auction. The expanded set of equilibria can approximate either first- or second-price outcomes and produce exactly the set of expected prices between those two bounds. These results contrast with standard conclusions that equate English and second-price auctions.     

Credit Scoring: Statistical Issues and Evidence from Credit-Bureau Files

Although credit scoring offers benefits to lenders and borrowers, its use raises important statistical issues that may affect the ability of scoring systems to accurately quantify an individual's credit risk. The evidence from a national sample of credit-bureau records suggests that concerns about omitted-variable bias may be justified, as local economic factors show significant correlations with credit scores.     

MEASURING WEALTH WITH SURVEY DATA: AN EVALUATION OF THE 1983 SURVEY OF CONSUMER FINANCES

Because wealth estimates from survey data have usually fallen substantially short of independent aggregate estimates, survey data have not been seen as adequate for assessing questions dependent on a good representation of the entire distribution of wealth, such as estimates of wealth concentration. The 1983 Survey of Consumer Finances (SCF), which contains a supplementary sample of very high income households drawn from a tax-file sample frame, is the first U.S. survey since the 1963 Survey of Financial Characteristics of Consumers that offers hope of accurately measuring the entire wealth distribution. In this paper, we discuss the design of the survey, the critical issue of proper weighting to merge the supplementary sample with an area probability sample, and the role of imputation. We show that the use of ordinary area probability samples alone leads to probable bias in the measurement of highly concentrated assets such as stocks and bonds. We compare the SCF data with aggregates derived from the flow-of-funds accounts of the Federal Reserve Board. While methodological issues cloud exact comparisons, it appears overall that the SCF estimates are at least as credible as other aggregate measurements. Finally, we use the data to assess the change in concentration of wealth from 1963 to 1983. We estimate that the concentration of wealth in terms of households did not change significantly over this period.