Commentary on Janet Landa's Paper

In her paper, Janet Landa argues that the key behind the success of the ethnically homogeneous Chinese middleman group (EHMG) is their highly developed in-group cooperation. She places the EHMG phenomenon within the framework of evolutionary biology by calling it 'a cultural transmission unit' subject to the influence of both genes and culture. Landa suggests that the individual members of the EHMG comprise the units of selection for EHMG groups much like the genes comprise the units of selection for individual organisms. However, evolution occurs through the differential survival and reproduction of individual organisms. In order to meet the criteria of biological group selection, it would have to be demonstrated that groups in competition with EHMGs had gone extinct. The fact that the EHMGs are simply faring better than their competitors is not evidence for group selection. The other reason biological group selection is not really applicable to EHMGs is that there are no physical/biological barriers to exogamous mating, and cultural barriers are intrinsically unstable.     

The Endowment Effect and Repeated Market Trials: Is the Vickrey Auction Demand Revealing?

The difference between people's valuations of gains and losses has been widely observed in both single trial and repeated trial experiments, as well as in survey responses and in commonplace behavior. However, the results of some Vickrey auction experiments indicate that the disparity may decrease, or even disappear, over repeated trials. This paper reports the results of two further repeated Vickrey auction experiments that test the impact of both a second price and a ninth price auction rule on valuations. Although valuations should be independent of this variation in the exchange price rule, the manipulation had a dramatic impact on subjects' stated values of a common market good. The results suggest that the endowment effect remains robust over repeated trials, and that contrary to common understanding, the Vickrey auction may elicit differing demands dependent on the context of the valuation.     

Uncertain Land Availability and Investment Decisions: The Case of Dutch Dairy Farms

Within the EU, uncertainty about the possibility of acquiring land can be quite significant for individual farmers in sectors like dairy farming. Farm‐level investment decisions are commonly made ex‐ante, when the farmer is not certain about the possibility of purchasing land. This possibility is realised only in a future period. In this paper, we have developed and applied a simple two‐period model in which a profit‐maximising farmer, facing uncertainty about the possibility of acquiring land, has to choose the optimal mix of capital (buildings) investment and land endowment. We illustrate the model using data from Dutch dairy farms.     

Hooker Corporation: A Case For Cashflow Reporting?

This study was prepared from public information as a basis for classroom discussion, rather than to illustrate effective handling or otherwise of an administrative situation. It was suggested by an earlier case analysis of the W.T. Grant bankruptcy in the US by James A. Largay HI and Clyde P. Stickney, which appeared in the Financial Analysts Journal (July/August 1980).
In the 1988 annual report of Hooker Corporation, the chief financial officer's review of performance contained the following: "The confidence of major banks with regard to Hooker's strategy is reflected in the large increase in banking lines negotiated during the year, with a number of United States and Canadian banks joining the group as lenders."     

Return Behavior in Emerging Stock Markets

This article investigates the behavior of stock returns in thetwenty stock markets represented in the International FinanceCorporation's Emerging Markets Data Base. The aim is to testfor return anomalies and predictability. Using statistical methodologiesthat have identified seasonal and size-based return differences,as well as general return predictability in industrial markets,we find that these emerging markets display few of the sameanomalies. In particular, we find limited evidence of turn-of-the-tax-yeareffects and small-firm effects. We do find, however, evidenceof return predictability.     

Husband-wife influence in selecting a family professional

This research addresses two research questions: (1) Are there differences in patterns of husband-wife roles in the selection of family professionals across different professional groups? (2) Do husbands and wives differ in their perceptions of their roles in the selection of family professionals? Over 300 respondents were asked to specify the degree of relative influence that the husband and the wife had in the selection of six family professionals: physican, dentist, eye-care specialist, lawyer, insurance agent and pharmacist. The findings indicated that: (1) Quite diverse patterns of family decision making occur across the six professional groups. (2) The aggregate perceptions of wives and husbands differ considerably with respect to two professionals: eye-care specialists and dentists.