Schutz,Machlup and rational economic man: some problems for economic imperialism?

Starting from a question posed by Schutz's ‘postulate of adequacy’, and its enndorsement by Machlup, the author asks what constraints there should be in the representation of human action in our models, given that it is our action that is being represented. He argues that metholdological individualism has, historically, been interpreted in two different ways: as leading to subjectivism or to mamimization approaches which exhibit little interest in the specific content of people's motivation. The author suggests that the latter should be seen as a special case of the former, which there is a rationale for adopting only in distinctive circumstances. ‘Economic imperialism’, however, typically extends the latter approach without regard to the presence of the factors which legitimate its use within economics. The paper also contains some more general argument concerning how subjectivism may be combined with realism, and a comparison of the author's conclusions with those of Machlup.     

Future thinking: A marketing perspective on reducing wildlife crime

This paper discusses how, using both a futures studies perspective and social contract theory, marketing is uniquely positioned to help reduce crimes against wildlife. The futures studies perspective involves predicting probable, preferable, and possible futures. Moreover, marketers have an obligation (i.e., a social contract) to society—wildlife included—to meet consumer needs through well-rounded, morally robust strategies. Using face-to-face and digital data collection methods, a broad set of consumers were asked about their perspectives on the future wildlife. Grounded theory was used to analyze responses until a point of thematic saturation. The results indicate that consumers take a broad, inclusive view of wildlife crime. Participants describe the immediate probable future where micro-, meso-, and macrolevel wildlife crimes persist, and a preferred future of wildlife, including among others, reduced wildlife crime, decreased animal cruelty, and human–wildlife symbiosis. Respondents expressed a desire to reduce what they view as wildlife crime and presented viable paths to reduce such crimes. Theoretical and managerial implications are offered.     

PERCEIVED INTENTIONALITY IN 2 × 2 EXPERIMENTAL GAMES

We test experimentally whether decisions in 2 × 2 games with mixed equilibria depend on the co‐player being nature or a human agent. Controlling for social preferences, we find differences in decisions in the chicken game and battle of the sexes but not for stag hunt and matching pennies. We attribute these to subjects' perception of the other's intentionality and disapproval avoidance in particular.     

Religious beliefs, gambling attitudes, and financial market outcomes

This study investigates whether geographic variation in religion-induced gambling norms affects aggregate market outcomes. We conjecture that gambling propensity would be stronger in regions with higher concentrations of Catholics relative to Protestants. Consistent with our conjecture, we show that in regions with higher Catholic–Protestant ratios, investors exhibit a stronger propensity to hold lottery-type stocks, broad-based employee stock option plans are more popular, the initial day return following an initial public offering is higher, and the magnitude of the negative lottery-stock premium is larger. Collectively, these results indicate that religion-induced gambling attitudes impact investors' portfolio choices, corporate decisions, and stock returns.     

Managing technological and social uncertainties of innovation: The evolution of Brazilian energy and agriculture

This paper explores how technological, commercial and social uncertainties shaped the development of Brazilian biofuels. Technological innovation allowed the country to emerge as a global leader, but Brazil continues to struggle with major social uncertainties due to poverty and environmental concerns common in many emerging economies. Contemporary approaches to development within the innovation literature focus primarily on overcoming technological and commercial uncertainties, but only peripherally explore social uncertainties. To fill this void, we draw on Martin and Hall's framework for managing innovative uncertainties, which is based on Kuhn and Popper's approaches to the evolution and methodology of science, and extend it with Aldrich and Fiol's concept of cognitive versus socio-political legitimacy. Based on qualitative data collected in Brazil, we outline the evolution of automotive fuel ethanol and flex-fuel technology, the development of Brazilian soybean production, and castor for socially inclusive biodiesel production. We show how innovation solved some technological and commercial uncertainties and generated new opportunities, but also created additional social uncertainties that are now being addressed. Through this process, Brazil has acquired capabilities in alternative energy technologies and more sustainable agriculture, becoming an exemplar for other emerging economies. We conclude with implications for policy and industry.     

Structural Change and Policy Reform in the UK Dairy Sector

Estimation of a cost function for a representative sample of UK dairy producers allows future re‐structuring of the industry to be simulated using a model which incorporates producers' differential costs and milk prices. Consideration is also given to reductions in producer prices and to the introduction of an A/B quota system. The results indicate that, despite the history of quota trading in the UK, there is considerable scope for further restructuring in the industry to take advantage of differential incentives between producers. It is also projected that UK milk supply would increase if quota restrictions were removed.     

New Goods and the Transition to a New Economy

The U.S. went through a remarkable structural transformation between 1800 and 2000. A precipitous decline in the importance of agricultural goods in the economy was matched by the rapid ascent of a plethora of new non-agricultural goods and services. A competitive model is presented here where consumption evolves along the extensive margin. This lessens the need to rely on satiation points, subsistence levels of consumption, and the like to explain agriculture’s demise. The analysis suggests that between 1800 and 2000 economic welfare grew by at least 1.5% a year, and may be as much as 10% annually, the exact number depending upon the metric preferred.The authors thank (Richard) Ming Hon Suen and two referees for comments. They are also grateful to Shouyong Shi for suggesting Figure 8. This research was supported by the NSF (award number 0136055).     

Rational Pricing of Internet Companies Revisited

In this article we expand and improve the Internet company valuation model of Schwartz and Moon (2000) in numerous ways. By using techniques from real options theory and modern capital budgeting, the earlier paper demonstrated that uncertainty about key variables plays a major role in the valuation of high growth Internet companies. Presently, we make the model more realistic by providing for stochastic costs and future financing, and also by including capital expenditures and depreciation in the analysis. Perhaps more importantly, we offer insights into the practical implementation the model. An important challenge to implementing the original model was estimating the various parameters of the model. Here, we improve the procedure by setting the speed of adjustment parameters equal to one another, by tying the implied half‐life of the revenue growth process to analyst forecasts, and by inferring the risk‐adjustment parameter from the observed beta of the company's stock price. We illustrate these extensions in a valuation of the company eBay.