Auctions with different rates of patience: Evidence from the resale shoe market

Bids and asks are examined over time using auction data from a continuous auction of authentic deadstock sneakers. A theoretical analysis of a double auction over time shows that if buyers and sellers have different rates of patience, then a buyer (respectively, seller) who is patient will be more likely to set a lower initial bid (respectively, higher initial ask). This causes an increase in the unfulfilled bid–ask spread over time. These results are tested using data collected from the StockX website for two specific deadstock sneakers. Results show that the unfulfilled bid–ask spread is positively correlated with time.     

Reg-FD and the competitiveness of all-star analysts

We examine the impact of Regulation Fair Disclosure on the competitive advantage of All-Star analysts as measured by turnover in the rankings. Institutional Investor All-Americans, chosen by votes of institutional investors based on overall helpfulness, experienced a significant increase in turnover as Reg-FD was implemented. Non-US analysts and US analysts ranked solely on the basis of public stock recommendations did not. Within a few years, however, All-American turnover returned to pre-Reg-FD levels, suggesting that the new All-Americans built a competitive advantage stressing aspects of performance less dependent on privileged communication.     

Evidence on the use of unverifiable estimates in required goodwill impairment

SFAS 142 requires managers to estimate the current fair value of goodwill to determine goodwill write-offs. In promulgating the standard, the FASB predicted that managers will, on average, use the fair-value estimates to convey private information on future cash flows. The current fair value of goodwill is unverifiable because it depends in part on management??s future actions (including managers?? conceptualization and implementation of firm strategy). Agency theory predicts managers will, on average, use the unverifiable discretion in SFAS 142 consistent with private incentives. We test these hypotheses in a sample of firms with market indications of goodwill impairment. Our evidence, while consistent with some agency-theory based predictions, does not confirm the private information hypothesis.     

Product Design: Preference for Rounded versus Angular Design Elements

Two experiments tested whether a general relative preference for objects with rounded rather than angular form (Bar & Neta, 2006, 2007) can be applied in the context of the design of consumer products. Images of product packaging—a chocolate product (Experiment 1) and water and bleach bottles (Experiment 2)—were manipulated with regard to the shape of both contour and graphics. There was a preference for rounded designs that extended to self‐report purchase likelihood—with additive effects of contour and graphics shape that could not be accounted for by design typicality or perceived ease of use.     

Arbitrage and knowledge

I investigate in depth the contemporary, nation-wide arbitrage phenomenon of copper penny hoarding. While penny hoarding represents a “pure arbitrage” opportunity, it also clearly demonstrates the knowledge problems that face those entrepreneurs who are fully informed about intra-market price differences. This paper contrasts the Neoclassical and Austrian views on the role of information and knowledge in arbitrage, emphasizing the greater depth in understanding to be gained from the knowledge-based Austrian approach, as opposed to the information-based Neoclassical approach.     

Teaching Economics in the Schools: A Review of Survey Findings

The authors review and contrast the findings of a 1981 national survey of economic education at the precollege level and 15 state surveys conducted at about the same time. The picture that emerges is disturbing: instruction in economics tends to be minimal (or nonexistent) for many students, and teacher training in economics is limited. Curriculum structure, teacher training, and the development and use of materials are interrelated problems facing economic education.     

International Economics in U.S. High Schools: Results from a National Survey

A national survey of high school teachers revealed interest in, and support for, instruction on international concepts, issues, and institutions, with teachers of economics supporting free-trade policies more than other social studies teachers.     

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