Strategic Interaction and Trade Policymaking: Formal Analysis and Simulation

This paper introduces a simple game‐theoretic model and a Monte Carlo simulation of trade negotiations with the aim of identifying the nature of the selection bias that may threaten valid inference from empirical tests relying on data from trade disputes. Insights from the formal model are used to critically engage recent empirical analyses. This model is applied more specifically to the American use of Section 301 as an instrument to prise open foreign markets. The results of the game‐theoretical model and the Monte Carlo simulation demonstrate that, despite significant statistical results, models of trade negotiations might potentially suffer from misspecification due to non‐random selection effects.     

Managerial discretion and internal alignment under regulatory constraints and change

This paper investigates the effects of regulatory constraints and their relaxation on managerial discretion and internal fit in the context of the U.S. airline industry. Our results suggest that when managers' discretion is limited in one realm of choice, they compensate by using their greater level of discretion in some other arena to achieve internal fit. We show that the pursuit of fit matters, in the sense of having measurable efficiency consequences, and that fit trumps ‘best practice,’ at least in this context. In this respect, our findings provide a validation of the contingency perspective on internal fit. The ability to achieve fit under changing conditions may express a dynamic managerial capability necessary for adaptive organizational change. Copyright © 2007 John Wiley & Sons, Ltd.     

Decentralized international exchange

Abstract.  We utilize a random‐matching model to examine the relationships between market frictions and international trade. In our setting, an individual may choose to search abroad where she may have a cost advantage, but is less likely to meet potential trading partners, owing to higher market frictions. Interestingly, we find that international trade may be associated with lower welfare than autarky. We show how this is due to price distortions resulting from bargaining when there are opportunities for exchange across countries. JEL classification F10, C78, D83     

The Reform of Medical Malpractice Law:

The major stimulus for the extensive, state level, reform of medical malpractice during the past two decades was the widespread belief in a malpractice crisis. The perception of a crisis arose in the 1960s largely because of what was viewed as sudden and dramatic increases in the malpractice liability of physicians. However, historical data demonstrate that the common perception that physician liability increased suddenly and dramatically beginning in the 1960s Is incorrect. Since malpractice reform has been based upon the false premise that the medical malpractice liability system, previously working smoothly, was in disarray, the soundness of much of the malpractice reform which has occurred in the past two decades is questioned.     

债务危机难撼迪拜金融中心地位

【美国《商业周刊》12月2日】在迪拜政府在11月底宣布国有控股投资公司迪拜世界寻求对近260亿美元债务进行重组后,全球股市应声暴跌。虽然海外股市随后迅速反弹,但迪拜股市惨遭重创,而且迪拜领导人信誉扫地。然而,     

Marketing journal hierarchies: Faculty perceptions, 1986-87

This article reviews the latest perceptions among AACSB school professionals in the field of marketing regarding journal hierarchies. With the proliferation of marketing journals during the past few years comes the need to address the relative position of all marketing journals. This study lists journal rankings using prestige and importance indices. The paper concludes with a discussion on the relative importance of journal rankings in the consideration of promotion and tenure among faculty members.     

Dynamic simulations on overshooting of flexible commodity prices with a modified arbitrage condition

Applying a Neo‐Keynesian approach, this study investigates whether in the short run flexible commodity prices overshoot their long‐run equilibrium whenever there is a monetary change. Two differential equations are generated depicting the adjustment paths for commodity prices and prices of manufactures. With a modified arbitrage condition that incorporates convenience yield, flexible commodity prices are shown to overshoot their long‐run equilibrium when compared with less‐flexible prices of manufactured goods. Simulation results support the breakdown of money neutrality in the short run. Inflation rate and degree of rigidity of prices of manufactures are shown to have a significant effect on the adjustment paths. Convenience yield did not influence the adjustment mechanism.     

LET'S END, NOT MEND, SOCIAL SECURITY

Social Security is a paternalist measure, supposedly forcing people to save for their old-age years, based on the assumption that they are not far-seeing enough to do so on their own behalf. It is only 'supposed', since the funds mulcted from each generation go not to finance their own retirements, but those of their predecessors. As in the case of all coercive schemes, this one cannot be shown to improve the lot of anyone (with the exception of those who do the imposing). Specifically, this measure has negative implications for family bonds, as it substitutes the state for a function previously carried out by the extended family.