...1 EFFICIENT MARKETS HYPOTHESIS Andrew W. Lo To appear in L. Blume and S. Durlauf, The New Palgrave: A Dictionary of Economics, Second Edition, 2007. New York: Palgrave McMillan. The efficient markets hypothesis (EMH) maintains that market prices fully reflect all available information. Developed independently by Paul A. Samuelson and Eugene F. Fama in the 1960s, this idea has been applied extensively to theoretical models and empirical studies of financial securities prices, generating considerable controversy as well as fundamental insights into the price-discovery process. The most enduring critique comes from psychologists and behavioural economists who argue that the EMH is based on counterfactual assumptions regarding human behaviour, that is, rationality. Recent advances in evolutionary psychology and the cognitive neurosciences may be able to reconcile the EMH with behavioural anomalies. There is an old joke, widely told among economists, about an economist strolling down the street with a companion. They come upon a $100 bill lying on the ground, and as the companion reaches down to pick it up, the economist says, ‘Don’t bother – if it were a genuine $100 bill, someone would have already picked it up’. This humorous example of economic logic gone awry is a fairly accurate rendition of the efficient markets hypothesis (EMH), one of the most hotly contested propositions in all the social sciences. It is disarmingly simple to state, has far-reaching consequences...
Words: 11295 - Pages: 46
...Comm101 Principles of Responsible Commerce Topic: The Historical Development of Modern Business Enterprises Objectives for this lecture • Consider a brief historical account of the development of modern national and multinational business organisations. • Consider, in particular, the benefits and costs of two major characteristics of such organisations: increased size and separation of ownership and control. • Discuss some of the processes by which firms have tried to reduce the incidence of opportunistic behaviour by management. • Briefly consider a recent Australian example of a significant business management failure. 2 Why is knowledge of historical developments important? • Understanding historical developments helps us to: • Apply lessons from the past: are there commonalities between past and the present? • Understand the importance of path dependency, i.e. that some past decisions have had long term ramifications (e.g. convict settlement of Australia), and so current period decisions may also affect future generations (e.g. CO2 emissions). • Appreciate the inevitability of continual economic and social evolution, but understanding that we have some influence on how and when such changes should occur. • So a sound understanding of history brings empowerment to 3 the debate about current business practices. 1 Important historical developments • Pre about 1850, in industrialising UK, the typical business firm was: • Small scale, mostly catering to local demand...
Words: 2056 - Pages: 9
...Evol. Inst. Econ. Rev. 4(1): 143–170 (2007) ARTICLE Econo-physics: A Perspective of Matching Two Sciences Yuri YEGOROV Institute for Advanced Studies, Stumpergasse 56, A-1060, Vienna, Austria, and University of Vienna, Department of Industry and Energy, Brünner Strasse, 72, A-1210, Vienna, Austria. E-mail: yegorov@ihs.ac.at Abstract The present article marks some potentially fruitful dimensions of economic research based on principles of economic theory but using more analogies with physics. Molecular structure of society with its different states, principles generating spontaneous order different from “invisible hand”, social analogies of the concepts of temperature and pressure in physics are investigated. Some analogies between phase transitions in physics and transition between different social regimes can reveal the areas of stability of liberal regimes as well as possibility of spontaneous emergence of different social orders. A possibility to expand neoclassical economics to capture Marxism and nationalism in a formal mathematical framework is also discussed. Keywords: economic structures, origin of order, econo-physics, socio-physics. 1. Introduction This article is methodological. It focuses on economic and social questions that are rarely touched by economic theorists despite their obvious importance for our understanding of economic processes in the world. No fully formalized model will be proposed here. Instead, the focus will be on interaction between...
Words: 11187 - Pages: 45
...also Muslims. This article will shed some light on the significance and origins of Hallow’een, and why Muslims should not participate in it. Origins of the Hallow’een Festival The ancient Celtic (Irish/Scottish/Welsh) festival called Samhain is considered by most historians and scholars to be the predecessor of what is now Hallow’een. Samhain was the New Year’s day of the pagan Celts. It was also the Day of the Dead, a time when it was believed that the souls of those who had died during the year were allowed access into the “land of the dead”. Many traditional beliefs and customs associated with Samhain continue to be practiced today on the 31st of October. Most notable of these customs are the practice of leaving offerings of food and drink (now candy) to masked and costumed revelers, and the lighting of bonfires. Elements of this festival were incorporated into the Christian festival of All Hallow’s Eve, or Hallow-Even, the night preceding All Saint’s (Hallows’) Day. It is the glossing of the name Hallow- Even that has given us the name of Hallow’een. Until recent times in some parts of Europe, it was believed that on this night the dead walked amongst them, and that witches and warlocks flew in their midst. In preparation for this, bonfires were built to ward off these malevolent spirits. By the 19th century, witches’ pranks were replaced by children’s tricks. The spirits of Samhain, once...
Words: 5868 - Pages: 24
...Transportation & Logistics Transportation & Logistics 2030 Volume 1: How will supply chains evolve in an energy-constrained, low-carbon world? PricewaterhouseCoopers 1 Acknowledgements The editorial board of this issue of our Transportation & Logistics 2030 series consisted of the following individuals: PricewaterhouseCoopers European Business School Supply Chain Management Institute Dr. Heiko von der Gracht +49 611 3601 8800 vdgracht@supplyinstitute.org Tobias Gnatzy +49 611 3601 8800 gnatzy@supplyinstitute.org Prof. Dr. Inga-Lena Darkow +49 611 3601 8800 darkow@supplyinstitute.org Klaus-Dieter Ruske +49 211 981 2877 klaus-dieter.ruske@de.pwc.com Dr. Peter Kauschke +49 211 981 2167 peter.kauschke@de.pwc.com Julia Reuter +49 211 981 2095 julia.reuter@de.pwc.com Dr. Elizabeth Montgomery +49 89 5790 5159 elizabeth.montgomery@de.pwc.com We would like to thank the panellists who took part in the Delphi survey that underpins this report. For confidentiality reasons their names will not be mentioned. Special thanks go to Tom Gorman, CEO of CHEP EMEA and Harry Hohmeister, CEO of Swiss International Air Lines, who took the time to share their thoughts and insights with us. Finally, we would like to express our appreciation for the expertise provided by the below listed individuals: Jenny Bailey, Andreas Baur, Nicholas Bell, Thomas Brüderlin, Giorgio Elefante, Richard Gane, Martha Elena Gonzalez, Susanne Klages, Christian Knechtel, Socrates LeptosBourgi, Alexander...
Words: 28154 - Pages: 113
...REPORT Corporate Social Responsibility: Innovation and Business Skills Australia March 2011 Better business through innovation... Acknowledgements IBSA wishes to acknowledge the work of the project team who have prepared this report. CSR Sydney www.csrsydney.com David Morrissey Franziska Kleedehn Sustainability Learning Institute Bruce McKenzie Cheryl Hardie Ian Hardie Andrew McKenzie Damian Collins www.sustainabilitylearning.com.au IBSA is grateful to the large number of people and organisations who have supported IBSA in this project and who participated in workshops and in other ways contributed their time and insights. For further information about this report or any other work being undertaken by Innovation & Business Skills Australia Ltd, please visit www.ibsa.org.au. Innovation & Business Skills Australia Ltd Level 11, 176 Wellington Parade East Melbourne VIC 3002 Australia P +61 3 9815 7000 F +61 3 9815 7001 E reception@ibsa.org.au W www.ibsa.org.au This work has been produced with the assistance of funding provided by the Commonwealth Government through the Department of Education, Employment and Workplace Relations (DEEWR). The views expressed in this work do not necessarily represent the views of DEEWR. In addition, DEEWR does not give warranty or accept any legal liability in relation to the content of this work. © IBSA 2011 No material contained within this publication may be reproduced in full or in part without the...
Words: 14126 - Pages: 57
...COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK DEPARTMENT OF TRADE AND INDUSTRY: COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK Report submitted to The Department of Trade and Industry (Tender CGS/1239) Professors Steve Burt and Leigh Sparks Institute for Retail Studies University of Stirling Stirling FK9 4LA Scotland, UK Phone: 44 (0)1786 467386 Fax: 44 (0)1786 465290 E-Mail: s.l.burt@stir.ac.uk ; Leigh.Sparks@stir.ac.uk Revised for Seminar - January 2003 DEPARTMENT OF TRADE AND INDUSTRY: COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK Contents 0 Executive Summary I Background and Framework for Analysis II Competitive Analysis – the UK Retail Sector III Summary and Policy Recommendations IV Appendix – Analysis of Retail Sub-Sectors EXECUTIVE SUMMARY 0.1 Background and Framework for Analysis In early 2002 the Institute for Retail Studies at the University of Stirling was commissioned to carry out a ‘Competitive Analysis of the Retail Sector in the UK’ (tender CGS/1239) based on secondary sources and restricted to the UK rather than international comparisons. The project had three objectives: · to define and map the sector in terms of size and composition of the businesses which operate within it; · to analyse the competitiveness of the sector now through SWOT, PEST and Porter's 5 forces and any other appropriate means and summarise the key issues facing the sector as a whole, and also sub-sector specific issues;...
Words: 30153 - Pages: 121
...2 and 3ORGANISATION AND MANAGEMENT 20 DECISIONAL ROLES Decisional roles involve the making of strategic organisational decisions on the basis of the manager's status and authority, and access to information. (i) Entrepreneur As entrepreneurs, managers plan and initiate projects to bring about change and innovation to improve the performance of their unit and organisation. (ii) Disturbance handler As a disturbance handler role, the manager takes corrective action in response to previously unforeseen problems such as strikes, financial difficulties or change in government policy. In such situations, managers can, for instance, devise a strategy and set up committees that deal with disturbances and crises. (iii)Resource allocator As resource allocators, managers are responsible for the distribution of the organisation's resources such as money, time, equipment, staff and materials among organisational members. (iv) Negotiator The negotiator role relates to participation in negotiation activities with outside organisations (for example when negotiating a contract with suppliers) or with individuals working for the same organisation (for instance when bargaining about working terms and conditions with the trade union). Negotiation plays an important part of the manager's job because of his/her authority, responsibility and knowledge of information. 21 Evaluation of Mintzberg's role approach Mintzberg acknowledged that his categorisation of the ten roles...
Words: 11584 - Pages: 47
...Tác giả: Simon Website: www.ielts-simon.com Người tổng hợp: Quang Thắng Website: www.ielts-quangthang.com TỔNG HỢP BÀI MẪU WRITING TASK 2 BAND 9.0 Tác giả: Simon Tổng hợp bởi: Quang Thắng Chào các bạn, Simon là một thầy giáo dạy IELTS rất nổi tiếng trên thế giới. Thầy là một cựu examiner, và hiện nay thầy đang có một website rất hữu ích về việc học và luyện IELTS. Thầy Simon luôn được biết đến với phong cách đơn giản và hiệu quả. Những bài học thầy viết luôn gần gũi, dễ hiểu và dễ áp dụng đối với mọi học viên. Tương tự là những bài essays thầy viết mẫu. Chúng đều tương đối đơn giản, nhưng lại cực kỳ xuất sắc và đều đạt mức band điểm 9.0. Dưới đây là tổng hợp 18 bài essays mẫu của thầy Simon cho Task 2. Các bạn nên đọc và phân tích kỹ từng bài viết này để học được cách viết sao cho đơn giản, mạch lạc và kiếm được điểm cao nhất. Chúc các bạn học được nhiều điều từ những bài viết mẫu này. Trần Quang Thắng Tác giả: Simon Website: www.ielts-simon.com Người tổng hợp: Quang Thắng Website: www.ielts-quangthang.com Some people believe that hobbies need to be difficult to be enjoyable. To what extent do you agree or disagree? Some hobbies are relatively easy, while others present more of a challenge. Personally, I believe that both types of hobby can be fun, and I therefore disagree with the statement that hobbies need to be difficult in order to be enjoyable. On the one hand, many people enjoy easy hobbies. One example of an activity that is easy...
Words: 6043 - Pages: 25
...THE PERCEPTION OF TAXPAYERS TOWARD GOODS AND SERVICES TAX (GST) IMPLEMENTATION IN MALAYSIA CHAPTER ONE - INTRODUCTION 1.1 Backgroud of Study Malaysian taxation system is generally divided into two, which are direct taxes and indirect taxes. Indirect taxes are controlled by the Royal Malaysian Custom Department (RMCD) and it consists of four components such as excise duties, customs duty, sales tax and service tax. Direct taxes are under the control of the Inland Revenue Board of Malaysia (IRBM). The IRBM is responsible for all policies relating to direct taxes such as income tax of individual and business, petroleum income tax, real property expansions tax, and stamp duty. From the government perception, taxation is a vital economic tool because it can be employed to regulate the economy, to invigorate economic growth through the granting of fiscal incentives as a principal aim of implementing tax policies and to provide funds for development projects (JeyapalanKasipillai, 2005). The contribution of direct taxes and indirect taxes to government revenue in 2009 amounted to RM78.375 billion (49.4%) and RM28.129 billion (1 7.73%), respectively. This shows that taxation contributes more than 60% to the Malaysian government revenue. Recently, the Malaysian government established the implementation of goods and services tax (GST) to replace Sales Tax and Services Tax (SST). The GST plan was first raised in 1988 but at the time it was considered unnecessary because the sales...
Words: 15209 - Pages: 61
...Graduate School of Development Studies A Research Paper presented by: Celeste Aida Molina Fernández (Guatemala) in partial fulfilment of the requirements for obtaining the degree of MASTERS OF ARTS IN DEVELOPMENT STUDIES Specialisation: Rural Livelihoods and Global Change (RLGC) Members of the examining committee: Prof. Dr Max Spoor Prof. Dr Peter Knorringa The Hague, The Netherlands November, 2010 Disclaimer: This document represents part of the author’s study programme while at the Institute of Social Studies. The views stated therein are those of the author and not necessarily those of the Institute. Research papers are not made available for circulation outside of the Institute. Inquiries: Postal address: Institute of Social Studies P.O. Box 29776 2502 LT The Hague The Netherlands Location: Kortenaerkade 12 2518 AX The Hague The Netherlands Telephone: +31 70 426 0460 Fax: +31 70 426 0799 Acknowledgments I would like to express my deepest appreciation to all the people who in one way or another contributed to the completion of this study, especially the interviewees, who generously shared their time and knowledge about the coffee sector in Ethiopia. My sincerest appreciation goes to Bilisuma Dito, who first introduced me to the ECX and provided me with key contacts for the fieldwork. Many thanks to Martha Kibru, Saba Yifredew...
Words: 20624 - Pages: 83
...Managerial Economics MBA First Year Paper No. 2 School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: Atmanand Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I Lesson...
Words: 36898 - Pages: 148
...fulfillment of the requirements for the degree of Doctor of Philosophy School of Advertising, Marketing and Public Relations Faculty of Business QUEENSLAND UNIVERSITY OF TECHNOLOGY Brisbane, Queensland 4000, Australia 2006 Title: Antecedents of Commitment to an Import Supplier Saleh @ 2006 Key Words: 1. Antecedents of commitment 2. Importer’ s commitment 3. Importer supplier relationship 4. Mediating role of trust 5. Cultural similarity 6. Communication 7. Knowledge and experience 8. Supplier’ s opportunism 9. Environmental volatility 10. Transaction-specific investment 11. Supplier’s competencies ii Abstract The concept of commitment has emerged recently in international business literature especially in explaining importer behaviour as a counterpart of the process of internationalisation. Importer commitment often plays a dominant role as one of the major factors influencing relationships in the exporter-importer dyad and facilitates the process of internationalisation by imparting access to the international market. This critical importer and supplier relationship and its animating factors are, however, overlooked and largely neglected in the literature. Accordingly, it is inconclusive as to which factors influence importer commitment and how they influence it. Drawing on the literature, this study strived to investigate the spectrum of importer commitment and has explicitly examined eight factors influencing importer commitment to a foreign supplier by integrating...
Words: 40233 - Pages: 161
...Organizational Change …………………………....……. 37 9. Dealing with Resistance to Change ……….………….……..…… 41 10. Methods of Overcoming Resistance to Change …………………. 43 11. Comparison Between Leadership and Management …………….. 57 12. Three Leadership Patterns, their Location in the Organization and Their Skill Requirements ……………………………….…… 61 13. Hersy and Blanchard’s Situational Leadership Model: Defining Maturity and Four Leadership Styles…………….…..… 65 14. Relationships in the LPC Contingency Mode ……………………. 69 15. Casual Relationship for Supportive Leadership on Subordinate Effort ……………………………………………………………... 74 16. Casual Relationship of Effects of Directive Leadership Behaviour on Subordinate Effort ……………………………………………. 76 17. Path-Goal of Leadership ………………………………………….. 77 18. Application of the Path-goal Model to Six Situations...……..…… 78 19. Specific Substitutes and Neutralizers for Supportive and Instrumental Leadership ……………………………………….… 81 20. Casual Relationships in the Multiple Linkage Model .…………... 83 Page 21. Conditions Affecting the...
Words: 69999 - Pages: 280
...Introduction to Hospitality Industry UNIT 1 1.1 1.2 1.3 Meaning and definition Historical evolution and development Hospitality as an Industry 1.1 Introduction Meaning and definition Tourism is not just about the facilities and attractions provided for visitors. It is about people and especially about the relationship between the customer and the individual providing service. Everybody employed in tourism needs to have the knowledge, skills and attitudes to provide the standard of product and service that customers expect. Knowing about the tourism industry, its component parts and especially where you fit in is an important starting point to a successful career in tourism. What Is Tourism? Tourism may be described as the activities of tourists and those who cater for them. It is a highly diversified business with many component parts ranging from airlines to hotels. Tourism is concerned with providing: Travel and transport facilities Accommodation Food and drink Entertainment/recreation Information and assistance Souvenirs Above all, tourism is a hospitality industry providing a service to visitors in a warm and welcoming way. ICHM Page 1 Introduction to Hospitality Industry Who Are Tourists? Tourists are people who for a variety of reasons travel to destinations, where they stay at least one night. Excursionists are also visitors that do not make an over-night stop, such as daytrippers or people on cruises. There are several basic types of tourists: ...
Words: 40041 - Pages: 161
