DOCSLIB.ORG

1 Economics: the Delightful Science

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
1 Economics: the Delightful Science Draft notes for Bob Wayland’s Economics of Business Class 1 Notes: 1 Economics: The Delightful Science Objective(s): Part I of these notes sets out a framework of four economic concepts found in Adam Smith’s work and introduces the class readings within that context. The readings are noted in bold face as they are introduced. There really is a story line to the course beginning with what is a firm and ending with the origins of new firms through entrepreneurialism. After the story line is set out there follows a very short history of business to convey its scale, ancient origins, and the often under-appreciated sophistication of early markets, especially in finance. The second set of notes sets the stage for our discussion of Ronald Coase’s seminal contribution to the study of firms that describes how entrepreneurs choose to organize and conduct complex activities by combining resources from either the market or through firms. I. Economics: the Delightful Science2 Adam Smith’s monumental 1776 book, The Wealth of Nations is the foundation work of modern economics. Smith changed the way people thought about markets and the creation of economic value. His ideas also changed the intellectual environment within which political and economic theory and policy were debated. Smith, a Scottish professor of moral philosophy, created a coherent discipline based in part on four notions: (a) The beneficial power of self-interest 1 My friend and colleague Jim Mulcahy, also a business economist, has served as a sounding board and contributor to these notes. He has suggested many improvements and corrected my errors. Jim is therefore 2 Economics is frequently referred to as the “dismal science” a slander that would be less common if the critic realized that the term is actually a badge of honor bestowed on economics by the racist English historian Thomas Carlisle, originally in a particularly offensive 1849 article “Occasional Discourse on The Nigger Question” in Fraser’s Magazine (reprinted in Miscellaneous Essays, London, Chapman and Hall, 1888 Vol. 7, pp79-110). Carlisle’s notorious article mocked the political economists such as Smith, McCulloch, and particularly J.S. Mill, who argued that slavery was both immoral and in general inefficient. It prompted J.S. Mills’ famous January, 1850 rejoinder, “The Negro Question,” in Fraser’s Magazine 41, The exchange ended their already eroding friendship. Understanding the origins of the slur should encourage critics of economics to seek more savory authorities. The more frequent but erroneous citation is to Carlyle’s criticism of Malthusianism as “dreary, stolid and dismal” in an earlier 1839 essay, “Chartism,” also reprinted in Miscellaneous Essays. An interesting and accessible discussion of the 19th century economic debates over slavery is Peter Groenwegen, ”Thomas Carlyle, ‘The Dismal Science,’ and the Contemporary Political Economy of Slavery,” History of Economics Review (Canberra, Australian National University) 34 (Summer 2001), 74—94. Surprisingly, David Warsh, an economic journalist and author of the Knowledge and the Wealth of Nations, 2006, W.W. Norton, New York, devotes his Chapter 5, “How the Dismal Science Got Its Name, (pp. 48- 60), to an exposition of Malthus’ and Ricardo’s pessimistic outlook without mentioning Carlisle, the slavery issue, or Mill’s rejoinder. Paul Krugman, who plays a role in Warsh’s discussion of increasing returns, praised it here: http://www.nytimes.com/2006/05/07/books/review/07krugman.html?pagewanted=all&_r=3& 1 Draft notes for Bob Wayland’s Economics of Business (b) The division of labor, or specialization, as a primary basis of a nation’s wealth3 (c) The importance of freedom to trade, among people, businesses, and nations (d) The market as a self-directed, autonomous system There is far, far more to Smith’s work but these four concepts form an effective foundation and framework for an examination of the economics of business. The course is designed to explore these ideas through the work of eminent economists. The next sections introduce the ideas and the related readings. 3 We are simplifying here a bit to focus on the factors most relevant to the economics of business. Smith writing on the forces of national economic growth stated, “The annual produce of the land and labour of any nation can be increased in its value by no other means, but by increasing either the number of its productive labourers, or the productive powers of the labourers who had before been employed. The number of its productive labourers, it is evident, can never be much increased, but in consequence of an increase of capital or of funds destined for maintaining them. The productive powers of the same numbers of labourers cannot be increased but in consequence either of some addition and improvement to those machines and instruments which facilitate and abridge labour; or of a more proper division and distribution of employment. In either case an additional capital is almost always required.” (Adam Smith, An Inquiry Into The Nature And Causes Of The Wealth of Nations, originally published in 1776. The edition quoted from here is the Modern Library Edition, 1937, 1965, page 326) 2 Draft notes for Bob Wayland’s Economics of Business I. A. The Beneficial Power of Self-Interest Private enterprise is driven by private initiative and prospects for gain. Smith noted that for the most part men acted rationally and in their self-interest, famously pointing out that: “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.”4 Smith explains later that the aggregate effect of many people seeking to find the best use of their capital and exhorting the industries that they invest in to produce value will tend to increase the annual revenue of a society. …As every individual, therefore, endeavors as much as he can, both to employ his capital in support of the domestic industry, and so direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it.5 The outcomes of market operations are sensitive to the initial distribution of resources and the rules of the society. However, most economists argue that people are generally best able to discern their own interest and to allow them freedom to do so, with only a few compelling restraints, is in the general interest of society. Given an initial distribution of resources or wealth voluntary free market interactions among people will produce the highest valued total output and social wealth. Students sometimes equate the pursuit of self-interest with Gordon Gekko’s signature line in the 1987 film Wall Street, "Greed, for lack of a better word, is good." Adam Smith was a moral philosopher and certainly did not endorse unbridled avarice, the corruption of trust and relationships, or the exploitation of privileged information for self- enrichment. Self-interest is not the same as selfish. Acting selfishly (in the sense that game theorists call “defecting”) can be against one’s interests. Self-interest need not be a strictly monetary or self-centered objective.6 Smith and his followers knew well that people gained utility or satisfaction from many things.7 In fact Smith would have been a 4 Adam Smith, An Inquiry Into The Nature And Causes Of The Wealth of Nations, originally published in 1776. The edition quoted from here is the Modern Library Edition, 1937, 1965, page 14. 5 Page 264 of 570 of electronic Kindle edition 6 Selfless behavior provides satisfaction to some people but it is not evidence either of acting irrationally or against their self-interest. Apparent altruism is common among humans and some other animals such as bats. In most cases it can be explained by game theory as a form of tit-for-tat strategy in which repayment is expected. In other cases, we simply admit that some people find utility in being noble and selfless. 7 Today there is a branch of psychology called hedonic psychology that was founded by Daniel Kahneman, (see Well-being: The Foundations of Hedonic Psychology. New York: Russell Sage Foundation. Kahneman, D., & Tversky, A. 2000) a psychologist who became interested in what made people happy based on his exposure to the economic concept of utility. Kahneman, who never took a course in 3 Draft notes for Bob Wayland’s Economics of Business notable scholar based only on his earlier work, The Theory of Moral Sentiments. But his point was that whatever those things were that provided satisfaction, a person pursued them and made decisions in light of their value to him. Until relatively recently, the concept of self-interest employed in the theory of production was almost entirely confined to the pursuit of profit maximization by the entrepreneur. In contrast, self-interest in the theory of consumer choice was expressed in the concept of a utility function and guided by the consumer’s desire to maximize his utility – a measure of the personal value placed on a good or service. Now we realize that production decisions are not solely based on profit maximization (if such a thing were possible). Managers happen also to be people who place different values (utilities) on the various aspects of their job. These values will be represented in various degrees within decisions. For example an entrepreneur or executive may balance his pursuit of profits with a desire for social standing and choose investments accordingly. The values of the managers may not align perfectly with those of the people they work for, or who work for them, and hence we have the agency problem or the principal-agent problem and the issues of opportunism and shirking.
Load more

Recommended publications
  • Complementarity and Demand Theory: from the 1920S to the 1940S Jean-Sébastien Lenfant
    Complementarity and Demand Theory: From the 1920s to the 1940s Jean-Sébastien Lenfant To cite this version: Jean-Sébastien Lenfant. Complementarity and Demand Theory: From the 1920s to the 1940s. History of Political Economy, Duke University Press, 2006, 38 (Suppl 1), pp.48 - 85. 10.1215/00182702-2005- 017. hal-01771852 HAL Id: hal-01771852 https://hal.archives-ouvertes.fr/hal-01771852 Submitted on 19 Apr 2018 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. Complementarity and Demand Theory: From the 1920s to the 1940s Jean-Sébastien Lenfant The history of consumer demand is often presented as the history of the transformation of the simple Marshallian device into a powerful Hick- sian representation of demand. Once upon a time, it is said, the Marshal- lian “law of demand” encountered the principle of ordinalism and was progressively transformed by it into a beautiful theory of demand with all the attributes of modern science. The story may be recounted in many different ways, introducing small variants and a comparative complex- ity. And in a sense that story would certainly capture much of what hap- pened. But a scholar may also have legitimate reservations about it, because it takes for granted that all the protagonists agreed on the mean- ing of such a thing as ordinalism—and accordingly that they shared the same view as to what demand theory should be.
    [Show full text]
  • John Stuart Mill Y La Cuestión Sobre El Paternalismo* John Stuart Mill and the Paternalism Issue
    FECHA DE RECEPCIÓN: 04/01/16 FECHA DE APROBACIÓN: 18/01/16 John Stuart Mill y la cuestión sobre el paternalismo* John Stuart Mill and the paternalism issue Leandro Cornejo Amoretti** Resumen: La presente investigación estudia el pensamiento de John Stuart Mill y su posición alrededor de la justificación del paternalismo, tomando en consideración el principio de daño elaborado en su obra “Sobre la libertad”. Dos son los objetivos de este trabajo. En primer lugar, se analizarán las tesis anti-paternalistas sostenidas por este autor para 8 identificar sus deficiencias y limitaciones. En segundo lugar, se busca determinar hasta 4 qué punto dichas tesis realmente se opusieron a dichas intervenciones, para verificar la exactitud de aquella creencia algo extendida que considera a Mill como un fuerte opositor del paternalismo. Se concluye que los defectos de las tesis de Mill se explican en buena cuenta debido a un exceso de optimismo en las capacidades de los seres humanos para la auto-regulación, un fuerte escepticismo sobre la capacidad del Estado para lograr medidas paternalistas efectivas, el otorgamiento de un peso excesivamente fuerte e irrealista a la autonomía individual, entre otras consideraciones erróneas. Asimismo se concluye que no es correcto afirmar que John Stuart Mill haya sostenido una tesis anti-paternalista sumamente amplia o casi absoluta. Si bien su famoso principio de Asociación Civil Asociación daño permite excluir de validez a muchas medidas de dicha naturaleza, una revisión Derecho & Sociedad más detallada de toda su obra permite mostrar que Mill admitió la validez de muchas 13 intervenciones en adultos. Abstract: The present investigations study the John Stuart Mill thinking and his position towards paternalism justification, taking into account the harm principle elaborated in his book “On Liberty”.
    [Show full text]
  • Economics of Business
    Draft notes for Bob Wayland’s Economics of Business Class 1 Notes, Part 1: Economics: The Delightful Science1 Objectives: Part I of these notes sets out a framework of four economic concepts found in Adam Smith’s work and introduces the class readings within that context. The readings are noted in bold face as they are introduced. There really is a story line to the course beginning with what is a firm and ending with the origins of new firms through entrepreneurialism. After the story line is set out there follows a very short history of business to convey its scale, ancient origins, and the often under-appreciated sophistication of early markets, especially in finance. The second set of notes sets the stage for our discussion of Ronald Coase’s seminal contribution to the study of firms that describes how entrepreneurs choose to organize and conduct complex activities by combining resources from either the market or through firms. I. Economics: the Delightful Science2 Adam Smith’s monumental 1776 book, The Wealth of Nations is the foundation work of modern economics. Smith changed the way people thought about markets and the creation of economic value. His ideas also changed the intellectual environment within which political and economic theory and policy were debated. Smith, a Scottish professor of moral philosophy, created a coherent discipline based in part on four notions: (a) The beneficial power of self-interest 1 My friend and colleague Jim Mulcahy, also a business economist, has served as a sounding board and contributor to these notes. He has suggested many improvements and corrected my errors.
    [Show full text]
  • Correspondence Slutskii-Frisch, 1925-1936 Transcribed by Mag
    Correspondence Slutskii-Frisch, 1925-1936 Transcribed by Mag. Guido Rauscher (Vienna), May 2005 The (incomplete) collection of the correspondence between Ragnar Frisch (1895-1973) and Evgenii Evgenievich Slutskii (1880-1948) consists of 24 items, 11 letters from Slutskii, including the copy of a letter to George Udny Yule (1871-1951) and 13 letters from Frisch. It is deposited at the Department of Manuscripts (Håndskriftsamlingen) of The National Library of Norway (Nasjonalbiblioteket), Oslo. The help of Prof. Olav Bjerkholt, Oslo, in getting access to these materials is gratefully acknowledged. Insertions of the transcriber are enclosed in square brackets. Letter No.1 EES-RF [handwritten] 25.II.1925 Kiev, Nesterovskaja 17/8 Högädle herre! Edert särtryck ur Skandinavisk Aktuarietidskrift (Solution d'un problème du calcul des probabilités) har jag haft nöjet att emottaga vek är jag mycket tacksam för det sändningen. Högaktningsfullt E. Slutski [EES acknowledges receipt of the off-print of the paper Solution d'un problème du calcul des probabilités from Skandinavisk Aktuarietidskrift, Vol 7, 1924., pp.153 - 174 and thanks RF for the consignment.] Letter No.2 EES-RF [handwritten] 26.VI.1926 Sehr geehrter Herr Kollege! Wegen meiner Uebersiedelung aus Kiew nach Moskau ist ihr freundlicher Brief vom 24. April nur heute zu mir angekommen. Für Ihr liebenswürdiges Anerbieten mir ein Exemplar Ihrer Arbeit „Sur un problème d'économie pure“ zugehen zu lassen danke ich Ihnen bestens und sehe dieser Zusendung mit hochgespannten Interesse entgegen. Im Jahre 1915 ist in Giornale degle Economisti meine Arbeit “Sulla teoria del bilancio del consumatore” erschienen, wo ein Versuch gemacht wurde die Gleichgewichtsbedingungen der einzelnen Wirtschaft mit grösserer Strenge, als es bisher geschah, zu ergründen.
    [Show full text]
  • Consumer Behaviour During Crises
    Journal of Risk and Financial Management Article Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing Behaviour Mary Loxton 1, Robert Truskett 1, Brigitte Scarf 1, Laura Sindone 1, George Baldry 1 and Yinong Zhao 2,* 1 Discipline of International Business, University of Sydney, Sydney, NSW 2006, Australia; [email protected] (M.L.); [email protected] (R.T.); [email protected] (B.S.); [email protected] (L.S.); [email protected] (G.B.) 2 School of Economics, Fudan University, Shanghai 200433, China * Correspondence: [email protected] Received: 24 June 2020; Accepted: 19 July 2020; Published: 30 July 2020 Abstract: The novel coronavirus (COVID-19) pandemic spread globally from its outbreak in China in early 2020, negatively affecting economies and industries on a global scale. In line with historic crises and shock events including the 2002-04 SARS outbreak, the 2011 Christchurch earthquake and 2017 Hurricane Irma, COVID-19 has significantly impacted global economic conditions, causing significant economic downturns, company and industry failures, and increased unemployment. To understand how conditions created by the pandemic to date compare to the aforementioned shock events, we conducted a thorough literature review focusing on the presentation of panic buying and herd mentality behaviours, changes to discretionary consumer spending as defined by Maslow’s Hierarchy of Needs, and the impact of global media on these behaviours. The methodology utilised to analyse panic buying, herd mentality and altered patterns of consumer discretionary spending (according to Maslow’s theory) involved an analysis of consumer spending data, largely focused on Australian and American markets.
    [Show full text]
  • Thesis Submitted for the Degree of Doctor in Business Administration
    University of Bath DOCTOR OF BUSINESS (DBA) Tacit knowledge sharing at Higher Education Institutions and its impact on the creation of competitive niches. Holzer Geromin, Martina Award date: 2015 Awarding institution: University of Bath Link to publication Alternative formats If you require this document in an alternative format, please contact: [email protected] General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal ? Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Download date: 10. Oct. 2021 Tacit knowledge sharing at Higher Education Institutions and its impact on the creation of new competitive niches Martina Holzer Geromin A thesis submitted for the degree of Doctor in Business Administration in Higher Education Management (DBAHEM) University of Bath School of Management April 2015 COPYRIGHT Attention is drawn to the fact that copyright of this thesis rests with the author. A copy of this thesis has been supplied on condition that anyone who consults it is understood to recognise that its copyright rests with the author and that they must not copy it or use material from it except as permitted by law or with the consent of the author.
    [Show full text]
  • The Stepping Stone ISSUE 65 MARCH 2017
    The Stepping Stone ISSUE 65 MARCH 2017 What Would You Do? A Di icult Discussion By John West Hadley Chairperson’s Corner Business Management People Management 3 Changes in the New Year 12 Actuaries in the C-Suite 24 Solving the Leadership Puzzle: By Scott Randles Overturning Traditional Models Career Development By Anne M. Katcher What Would You Do? 16 Actuaries and Jungian Archetypes 5 A Di icult Discussion By Carlos Arocha Personal Development By John West Hadley 25 What Actuarial Exams 18 Setting “Objective” Objectives Don’t Teach You 6 Responses to “Su icient By Mitchell Stephenson By Juan Arroyo Preparations” By John West Hadley Communication Skills 26 The Zen Actuary Installment 11: 20 Write for Results “Refining and Rebuilding Diversity Spotlight By Pamela Burns the Practice” 10 Actuarial Science Is Everyone’s Game By Rich Lauria By Olga Jacobs 21 What Does the Pain of Independence Have to Do With It? 30 Pepper Spray and Shooting Stars By Doreen Stern, Ph.D. By Annie Xue 2017 SECTION The LEADERSHIP Officers Scott Randles, FSA, MAAA, Chairperson Anne M. Katcher, FSA, MAAA, Vice Chairperson Stepping Carlos Arocha, FSA, Secretary/Treasurer Council Members Abraham Gootzeit, FSA, MAAA Carrie Kelley, FSA, MAAA Rong Rong, FSA, MAAA, CERA Stone Joanne Ryan, FSA, MAAA Mitchell Stephenson, FSA, MAAA Issue Number 65 • March 2017 Tamra VanAllen, FSA, MAAA Published three times a year by the Newsletter Editor Leadership & Development Section of John West Hadley the Society of Actuaries. John Hadley Associates 908.725.2437 475 N. Martingale Road, Suite 600 [email protected] Schaumburg, Ill 60173-2226 Phone: 847.706.3500 Fax: 847.706.3599 Program Committee Coordinators www.soa.org Scott Randles, FSA, MAAA 2017 Valuation Actuary Symposium Coordinator This newsletter is free to section mem- bers.
    [Show full text]
  • Evidence and Ideology in Macroeconomics: the Case
    EVIDENCE AND IDEOLOGY IN MACROECONOMICS: THE CASE OF INVESTMENT CYCLES The indubitable and public symptom of ineffectiveness of a field is the absence of facts.1 1. INTRODUCTION This paper summarizes research on investment cycles, conducted intermittently by the author and associates since the 1960s. The view of economic fluctuations as being predominantly investment cycles was widely held and attracted the attention of prominent economists and econometricians. The work on investment cycles came to a halt around 1960. The reason, as I shall argue below, where shifts in dominant ideologies, not a refutation of the assumed facts. The pursuit of a line of research that is being abandoned by the mainstream may seem quaint and paradoxical to members of a profession that places the highest value on novelty. My decision to d embark on this path was motivated by deeply felt convictions regarding the scientific method and in particular the need to ascertain and quantify relevant facts and to use them in testing theoretical explanations. I am aware of the fact that discussions of methodology are held in low esteem by economists working in substantive fields and much of this distain is justified. The only way to advance science is by doing it, not by uttering pronouncements regarding the methods that others ought to follow. This has been the style of much of the literature on methodology of the past quarter century that has taking its starting point from the philosophy of natural science. In contrast to this, the methodological discussion of the present paper is concrete and intended to justify a particular path taken that was not traveled by the mainstream.
    [Show full text]
  • Qanon • 75 Years of the Bomb • Vaccine History • Raising
    SQANON • K75 YEARS OF ETHE BOMB P• VACCINE HISTORYT • RAISINGI CTHE DEAD? Extraordinary Claims, Revolutionary Ideas & the Promotion of Science—Vol.25Science—Vol.25 No.4No.4 2020 $6.95 USA and Canada www.skeptic.com • WHAT IS QANON? • HOW QANON RECYCLES CENTURIES-OLD CONSPIRACY BELIEFS • HOW QANON HURTS THEIR OWN CAUSE • QANON IN CONSPIRATORIAL CONTEXT watch or listen for free Hear leading scientists, scholars, and thinkers discuss the most important issues of our time. Hosted by Michael Shermer. #146 Dr. DonalD Prothero— # 130 Dr. DeBra Soh—the end # 113 Dave ruBIn— # 106 Dr. DanIel ChIrot— Weird earth: Debunking Strange of Gender: Debunking the Myths Don’t Burn this Book: you Say you Want a revolution? Ideas about our Planet about Sex & Identity in our Society thinking for yourself in an radical Idealism and its tragic age of unreason Consequences #145 GreG lukIanoff—Mighty # 129 Dr. Mona Sue WeISSMark Ira: the aClu’s controversial involve- —the Science of Diversity # 112 ann Druyan—Cosmos: # 105 Dr. DIana PaSulka— ment in the Skokie case of 1977. Possible Worlds. how science and american Cosmic: ufos, # 128 MIChael ShellenBerGer civilization grew up together religion, and technology #144 Dr. aGuStIn fuenteS— —apocalypse never: Why environ- Why We Believe: evolution and the mental alarmism hurts us all human Way of Being # 127 Dr. WIllIaM Perry and #143 Dr. nICholaS ChrIStakIS— toM CollIna—the Button: the apollo’s arrow: the Profound and new nuclear arms race and Presi- enduring Impact of Coronavirus on dential Power from truman to trump the Way We live # 126 Sarah SColeS—they are #142 Dr.
    [Show full text]
  • Fear, Greed, and Financial Crises: a Cognitive Neurosciences Perspective Andrew W
    23 Fear, Greed, and Financial Crises: A Cognitive Neurosciences Perspective Andrew W. Lo Abstract Historical accounts of financial crises suggest that fear and greed are the common denominators of these disruptive events: periods of unchecked greed eventually lead to excessive leverage and unsustainable asset-price levels, and the inevitable collapse results in unbridled fear, which must subside before any recov- ery is possible. The cognitive neurosciences may provide some new insights into this boom/bust pattern through a deeper understanding of the dynamics of emotion and human behavior. In this chapter, I describe some recent research from the neu- rosciences literature on fear and reward learning, mirror neurons, theory of mind, and the link between emotion and rational behavior. By exploring the neuroscien- tific basis of cognition and behavior, we may be able to identify more fundamental drivers of financial crises, and improve our models and methods for dealing with them. 23.1 Introduction In March 1933, unemployment in the United States was at an all-time high. Over 4,000 banks had failed during the previous two months. Bread lines stretched around entire blocks in the largest cities. The country was in the grip of the Great Depression. This was the context in which Franklin Delano Roosevelt delivered his first inaugural address to the American people as the 32nd president of the United States. He began his address not by discussing economic conditions, nor by laying out his proposal for the “New Deal”, but with a powerful observation that still resonates today: “So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance”.
    [Show full text]
  • 2850 Ad1227 WBF.Indd
    SPECIAL ISSUE www.hbr.org January 2006 DECISION MAKING BETTER > FASTER > SMARTER 52 Who Has the D? How Clear Decision Roles Enhance Organizational Performance Paul Rogers and Marcia Blenko 62 Evidence-Based Management Jeffrey Pfeffer and Robert I. Sutton 76 Stop Making Plans; Start Making Decisions Michael C. Mankins and Richard Steele 18 HBR CASE STUDY 88 Decisions Without Blinders All the Wrong Moves Max H. Bazerman and Dolly Chugh David A. Garvin 98 Competing on Analytics 32 A Brief History of Decision Making Thomas H. Davenport Leigh Buchanan and Andrew O’Connell 42 FRONTIERS Decisions and Desire Gardiner Morse 108 BEST OF HBR Conquering a Culture of Indecision Ram Charan 118 BEST OF HBR The Hidden Traps in Decision Making 01> John S. Hammond, Ralph L. Keeney, and Howard Raiffa 0773361 64803 US$16.95 CAN$25.50 ••• What if you build things that only work 172 m Coverages underwritten by member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states. Some coverages may be written on a n 2 million miles away? We support bold thinking. At Zurich, we help companies under- stand and prepare for the risks that ambitious projects might present. From a voyage to Mars to the opening of a new factory overseas, we provide industry leaders with risk management solutions that help protect their biggest inno- vations. Because we focus on the big picture, our customers feel more confident as they reach higher. www.zurichna.com/corporatebusiness a nonadmitted basis through surplus lines brokers. REMEMBER WHEN TECHNOLOGY HAD THE POWER TO INSPIRE YOU? © 2005 Computer Associates International, Inc.
    [Show full text]
  • Opportunity Identification of Migrant Entrepreneurs: a Theoretical and Empirical Analysis of Influencing Factors
    Opportunity Identification of Migrant Entrepreneurs: A Theoretical and Empirical Analysis of Influencing Factors vorgelegt von Diplom-Kauffrau, M.B.A Daphne Hering (geb. Moser) von der Fakultät VII – Wirtschaft und Management der Technischen Universität Berlin zur Erlangung des akademischen Grades Doktor der Wirtschaftswissenschaften – Dr. rer. oec. – genehmigte Dissertation Promotionsausschuss: Vorsitzender: Prof. Dr. Dodo zu Knyphausen-Aufseß Gutachter: Prof. Dr. Jan Kratzer Gutachterin: Prof. Dr. Lene Foss Tag der wissenschaftlichen Aussprache: 12. April 2019 Berlin 2019 “…all human beings are very creative - full of potential, full of energy.“ Muhammad Yunus, Grameen Bank, Dhaka, Bangladesh, Noble Peace Prize Winner 2006 (Yunus & Bhuiyan, 2016, p. 3) “To see things differently than other people, the most effective solution is to bombard the brain with things it has never encountered before”. Gregory S. Berns, Emory University School of Medicine, Atlanta, GA, USA, Neuroscientist (Berns, 2010, p. 8) To Magnus, Cosima, Anaïs, and Gunar with deep love and immense gratitude III TABLE OF CONTENTS Table of Contents List of Abbreviations ………………………………………………………………………..VI List of Figures ………………………………………………………………………………VII List of Tables …………………………………………………………………………….. VIII List of Appendices ………………………………………………………………………..... IX Acknowledgements ………………………………………………………………………...... X 1 Executive Summary………………………………………………………………….… 1 2 Introduction…………………………………………………………………………..... 4 2.1 Relevance of this Research Project ............................................................................
    [Show full text]