Vol. 22 No. 2 J. B.M. Journal of Business and Management Editors Cristina M. Giannantonio, Ph.D. Amy E. Hurley-Hanson, Ph.D. Special Issue: THE ECONOMICS OF EDUCATION A Festschrift in Honor of James L. Doti and Lynne P. Doti Published by Chapman University’s Argyros School of Business and Economics WDSI Sponsored by the Western Decision Sciences Institute WDSI WESTERN DECISION SCIENCES INSTITUTE The Western Decision Sciences Institute is a regional division of the Decision Sciences Institute. WDSI serves its interdisciplinary academic and business members primarily through the organization of an annual conference and the publication of the Journal of Business and Management. The conference and journal allow academicians and business professionals from all over the world to share information and research with respect to all aspects of education, business, and organizational decisions. PRESIDENT John Bell University of Tennessee PRESIDENT-ELECT Natasa Christodoulidou California State University, Dominguez Hills VICE PRESIDENT FOR 2017 PROGRAM Albert Huang University of the Pacific VICE PRESIDENT FOR MEMBER SERVICES Theodore Byrne California State University, Dominguez Hills SECRETARY/TREASURER Sheldon R. Smith Utah Valley University DIRECTOR OF INFORMATION SYSTEMS Salem Boumediene Montana State University-Billings IMMEDIATE PAST-PRESIDENT Debbie Gilliard Metropolitan State University of Denver Journal of Business and Management – Vol. 22, No. 2, 2016 Journal of Business and Management Volume 22, Number 2 2016 EDITORS Cristina M. Giannantonio, Chapman University Amy E. Hurley-Hanson, Chapman University J. B.M. Journal of Business and Management EDITORS Cristina M. Giannantonio, Chapman University Amy E. Hurley-Hanson, Chapman University EDITORIAL BOARD Nancy Borkowski University of Alabama at Birmingham Krishna S. Dhir University of Hawaii at Hilo Sonia M. Goltz Michigan Tech University Richard L. Jenson Utah State University Terri A. Scandura University of Miami Jeffrey A. Sonnenfeld Yale University Victor H. Vroom Yale University PAST EDITORS Burhan Yavas, California State University Dominguez Hills 1993-1999 Raymond Hogler, Colorado State University 2000-2004 EDITORIAL STAFF Rosalinda Monroy, Chapman University, Strategic Marketing and Communications Jaclyn Witt, Editorial Assistant Journal of Business and Management – Vol. 22, No. 2, 2016 Dedicated to Esmael (Essie) Adibi, Ph.D. Professor of Economics A. Gary Anderson Chair in Economic Analysis Director, Chapman University's Center for Economic Research . Journal of Business and Management – Vol. 22, No. 2, 2016 Contents INTRODUCTION ....................................................................................................6 PRESIDENTIAL LEADERSHIP The Presidency in Higher Education ..................................................................11 Sheryl Bourgeois Good to Great: The Partnership That Transformed a University and Gave Hope to Thousands ....................................................................................23 David Janes The Road More Traveled by The Dotis (Apologies to H. Scott Peck) .................27 Mark Chapin Johnson Tribute to Jim Doti: A Personal Account ............................................................33 Chuck Martin Economics, Productivity, and Presidential Leadership in Higher Education .....39 Jason E. Taylor and Richard K. Vedder BANKING AND ENTREPRENEURSHIP Lynne Pierson Doti and the Economic History of Unregulated Money and Banking ........................................................................................................51 Vincent Geloso Entrepreneurial Characteristics and Careers: American High-Tech Entrepreneurs .....................................................................................................59 Cristina M. Giannantonio and Amy E. Hurley-Hanson Lynne Pierson Doti’s Intellectual Contributions to the Fields of Economic and Business History...........................................................................................77 Daniel C. Giedeman Capital Requirements and Financial Markets in California During the Early 20th Century ........................................................................................83 Michael Gou Lynne Doti: Pioneer in Business and Economic History ....................................95 Janice Traflet 6 Journal of Business and Management – Vol. 22, No. 2, 2016 ECONOMICS Teaching the First Economics Course as if it is the Last ..................................101 Dwight R. Lee Adam Smith’s Fair and Impartial Spectator: Fairness was aboutAbout Fair-PlayFair-Play Rules for Society, a Pre-Condition for Wealth Creation ...................................115 Vernon L. Smith An Introduction to the Datini Archives: Early Capitalism in Renaissance Tuscany .........................................................................................125 Daniele C. Struppa and Anja Kruslin CHAPMAN UNIVERSITY CELEBRATES THE DOTI YEARS 1991-2016 .............................................................................133 CONTRIBUTORS ................................................................................................143 Journal of Business and Management – Vol. 22, No. 2, 2016 7 Introduction President James (Jim) L. Doti’s announcement that he was stepping down from his position – in combination with the retirement of his wife, longtime Professor Lynne P. Doti – was a momentous event in the recent history of Chapman University. Lynne joined Chapman in 1971 and a few years later, in 1974, Jim joined the university as a young assistant professor. Interestingly, it was a search committee composed of Lynne and Professor Don Booth that recruited Jim Doti from Chicago. Only a few years later, in 1977, Jim and Lynne were married. This academic love story would be interesting by itself, but the rapid ascent of Jim to Dean of the Argyros School of Business and Economics and later to President of Chapman, transformed this academic couple into the powerful team that, in different ways, enriched the university for years to come. Jim, the Donald Bren Distinguished Chair in Business and Economics was Dean of the Argyros School from 1985 to 1988, when, after the long and successful presidency of Dr. G.T. Smith, he was selected as Interim President. The university, in keeping with traditional best practices, entered into a national search that led to the appointment of Dr. Allen Koenig as the 11th President of Chapman University. Two years later, the Board called again on Jim, and he became the new President, a position he has now held for 25 years, and will hold until September 1st, 2016. This is not the place for a description of his many accomplishments, but it should suffice to say that these have been transformational years for Chapman University, which moved – as an example – from 61st to 7th in the U.S. News and World Report rankings during that period. Lynne, on the other hand, established herself quickly as a major presence in the Argyros School. She received tenure in 1980, was promoted to full professorship in 1990, was appointed the David and Sandra Stone Professor of Economics, and served as the director of the Leatherby Center for Entrepreneurship and Ethics. A prolific author with a specific expertise in the history of economic institutions, she was also one of Chapman’s most appreciated teachers, both tough with and supportive of her students. Together, Jim and Lynne came to represent the university so that for many, Chapman University really is Jim and Lynne. These circumstances did not make it easy for us to plan a tribute to these extraordinary individuals. We did not want to collect a ‘book of letters’, but rather, in the best academic tradition, we wanted to have a collection of papers that would reflect, with their scholarly inclination, the various roles that Jim and Lynne have played over the years. We were looking for contributors willing not simply to express their affection and regard for Jim and Lynne, but to demonstrate this affection and regard through an intellectual contribution. We were impressed at how quickly the colleagues we contacted responded. This was an indication of the respect that the Dotis command in the academic community. We were also impressed at the variety of contributions that we received. We decided therefore to arrange the contributions according to three themes. The first five papers were written with the perspective of what it means to run a large organization such as a university: what are the characteristics of a successful leader and how do they translate into action. Three Trustees from the Chapman 8 Journal of Business and Management – Vol. 22, No. 2, 2016 University Board contributed papers (Chuck Martin, Mark Chapin Johnson, and the current Chairman of the Board, David Janes), together with Chapman’s Executive Vice President for Advancement, Sheryl Bourgeois (whose doctoral dissertation focuses on this same topic), and economic historians Jason Taylor and Richard Vedder. A second group of papers, more theoretical, focuses on banking and entrepreneurship, with articles that pay homage to the research legacy of Lynne Doti. The contributors include Chapman’s own Cristina Giannantonio and Amy Hurley- Hanson (colleagues of Lynne in the Argyros School), as well as longtime friends and associates of Lynne, Michael Gou, Daniel Giedeman, and Janice Traflet. The final group of papers hearkens back to economics, and include an article by 2002 Nobel Laureate Vernon Smith, whose hire in 2007 represented