The Behavioral Paradox: Why Investor Irrationality Calls for Lighter and Simpler Financial Regulation

It is widely believed that behavioral economics justifies more intrusive regulation of financial markets, because people are not fully rational and need to be protected from their quirks. This Article challenges that belief. Firstly, insofar as people can be helped to make better choices, that goal can usually be achieved through light-touch regulations. Secondly, faulty perceptions about markets seem to be best corrected through market-based solutions. Thirdly, increasing regulation does not seem to solve problems caused by lack of market discipline, pricing inefficiencies, and financial innovation; better results may be achieved with freer markets and simpler rules. Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to reduce the quality of regulatory intervention. Finally, regulatory complexity exacerbates the harmful effects of bounded rationality, whereas simple and stable rules give rise to positive learning effects

Strategy Research and the Market Process Perspective

We argue that strategizing fundamentally concerns disequilibrium phenomena, such as discovery, innovation, resource-combination, imagination - in short, entrepreneurship. Therefore, the understanding of strategizing is likely to be led astray by drawing too heavily on equilibrium theories. Arguably, the three dominant economic approaches to strategy - the Porter industry analysis approach, the new industrial organization, and the ressourcebased approach - are characterized precisely by their strong reliance on equilibrium methodology. We argue that the market process approach in its Austrian version offers much inspiration for bringing process issues to bear on strategy issues.Strategy, organization, competitive advantage.

Individual Trandsferable Fishing Quotas in Chile: Recent History and Current Debates.

Artisanal and industrial fishing sectors in Chile require the consolidation of fishery management schemes that promote the rationalization of fishing efforts, adjusting them to scarcer fish stocks. We argue that a system based on Individual Transferable Quotas (ITQs) is the best available option, especially for the industrial sector. Individual assignments favor the coordination of collective solutions to rationalizing fishing efforts, while transferability promotes economically efficient solutions to the excessive fishing capacity problem. We propose an initial assignment of ITQs based on historical presence, conditioning the ITQ user-rights to annual payments that allow financing of the ITQs' management and enforcement costs. We defend an initial assignment of ITQs as transitory user-rights, with a reasonably long period of validity (15-20 years). We argue that this favors the political viability of being able to continue perfecting the ITQs system in the future. We also propose to empower Artisanal Fishermen Associations, which be able to provide reliable proofs of having relevant local representation, with faculties for deciding on and administering the distribution and use (among their members) of the total quota assigned to them by the fisheries regulator. These self-governing faculties would include the possibility of allowing for transferability of individual quota allocations. Finally, we propose that artisanal fishermen have the legal ability to carry out transactions with industrial interests, so that some proportion of the industrial quota could be caught inside the first five miles (currently being a reserved zone for artisanal fishing), for example using artisanal vessels for these purposes.

Beyond categorization: new directions for theory development about entrepreneurial internationalization

Categorizations emphasizing the earliness of internationalization have long been a cornerstone of international entrepreneurship research. Here we contend that the prominence of categories has not been commensurate with theory development associated with them. We draw on categorization theory to explain why earliness-based categories are persistent, and argue that a greater focus on notions related to opportunity can open new avenues of research about the entrepreneurial internationalization of business. We propose and discuss three directions for opportunity-based research on entrepreneurial internationalization, involving context, dynamics and variety