The Secretary Problem with a Call Option

In addition to accepting or rejecting a candidate arrive at time r, we may consider purchasing an option at a cost cx to recall the candidate at time r+x, but this privilege may be invoked only once. For large sample size, using the best-choice criterion and deducting option costs, the optimal strategy and return are obtained

Evaluating Educational Inputs in Undergraduate Education

This paper examines the input-output relationship for private undergraduate education. The motivation for such a study stems from a long-standing concern within academe for a better understanding of the relationships between student quality, faculty effort, campus environment, and the end result of an “educated” person. Though precise and objective measures of education output are difficult to formulate, we would argue that alumni achievement is an important and measurable output. Specifically we focus on the number of baccalaureate alumni who went on to earn a Ph.D. But even with an acceptable output measure, research assessments of the educational process are not dealing with a production function in the classical supply-and-demand sense. For example, the purchaser of the product-the student-is also among the more important factor inputs. The implication is that the educational process is far more complicated than a simple, production-function rendering indicates. Consequently, this study formulates a three-equation simultaneous model of student quality, faculty quality, and output. The study’s objective is to identify the relative contribution of the many human and nonhuman resources commonly regarded as producing quality undergraduate education

Optimal Selection with Holding

The arrival times of what we shall call offers constitute a Poisson process. The value of any offer is a nonnegative random variable with known distribution. At an arrival epoch, we may select, reject, or hold the offer. Rejected offers may not be recalled, but an offer on hold is available for future consideration. However, cost accrues during the holding period. We seek a holding and selection strategy that maximizes the expected value of the offer selected less holding costs. The discrete time version of the problem is also considered

Price Behavior in Tight Oligopoly

The study examines price behavior in tight oligopoly. The investigation proceeds from the premise that tacit collusion is the only rational response of firms comprising tight oligopoly. The study\u27s thesis is that collusive conduct in tight oligopoly will reflect one of two general pricing patterns: (1) shared monopoly pricing, or (2) mark-up pricing. A unique empirical test of this dual price hypotheses is developed. The test focuses on the nature of price responses to cost and demand changes as reflected in a price equation that is estimated for each of forty-two four-digit SIC industries. The study\u27s results indicate infrequent, but still notable, instances of shared monopoly pricing. More common is evidence of mark-up pricing, a general category within which demand proved to be significant in roughly half of the industries examined. Theoretical implications of these findings are discussed

Common Market Competition Policy as a Strategic Planning Issue for Transnational Firms

Managers in charge of international business decisions must recognize competitive conditions to make production, distribution, and marketing decisions. They must be cognizant of competitors\u27 strategies as well as institutional arrangements which affect competition. As the international business environment has expanded, government regulations designed to control unfair or restrictive business practices have proliferated. Today, nearly all major developed countries with market economies prohibit the abuses of monopoly power and proscribe certain enterprise activities which restrain competition. Furthermore, governments have become less reluctant to apply their antitrust law extraterritorially. The ability of multinational firms to compete in international markets will increasingly depend upon their recognition and adherence to statutes which regulate business operations. This paper discusses the historical development of European Economic Community (EEC) competition policy with regard to U.S. firms competing in the Common Market. The study points out the business practices of American multinationals that have been determined to be incompatible with the EEC treaty. Further, the Community\u27s settlement of its antitrust case with IBM, and the effects of the agreement are analyzed. This paper discusses the historical development of European Economic Community (EEC) competition policy with regard to U.S. firms competing in the Common Market. The study points out the business practices of American multinationals that have been determined to be incompatible with the EEC treaty. Further, the Community\u27s settlement of its antitrust case with IBM, and the effects of the agreement are analyzed

A Performance Model for Staff Auditors in an Internal Audit Environment

Labor turnover, especially at the staff level, is a pervasive problem throughout the accounting environment. The related costs can be substantial to the organization. While turnover is not necessarily dysfunctional, managing it is crucial to the success of organizations. Much of this turnover is due to unsuccessful performance of auditors. This study empirically examined selected variables of staff members in the internal audit environment in an attempt to associate them with successful auditor performance. The results showed that motivation to perform and job satisfaction were most strongly related to successful performance

Selection-Bias Correction in an Evaluation of the Vocational Rehabilitation Program

The article applies a fixed-effect methodology to evaluate the training impacts of the Vocational Rehabilitation program. Two central issues are identification of an acceptable comparison group and adjusting for sources of selection-bias. The use of program dropouts as a comparison group is examined with a modified Hausman test. The results suggest spending on VR may be ore cost-effective in view of the high public cost of serving the disabled in a full dependency mode. These estimates of VR training impacts are compared with the performance of CETA, a public program serving the non-disabled which has been examined extensively using the fixed-effect estimator

Consumer Information Sources: The Provider Perspective

The Federal Office of Consumers\u27 Education (OCE) released, in 1982, an updated definition of consumer education which states that consumer education develops skills, knowledge, and understandings that will help consumers make better purchase decisions. Who is today\u27s consumer? The consumer is a part-time amateur buyer facing, in the marketplace, a whole series of full-time professional sellers. This definition describes the consumer\u27s situation in today\u27s dynamic and complex market. Since the early 1970\u27s, a growing awareness of consumer rights and needs has occurred in the marketplace. This awareness involves the resources necessary for the consumer to cope within the environment

Adam Smith on Competitive Religious Markets: Preaching about Preachers?

Anderson (1988) and Rosenberg (1960) have provided substantial insights into Adam Smith\u27s economic analysis of religious behavior. In particular, both emphasized Smith\u27s optimistic view of competitive religious markets. As an addendum, this paper investigates more closely the theoretical basis for Smith\u27s prediction that optimal religious doctrine and institutions would spontaneously evolve in free markets for preachers

Economic Foundations for the Competition Policy Implemented by the EEC

The purpose of this study is to provide a theoretical economic framework for the analysis of the competition policy implemented by the European Economic Community (EEC). The fundamental objective is to demonstrate that the EEC\u27s actual approach to regulating restrictive business practices can be related to a concept of competition that is relevant and adequate for the analysis and explanation of competition policy in the EEC. The thesis is that a strong theoretical relationship can be shown to exist between EEC business regulation and the conceptual parallels in the theories on competition of J.A. Schumpeter and J.M. Clark