Showing posts with label efficient markets my ass. Show all posts
Showing posts with label efficient markets my ass. Show all posts

Tuesday, April 23, 2013

The Bloody Video Game Company

I like Curt Schilling.  I like Rhode Island.  But what Curt Schilling did to Rhode Island...or rather what Rhode Island apparently begged Curt Schilling to do to Rhode Island...well, it's just what a whole bunch of other "limited government" people have done as soon as they get a chance to have unlimited government help.  Excerpt from the NYTimes story:


Even in a state that long served as New England’s Mafia headquarters — and a state whose best-known modern political figure, Buddy Cianci, the former Providence mayor, was sent to prison in a federal corruption case known as Operation Plunder Dome — the 38 Studios debacle has registered as a painful embarrassment. (When I called influential Rhode Islanders and told them I was writing about 38 Studios, virtually all of them, even if they had opposed the deal, answered with some version of, “Do you have to?”) 

 Rhode Islanders are used to being played by their politicians. What makes them cringe is the suspicion that virtually all their elected leaders might have been played by someone else. 

More people on the right need to recognize the truth of this statement:


“There is some justification at least in the taunt that many of the pretending defenders of “free enterprise” are in fact defenders of privileges and advocates of government activity in their favor rather than opponents of all privileges. In principle the industrial protectionism and government-supported cartels and agricultural policies of the conservative groups are not different from the proposals for a more far-reaching direction of economic life sponsored by the socialists.” - F.A. Hayek, page 107 , Individualism and Economic Order

In some ways, I prefer the folks on the left.  They say they are going to use the state to run the economy, and they do that.  The phonies on the right say they favor free enterprise, but that quickly turns into a different kind of "favor."

Nod to Webster and Main

Friday, March 30, 2012

That's Not the Problem Here

Performance Support Bias and the Gender Pay Gap Among Stockbrokers

Janice Fanning Madden, Gender & Society, forthcoming

Abstract: This article analyzes organizational mechanisms, and their contexts, leading to gender inequality among stockbrokers in two large brokerages. Inequality is the result of gender differences in sales, as both firms use performance-based pay, paying entirely by commissions. This article develops and tests whether performance-support bias, whereby women receive inferior sales support and sales assignments, causes the commissions gap. Newly available data on the brokerages’ internal transfers of accounts among brokers allows measurement of performance-support bias. Gender differences in the quality and quantity of transferred accounts provide a way to measure gender differences in the assignment of sales opportunities and support. Sales generated from internally transferred accounts, controlling for the accounts’ sales histories, provide a “natural experiment” testing for gender differences in sales capacities. The evidence for performance-support bias is (1) women are assigned inferior accounts and (2) women produce sales equivalent to men when given accounts with equivalent prior sales histories.


Um.... fail. The fact that there is bias in stockbroker pay is not very interesting, because there is no objective standard to apply. The fact that stockbrokers get paid at ALL is astonishing. There is no basis for stockbrokers getting paid, except fraud.

Nod to Kevin Lewis.

Monday, February 20, 2012

Economics In One Lesson

Not very nice. But bidding wars are likely when property rights are poorly specified. And that's why property rights need to be clearly specified. In countries without property rights, EVERYTHING gets exchanged this way.

With a nod to Raoul

Thursday, December 08, 2011

Billy Beane, John Paulson & the January effect

My second Grantland column with LeBron is now up. This time we made the main masthead instead of being in The Triangle! Still no mention of Rex Chapman though.