Theories such as effective altruism contend that people are morally obligated to give to charitable organizations that will efficiently do the most net good. The assumption is that aiding people who are most in need will create the most good; yet, it may be more inefficient to reach those most in need. In response, I outline my Inefficiency Principle in which efficiency has less moral weight when aiding those lacking in basic capabilities, and efficiency has more moral weight when (...) aiding those who are lacking in more complex capabilities. This principle acknowledges the obstacles in assisting those most in need while sustaining the moral importance of efficiency. (shrink)

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, (...) less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets. (shrink)

The Efficient Market Hypothesis often seems to suggest only that most people cannot outguess the financial markets. But the originator of the hypothesis, Eugene Fama, made the stronger claim that people cannot outguess the financial markets because financial-market prices are correct: They incorporate all known information accurately. This view omits the role that human traders’ interpretations of information must play if the information is to prompt them to buy or sell. Buyers and sellers disagree about the meaning of current information, (...) so at least half of them must be wrong. Bringing in many more (but equally fallible) people to predict the future does not somehow make their (collective) answer “right.” This is a logical disproof of the Fama hypothesis, but the inherently speculative nature of financial markets makes its empirical falsification (or verification) ambiguous if not impossible. The hypothesis must therefore be considered an unscientific article of faith. (shrink)

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, (...) less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets. (shrink)

The need for rationing of clinical services and medical resources is a crucial issue facing healthcare systems. On most accounts, the demand for medical services vastly exceeds what can be provided on limited budgets, requiring difficult decisions about which services should and should not be provided to patients, whether patients might have to bear some of the cost of the services they use, and on what basis rationing decisions should be made. At the same time, we know that healthcare systems (...) are far from perfectly efficient; some of the expenditures of healthcare systems are wasteful and bring no benefits at all to patients. In light of the evidence of such inefficiencies within healthcare systems, it may seem problematic to insist on the importance of rationing: can it really be appropriate to deny patients beneficial services while inefficiencies remain within the system?1This is the question Strech and Danis take on in their paper, ‘How can bedside rationing be justified despite coexisting inefficiency? The need for “benchmarks of efficiency”’. As they highlight, the evidence about inefficiencies within the healthcare system is sometimes taken to undermine the legitimacy of rationing. Their response focuses on the implications of particular clinicians’ involvement in both inefficient decisions and bedside rationing: if clinicians cause or contribute to inefficiencies in the system—for example by prescribing more expensive ‘brand name’ medication instead of equally effective but cheaper generic drugs—is it legitimate for them also to make, or be involved in, rationing decisions? Strech and Danis argue that even though no healthcare system can be fully efficient, clinicians must make ‘sufficient’ efforts to reduce inefficiencies within their own realm of decision-making if their engagement in rationing decisions is to be legitimate. They offer a set of ‘benchmarks’ against which we can judge whether or not such efforts should …. (shrink)

In the modern world, situations often arise in which the value-based regulation of human activity weakens and the old requirements lose their relevance. The need for analysis is associated with the “normality” of the state of anormativity as an attribute of a new social status relating to the sphere of government. The purpose of this article is to study the dynamics of the development of values and norms as a possible reason for the inefficiency of managerial decisions. The sociocultural (...) method made it possible to consider the individual, the person and society as a single integral system in which the elements are not reducible to each other, as well as to describe the conflict of values and norms as a complex of sociocultural pathologies leading to ineffective managerial decisions. Value analysis was used to reveal the content of the conflict of values and norms and their manifestations in culture and to describe the axiological mechanisms of sociocultural interactions. The hermeneutical method made it possible to identify and study the factors of conflict between values and norms and to form an idea of value consciousness. The structural-functional approach was used to identify elements of society and culture that contribute to the emergence of a conflict of values and norms. The phenomenological method was useful in the analysis of the conflict of values and norms as a pathological state (deformation) of human consciousness. Methods of comparison, analysis, deduction, induction, generalization, analogy, classification, abstraction were also used. Value-normative and institutional analysis made it possible to clarify the nature of the norm and to define a negative value convention. It was found that the change in values is carried out through value consciousness as a special phenomenological feature of a person, the main pathology of which is fragmentation, which leads to a conflict of values and norms. In particular, the idea of interaction between value-normative and institutional analysis was introduced, which made it possible to clarify the nature of the norm, define a negative value convention, and also distinguish between two ways of thinking and behavior as a prerequisite for a conflict of values and norms: based on common axiological attitudes and particular institutions. It was determined that with the help of norms, society leaves a reflection on values, and social actors are able to initiate the normization of certain actions. If these actions do not correspond to norms and values, a process of denormization takes place, as a result of which anormia arise. Norms break away from values and merge with particular institutional rules, forming an agreement on the methods of obtaining benefits – a negative value convention. The practical value of this scientific work lies in the possibility of using its materials in the process of developing decisions to reform the management decision-making system. (shrink)

Retrieval efficiencies of paper-based references in journals and other serials containing 10 scientific names of fossil amphibians were determined for seven major search engines. Retrievals were compared to the number of references obtained covering the period 1895—2006 by a Comprehensive Search. The latter was primarily a traditional library-based search which involved intensive work from 2002—2007. Only a few references originally obtained by search engines were included. Retrieval efficiencies were calculated by comparison to the number obtained through the Comprehensive Search (assumed (...) to be 100%). All percent retrievals were quite low (mean = 11.3%, range = 4.0—22.9%). For all seven search engines combined (duplicate references excluded), the percent retrieval was only 40.7%. There was also retrieval inefficiency and bias of the search engines in: sampling over time, the top five journals containing the most references, the top five most prolific authors, and non-English references. Consequently, all seven search engines were unsatisfactory for retrieval of references for our scientific research. (shrink)

The Efficient Market Hypothesis often seems to suggest only that most people cannot outguess the financial markets. But the originator of the hypothesis, Eugene Fama, made the stronger claim that people cannot outguess the financial markets because financial-market prices are correct: They incorporate all known information accurately. This view omits the role that human traders’ interpretations of information must play if the information is to prompt them to buy or sell. Buyers and sellers disagree about the meaning of current information, (...) so at least half of them must be wrong. Bringing in many more (but equally fallible) people to predict the future does not somehow make their (collective) answer “right.” This is a logical disproof of the Fama hypothesis, but the inherently speculative nature of financial markets makes its empirical falsification (or verification) ambiguous if not impossible. The hypothesis must therefore be considered an unscientific article of faith. (shrink)

ABSTRACT The notion of consensus plays an important epistemological role in modern welfare economics, in that unanimous consent is a (unique) conceptual test for those changes that are ‘Pareto-desirable’ (that is, make someone better off and no-one else worse). In this paper, we seek to show that unanimous consent does not logically imply Pareto-desirability—that a rational individual may fail to veto policy changes that make him/her worse off. The central element in the proof of this proposition is the observation that (...) in social agreements involving a significant number of participants, any one individual's veto is decisive if it is the only veto. If the individual does not expect to be decisive, he will rationally exercise his vote ‘expressively’, and without sole regard to its consequences. When all individuals so act, a sort of prisoners' dilemma interaction may emerge, even under explicit consensus. (shrink)

In the wake of recent corporate scandals, this paper traces the growing power of pension funds to provide managerial oversight of the firms they hold in their investment portfolios. Increasingly pension funds are exercising their legitimate rights as owners to raise the corporate governance standards of the firms they invest in. Within corporate governance generally, pension funds are shifting their attention away from managerial accountability and toward measures that increase transparency in firm-level decision-making. Pension funds use transparency to ensure that (...) shareholders are the primary interest being served by the firm. Transparency not only aligns managers and owners, it also raises issues of firm behaviour that allow other stakeholders to engage the corporation more broadly. I contend that secrecy is economically inefficient. When organizations are opaque and interests are secret, decision-making can and does distort efficiency. I examine recent pension fund corporate governance campaigns with particular reference to the California Public Employees Retirement System. (shrink)

We derive the exact inefficiency upper bounds of the multiclass C-Logit stochastic user equilibrium in a transportation network. All travelers are classified on the basis of different values of time into M classes. The multiclass CL-SUE model gives a more realistic path choice probability in comparison with the logit-based stochastic user equilibrium model by considering the overlapping effects between paths. To find efficiency loss upper bounds of the multiclass CL-SUE, two equivalent variational inequalities for the multiclass CL-SUE model, i.e., (...) time-based variational inequality and monetary-based VI, are formulated. We give four different methods to define the inefficiency of the multiclass CL-SUE, i.e., to compare multiclass CL-SUE with multiclass system optimum, or to compare multiclass CL-SUE with multiclass C-Logit stochastic system optimum, under the time-based criterion and the monetary-based criterion, respectively. We further investigate the effects of various parameters which include the degree of path overlapping, the network complexity, degree of traffic congestion, the VOT of user classes, the network familiarity, and the total demand on the inefficiency bounds. (shrink)

The word processor is a stupid and grossly inefficient tool for preparing text for communication with others. That is the claim I shall defend below. It will probably strike you as bizarre at first sight. If I am against word processors, what do I propose: that we write in longhand, or use a mechanical typewriter? No. While there are things to be said in favor of these modes of text preparation I take it for granted that most readers of this (...) essay will do most of their writing using a computer, as I do. My claim is that there are much better ways of preparing text, using a computer, than the word processor. (shrink)

ABSTRACTUsing a frame analysis approach this paper examines how The Irish Times and the Irish Independent portrayed public sector workers during Ireland's economic crisis. Using a sample of coverage from 2009 and 2010 it discusses the five media frames identified in this analysis, three of which were hegemonic and two of which were counter hegemonic. In this paper, I argue that coverage of the public sector by each newspaper was imbalanced and inaccurate. This paper also finds that both newspapers were (...) strong advocates of austerity cutbacks in the public service as a solution to Ireland's financial crisis, frequently representing this idea as ‘fact’ while simultaneously delegitimising those opposing this viewpoint. (shrink)

Gianluca Di Muzio develops a novel objection to theism.

In book II of Plato’s Republic, Socrates discusses the cities of necessity and luxury (372d-373a). Discussions of these cities have often focused on citizens desiring more than they need, which creates a demand for luxury. Yet the second part of the equation, which is not usually recognized, is that there must be sufficient supply to meet this demand. The focus of this article is on the importance of supply in the discussion of the first two cities in book II of (...) the Republic. This article argues that the way Plato models the cities makes it the case that a surplus above levels of necessity will be generated from time to time. That the unwanted surplus cannot be spontaneously disposed of entails that the first two cities are institutionally incomplete. A government is needed in order to coordinate the disposal of the surplus supply the city will produce. (shrink)

In the wake of recent corporate scandals, this paper traces the growing power of pension funds to provide managerial oversight of the firms they hold in their investment portfolios. Increasingly pension funds are exercising their legitimate rights as owners to raise the corporate governance standards of the firms they invest in. Within corporate governance generally, pension funds are shifting their attention away from managerial accountability and toward measures that increase transparency in firm-level decision-making. Pension funds use transparency to ensure that (...) shareholders are the primary interest being served by the firm. Transparency not only aligns managers and owners, it also raises issues of firm behaviour that allow other stakeholders to engage the corporation more broadly. I contend that secrecy is economically inefficient. When organizations are opaque and interests are secret, decision-making can and does distort efficiency. I examine recent pension fund corporate governance campaigns with particular reference to the California Public Employees Retirement System. (shrink)

Gianluca Di Muzio develops a novel objection to theism.

Market inefficiency is a latent concept, and it is difficult to be measured by means of a single indicator. In this paper, following both the adaptive market hypothesis and the fractal market hypothesis, we develop a new time-varying measure of stock market inefficiency. The proposed measure, called composite efficiency index, is estimated as the synthesis of the most common efficiency measures such as the returns’ autocorrelation, liquidity, volatility, and a new measure based on the Hurst exponent, called the (...) Hurst efficiency index. To empirically validate the indicator, we compare different European stock markets in terms of efficiency over time. (shrink)

Imperfect efficiency in healthcare delivery is sometimes given as a justification for refusing to ration or even discuss how to pursue fair rationing. This paper aims to clarify the relationship between inefficiency and rationing, and the conditions under which bedside rationing can be justified despite coexisting inefficiency. This paper first clarifies several assumptions that underlie the classification of a clinical practice as being inefficient. We then suggest that rationing is difficult to justify in circumstances where the rationing agent (...) is or should be aware of and contributes to clinical inefficiency. We further explain the different ethical implications of this suggestion for rationing decisions made by clinicians. We argue that rationing is more legitimate when sufficient efforts are undertaken to decrease inefficiency in parallel with efforts to pursue unavoidable but fair rationing. While the qualifier ‘sufficient’ is crucial here, we explain why ‘sufficient efforts’ should be translated into ‘benchmarks of efficiency’ that address specific healthcare activities where clinical inefficiency can be decreased. Referring to recent consensus papers, we consider some examples of specific clinical situations where improving clinical inefficiency has been recommended and consider how benchmarks for efficiency might apply. These benchmarks should state explicitly how much inefficiency shall be reduced in a reasonable time range and why these efforts are ‘sufficient’. Possible strategies for adherence to benchmarks are offered to address the possibility of non-compliance. (shrink)

The purposes of this study are to investigate whether current corporate social responsibility (CSR) is at the theoretically derived achievable level (hereinafter referred to simply as achievable level), to introduce “CSR inefficiency” as the difference between actual and achievable levels of CSR, and to specify its determinants. We established that the achievable level of CSR activity is determined by a range of keiretsu group, government, sector, and resource factors, and choosing specific activities can affect the priority levels of social (...) contributions. CSR inefficiency is affected by its own factors such as internal management, which are different from those of CSR activity. Our study suggests the importance of the differences between the achievable levels of CSR among firms. For example, firms in machinery, electrical equipment, public utilities, and service industries have greater inefficiency in environmental CSR than the other industries. Conversely, the achievable levels of construction and petroleum and gum industries for environmental CSR are higher. Service firms can achieve higher level of environmental CSR, although their emissions and wastes are not as large as those of manufacturing firms in general. In retail industries, the achievable level of environmental CSR is lowest among all industries, while those for labor issues and social contribution are as high as those of other industries. Public utilities have large CSR inefficiency compared with other industries, while construction, steel and nonferrous metals have small CSR inefficiency. (shrink)

There is frequently an appearance of conflict between medicine and economics. This arises first because the nature of health and health care requires the doctor to make decisions on behalf of the patient and thus serves to explain why medical ethics exist. But secondly it is due to the relative lack of acceptance of the ethics of the common good within medical ethics. As a result while economics in the field of health has as an objective the maximisation of the (...) health of the community, subject to resource constraints, medical ethics pushes individual doctors to try to maximise the health of their patients. There is no reason to believe that the latter will sum to the former. To make the maximisation of health of the community the goal of the medical profession requires institutional changes, particularly with regard to budgeting, which will cajole and if necessary coerce doctors to adopt the good of the community as their objective. (shrink)

This paper argues that an analysis of the dissatisfactory outcomes of international negotiations concerning climate change must take into account procedures of political decision‐making in democracies. Although the normative ideal of republican democracy has means of dealing with such dissatisfactory results, political processes in republican democracies take too much time and risk becoming stuck in tragic or dilemmatic decision structures when facing challenges such as climate change. Consequently, this paper discusses possibilities for redesigning republican democratic institutions to counter‐act these negative (...) forces. However, all possibilities discussed either call into question the normative ideal of republican democracy itself or would take too much time to be realized. (shrink)

I articulate a classical-Marxist theory of technical change in the capitalist labour process, highlighting two contradictions. The management contradiction is the conflict managers experience between coordination (to increase efficiency) and discipline (to ensure valorisation). The workforce contradiction is the tension workers experience between productive socialisation and alienation. I submit that both contradictions were substantially muted from the earliest stages of capitalism through the Fordist stage but have become intensified in the postfordist period. Under postfordism, the basis of efficiency is economies (...) of scope and flexibility, and thus there is a real efficiency advantage to empowering workers, via both multiskilling and employee involvement in problem-solving and decision-making. Postfordist capitalism has thus initiated an intensification of the management and workforce contradictions. In response, capitalist management is increasingly impeding the growth of the productive forces by failing to empower workers. (shrink)

The acquisition and evolution of speech production, discourse and communication can be negatively impacted by brain malformations. We describe, for the first time, a case of developmental dynamic dysphasia (DDD) in a right-handed adolescent boy (subject D) with cortical malformations involving language-eloquent regions (inferior frontal gyrus) in both the left and the right hemispheres. Language evaluation revealed a markedly reduced verbal output affecting phonemic and semantic fluency, phrase and sentence generation and verbal communication in everyday life. Auditory comprehension, repetition, naming, (...) reading and spelling were relatively preserved, but executive function was impaired. Multimodal neuroimaging showed a malformed cerebral cortex with atypical configuration and placement of white matter tracts bilaterally and abnormal callosal fibers. Dichotic listening showed right hemisphere dominance for language and functional magnetic resonance imaging (fMRI) additionally revealed dissociated hemispheric language representation with right frontal activation for phonology and bilateral dominance for semantic processing. Moreover, subject D also had congenital mirror movements (CMM), defined as involuntary movements of one side of the body that mirror intentional movements of the other side. Transcranial magnetic stimulation and fMRI during voluntary unimanual (left and right) hand movements showed bilateral motor cortex recruitment and tractography revealed a lack of decussation of bilateral corticospinal tracts. Genetic testing aimed to detect mutations that disrupt the development of commissural tracts correlating with CMM (e.g., Germline DCC mutations) was negative. Overall, our findings suggest that DDD in subject D resulted from the underdevelopment of the left inferior frontal gyrus with limited capacity for plastic reorganization by its homologous counterpart in the right hemisphere. Corpus callosum anomalies probably contributed to hinder interhemispheric connectivity necessary to compensate language and communication deficits after left frontal involvement. (shrink)

I argue that, because of scarcity, the right to life cannot imply an obligation on others to save the life of the right-holder, and that collectivising resources for health care not only ensures that resources are used inefficiently and inappropriately but also removes from people the authority to make decisions for themselves about matters of health, life and death.

Inefficiency or inadequateness of Western liberal democracy at home is not the problematic of the rest because they have not experienced it yet! ‘Minimal democracy’ is the problematic of the reside...

Very plausibly, there is something important missing in our lives if we are thoroughly ignorant or misled about reality – even if, as in a kind of Truman Show scenario, intervention or fantastic luck prevents unhappiness and practical failure. But why? I argue that perfectionism about well-being offers the most promising explanation. My version says, roughly, that we flourish when we exercise our self-defining capacities successfully according to their constitutive standards. One of these self-defining capacities, or capacities whose exercise reveals (...) who we are, is Reason, our capacity for normative self-governance. I argue that in its practical use, Reason formally aims at competently realizing self-chosen valuable ends that are in harmony with each other, or valuable achievements. In its theoretical use, it formally aims at competently grasping fundamental enough subject matters, or a kind of understanding. Because success by reason’s own standards requires many things to go right, there are many different ways in which we can fall short. Some of them amount to partial success. But some, like incompetent inquiry that fails to yield understanding of its target, or taking inefficient means to a worthless end, are robust failures that amount to epistemic or agential unflourishing, and thus to a form of ill-being. (shrink)

This paper addresses the “inefficiency loophole” in the Bell theorem. We examine factorizable stochastic models for the Bell inequalities, where we allow the detection efficiency to depend both on the “hidden” state of the measured system and also its passage through an analyzer. We show that, nevertheless, if the efficiency functions are symmetric between the two wings of the experiment, one can dispense with supplementary assumptions and derive new inequalities that enable the models to be tested even for highly (...) inefficient experiments. (shrink)