THE LAW OF DEMAND, POSITIVE SLOPING MARGINAL REVENUE, AND MULTIPLE PROFIT EQUILIBRIA

This paper demonstrates that the conditions for a positively sloping marginal revenue curve are much less stringent than is generally recognized. Simple transformations of any well-behaved convex demand function can easily result in a demand for which marginal revenue is positively sloping. For this reason, positively sloping marginal revenue functions must be considered whenever convex demand functions are analyzed. The existence of positively sloping marginal revenue makes multiple profit equilibria for the firm a very real possibility.     

NON-AGGRESSIVE BIDDING BEHAVIOR AND THE "WINNER'S CURSE"

Previous authors have noted a curious result that arises within the context of sealed-bid auctions: in certain situations it is in the bidder's interest to respond non-aggressively to increased competition. We consider a decision-theoretic formulation of the bidder's problem, and derive necessary conditions for the choice of a non-aggressive bidding strategy. The resulting conditions relate closely to a phenomenon that has been described rather loosely by bidding practitioners as the "winner's curse.' In the course of this paper we develop a specific definition of the winner's curse, and demonstrate how it affects the firm's competitive behavior.     

DOES RAIDING EXPLAIN THE NEGATIVE RETURNS TO FACULTY SENIORITY?

We track faculty for 30 yr at five PhD‐granting departments of economics. Two‐thirds of faculty who take alternative employment move downward; less than one‐quarter moves upward. We find a substantial penalty for seniority, even after richly controlling for faculty productivity, and the penalty is little changed when we allow wages and returns to seniority to differ by mobility status. Faculty who end up moving to better or comparable positions were penalized as severely for seniority while they were in our sample as faculty who stay. These results are incompatible with the raiding hypothesis. Faculty from top 10 programs are also punished for seniority but to a lesser degree than other faculty, which could reflect reduced monopsony power against such faculty if they are more marketable. All results persist when we control for prospective publications and allow lower returns for older publications. Match‐quality bias has dissipated in the post‐internet period, which may be the consequence of greater availability of information. (JEL J62, J44, J42)     

THE IMPACT OF TAX POLICY ON INVESTMENT BEHAVIOR IN THE CHEMICAL INDUSTRY, 1951-65

The purpose of this study was to estimate the impact of changes in Federal tax policy on investment behavior in the chemicals and allied products industry and to examine the possibility of a differential impact of changes in tax policy on investment behavior in manufacturing industries. The impact of changes in tax policy on investment behavior in the chemical and allied products industry was estimated and compared with the impact of tax policy on investment behavior in total manufacturing found in earlier studies. The model used to estimate the impact of changes in tax policy on investment behavior in the chemicals and allied products industry was the neo-classical model of capital accumulation as formulated initially by Dale Jorgenson. The conclusions reached were that changes in tax policy have had a measurable impact on investment behavior in the chemical and allied products industry which was greater as a percentage of gross investment than that found on total manufacturing in earlier studies.     

The Promise and the Pitfalls of Learned Helplessness Theory for Social Work Practice

Summary Because it articulates a psychology of powerlessness and becauseit focuses on the interactions between the individual and thesocial environment, Learned Helplessness Theory deserves tobecome an important new practice theory within social work.However, the theory also suffers from certain unresolved problemswhich currently limit its usefulness. This paper reviews LearnedHelplessness Theory for social workers and directs the attentionof practitioners to some crucial theoretical issues to be bornein mind when applying the theory to practice.     

A Theory of Love and Sexual Desire

The experience of being in love involves a longing for union with the other, where an important part of this longing is sexual desire. But what is the relation between being in love and sexual desire? To answer this it must first be seen that the expression ‘in love’ normally refers to a personal relationship. This is because to be ‘in love’ is to want to be loved back. This much would be predicted by equity and social exchange theories of interpersonal attraction. Findings suggest however that love differs fundamentally from liking and, consequently, distinct approaches to the theory of love have been developed. A phenomenological theory is then put forward which suggests that the experience of being in love involves a complex of desires for reciprocal vulnerability in order to care and be cared for. Sexual desire is then seen to involve the physical expression of these desires in the form of desires for mutual baring in order to caress and be caressed. Unlike love, however, sexual desire need not refer to the other person's desires. This is supported by the existence of sexual desires like fetishism. It is concluded that other desires which often appear in instances of being in love are not basic to the experience of being in love.