Ordinal utility models of decision making under uncertainty

This paper studies two models of rational behavior under uncertainty whose predictions are invariant under ordinal transformations of utility. The quantile utility model assumes that the agent maximizes some quantile of the distribution of utility. The utility mass model assumes maximization of the probability of obtaining an outcome whose utility is higher than some fixed critical value. Both models satisfy weak stochastic dominance. Lexicographic refinements satisfy strong dominance.The study of these utility models suggests a significant generalization of traditional ideas of riskiness and risk preference. We define one action to be riskier than another if the utility distribution of the latter crosses that of the former from below. The single crossing property is equivalent to a minmax spread of a random variable. With relative risk defined by the single crossing criterion, the risk preference of a quantile utility maximizer increases with the utility distribution quantile that he maximizes. The risk preference of a utility mass maximizer increases with his critical utility value.     

Book reviews

Nathan Glazer Ethnic Dilemmas Harvard, Harvard University Press. 1985

Giddens, Anthony The Constitution of Society, Berkeley, University of California, 1985, pp.XXXVII, 402. Notes, glossary, diagrams, bibliographic notes and index.

Jeremy Rifkin Declaration of a Heretic. Boston. London, Melbourne and Henley, Routledge and Kegan Paul, 1985, pp.X,140.

Ted Benton The Rise and Fall of Structural Marxism: Althusser and his Influence, New York, St.Martin's Press, 1984, pp. VII,259.

Raymond L. Garthoff Détente and Confrontation Washington, The Brookings Institution, 1985, pp.XVI,1126.

Joseph J. Collins The Soviet Invasion of Afghanistan. A Study in the Use of Force in Soviet Foreign Policy, Massachusetts/Toronto, D.C. Heath and Company/Lexington, 1986, pp. XV, 195.

Jan Shipps Mormonism: The Story of a New Religious Tradition, Chicago, University of Illinois Press, 1985, pp.211.

Robert Jay Lifton Home from the War: Vietnam Veterans: Neither Victims nor Executioners, New York, Basic Books, 1985, pp.478     

The NTEE classification system: tests of reliability/validity in the field of higher education

An analysis of the field of higher education reveals a surprisingly large number of classification errors within the (US) National Taxonomy of Exempt Entities database. Of the nearly 4,000 non-profit entities coded within the universe of institutions of higher education, we estimate that approximately 60 per cent were incorrectly included (Type II errors). Institutions incorrectly excluded from the higher education universe (Type I errors) represent roughly 10 per cent of the institutions coded correctly. These errors result primarily from assigning codes on the basis of the names of organisations (for example, College Park Towers is classified as a college, when it is in fact a housing complex for senior citizens) and from trying too hard to assign codes in ambiguous situations. The consequences can be significant for the users of these data, and we recommend raising bright warning flags while simultaneously enlisting the help of the entire non-profit sector in improving the classification coding process.The authors are with The Andrew W. Mellon Foundation. In addition to our colleagues on the staff of the Foundation, we wish to thank Helmut Anheier, Ted Bozovich, Harvey Dale, Virginia Hodgkinson, Stephen Noga and Christopher Toppe for helpful suggestions.     

Complaint as a form of association

Complaining is a common pattern of interaction that can be viewed as a form of association. Our understanding of complaint and other forms of association is enhanced by applying insights from Simmel's formal sociology. The emergence of complaint, like other forms of association, adheres to a general developmental process and has specifiable social consequences. The integrative and disintegrative social consequences of complaint are spelled out.     

The Management of Violence in a Conflict Organization: The Case of the Abu Sayyaf

The Abu Sayyaf is an organization which has left a trail of mayhem and murder in the southern Philippines for more than a decade. It has gained international notoriety through several high profile mass kidnappings. This article looks at how the Abu Sayyaf has managed to survive and at times prosper despite the state's efforts to eradicate it. By using organizational analysis the paper demonstrates how the Abu Sayyaf has developed structures and processes which make it such a deadly force. The organization has succeeded in gaining considerable fit with the environment in which it operates.