Programmed Strategic Decision Making: The View From Mintzberg's Window1

A class of decisions, asset mix decisions made by pension fund managers, which exhibit characteristics of both programmed and strategic choices is examined in this paper. The decisions are classified using the scheme developed by Mintzberg et al., (1976) to highlight the circumstances under which strategic decisions may be programmed. The types of strategic decisions which lend themselves to programming are considered. The advantages and disadvantages of programming strategic decisions are also discussed.     

Information theory and risk in capital markets

The present empirical study applies the methodology of information theory to the problem of assessing and separating capital market risk, which is separated into its systematic and unsystematic components. Monthly return relatives for all securities traded on the New York Stock Exchange are examined for the period 1926 to 1971, which is segmented into six 7-year subperiods. The securities are combined into portfolios of various sizes and ranked. It is concluded that although both systematic and unsystematic risks have increased over the 45-year interval—particularly between the pre-1940 and post-1940 periods—they have maintained their relative share of the total risk over the same period.     

Wirth,Whiskey, and WASP's: Some Consequences of Community Size for Alcohol Use*†

Several themes in Wirth's “Urbanism as a Way of Life” generate the prediction that alcohol use (versus nonuse) will be more widespread among residents of urban areas. Multiple regression analysis of data from two recent national polls (1966, 1968) reveals support for this prediction. With eight other key sociological variables simultaneously controlled, the greater the urbanism of a community (measured in terms of community size), the greater the proportion of alcohol users it contains. To make certain that this association is due to urban conditions (as opposed to merely the absence of rural forces which encourage abstinence), the effects of rural forces are reduced by omitting the most rural categories of the community size measure of urbanism, and the data are reexamined. The association still persists, basically because of the larger proportion of middle to upper status, white, and Protestant alcohol users in the more urban areas.     

Exploring the prevalence and correlates of methamphetamine use: findings from Sacramento's ADAM program

Anecdotal reports have suggested that the use and abuse of methamphetamine is increasing in the United States. To date, however, few scholarly works have explored the prevalence and correlates of methamphetamine use in the United States. To address this limitation, a secondary analysis was undertaken with data collected through the Arrestee Drug Abuse Monitoring (ADAM) Program. An examination of methamphetamine-positive rates among ADAM arrestees interviewed between 1991 and 2001 identified that its use is concentrated within the Western part of the United States. Supplementary analyses of Sacramento arrestees indicated that 71% were diagnosed as needing some form of alcohol or other drug treatment. Compared to those arrestees who were detected methamphetamine-negative, methamphetamine-positive arrestees in Sacramento were three times as likely to be white and to have been diagnosed in need of drug treatment. Implications for drug control policy are discussed.     

Prospect Theory and Limit Lines

Risk acceptance criteria in the form of limit lines are investigated in the context of prospect theory. This theory departs from utility theory in several respects, an important one being the use of weights other than probabilities in the evaluation of the expected impact of uncertain outcomes. Hypothetical functions reflecting certain attitudes toward consequences and rare events are developed and combined to produce several limit lines.     

Mitochondrial abnormalities and oxidative imbalance in neurodegenerative disease

An increasing body of evidence now suggests the involvement of mitochondrial abnormalities in the etiology of neurodegenerative diseases, such as Parkinson's disease (PD) and Alzheimer disease. In this Perspective, we describe a recent study that shows that treatment of human patients with the antioxidant coenzyme Q(10'), which functions in concert with certain mitochondrial enzymes, reduced the worsening of symptoms associated with PD. These findings are consistent with the hypothesis that mitochondrial dysfunction plays a role in the pathogenesis of PD and that treatments that target mitochondrial biochemistry might ameliorate the functional decline observed in patients suffering from PD.     

An Empirical Test of the Relative Validity of Expert and Lay Judgments of Risk

This article investigates how accurately experts (underwriters) and lay persons (university students) judge the risks posed by life-threatening events Only one prior study (Slovic, Fischhoff, & Lichtenstein, 1985) has previously investigated the veracity of expert versus lay judgments of the magnitude of risk. In that study, a heterogeneous grouping of 15 experts was found to judge, using marginal estimations, a variety of risks as closer to the true annual frequencies of death than convenience samples of the lay population. In this study, we use a larger, homogenous sample of experts performing an ecologically valid task. We also ask our respondents to assess frequencies and relative frequencies directly, rather than ask for a "risk" estimate--a response mode subject to possible qualitative attributions-as was done in the Slovic et al. study. Although we find that the experts outperformed lay persons on a number of measures, the differences are small, and both groups showed similar global biases in terms of: (1) overestimating the likelihood of dying from a condition (marginal probability) and of dying from a condition given that it happens to you (conditional probability), and (2) underestimating the ratios of marginal and conditional likelihoods between pairs of potentially lethal events. In spite of these scaling problems, both groups showed quite good performance in ordering the lethal events in terms of marginal and conditional likelihoods. We discuss the nature of expertise using a framework developed by Bolger and Wright (1994), and consider whether the commonsense assumption of the superiority of expert risk assessors in making magnitude judgments of risk is, in fact, sensible.     

$7.8 Billion for Everglades Restoration: Why Do Environmentalists Look So Worried?

The Comprehensive Everglades Restoration Plan, enacted in 2000, is a $7.8 billion federal/state investment in restoring the Florida Everglades ecosystem. The plan is a negotiated compromise between divergent interests in south Florida and promises to provide water and flood control for urban and agricultural users while maintaining a priority commitment to the natural system when allocating water produced by the 30-year project. The environmental community calls for independent scientific review of un-tested technologies, early and substantial hydrologic benefits to the remaining Everglades, including Everglades National Park, and strong programmatic regulations of the federal project to ensure that ecological restoration remains its primary purpose in spite of inherently conflicting interests at the state and local level.