Auditors' Assessment of Management's Disposition: An Attributional Analysis*

Auditors' assessment of management's dispositions presumably affects their subsequent judgments. However, little is known about the process by which auditors infer characteristics of management. This paper proposes the theory of correspondent inferences [25] as a framework for examining auditors' assessment of management's dispositions; the model is tested in a laboratory experiment using experienced audit managers. The results are consistent with the proposed theoretical framework. Implications for future research are discussed.     

LOAD CUBING AT R. J. REYNOLDS

R. J. Reynolds Tobacco USA (RJR) is currently implementing a microcomputer-based decision support system to computerize and optimize the selection of patterns for loading cases of finished product into truck trailers at RJR's Central Distribution Center. This system allows for the efficient loading of trucks with less supervision. Total annual savings from reduced personnel and shipping costs is approximately $850,000. In addition to these benefits, the system is a stepping stone for trailer loading automation and the integration of a comprehensive load planning system.     

Labor Utilization Effects of Labor Scheduling Flexibility Alternatives in a Tour Scheduling Environment

This study used a factorial experimental design and a new modeling methodology to investigate the impact of a number of labor scheduling flexibility alternatives and labor requirements characteristics on labor utilization within a tour scheduling environment. Break-placement flexibility and shift-length flexibility were found to be extremely effective in improving labor utilization for all labor requirement distributions used. Flexibility with respect to the number of days included in a tour schedule resulted in substantial improvement in labor utilization for all labor requirements distributions exhibiting daily and/or weekly variation. Surprisingly, virtually no improvement in labor utilization was achieved for any labor requirement distribution by the removal of requirements for consecutive days off. In addition, almost no improvement was found by allowing the shift start time to vary across the working days included in tours. High labor requirement amplitude was found to have a strong adverse effect on labor utilization while longer operational days were associated with improved labor utilization for all labor requirement distributions. We discuss the implications of these results for service operations management and provide suggestions for future research.     

Dynamics of Asset Poverty in South Korea

Studies of economic insecurity tend to focus on changes in incomes and transitions in and out of income poverty. Yet family economic conditions are shaped by more than just income. Levels of assets and wealth, and changes in these over time also play a role. To identify which groups of the poor have been structurally trapped in poverty over time, using the Korean Welfare Panel Study, we examined the dynamics of asset poverty from 2005 to 2014. We defined three asset poverty lines by operationalizing assets as resources for either future consumption or development. Findings show that asset poverty experience in a previous year significantly increased the probability to incur asset poverty by 5–12% for all analysis samples. In addition, the probability of incurring asset poverty decreased with home ownership, higher disposable income, and greater diversification of the household portfolio. Our findings suggest that the asset poor are likely to fall into structural and persistent poverty over time, and an asset-building approach is needed to improve the asset poverty status of households in South Korea.

     

Telling the other what one knows? Strategic lying in a modified acquiring-a-company experiment with two-sided private information

Theory and Decision - Lying for a strategic advantage is to be expected in commercial interactions. But would this be more or less obvious when lying could come from either party and question...     

Caleb Perry Patterson: Political Scientist and Civic Educator

Caleb Perry Patterson was a leader in the discipline of political science during a long career. He is remembered as the founder of the national political science honor society, Pi Sigma Alpha, and as a charter founder of the Southwestern Political Science Association (now the Southwestern Social Science Association). Both were founded a century ago, in 1920. While his role in founding those organizations is one of his legacies, his career was much more than that. He was a notable educator, an activist in the politics of his time, and a prolific scholar. He used an oratorical presentation style to inspire generations of students, and through promotion of constitutional values, he encouraged independence of thought. One prominent Texas political observer summed up his impact as encouraging students of all political stripes to “love the thing that is America” and to provide critical thinking during the McCarthy Era. With Patterson as his reference, he concluded that “the only thing that can save us is the professors, really.”     

Income Inequality across the Rural-Urban Continuum in the United States, 1970–2016*

The growth in macro-level income inequality in the United States is well established, but less is known about patterns of inequality at subnational scales and how they vary between and within rural and urban localities. Using data from the Decennial Census and American Community Survey, we produce estimates of within-county income inequality from 1970 to 2016 and analyze differences in inequality levels, the persistence of high (low) inequality, and populations' exposure to high (low) inequality across the rural-urban continuum. We find that income inequality has historically been higher in non-metropolitan than metropolitan counties, but inequality levels converged by 2016 due to growing inequality in metropolitan counties. Additionally, levels of inequality were generally persistent within counties over time, except that counties characterized by low inequality in 1970 were unlikely to remain as such in 2016. Third, non-trivial shares of the metropolitan population resided in low-inequality contexts in 1970, but virtually none of the U.S. population resided in such places by 2016. Residence in high-inequality counties is normative in rural and urban America. This statistical analysis provides an updated portrait of income inequality across the rural-urban continuum, and should spur additional research on stratification in rural America during an era of growing inequality.     

Standard Container Size Discounts and the Single-Period Inventory Problem*

This paper analyzes the problem of choosing the optimal order quantity and its associated number of standard containers making up the order for single-period inventory models under standard container size discounts. A range is determined that contains the optimal order quantity. Two algorithms are presented. The first algorithm solves the general case in which there is no restriction on the types of containers included in an order. The second algorithm solves a more restricted policy that requires the buyer to accept the order with successively smaller container sizes.     

On Sampling Error in Market Share Estimates*

The relative error in the usual estimator of a brand's market share is reformulated in terms of marketing parameters. Such error is shown to be influenced in an important way by market penetration, as well as by variation in brand and product category volume. Of particular interest is the result that the relative error does not depend on the actual share level. Using data from a marketing research firm that supplies share estimates to the health products industry, we find that the relative error may be substantial even when a large sample is available. An upper bound on this relative error is obtained using marketing parameters that can frequently be measured using industry data and a company's internal records, thus reducing the level of judgmental input required in the planning of sample surveys.