Advisers and the Fiduciary Duty Debate

This work concerns itself with the debate taking place in the United States about the duty of care financial advisers owe investors. On one side it is argued that advisers need only concern themselves with recommendations which meet certain suitability standards. On the other side, there are those who argue the suitability standard is not strong enough to adequately protect investor interests. Instead of ensuring investment recommendations are merely suitable, financial advisers owe their investors a fiduciary duty to “act in the best interest of the customer without regard to the financial or other interests … of the investment adviser providing the advice.” (SEC, 2011). In applying a properly understood conception of what fiduciary means I argue that regulations should not be harmonized but that fiduciary duty should apply to all who provide personalized investment advice to retail customers. I will further argue that even if the regulations are harmonized as proposed, because of exemptions for broker‐dealers as envisioned in the proposal, and which currently apply to Registered Investment Advisers, the efficacy of fiduciary duty is diluted to the point of rendering its current application, much less its potential uniform imposition, irrelevant.     

Airline Negotiations and the New Concessionary Bargaining

I ask whether the highly confrontational collective bargaining in the airlines is unique to that industry or a sign of a deepening crisis in union–management relations nationally. First, airline labor relations are reviewed in the context of extremely contentious negotiations, intense industry competition, complex and fragmented bargaining structures, frequent bankruptcies, and unpredictable external shocks. Next, concessionary bargaining in the airlines is discussed, and a new and extreme form of concessionary bargaining is identified. The emergence of the new concessionary bargaining in the airlines and its spread to the automobile sector is then interpreted as the early signs of a fundamental transformation of collective bargaining. The implications of the new concessionary bargaining are then described at the workplace, company, union, and societal levels.

Death by survey: Estimating adult mortality without selection bias from sibling survival data

The widely used methods for estimating adult mortality rates from sample survey responses about the survival of siblings, parents, spouses, and others depend crucially on an assumption that, as we demonstrate, does not hold in real data. We show that when this assumption is violated so that the mortality rate varies with sibship size, mortality estimates can be massively biased. By using insights from work on the statistical analysis of selection bias, survey weighting, and extrapolation problems, we propose a new and relatively simple method of recovering the mortality rate with both greatly reduced potential for bias and increased clarity about the source of necessary assumptions.     

Master Production Rescheduling Policy in Capacity-Constrained Just-In-Time Make-To-Stock Environments

This paper describes a simulation experiment to evaluate the relative effectiveness of rescheduling policies in capacity-constrained, just-in-time (JIT) make-to-stock production environments. Three performance measures were analyzed: average finished goods inventory, total units of sales lost, and a measure of schedule instability. Among the three loading methods we studied (level loading, front loading, and back loading), none was superior across all three performance measures. Level loading was the most robust, while back loading had an interaction effect with forecasting model and capacity level. Time fence scenario was found not to be as significant a factor in system performance as reported by previous research. Once an acceptable time fence scenario is selected, attempts to optimize this factor do not appear to offer significant improvement. It was found that higher demand variation, larger forecast errors, and tight capacity lead to the degradation of system performance. Judicious use of slack capacity helps a system to incorporate the periodic schedule changes typical of JIT systems.     

Disruption and the theory of the interaction order

Micro-sociological theory has traditionally stressed interactional pressures towards alignment: actors’ attempts to co-construct a shared definition of the situation. We argue that this model provides an insufficient account of the coordination of action and of the emergence of intersubjectivity among actors. To complement the focus on alignment, we develop a theory of disruption—a perceived misalignment of the dramaturgical structure of interaction in coordinating expected lines of action. We develop a theory of the interaction order that takes the interplay between interactional alignment and disruption as a foundational challenge both for sociology and for actors in their everyday lives. We focus on the practical ways in which actors negotiate both interactional breaches and wider relational ruptures, and how they differentiate between disruptions-of relations and disruptions-for them. By doing so, we connect the interaction order to a wider relational order, providing a bridge between micro-level interactionism and the sociology of culture.

     

Occupational mobility and cognitive ability: A commentary on Betthäuser,Bourne and Bukodi

This commentary critiques Betthäuser, Bourne and Bukodi's (2020) paper which finds that cognitive ability does not substantially mediate class of origin effects on educational and occupational outcomes. From these results, they conclude that cognitive ability is only of minor importance for social stratification, reasserting their view of the primacy of class origins for social stratification. The central issue surrounding cognitive ability in social stratification is its effects on socioeconomic attainments vis-à-vis socioeconomic origins, not the extent that cognitive ability mediates classorigin effects. Their analytical strategy of estimating the extent that cognitive ability mediates class origineffects is misleading because: it ignores the only moderate associations of socioeconomic origins with educational and occupational outcomes; the stronger direct effects of cognitive ability; the associations of parents’ ability with their own socioeconomic attainments; and the genetic transmission of cognitive ability and other traits relevant to social stratification from parents to their children.     

Kernel naive Bayes discrimination for high‐dimensional pattern recognition

Kernel discriminant analysis translates the original classification problem into feature space and solves the problem with dimension and sample size interchanged. In high‐dimension low sample size (HDLSS) settings, this reduces the ‘dimension’ to that of the sample size. For HDLSS two‐class problems we modify Mika's kernel Fisher discriminant function which – in general – remains ill‐posed even in a kernel setting; see Mika et al. (1999). We propose a kernel naive Bayes discriminant function and its smoothed version, using first‐ and second‐degree polynomial kernels. For fixed sample size and increasing dimension, we present asymptotic expressions for the kernel discriminant functions, discriminant directions and for the error probability of our kernel discriminant functions. The theoretical calculations are complemented by simulations which show the convergence of the estimators to the population quantities as the dimension grows. We illustrate the performance of the new discriminant rules, which are easy to implement, on real HDLSS data. For such data, our results clearly demonstrate the superior performance of the new discriminant rules, and especially their smoothed versions, over Mika's kernel Fisher version, and typically also over the commonly used naive Bayes discriminant rule.     

Empirical evaluation of the implementation of the EMA guideline on missing data in confirmatory clinical trials: Specification of mixed models for longitudinal data in study protocols

In confirmatory clinical trials, the prespecification of the primary analysis model is a universally accepted scientific principle to allow strict control of the type I error. Consequently, both the ICH E9 guideline and the European Medicines Agency (EMA) guideline on missing data in confirmatory clinical trials require that the primary analysis model is defined unambiguously. This requirement applies to mixed models for longitudinal data handling missing data implicitly. To evaluate the compliance with the EMA guideline, we evaluated the model specifications in those clinical study protocols from development phases II and III submitted between 2015 and 2018 to the Ethics Committee at Hannover Medical School under the German Medicinal Products Act, which planned to use a mixed model for longitudinal data in the confirmatory testing strategy. Overall, 39 trials from different types of sponsors and a wide range of therapeutic areas were evaluated. While nearly all protocols specify the fixed and random effects of the analysis model (95%), only 77% give the structure of the covariance matrix used for modeling the repeated measurements. Moreover, the testing method (36%), the estimation method (28%), the computation method (3%), and the fallback strategy (18%) are given by less than half the study protocols. Subgroup analyses indicate that these findings are universal and not specific to clinical trial phases or size of company. Altogether, our results show that guideline compliance is to various degrees poor and consequently, strict type I error rate control at the intended level is not guaranteed.