Saturday, August 31, 2019
FIN 370 Week 3 Learning Team Assignment Essay
Learning Team: Current Market Conditions Competitive Analysis This paper will give a short history and descriptions of Apple’s I Pad minicomputer. It will also give factors that affect demand, supply, and equilibrium prices in the market. Issues that Apple faces that affect its competitiveness will also be addressed. Lastly, this paper will identify the long term profitability of the iPad including, price elasticity of demand, technological innovation, and cost structure. Steven Jobs and Steven Wozniak were friends in high school, which shared like interested in electronics. They designed what would become the Apple and on April 1, 1976, Apple Computer was born. This is an American based company located in California. Apple specializes in design advancing, and the sales electronics, computer software, and computers. Apple is accredited for some of the most popular products of the modern world of technology such as: iPod, iPhone, iPad, and iTunes. Apple has expanded its retail stores to fourteen countries worldwide with 408 retail store not to mention their online stores, Apple Store and iTunes. Apple’s value as of March 2013 is $415 million, and it is the largest most publicly traded companies. The iPad is a tablet designed minicomputer that was released in 2010 by Apple. This device has equipped with Wi-Fi and has a multi- touch screen. There are five different versions of this particular tablet. Each has the capability to play music, record videos, a camera function, browsing the web, e-mailing. Games, GPS navigation system, and social networking can also be downloaded to the device. A market is as a collection of consumers and retailers of a specific merchandise or service. Demand is the actual volume that consumers are prepared and able to obtain. Quantity necessitated is the demand at a specific amount and is symbolized as the demand curve. The supply of a product is the quantity that manufacturers are prepared an d capable to convey to the market the sale of the product. The market can be analyzed by matching the supply and demand curve. Equilibrium is the connection of supply and demand curves. The equilibrium amount is the amount where the number demanded matches the number supplied. A change in price does not necessarily mean that the demand will change. It is more likely for the quantity demanded will affect the price. If the price is changed the curve will move along the demand curve. When the price is reduced the quantity demand will be increased. When the IPad was released, it was the only product in that market at that time. Therefore, at that time it absolutely controlled the tablet division. Some corporations tried to contend with Apple, but recognized their position just could not compete. The competition combated Apple by creating smaller tablet that is an unfamiliar place for Apple. This creation worked and caused Apple to lose sales. The competitors rapidly established their place in the market. Price elasticity of demand is an issue th at our organization, Apple faces that affects our competitiveness and long-term profitability with regards to the iPad. â€Å"Price elasticity of demand and supply tells us exactly how quantity responds to a change in price. As elasticity increases, quantity responds more to price changes. Demand or supply is elastic, if the percentage change in quantity is greater than the percentage change in price†(University Of Phoenix, 2010, pp. 154-157). After reviewing data, specifically targeted to the three types of iPads; their pricing, capabilities and memory storage, it was determined that if the price of the iPads increased; then the consumers may not purchase them (â€Å"What Is An Apple Ipad’s Elasticity Of Demand?†, 2012). The price elasticity of demand tells us that although apple is very technological innovative, but as it relates to price elasticity of demand; the quantity does not matter (all the changes, modifications, additions, advancements, etc.) consumers will still purchase the cheaper iPad (cost efficient) Apple should not invest in making more iPads. Consumer(s) can’t readily identify / understand the importance /significance of having more capabilities, memory, stor age, etc. The consumer(s) would ultimately shop for and purchase the iPad that’s more conducive to their needs. Although apple has is very technological innovative, but as it relates to price elasticity of demand; the quantity does not matter (all the changes, modifications, additions, advancements, etc.) consumers will still purchase the cheaper iPad (cost efficient) Technological innovation is an opportunity for our organization, (Apple) to face that affects our competitiveness and long-term profitability with regards to the iPad. Through technological innovation our organization will be able to make improvements to something that already exists; such as the Apple iPad. Is the improvement to something that already exists. Technological innovation will always have a huge impact on Apple Corporation. As it directly relates to the iPad, with the technological innovation, we are able to re-invest and re-invent the iPad. As with any product of this magnitude, the cost will increase, more features will be added, more storage, more variability, etc. As long as we are innovative and have a willingness to be creative we will consistently bring new items to the market that will steady intrigue the consumers and adapts to their technological needs. â€Å"Cost Structure (TC = FC + VC) is the costs of production, the identification of how costs associated with the production of a good or service are distributed throughout the process The cost structure consists of fixed costs, variable costs and total cost â€Å" (University Of Phoenix, 2010, pp. 283-285). According to â€Å"Internal Factors: Costs †(n.d.), †When analyzing cost, the marketer will consider all costs needed to get the product to market including those associated with production, marketing, distribution and co mpany administration (e.g., office expense). These costs can be divided into two main categories: fixed costs and variable costs†. Fixed costs are costs that are spent and cannot be recovered (rent, credit interest, maintenance costs, security and administrative expenses, often salary). The major factors affecting fixed costs are (1) Changes in business organization, (2) Changes in technology applied, (3) Sale of manufacturing equipment and (3) Decisions to undertake advertising activities, etc. Variable costs are costs that vary with production. Factors affecting variable costs, including productivity and others that change the supply of and demand for labor (internal factors), (1) Involve costs of items that are either components of the product (parts/packaging), (2) Directly associated with creating the product (electricity to run an assembly line), (3) Coupons and (4) Variable costs, especially for tangible products tend to decline as more units are produced. This is due to the producing company’s ability to pu rchase product components for lower prices since component suppliers often provide discounted pricing for large quantity purchases (). Total cost the sum of all costs of inputs used by a firm in production TC = FC + VC Apple is one of the world’s most admired brands. Every year, as rumors about Apple’s products start to emerge web sites begin to speculate which suppliers are likely to win Apple’s business. Getting a contract from Apple can lift a company’s value by millions of dollars. On October 22 Apple released a variety of new hardware and software. Apple’s new iPad is clearly focusing on improving the iPad product profit margin, while also maintaining it strong market share. One of the ways Apple can maximize their profit is by reducing the price of the original iPad mini. Another recommendation that can maximize the profit for Apple is to also make radical improvements to the full-size iPad and the mini. Apple has four products in the iPad lineup. While Apple decided to keep the price of the iPad 2 at $399 Apple dropped the price of the IPad mini to $299. The newest iPad, the new full-size iPad Air is thinner and lighter than the previous full-size iPads and much more powerful. The new iPad Air will sell at $499, while the second new iPad tablet the iPad mini with Retina display will sale for $399. By Apple dropping the price on the iPad mini this move should help A pple maintain market share with it strong competition. Strong competitors like Google and Amazon have recently dropped the prices on their popular tablets. Android tablets such as Google and the Kindle Fire have been gaining on Apple over the past year with the lower prices and higher performance. The Kindle Fire HD sold for $139, this alone affected Apple’s revenue. The price decrease put Apple’s base iPad mini closer to the price of Google and Amazon’s top of the line tablets. Apple chose to drop the price of the original iPad mini tablets to maximize their profits with the competition. Overall by dropping the price, this will draw more individuals to the Apple iPad mini and increase Apple’s marginal revenues and profitability. This will keep Apple’s market share in competition with Google and Amazon without sacrificing too much profitability. Although, there are several competitors in this market; such as The Kindle Fire, The Windows Tablet, Galaxy Table, etc. none are able to uphold the standards that the iPad will carry. With all of our advancements in technology, research, investments, etc. we continue to be in high demand. If our corporation continues to be technological innovative and productive; then we will continue to grow and c onsistently re-invent. We will be more profitable, growing and will remain cost efficient; when it comes to manufacturing and producing the iPad. Based on the current market conditions, our competitive market analysis concluded that the Apple iPad will be an extremely productive and very successful. References: Duhigg, C., & Barboza, D. (2012, January 25). In, China, Human Cost Are Built Into an IPad, p. The iEconomy. Internal Factors: Costs . (n.d.). Retrieved from http://www.knowthis.com/pricing-decisions/internal- factors-costs Reisinger, D. (2013, October 22). IPad 2 Survives iPad Air, Still cost $399. CNET, p. . University Of Phoenix. (2010). Economics, Eight Edition. Retrieved from University Of Phoenix, ECO365 website. What is an Apple iPad’s Elasticity of Demand?. (2012). Retrieved from http://applecoeconomics.wordpress.com/2012/05/17/what-is-an-apple-ipads-elasticity-of-demand-9/
Friday, August 30, 2019
Reinventing management practices in long-term care: how cultural evolution can affect workforce recruitment and retention Essay
Management Introduction            Quality management is very vital to every society, state, community or company because it indicates the level of performance in terms of production and its success. To outline the main points to this discussions about management, definitions is very important. Management basically is the way different resources are controlled and allocated to produce the quality product that is desired in an organization(Peterson, Smith, Martorana, & Owens, 2003, p.795). It can also be defined in terms of maintenance of the organizations success and performances. The managers are involved in managing the organizations and apply different strategies of management in accordance with the needs of the organization and the workforce involved(Sarlak, 2010, p. 92-93). In order to discuss the topic management in the 21st century needs to be more of human activity, it is important to note that for the last centuries organizations applied the written strategies by d ifferent scholars to run their organizations.            The aim of this essay is to show how important it is to know the meaning of management. In earlier century management is associated with managers who are involved in controlling, motivating, planning and also allocating resources to their employees. To achieve this, the managers had to follow management strategies to enable them to run the organization and to classify their employees into different categories. For instance, the management theory X and Y classifies employees into two categories (Sarlak, 2010, P. 90-93). First category theory Y is those that need not to be forced to work and need to be motivated and second category theory X these are employees that need to be forced to work and force was applied so as to make them work. In addition, leadership styles were also used to enable the managers run the organization.            For example, the management theory X and Y this theory states how different types of workforce behave in the field. It also address how employees should be motivated so as to work well(Brannon, Kemper, Heier-Leitzell, & Stott, 2010, 68-74). The motivation of workforce is believed to be the key role to make them work well and more effective. For instance, managers follow the management approaches to control the employees and not what they know. This distinguishes them from employees who can manage without being controlled and have more knowledge of the task at hand. Benefits of Management            In theory management are procedures and policies which are formulated to enable the managers enhance the running of the organization but in reality management is more of human activity since the human beings are involved in seen that this procedure are applied and that the organization gets the best returns(Brannon, Kemper, Heier-Leitzell, & Stott, 2010, 68-74). Moreover, the management functions such as organizing, planning, and motivating deal with people in often cases. Therefore in this 21st century management is more of human activities since organizations are aimed at improving their workforce and employing the best people to run the organization.            Management is very important since it is through managing once resources that they can achieve their goal and targets. Therefore today, management is more of personal decision than that of a manager controlling people to work (Peterson, Smith, Martorana, & Owens, 2003, p.795). Most employees can work without supervision of the manger since they can manage themselves. This is possible because today people are taught in learning institute of how to manage their time, resources and also to plan. In addition, most of the employees have more knowledge and experience on how to achieve the quality end product without being controlled by managers. It is important to have some looking at the progress of the work but when their presence hinder innovation it becomes a concern to be taken care of.            Employees need to be facilitated and not controlled by managers thus the output will increase drastically. Leadership style can also interfere greatly with the freedom of employees hence innovation will be hindered(Brannon, Kemper, Heier-Leitzell, & Stott, 2010, p. 68-74). At a glance, leadership style that was used in earlier century instilled fear in employees which made them just do the work in accordance to the rules. In 21st century employees are free and they know their importance in an organizations and this has led to formation of organizations that represent employees’ rights. This is to educate employees and also make the working place conducive for the employees and employers.            Management is wide area, it involves also maintenance of other resources and how it is allocated. For example capital therefore, employees should be aware of the capital of the organization so as to learn how to maximize profit and increase the output of the company(Brannon, Kemper, Heier-Leitzell, & Stott, 2010, p. 68-74). In earlier century, status quo was very important and most manager did not want to interact with employees so as to protect their status. It is the dream of every one to be a manager but if being a manager it hinders innovation then it is good to be in the same level with employees. In today’s world, innovation has be embraced and people are moving with very high speed to innovate.            Moreover, more organizations are coming up and competition is high therefore management should be more of human activity allowing employees to be part of it and making decision that are effective. Brainstorming is good example of involving employees in decision making and problem solving (Brannon, Kemper, Heier-Leitzell, & Stott, 2010, p. 68-74). It allow the employees to give ideas on a certain question and how to solve the problem. Managers should embrace different modes of involving employees directly or indirectly in running the organization.            Management is more of human activity even if the organization uses machine to get the end product since human beings control or operate the machine. Some machine are not operated without experience and skills to use it, not all managers have skills and knowledge of how to operate the machines. This is because the role is based on managerial approaches and they strictly follow the procedures that are stipulated in the organization(Peterson, Smith, Martorana, & Owens, 2003, p.795). In this century, managers are more active and are the ones helping in motivating the employees. The organizations are now more concerned with increasing profit and being effective by training and encouraging their employees to be innovative. In this century, for an organization to acquire new machinery, also need to train its employees on how to use it.            Therefore the employees feel motivated and important since their skills are improved (Peterson, Smith, Martorana, & Owens, 2003, p.795). Unlike the earlier industries where if a machine was acquired then the employee who knew how to operate was given a chance to work and the rest were dispensed off. 21st century employees are more important to management team and are involved in major decision of the organizations. It is important to work in a conducive environment so as to nurture creativity in the organization. The scholars wrote what an ideal organization structure should look like and it is the duty of the leaders and manager to improve this ideas and come out with the best part of it. Factors Influencing Management            Innovation is very important and every organization ought to encourage an environment that can enhance it. In today’s world, the employees are given opportunity to view their ideas and also to innovate. Unlike the past years where employees could not speak nor give views of how a product can be improved (Nolan, 2008, p. 54). The manager had a role to decide on what to be done even if it means forcing people to work. When management become more of human activity than procedures to control, then the business will grow drastically. The products of an organization highly depend on the human resource to implement the other resources to achieve the end product(Peterson, Smith, Martorana, & Owens, 2003, p.795). In addition, when employees are more involved in management they have a sense of belonging and their goals is to see that organization is growing. Furthermore where employees are involved in giving suggestion on the products improve ment, they give their best ideas thus managers can pick the best ideas and implement.            However, it is not easy to make the employees be innovative in a harsh environment; therefore the mangers should be willing to balance power (Nolan, 2008 p. 44). Today every organization aim to be the best competitor in the industry thus hiring the best employees and those that can manage their time and resources effectively which is only possible if employees are allowed to innovate and be creative.            It is important to note that managers today must interact with their employees rather than commanding and directing on how the work should be done. It is clear that most employees have more ideas about the work than the managers since the deal with the resources in day to day life. The type of leadership style that is used in the organization should be more of encouraging the employees to be more creative and innovative. Generally, in 21st century management is more of human activity in contrast with the earlier century where people had no opportunity to be involved in decision making (Sarlak, 2010, p. 91-93). Everyone would like to be part of a successful innovation and also success. Achieving this is only through allowing the employees to be part of management and not the other way round. It is clear that today there more innovation coming up than the earlier years since people are allowed to come up with more ways to improve their organ ization. Employees are not servants of a manger but an asset that need to well utilized to yield more profit and also to be motivated to aim for high goals of the organization(Peterson, Smith, Martorana, & Owens, 2003, p.795). In conclusion, it is possible to achieve this if employees will be involved in management and also have a say into the leadership style of the organization. Conclusion            Management should not be for the managers and leaders only but also the employees of the company have an important role to play. A manager should motivate the employees and help them to achieve their goals. Therefore, management in 21st century is more of human activity unlike the earlier century where it was more of managerial post. It is said that â€Å"practice makes it perfect†therefore managers should interact with employees to make the work perfectly and also share their knowledge and experience. References Brannon, S. D., Kemper, P., Heier-Leitzell, B., & Stott, A. (2010). Reinventing management practices in long-term care: how cultural evolution can affect workforce recruitment and retention. Generations, 34(4), 68-74. Nolan, W. T. (2008). Wealth of enterprises: a new foundation for economics and management. [S.l.], Author house.Pg. 44-59 Peterson, R. S., Smith, D. B., Martorana, P. V., & Owens, P. D. (2003). The impact of chief executive officer personality on top management team dynamics: one mechanism by which leadership affects organizational performance. Journal of Applied Psychology, 88(5), 795.Sarlak, M. A. (2010). The new faces of organizations in the 21st century: management and business reference book. Toronto, Naisit Publishers. Pg. 90-93 Source document
Thursday, August 29, 2019
Variations in the university degrees Essay Example | Topics and Well Written Essays - 500 words
Variations in the university degrees - Essay Example The technicalities in some degree course offer an explanation as to why a student who has graduated with those courses are likely to earn more than others. A case in point is seen among graduates in the field of medicine.They have to take more time in the university while pursuing their programs as opposed to other courses such as arts and social sciences. Those who have done medicine have the right to receive more pay as the course is very technical and demands a lot of concentration and accuracy. Another example is seen in the engineering courses that require practical applications as opposed to being theoretical in nature. From an economic standpoint, it would be pointless to attend college unless a student achieved some sort of benefit by doing so. This benefit might be in the form of increased earnings, more certain employment, some sort of non-monetary return but it must be great enough to offset the cost of attendance. Boehm and Lees-Spalding describe on-the-job training as a form of human capital investment. In their arguments, they present definitions of two different types of training that can occur. General training is useful to many firms and is therefore applicable to a wide range of jobs. However, it is vital that even as universities should stop offering majors that are not proven to lead to successful careers, it is imperative that they continue on a lesser scale to do so since they still need new streams of income especially in the wake of major cut funds from the governments.
Wednesday, August 28, 2019
Managerial Economics Article Essay Example | Topics and Well Written Essays - 250 words
Managerial Economics Article - Essay Example Huettner discusses the L&L Enterprises v. U.S Brass, a case in which the plaintiff held that the copper pipes and polybutylene pipes comprised of different antitrust product markets. On the other hand the defendant held that both copper pipes and polybutylene pipes were in similar antirust product market. Nonmetals, both the plaintiff and the defendant based their arguments on the provisions and guidelines by the Department of Justice. A wide range of microeconomic, antitrust economic as well as managerial economic literature contend that there lacks quantitative standard upon which close substitutes could be defined. Thus, practitioner divergence reflects the prevailing failure of economic theory to offer a quantitative definition of close substitutes. According to various economists, prices of close substitutes should keep track of each other such that they should have one price existing in the market. Nonetheless, practitioners are opposed to this rule. Perhaps, this explains why there has been unceasing controversy regarding the one-price rule in reference to Sun operating systems and Microsoft operating systems which sell at prices about 50 and 100 percent respectively, yet they are close substitutes. Basing on this argument, the author concludes that the one-price rule should be applied to close substitutes. This implies that close substitutes should have the same price, a price ration of one and should track each other closely over time. In addition, close substitutes should have a cross-price elasticity of unity. On the other hand, products that are not close substitutes should not keep track of each other closely over time. They should also have unequal prices as well as price ratio that differ from unity. Huettner, David A. "Antitrust Bulletin Product market definition in antitrust cases when products are close substitutes or close complements.†. Highbeam Business,
Tuesday, August 27, 2019
Tourism Policy and Planning Essay Example | Topics and Well Written Essays - 3000 words
Tourism Policy and Planning - Essay Example At the end of the study we will provide with certain recommendations that could prove to be innovative for improving the tourism business of the area. Contents Introduction (2895 words) 3 Substantive Content 4 Political Implication of the city 4 Recent economic implications 5 Social and labor markets 7 SWOT ANALYSIS of the destination 8 PESTEL framework of the destination 10 Conclusion 12 Recommendation 13 5 possible alternative courses of action 13 Reference 15 Introduction (2895 words) In the Northeastern region of the USA is located the state of New York. Within the New York state is located the New York City which is known as the most densely populated city of the United States and it is the hub of the New York urban region. It is the largest metropolitan within the entire United States. The city is situated on the southern regions of the New York State on the banks of the river Hudson. During the year 1609, an English explorer and navigator named Henry Hudson travelled by water through the Hudson River which was named after him. The course of the river that passes through the Manhattan Island is called as North River. Five years from then a permanent dwelling developed around that region which later on came to be known as New York however originally it used to be recognized by the Dutch governors as the New Amsterdam. It was known that one of the Dutch Governors named Peter Minuit bought Islands of Manhattan from the Indians for a deal of trinkets, beads and buttons. A navy was sent by the Great Britain’s Duke of York in 1664 that peacefully detained the Dutch without any violence and baptized the settlement in a tribute of the duke. The control of the city passed on to the young members of the Nation at the conclusion of the Revolutionary War (Burrows & Wallace, 1998, p.14). George Washington had been selected as the then president and the occasion was inaugurated in New York’s old City lobby. Congress gathered and continued their stay in Ne w York ranging from 1785 to 1790. During 1898, the Greater New York was taken under some agreement and the city got expanded to comprise 5 boroughs namely Manhattan, Bronx, Queens, Staten Island and Brooklyn. The city is also known as â€Å"The Big Apple†. It is a major a world leader and a global capital in the domains of communications, finance and arts. The harbor of New York is one of the most excellent in the globe and has been ranked as the biggest port compound on the East Coast. New York City is the home for the United Nations and includes the headquarters of a large number of important organizations from across the world. The city is considered to be a significant spot for fashion, advertising, shooting, radio broadcasting, publishing etc. by the important firms across the entire world. Substantive Content Political Implication of the city The government of city is controlled under the Charter of the City and offers for a "well-built" mayor-council arrang ement. The administration of the state is more nationalized than that of the majority of the other cities of U.S, by means of the city administration being accountable for the correctional institutions, education of the public, public safety, libraries, sanitation, recreational facilities, welfare services and water supply. The mayor gets elected for a term of a 4 years and remains in charge of the administrative functions of the government
Monday, August 26, 2019
Week 4 Assignment Example | Topics and Well Written Essays - 1250 words
Week 4 - Assignment Example 7), are increasingly becoming aware of code of ethics, ethical practices and their relation to the community as a whole that it works in. This piece of research work presents a brief explanation of moral and ethical issues faced by managers in relation to the termination of employees from their jobs. This paper outlines the relation between ethical managerial practices and social issues related to termination with case analysis ethical dilemma that an organization and management faced due to termination. When a person’s job is involuntarily terminated for any reason, the loss of job causes significant distress, regret, bitterness and financial loss as well. All employees are rightful not to be unfairly or unjustifiably dismissed from his job (Davenpor, Crotty and Torres, 2000, p. 7). When an employee is terminated from his job for no apparent reason, or for a reason which cannot be justified, it is more likely to cause ethical and moral issues. A manager’s most important duty and responsibility is that he should bring good people to the organization in such a way that those good people will stay long and satisfy with their jobs (Trevino and Nelson, 2007, p. 155). The social set up and legal systems, though it can be different from country to country, have specific views regarding what is right and what is wrong both morally and ethically. For instance, Kleinig and Smith (2001) described that the United States and many other countries are founded on a strong belief in and commitment to the individual rights and their freedom and therefore these rights are moral acclaims as well as forces of law (p. 205). As there are specific views regarding ethical and moral practices, it is more likely that an employer’s act of terminating an employee can cause moral and ethical dilemma if employer’s act cannot be justified according to the general social and legal perspectives. Workers are right to be treated fairly in the
Sunday, August 25, 2019
Bessie Smith Essay Example | Topics and Well Written Essays - 2000 words
Bessie Smith - Essay Example Bessie Smith’s inherent passion for music was discovered fortunately at a very young age as she and her brother took to the streets of their local neighbourhoods in Chattanoonga, as they sang and danced in order to earn money for their meals. However, her brother soon left her to join a professional troupe and she was left behind due to being very young. Soon enough, her brother arranged for a meeting and interview for Bessie for the Stokes Troupe and she was hired as a dancer but not as a singer, thus her true potential had yet not been realised. In 1915, the singer left and became a part of the Theater Owners Bookers Association, an African American performance group and this became the milestone in her career. The group helped her to gain popularity all over and become a recognised singer. Following this, offers began coming in for Bessie to be part of musicals and one of her firsts, titled ‘How Come?’ made its way to Broadway as well. Here, Bessie co starred w ith Sidney Bechet. Looking at her success and getting motivated by the same, Smith moved on to working in theatre, mostly Black theatres as they accepted her better, and in 1923 she landed with her first recording contract. Soon enough, Bessie became one of the highest paid black women in her field however, the money did not make much difference to her life then and she realised she wanted to sing all her life. Smith’s voice, mellifluous and harmonious, was something she was able to practice and develop on her own. She did not receive any formal training from anywhere, and with the practice she had had since her early years, she dedicated and devoted more time to get even better than what she was and all that she had achieved. Bessie’s mentor, during her years with the Stokes Troupe was Ma Rainey, and she learned a lot during her time there even though it was not a platform for her to better her vocal power and skills. Nonetheless, under Ma Rainey, she was able to lear n and understand what stage presence meant and how she could make herself better in front of the general public. During the time that Bessie was trying to establish herself, the environment for black people was not very conducive. Apartheid reigned badly all around and the opportunities for blacks were very limited, especially in off the hook fields like music. She first got a chance to sing with Okeh Records as they signed her alongside Mamie Smith. Being a woman, Bessie knew she had to really give in her best and fight for her rights in order to get her music heard across to people and have them accept her first as a musician and then as an identity and part of her race. Columbia Records thus, was impressed by her because of her work with Okeh Records, and soon signed her as a part of ‘race records’ series with her record named ‘Cemetery Blues’ which was the first to be released in 1923. Paramount Label had helped Bessie’s first hit titled ‘G ulf Coast Blues’ coupled with ‘Downhearted Blues’ to become an even bigger hit than what it was at the time of release. Bessie began to tour following this success as well as prepared and trained for theatre productions and musicals. She was given titles such as ‘
Saturday, August 24, 2019
Management for organizations Research Paper Example | Topics and Well Written Essays - 1250 words
Management for organizations - Research Paper Example The five core principles of management are planning, organizing, staffing, leading and controlling. This is usually a process which starts from organizing and ends in controlling. Planning entails the creation of strategies to achieve certain goals. For instance, managers may be given a task of increasing the company’s sales. In the planning, they should find out what the most appropriate advertisement tool is – to advertise with the help of media or to create a sales force team. After planning, the organizing part commences. Organizing is the putting in place the strategies generated from the planning part. After organizing the managers will need a workforce to help them achieve their goals. The incorporation of the workforce is referred to as staffing. This entails training, recruiting and developing employees. After staffing, the managers should play the role of the leaders. With a plan in place and a working force in place, the managers need to be motivators and enc ouragers to their team. Controlling entails keeping track of the project being undertaken. This also includes correcting mistakes which may occur in the course of the project. In controlling, a manager compares the goals set for the project and the development of the project. This ensures that the original set of goals is achieved. Due to the analysis of the functions of management, the assessment process becomes easier since for every step of management the requirements are well known. The outcome of proper management provides the best mode of analyzing its success. However, there should be an accurate process of determining whether or not a management strategy is successful. In analyzing the success of management, each principle should be analyzed separately. This provides room for accuracy and enables to determine which principle is affected negatively. According to Kubiszyn and Borich (2010), devising an evaluation plan for a management team requires the use of results th e particular management has achieved in prior processes. The main problem when it comes to management evaluation is that the assessment results are usually not reliable and accurate (Kubiszyn & Borich, 2010). If this happens, the manager may be advised to take on changes which will lead to
Friday, August 23, 2019
Relationship between one's principles,the investigation of truth and Essay
Relationship between one's principles,the investigation of truth and how to lead one's life - Essay Example The person would then conduct his life according to the principles discussed and the truth he finds out. The three are clearly related to each other as while living a person should be following those principles and he would be required to know the truth too. Socrates had been imprisoned due to speaking out his mind and was scheduled to be put to death. All because he had been investigating truth and said what he thought was right. He was not given the freedom of speech. However, when Crito asked him to escape and get away from the injustice, he did not agree and felt that he should follow the common principles of those times; he thought that the rules are for everyone and should be for him too. In Antigone we see a similar situation. Sophocles says God’s law is greater than that of man and he did that in order for the population to be safe from moral destruction (Johansen 96). Another theme is that of civil disobedience when Creon and Antigone have differing viewpoints. While Creon feels that the law should be followed whatever it is, Antigone feels that the state law is not absolute, and that the law of gods is much greater and more to be followed. In fact, his view is that the state law can be broken if need be to follow the law of gods. That is, he clearly prefers gods’ law over the state law which is made by mortals.
Later tell u Lab Report Example | Topics and Well Written Essays - 1750 words
Later tell u - Lab Report Example l perspective, television programme makers desire to cater to more audiences of different age groups to increase their popularity that in turn increases competitive challenges within the sector (Higher Education Statistics Agency Limited, 2014). To comprehend this phenomenon from a critical perspective, the entire study has been based on the television programme rating and its popularity among different age groups. Contextually, to identify the popularity of television channels among different age groups of the UK, BBC1 channel has been selected as the media outlet. Both industrial as well as general perspectives have been considered when evaluating BBC’s performance within the UK market in the recent phenomenon. From the varied channels of the UK, BBC 1 is one of the renowned television channels. In the first phase of its development, BBC was known for its news broadcast. Presently, BBC is an established network, which has multiple channels for different age groups. Moreover, BBC always provides quality news to its viewers. Since, 1997 BBC has appeared in news broadcast field and until now, has created milestones for its rival channels. BBC is the first news broadcaster, which presents news about the overall the world. The digitalized platform has enriched BBC’s journey, enhancing and diversifying its contents to a substantial extent. In the 2013, BBC also announced its High Definition (HD) simulcast, which has helped to enhanced its viewer ship more than previous times (Media Tel, 2014). In the present scenario, the popularity of television channels is judged under different scales. Under Television Rating Points (TRP), television association has measured satellite channel reach. In this regard, to identify the actual rate of popularity of BBC 1 among different age groups, a survey report has been used to avail proper results. Media Tel is the source from where all data regarding BBC has been gathered. Based on the September 2014 data of MediaTel, BBC
Thursday, August 22, 2019
Police Discretion Essay Example for Free
Police Discretion Essay Police discretion is an unwritten law meaning it is not concretely represented in the constitution or any other rules or regulations governing law enforcement. However, it is a practical part of law enforcement because there are times when sound personal judgment and decision-making becomes necessary in the process. Police discretion is highly important in situations wherein the role of rules and laws are ambiguous or inapplicable. Although unwritten in documents presenting laws, it is valid because the police is an institution granted authority and power. Moreover, law enforcement agencies are expected to abide by ethics and morality at all times when practicing police discretion. Police discretion is valid because it is exercised by an authority or power, but then it becomes steadfast and trustworthy if it is practiced within the bounds of ethics and morality. (Atherton, 2001) Herein lay judgments and criticisms regarding police discretion. Police discretion is ideally utilized to determine whether to intercede with behavior and activities. This is supposed to be the primary purpose of police discretion. (Seri, 2008) For instance, a police man happens to chance upon a man shouting at his wife in a public place. Police discretion concerns making the decision of whether to intervene in the process with considerations to privacy issues since it is a private matter between husband and wife, but since it is in public, the situation’s relation to public disturbance is not something to be disregarded. At this point, police discretion addresses the matter of whether to intervene or not. (Kelling, 1999) The fabled and fictitious source aspect of police discretion is its relation to the philosophical foundations of ethics and morality. Conflicts in the practice of police work require discretion for its resolution. However, conflicts and ambiguities do not depend on just discretion, but count on morality to frame the judgment and decision-making process in order to uphold sound preferences when carrying out decisions. Morality talks about what is right from wrong – the right, based on the rules and commandments presented by God to man. Moreover, morality talks about intention as a primary factor in determining the goodness of an action, behavior or decision. This philosophical concept builds on what police discretion is about, guiding judgments and rationalizations in order to arrive at a morally good action. (Greenawalt, 1987) Perhaps it is rational to include the mythical concept of ethics and morality in framing police discretion guidelines and policies. Controlling philosophical concepts as a means to guide police discretion practices ensure that intentions are upright and the end action of the decision is morally good. This upholds accountability and values development in the field of law enforcement. Moreover, it addresses the matter of debate regarding the negative implications of allowing law enforcement agencies freedom to make decisions in their line of industry. It eliminates the abuse of power, and shifts it to the use of police discretion conscientiously. Another purpose of police discretion is making a decision of whether to label a particular action, behavior, or activity as criminal. (Seri, 2008) Juvenile crimes are primary targets of this issue since charging children with crimes is a sensitive concern. If for instance a police man catches a minor stealing from a grocery store, police discretion is practiced to make a decision on whether to charge the child with a criminal case. Other options include giving the child a chance by advising him to not repeat the act again and then letting him go, talking with the child’s parents directly to ensure that a the negative nature of the child does not go undisciplined, turning the child over to social welfare services, and charging the child with a criminal case. The decision of what to do in this particular scenario as well as similar situations, wherein there are opportunities of making sound judgments and decisions unguided by laws, is part of police discretion. Overall, police discretion is a power granted to members of the law enforcement as a means of raising the accountability of the institution by empowering them to learning and applying sound and moral concepts that promotes progress and development in the field of law enforcement. (Seri, 2008) To delineate further the concept of police discretion, five police actions will be discussed and analyzed in order to determine the expediency of practicing police discretion and identifying whether it is reasonable or an abuse of power. Harnessing the influence of the community as an effort to promote community policing is one task that law enforcement should work on. This is reasonable as the decision to formulate a neighborhood watch program to realize the goal of community policing sustains peace, order and security in the community. This action becomes an abuse of power if members of the community are forced to help in the process of enforcing laws. Community policing should be a voluntary effort. Minors are given light sanctions for criminal activities because of their inability to think rationally and independently without guidance from people in authority. Police discretion is acceptable when it comes to adjusting the enforcement of law to a particular situation where a minor is concerned. Police discretion becomes an abuse of power if minors who are caught committing crimes are directly charged with criminal cases without reviewing the need for social work intervention, counseling, and other lighter sanctions and disciplinary actions. When it comes to police interrogation, questioning techniques is part of police discretion. Policemen are given authority to subject suspects, witnesses, and victims to interrogations. Police discretion is acceptable if questions, in whatever form or manner executed, are relevant to the case and properly carried out in the process. It becomes abuse of power if people who are being interrogated are subject to threats and hostilities, forced to answer questions, and are asked personal matters. This goes the same with searching properties to look for evidence. Police discretion is deciding what areas within the properties to search, of course with the grant of a search warrant. It becomes an abuse of power if damage is inflicted to property as a means of hostile interaction with other people. Lastly, respecting the privacy of any individual should be maintained by law enforcement agencies. Although sustaining laws requires the obtainment of truth and factual information, police work should also consider privacy of other people in order to practice police discretion ideally and not abusively.
Wednesday, August 21, 2019
Benefits of music therapy
Benefits of music therapy Benefits of Music Therapy Today, there are many different techniques of health improvement and general well being in music therapy. It’s true no matter where we are born music is identified as an expression we and everyone seems to love it. We are not of the same culture yet music can pick us up, create or refresh memories, carry us through an emotional journey by listening to the lyrics or simply be enjoyed. This paper explores various techniques and experiences utilized in music therapy. The First Known Use of Music Therapy As far back as biblical time, music was understood to be an instrument of healing. According to the book of Samuel I, when King Saul was beset by â€Å"It came to pass, when the evil spirit from God†¦Ã¢â‚¬Å" hisservants counseled him to find a harpist whose playing might mend his troubled soul. A young shepherd named David, reputed to be a skilled musician, was quickly summoned. David â€Å"took a harp and played with his hand so Saul was refreshed and was well, and the evil spirit departed from him.†(The Bible, King James Version, 1 Samuel 16:23) Music Therapy with Children and Adolescents The Education for All Handicapped Children Act of 1975 in summary that handicapped or disabled children in the United States are given a free education. Music Therapy ismentionedas a Services Program Option which can be written in a child’s Individualized Education Plan (IEP). A child with special needs can be referred to music therapy to help them improve their communication, cognitive skills, sensory-motor or perceptual-motor skills, as well as social, emotional and psychological needs. A Music Therapist works to change a specific behavior, enhance their skills, improve the child’s overall condition or even teach the child a new skill in playing a musical instrument or singing.(Hanser, 1999) Statically it was found in the 1998 American Music Therapy Associate (AMTA) membership that Music Therapists served the following children cases (in order of frequency):developmentally disabled, behaviorally disordered, emotionally disturbed, physically disabled, school age population, multiply disabled, speech impaired, autistic, visually impaired, neurologically impaired, hearing impaired, substance abuse, abused or sexually abused, early childhood, dual diagnosed, and head injured.(AMTA, 1998).There are other known cases but not limited to the following; Rett Syndrome, AIDS, eating disorders, medical needs, burns, bereavement, Downs Syndrome, premature birth and neonatal needs, spinal cord injuries and Williams Syndrome. In addition, non-disabled children receive music therapy and benefit from it.(Hanser, 1999) Children are able to gain self-awareness through movement to music and social skills through group music therapy. For example, an autistic child who previously disengaged human interaction may communicate with a therapist who gives positive music experiences since exploring music is non-threatening. Music has the advantage of demanding attention that a visual stimulus cannot, because it intrudes immediately through ears that cannot be closed voluntarily. Through music therapy, the child may encounter their first close relationship with a non-family member. (Hanser, 1999) Based on research with infants in a Provo, UT intensive care unitit was determined that babies who were sung to on a regular basis were released from the unit 3-days earlier, digested more calories, and gained more weight than that compared to a group of infants notexposedto periods of song. (Gaynor, 1999) Music Therapy with Adults The psychological distress of being diagnosed with a medical condition or illness is generally something that the medical field overlooks in medical treatment. In many cases the avenues leadingto treatment in these various conditions provoke anxiety and tend to cause emotional reaction as well or even result in a mental disorder.(Hanser, 1999) Music therapy includes procedures for relaxation which reduces anxiety and in some cases dilutes our concentration away from pain and discomfort. Often, the need for medication orin some casesrestraints are minimized when music therapy is introduced. (Hanser, 1999) A primary treatment technique used to treat mental disorders is psychotherapy and musicbeing played takes a unique role in such. The music therapy setting becomes a microcosm, eliciting interactive social behaviors which may be shaped as therapy progresses. Reactions to and perceptions of music, discussions of musical themes and problem solving in a musical context are parallel behaviors for responding to similar situations outside the therapy environment. Dealing with these issues in the supportive and positive music setting can assist the person in tackling the real problem. Also patients may begin to understand their own feelings when they listen to a song that portrays their own feelings or ideas. (Hanser, 1999) Special techniques of music therapy of music therapy are used in other areas for adults those documented but not limited to conditions as posttraumatic stress disorder, traumatic brain injury and Parkinson’s disease. There are even areas in forensic psychiatricwhere people were able to process painful events through music therapy, the use of music allowed them to access emotions by engaging in expression. (Hanser, 1999) In a research study completed by anAustin TX medical Center resulted in approximately fifty-percent of women in childbirth that listened to music during childbirth didn’t need any anesthesia. As briefly mentioned earlier and to emphasize, the â€Å"music stimulation increasesendorphin release and this decreases the need for medication. It also provides a distraction from the pain and relieves anxiety,†noted an author of the study. (Gaynor, 1999) Music Therapy with Older Adults Some of themain characteristics of musicarethat it brings excitement, energy and life to many people who may approach late life losses in cognitive and physical functions. This could also benefit persons losing a loved one or even losing their vocational identity. The most withdrawn and confused patients suffering from dementia due to Alzheimer’s disease and related disorders are able to participate actively in music therapy sessions.This gained experience for such patients enhances self respect and can revitalize their usefulness to the community and others.(Hanser, 1999) Specifically, for people with dementia much as been written. There was a study conducted by Millard and Smith (1989) that a group of singing resulted in significantly higher vocal/verbal participation. It also resulted in less wandering and less disorientation captured in another study by Reigler (1980). (Chavin, 1991) At the end of life, preparing for death, music therapy allows individuals to express how they are feeling by choosing a song to listen to, by singing, by performing and by composing songs with the assistance from their music therapist. (Hanser,1999) In my own personal experience, one of my best friends at the age of 62 recently passed away as a result of an aggressive lung cancer. We were only aware of the cancer for 2-weeks. The last 3-days of her life wasexcruciating, she was in terrible pains and was pleading with us to not let her die. The only way to calm her down was by singing to her, she would relax, her breathing would become smooth, her pulse would register normal, the terrible heat of her body (side-effect from the highdosage of morphine) would cool down and she would even crack a smile. Truly it is simply amazing how music changed my precious friend’s condition at the end of her life. Instruments or Practices Used in Music Therapy Through the use of instruments in group musical activities work not only is used to activate handicapped children but to deepen their level of participation in a musical setting. It is documented that live music which can be adapted easily to the working situation has a greater impact in therapy than recorded music. The more severe the casesthen the more true this is displayed. (Nordoff and Robbins, 1971) Examples of activities include but are not limited to of the following; ‘The RhythmBand’, each person is given a variety of percussive instruments and they are encouraged to beat freely to the music they hear. The use of blowing instruments such as bird call, a tuned horn, flute like, whistleswhich all can add brightness of tonal color to a musical arrangement. In many cases where children were patients, they were not able to maneuver proper fingering so the one tone played needed to be incorporated into the musical selected by the therapist. Many other instruments can be played as well, stringed instruments, bells, triangles, xylophones, wood blocks and wooden clappers. (Nordoff and Robbins, 1965) Conclusion The passionformusic in my own life has beenbeneficialindealing with stress, depression, anxiety, infertility, illness, loss of loved onesand so much more.As in this report and otherwise, there are endless cases of research and experiences documented clearly showing the awesomeand most importantlypositive impact of music in people lives covering a huge range of conditions andcircumstances. References Chavin, Melanie, RMT-BC (1991).The Lost Chord.Mt. Airy, ElderSong Publications INC. Gaynor, Mitchell L., MD (1999).Sounds of Healing – A Physician Reveals the Therapeutic Power of Sound, Voice and Music.New York, Broadway Books, a division of Random House, INC. Hanser, Suzanne, Ed.D, MT-BC (1999)The New Music Therapist’s Handbook.Boston, Berklee Press Nordoff, Paul Robbins, Clive (1971).Music Therapy in Special Education.New York,TheJohn Day Company Nordoff, Paul Robbins, Clive (1965).Music Therapy for Handicapped Children.Blauvelt.Rudolf Steiner Publications, INC. Prophet Samuel,TheBible, King James Version
Tuesday, August 20, 2019
Impact of the Financial Crisis on Lehman Brothers
Impact of the Financial Crisis on Lehman Brothers The impact of the financial crisis that leads to the bankruptcy of the Lehman Brothers. Abstract The 2007-2008 financial crisis can be defined as the collapse of the world financial market and it is the economy financial meltdown since the great depression. The financial crisis begins in the United States of America and spread to other part of the global economy in different countries. During this time, it affects many institution and other business such as the collapsing of some banking institutions one of which is the Lehman Brother. These banking systems in America and abroad suffers severed economic losses which forced them into bankruptcy. The economy was in the worst condition than ever and businesses was basically reluctant in combating this devastating financial crisis. The governments put fort strategic plans that will help stabilize the economy condition, they try to assisted the banking system from collapsing but financial crisis continued for many years as a worldwide recession in the European Union and debt crisis. Even though the government intervention was prolong ed this was not sufficient for some of the banking institution. On September 15, 2008, the Lehman Brothers filed for bankruptcy due the collapse of the financial system. This paper is written to show the causes of the financial crisis and what strategic strategy the feds took to combat the situation. It also looks at the how the 2007-2008 financial crisis trigger the bankruptcy of the Lehman Brother. Keywords: (Financial meltdown, Lehman Brothers, Bankruptcy, Recession). The impact of the financial crisis that leads to the bankruptcy of the Lehman Brothers. The Lehman Brothers was one of the largest investment banking institution in the United States of America. During the financial meltdown of the 2007-2008 financial crisis the state of the chaotic economy was in such a devastating condition. There were many sustainable factors that was used to help stable the economy, but even though several financial institutions were saved by the government proactive strategies, the bankruptcy and collapse of the Lehman Brothers remains a tragedy and instead of following protocol of rescuing the Lehman Brothers company the government sat back and allow the Lehman Brothers to fail. The seemingly triggers and panic of the crisis was basically hidden losses. Causes of the 2007-2008 financial crisis One of the primary cause of the 2007-2008 financial crisis was the overflowing of the housing sector in the United States of America that rises in 2005-2006 and because of this, the mortgage rate become default and people cannot pay their mortgage. According to Fried (2012), due to this situation, the banks commence in providing more credits to home owners resulting in higher interest rate and increase housing price. The rise in the housing price seen in the United States in earlier years following the financial meltdown was as a result of the amount of credit made available that was driven by the enormous cashflow of foreign currency into the country. The real estate market also struggled in the United States because of the increase of the real estate standards and careless consumer spending (WEB: 2012, Fried). During this time is was very easy for individuals to retrieved loans such as credit card, car loan, mortgage etc., which results in the unexpected debt of loan lending among banking institutions and consumers. The was also a rise in the collateralized debt organization and mortgage securities that obtained their value from mortgage payments. This makes it easier for investors from all over the world to invest in the housing sector and as the housing price went down, the financial institutions that borrow money to invest went down and repost huge losses. Secondly, another factor that is responsible for the 2007-2008 financial crisis was the existence of easy credit obtained by consumers. In the previous years before the financial crisis, the Feds decrease the federal vault requirement to 1.0% from 6.5%. This was primarily to rebel against the danger of deflation in the economy, but this aggressive move along with other factors create an increase in the demand of financial assets and therefore, increase housing price while reducing the interest rate (WEB: 2012, Fried). Another reason behind the financial crisis was the sublime lending by financial institutions such as the banking systems. The rapid increase in the real estates industry created intensive rivalry among mortgage lender competitors and the quantity of creditworthy borrowers dwindled and this made many lenders institutions feel comfortable in extending credits to borrowers. The government also subsidized business enterprises who maintained minimal underwriting standards during the previous years before the financial crisis. As this happen, it increases the chances of the mortgage standards to decrease and risky loans. Some of the statistical figure release by the international monetary fund (IMF), there was some major banking institution that incurred losses of more than one trillion from bad loans assets credits and there would be greater losses if the Fed didnt do something to assisted these banking institutions. The financial meltdown as led to the bankruptcy of many mortgage institution lenders and because of this several banking systems went under pressure and some was taken over by government institutions. Several of these institutions are Lehman Brothers, Citigroup, Merrill Lynch, etc., The impact of the financial crisis on Lehman Brothers. The article entitled Crash Course there was no doubt that the downfall of the investment bank the Lehman Brothers was a major cause of the financial crisis meltdown. There were doubtable reasons circulating as to why the government allow the financial institution to collapse, because the government bailed out other institution such as JPMorgan Chase, and Bear Sterns. Nevertheless, several months down the line of the same year the Lehman Brothers was left all alone where they had to file for bankruptcy because the Fed slowly declined to rescue them from the financial crisis (WEB: 2013, Crash Course). According to Thomas and Hirsh (2009), on September 2008, the Lehman Brothers filed for bankruptcy, this move nearly caused the collapse of the financial system. President Bush expressed his opinion of the economy going down when he stated that this sucker could go down (Mason, 2009, p.28). Many concur that the bankruptcy of the Lehman Brothers could change everything for the country. Economist believed that the failure of the Lehman Brothers has a huge impact on the economy and before it happens the recession was under control, but after the collapse of the investment bank the economy was altered (Lucas, 2009, p.67). According to a well know economist, everything fell apart after the Lehman Brothers went over the cliff, because no financial institution was safe (Blinder, 2009). It was said by the Treasury Secretary that the failure of the Lehman Brothers had led to a systematic crisis where the credit markets frozen and banks significantly had to limit interbank lending, because the assurance of the institution was extremely compromised throughout their financial system. He further explained that the financial system was on the verge of collapsing due to the preexisting of the economy downturn. Many believed that the bankruptcy of the Lehman Brothers was primarily due to the inconsistency and lack of planning in the policies that was applied to the Lehman Brothers in the 2008 crisis. One of the stipulating rumors of why the Lehman Brothers filed for bankruptcy was that they didnt enforce foreseeable risks in the system and the firms risks taking shrank. The Feds on the other hand, didnt intervene instead they let the investment bank collapse and they sent a message stating that the firm needs to take responsibilities for their lack of planning and failure t o take risks. The Feds reaction to the financial crisis Based upon the 2007-2008 financial crisis, the Fed government implemented the Emergency Economic Stabilization Act of 2008, which is also known as the U.S. bailout plan in cases as critical as the financial crisis. With this plan the United States Secretary of Treasury is authorized to used seven hundred billion dollars ($700) to help assist businesses during financial crisis especially securities backed by mortgages as well as supply liquid cash to banks to ensure that depositors dont lose their savings. Majority of the funds will be put into banks and other financial institutions to bailout businesses in distressed. The 2008 Act will not only assist locals, but also international businesses worldwide. The plan was implemented to bail out and improve the liquidity assets to stabilize the economy. Upon the implementation of the bailout plan the American economy started to recover because companies such as General Motors that was on the brink of bankruptcy showed improvement by record ed revenues and increase in profit margins. Conclusion Many people believed that the 2007-2008 financial crisis could have been handle differently and it could have been avoided if the Feds had taken actions. The bankruptcy of the Lehman Brothers during the financial crisis has impacted the financial system drastically and the fed government did not bail out the bank because of their lack of planning and risk taking pertaining the preexisting economy crisis. The fed believes that if the Lehman Brothers had initiate proper planning and develop strategic policy then they could have avoided the bankruptcy. The federal government also believe that because the Lehman Brothers was in financial problem from previous years before the 2007-2008 financial crisis and they didnt do anything to help the firm, during the crisis they were not willing to take action and prevent themselves. During the crisis it took a large portion of taxpayer money to bail out the economy. References Blinder, A. S. (2009, January 24). Six Errors on the Path to the Financial Crisis: The New York Times. Retrieved February 21,2017, from http://www.nytimes.com/2009/01/25/business/economy/25view.html Fried, J. (n.d.). Who Really Drove the Economy into the Ditch? New York, NY: Algora Publishing. Retrieved February 21, 2017, from https://www.questia.com/library/120076524/who-really-drove-the-economy-into-the-ditch Lucas, R. (2009). In the defense of the dismal science. The Economist. Retrieved February 21, 2017, from http://www.economist.com/node/14165405 Mason, P. (2009). Meltdown: The end of the Age of Greed, Verso: London. Retrieved February 21, 2017, from https://www.amazon.com/Meltdown-End-Greed-Paul-Mason/dp/1844676536 WEB: (2013). Crash course. The origins of the financial crisis. Retrieved February 21, 2017, from http://www.economist.com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article>
Monday, August 19, 2019
Chivalrous Code :: essays research papers
Chivalry began in the 12th century in the form of a knightly code of conduct, with special emphasis on courtly manners toward women. Thirteenth century stories that showed the ways a warrior should behave in romance became popular . Churchmen liked the idea of high standards and made the knighting ceremony a religious occasion with a church vigil and purifying bath. Books on the subject soon began to appear. Many forms of chivalrous code can be found today, from The Cowboy’s Code to the Rules of Courtly Love. These codes are stated with the hope that people will try and follow them to some degree; yet only the perfect could adhere to them all. Considering the fact that such perfection is impossible, the authors merely set out a guideline for honorable behavior. In the context of medieval times, a knight was expected to have faith in his beliefs; for faith was considered to give hope against the despair that human failings create. I chose to use ‘The Code of Chivalry’ for my comparisons on literary characters great successes and failures. For my first example, I chose the brave and fearless Beowulf. According to the 19th code of chivalry, one must ‘Destroy evil in all of its monstrous forms,’ and also ‘Exhibit courage in word and deed.’ Beowulf proclaimed to fight the evil Grendel, saying â€Å"We shall fight for our lives, foe against foe; and he whom death takes off must resign himself to the judgment of God (1200).†After the battle, the terror-filled Grendel crept away, mortally wounded. Beowulf had upheld this particular code with valor and bravery. For my second example, I looked to Sir Gawain. The story of the Green Knight is seeped with instances of chivalry, and honorable men. â€Å"Always keep one’s word of honor,†was an obvious code for this particular story. Not only did Sir Gawain show respect for the codes of chivalry by serving his king, exhibiting courage, and fighting with honor; he kept his words of honor that had been spoken with the Green Knight. Although he was distracted in his course, he kept the appointed new year challenge with the knight. Not a perfect instance of chivalry, yet his example leads nicely into my next character assessment. Don Quixote, if nothing else, must be praised for his valiant efforts to follow the laws of the great knights. After encountering a man beating a half naked youth, he informs him that â€Å"it is a caitiff’s deed to attack one who cannot defend himself.
Sunday, August 18, 2019
State of War :: essays research papers
Our Current State Of War      A â€Å"State of War†is a period when two nations, parties, or even individuals are in open and armed conflict with each other. But how does this come about, and how would John Locke and President George W. Bush feel about how it is that a state of war originates? What actions must take place for war to exist? Is there a period of time that must be spent deliberating the possibility of entering into a state of war to determine its necessity? Is there even a choice in the mater, or is it born in all of human kind as a sort of character trait, which must at times be expressed. If a state of war is inevitable, should the support of others be established, and at what moment in this conflict does it become apparent that a state of war has just been entered into? Is this idea of â€Å"State of War†similar or different when comparing the writing of John Locke, with the actions of President Bush? To understand how it is that a state of war comes about we must know what it is. John Locke defines a state of war saying, â€Å"I should have a right to destroy that which threatens me with destruction†¦and one may destroy a man who makes war upon him.†(Ch 3 sec. 16, â€Å"Two Treatises of Government†) This gives a reasonable idea about what war is, when it is necessary to enter into a state of war, and how it is that it can be entered into. Locke is saying that war is a response to a threat. A threat can be a physical attack, or a verbal declaration to harm. The attack, or evidence of intent to harm is then reason enough for a state or war to be declared. With this understood and given the current state of war between Iraq and the United States can it be said, based on Locke’s statement, that George W. Bush had reason enough to enter into a state of war with Iraq? In a speech made to the American Enterprise Institute President Bush said, â€Å"In Iraq a dictator is building and hiding weapons that could enable him to dominate the Middle East and intimidate the civilized world – and we will not allow it.†The development of these weapons could be interpreted as a threat, and a threat against the civilized world would justify an interest in a state of war.
El Greco Essay example -- Essays Papers
El Greco The Agony In the Garden, a mannerist style of art by EL Greco, proclaims a sense of spiritual power of religious faith which accomplishes El Greco’s aim to move his audience. El Greco was born on the island of Crete and lived from 1541 to 1614. He represented the most characteristic figure of Spanish Mannerism. El Greco was influenced by and became acquainted with the art of Titian and Jacopo Bassano in Venice where he studied in 1566. In addition to visiting Italy, El Greco made his way to Rome, Parma and probably Florence. On his travels he became more familiar with the work of Parmigianino and the work of Correggio. In El Greco’s use of form can be seen Florentine Mannerism. Venetian Mannerism can be seen in the peculiar brilliance of his coloring. The plans for the construction of the Escurial and the discussion of works of art being selected by Philip II, probably attracted El Greco to Spain. However, El Greco failed to satisfy the Italianate tastes of the King. He lived virtually uninterruptedly in Toledo from 1575 on. In Toledo he formed friendships with men of advanced beliefs and humanist interests. The monastic, from which his prime commitment came, were glad to decorate their churches and cloisters with his elevated visionary paintings. El Greco paintings bordered on a supernatural world of creative fantasy. Most of his paintings survive in a number of copies painted in his own hand. El Greco’s studio which employed a large number of assistants also produced many contrasts of his works. People were very curious about his paintings with their unusual setting and flickering impressiveness. In The Agony In The Garden there are two planes displayed in the art work that are disconnected by a few bare branches that contain fugitive leaves. The upper plane consists of the vision of Christ set against a large rock with a few trees. Christ is kneelingin a reddish-purple robe, with hands stretched out toward the ground. He turns toward the floating angel who is painted in pearly greys. Behind the angel, on the left are spinning clouds. Preceding from an outline of an imaginary town, on the right, are soldiers carrying flags. The inconceivable impression of the picture is due to the contrast of not only passionate and cerebral but in terms of colour- between the two planes and their figural content as w... ...were able to combine themselves in the melting pot of the European public and benefited most form the prudent principles of their times. A Baroque painter even conserved his national characteristics. Baroque made use of characteristics of the Mannerist style by engaging and future maturing them. There was more unity in Mannerist style’s outweighing ideas and more variance in its forms of presentation. Classicism, however, was piercingly against everything mutual to Mannerism and the Baroque. It condemned Mannerism in some unstable terms, with all its integrity and corruption’s. The Masters, such as El Greco were forgotten, but that taste in art could not be hidden forever. Mannerist art came back to life after it had been dead for a few centuries. It fist came back to life with the discovery of El Greco and others. Bibliography: Bousquet, J. (1964). La Peinture manieriste. Neuchatel Haraszti-Takacs, Marianne. (1968). The Masters of Mannerism. Corvina Press. Hauser, A. (1964). Der Manierismus. Munich. Sherarman, J. (1967). Mannerism. London. Wolf, R. and Millen, R. (1968). Renaissance and Mannerist Art. Harry N Abrams, Inc.
Saturday, August 17, 2019
Emily Bronte’s poem “Spellboundâ€Â
Emily Bronte’s poem, â€Å"Spellbound,†is evocative and emotive. Its imagery, saturating nature with vivid emotions, is unforgettable. In dissecting the poem, truly examining it for its constituent parts, one is struck by the mastery with which Bronte is able to manipulate individual words and have them gush with emotions, conjuring up images in the reader’s head effortlessly. In the end, Bronte’s nature is painted as a canvass of entrapment, a majestic masterpiece of beauty that ensnares her imagination but paralyzes her body and soul. Bronte’s first stanza establishes this motif early.Nature’s prominence in the poem is unmistakable as she cites the power of the night as it envelopes her. Adding to this sense of encirclement is the â€Å"wild†character ascribed to the winds, blowing relentlessly. The combination of these two sentiments creates a strong sense of the uncontrollable character of nature; night darkens and cannot be stop ped, wild winds cannot be tamed. This sense is only heightened in the next line as Bronte ascribes a tyrannical composition to these forces, binding herâ€â€a clear link between the burden of uncontrollable nature and her own sense of paralysis.She explicitly describes this sense of immobility in the final line of the stanza saying, â€Å"I cannot, cannot go. †Thus, in the first stanza, Bronte is clearly fascinated by nature, but eventually overpowered and immobilized by its unyielding power. In the second stanza, Bronte elaborates on the force of nature, ascribing an empty, lifeless quality to it that simultaneously evokes a sense of momentous serenity. The â€Å"giant trees†continue the large scale already created by the night enveloping her and the untamed wind. Yet those trees, like Bronte are burdened, held down by snowâ€â€perhaps an allusion to her own feeling of sagging.The sense of an ominous future is heightened even further with her description of a storm â€Å"fast descending,†as she reaffirms her paralysis, again saying that she â€Å"cannot go. †In the third and final stanza, Bronte ties the first two stanzas together. In describing â€Å"clouds beyond clouds,†and â€Å"wastes beyond wastes,†she reaffirms the crushing endlessness of nature and ties it to her hopelessness. If the world is so large, she feels small; this sentiment perhaps the source of her unmotivated lethargy. Together, the stanzas add up to a message that underscores the power of nature while also highlighting the sagging weight of its enormity.
Friday, August 16, 2019
How Do Economic Incentives Affect Social Preferences and Behavior Essay
For decades economic theories have relied heavily on the effectiveness of material incentives (Fehr & Gachter, 2001). According to the traditional exchange theory all people are exclusively motivated by their own material self-interest. It predicts that the introduction of a penalty will reduce the occurrence of the behavior that is subject to the fine. On the other hand it states that introducing a material incentive will lead to an increase of the behavior related to the bonus. Based on economic theory, incentives have become increasingly popular and are used to increase certain behaviors in various fields including environmental policy (Andersen & Sprenger, 2000; Barde & Smith, 1997; Baumol & Oates, 1988; Kahn, 1995; all cited in ThOgersen, 2003), household surveys (Singer, 2002) and education policy (Fryer, 2011). On the other side, penalties have been used to reduce free-riding (Feldman, Papadimitriou, Chuang, & Stoica, 2006), and crimes (Akerlof & Dickens, 1982). There is much evidence that supports the basic premise of economics that incentives are effective (Gibbons, 1997; Prendergast, 1999; Lazear, 2000; all cited in Benabou & Tirole, 2004). However, a large body of literature in psychology has shown that explicit incentives lead to decreased motivation and reduced performance in the long run (Deci & Ryan, 1985; as cited in Benabou & Tirole, 2004). Titmuss (1970, as cited in Benabou & Tirole, 2004) was the first who claimed that people might adopt a ‘market mentality’ when they are exposed to explicit economic incentives. He found that paying blood donors for donating blood could actually reduce supply. In the beginning there was little hard evidence that social preferences affected individual behavior, but empirical and theoretical advances over the past decades provide the basis for more support. For example, Gneezy and Rustichini (2000a) found that introducing a monetary fine for late-coming parents in day-care centers led to a significant increase in late-coming. There was no reduction in late-coming after the fine was removed. Also Fryer (2011) didn’t find evidence that providing financial incentives to teachers to increase student performance had any effect. Partly because of these findings, terms as trust, reciprocity, gift exchange and fairness have appeared in the empirical study and modeling of principal-agent relationships (Bowles & Polania-Reyes, 2012). This highlights the importance of the influence that social preferences have on incentives. Based on the contradictions mentioned above I conclude that a more thorough analysis is needed in order to understand the influence of incentives on behavior. I’ll focus on the interplay between incentives and social preferences and how this affects behavior. In this paper I will review several mechanisms that can explain how incentives can be less effective than economic theories predict and how they can even have counterproductive effects. Furthermore I will indicate the implications of the (non-)effectiveness of incentives for economic policy. Overview of past research According to the definition of Bowles and Polania-Reyes (2012), social preferences refer to â€Å"motives such as altruism, reciprocity, intrinsic pleasure in helping others, inequity aversion, ethical commitments and other motives that induce people to help others more than would an own-material-payoff maximizing individual†(p. 4). Fehr and Fischbacher (2002) have indicated the most important types of preferences that have been uncovered by the literature. I will shortly review them below. The first important type of social preference is the preference for reciprocal fairness or reciprocity. An individual is reciprocal when he responds kindly to actions that are perceived as kind, and when he responds hostile to actions that are perceived as hostile. Whether some action is perceived as hostile of kind depends on the unfairness or fairness of the intention and on the consequences that are associated with the action. A second social preference type is inequity aversion. According to Fehr and Schmidt (1999; as cited in Fehr & Fischbacher, 2002) â€Å"inequity averse persons want to achieve an equitable distribution of material resources†(p. C3). Inequity averse persons show altruistic behavior if the other persons’ payoffs are below an equitable level. However, if the other persons’ payoffs are exceeding the equitable level an inequity averse person want to decrease the other persons’ payoffs. There are a lot of similarities in the behavior of reciprocal and inequity averse individuals, since both concepts depend in some way on the perception of fairness. Pure altruism is the third type of social preference, which is very different from the former two. Altruism can be seen as an unconditional form of kindness (Fehr & Fischbacher, 2002), as an altruistic person would never take an action that decreases another person’s payoff. The problem with pure altruism is that it cannot explain conditional cooperation, that is, people want to increase their voluntary cooperation in response to cooperation of others. The last social preference type that Fehr and Fischbacher (2002) mentioned is envious or spiteful preferences. An envious or spiteful person always values the payoff of other agents negatively. Therefore the envious person is willing to decrease the other agent’s payoff even if it brings along a personal cost to himself. This happens irrespective of fair or unfair behavior of the other agent and irrespective of the pay-off distribution (Fehr & Fischbacher, 2002). However, spitefulness can’t explain why it is that the same individuals sometimes are willing to help others at a personal cost, while sometimes they harm other people. Over the past decades, many studies have confirmed that a significant fraction of individuals engage in reciprocal or altruistic behaviors (Buraschi & Cornelli, 2002; as cited in Benabou & Tirole, 2004; Fehr & Gachter, 2000). Thus, many individuals do not only care about the material resources allocated to them, but also care about material resources allocated to other relevant agents. To give an overview of the incentive effects on preferences, two distinctions are made: the nature and the causes of incentives (Bowles & Polania-Reyes, 2012). Concerning the nature of incentives, people often respond to the mere presence of incentives, rather than to their extent (Gneezy, 2003; as cited in Bowles & Polania-Reyes, 2012). However, the extent of an incentive may also play a role. Therefore the effects of incentives on social preferences can be either categorical or marginal or a combination of the two. Bowles and Polania-Reyes (2012) also make a distinction between 2 causes of incentive effects on preferences. First, incentives can affect the environment in which preferences are learned. When this happens, the preferences are referred to as endogenous preferences. Second, the extent or presence of incentives affect the behavioral salience of an individual’s social preferences. When incentives constitute different states, we refer to social preferences as state-dependent preferences. There are three mechanisms that make social preferences state-dependent. First, by implementing an incentive, the principal discloses information about his intentions, about his beliefs about the target of the incentives and about the targeted behavior. This information might affect the agent’s social preferences which in turn affect the agent’s behavior. Second, incentives provide situational cues for appropriate behavior. Finally, incentives may lead to a crowding out of intrinsic motivations. The crowding-out effect is based on the intuition that the presence of punishments or rewards spoils the reputational value of good deeds. This creates doubt within the individual about the extent to which he performed because of the incentives rather than for himself. This phenomenon is also referred to as the ‘overjustification effect’ (Lepper, Greene, & Nisbett, 1973; as cited in Benabou & Tirole, 2004). In the next part of this paper I’ll give experimental evidence for both endogenous preferences and for all 3 mechanisms that make preferences incentive-state-dependent. Furthermore, I’ll give examples of experiments where crowding in has been found and explain the underlying mechanisms. 1. Endogenous preferences: incentives alter how new preferences are learned Preferences are endogenous if someone’s experiences lead to durable changes in motivations and eventually result in a change in behavior in certain situations (Bowles, 2008). In most cases, experiments have a few hours duration and therefore it’s unlikely to uncover the mechanisms that are involved in the process of durable change of preferences. Although it’s hard to explore the causal mechanisms at work, there exist some experiments that do show a durable learning effect (Irlenbausch & Sliwka, 2005; Falkinger, Fehr, Gachter, & Winter-Ebmer, 2000; all cited in Bowles, 2008). Gneezy and Rustichini (2000a), for example, examined if the introduction of a monetary fine for late-coming parents in day-care centers would lead to reduction of late-coming. However, the amount of late-coming parents didn’t decrease, but increased significantly. Thus incentives led to more self-interested behavior. More importantly, after the fine was removed no reduction in late-coming parents was shown, meaning that there was some durable learning effect going on. 2. State-dependent preferences: incentives provide information about the principal When an incentive is imposed on an agent, he may infer information about the principal who designed the incentive. He may, for example, infer information about the principal’s beliefs regarding the agent, and about the nature of the task that has to be done (Fehr & Rockenbach, 2003). This information can lead to a negative response to fines that are imposed by principals. Fehr and Rockenbach (2003) designed a sequentially played social dilemma experiment and examined how sanctions intended to prevent cheating affect human altruism. Participants in the role of ‘investor’ could transfer a certain amount of money to another player, the ‘trustee’. The experimenter tripled this amount. After tripling the money, the trustee was given the opportunity to back-transfer some of this money to the investor. The investor could indicate a desired level of the back-transfer before he transferred the money to the trustee. In the incentive-condition the investor even had the option to impose a fine if the trustee would send a back-transfer that was less than the desired amount. Instead of imposing a fine the investor could also choose to decline the use of the fine. The decision of imposing or declining the fine was known to the trustee. In the trust-condition the investor could not make use of incentives. Fehr and Rockenbach (2003) found that generous initial transfers by investors were reciprocated with greater back-transfers by trustees. However, the use of the fine reduced the return transfers, while renouncing the fine in the incentive-condition increased back-transfers. This means that sanctions revealing selfish or greedy intentions destroy altruistic cooperation almost completely (Fehr & Rockenbach, 2003). In another experiment by Fehr and Schmidt (2007), principals could choose between offering a bonus contract or a combination contract (which was a combination of the bonus contract with a fine) to the employee. What they found was that agents perceive that principals who are less fair are more likely to choose a combined contract and are less likely to pay the announced bonus. Furthermore the effect of effort on the bonus paid is twice as large in the pure bonus condition compared to the combined contract condition. The positive response to the principal’s renunciation of the fine option can be seen as a categorical effect. The threat of a fine led to diminishment of the trustee’s reciprocity. 3. State-dependent preferences: incentives may suggest permissible behavior The experiments that will be described here, differ from the experiments mentioned above in the way that here incentives are implemented exogenously by the experimenter. This means that incentives do not provide any information about the beliefs or intentions of other experimental subjects. In a lot of situations people look for clues of appropriate behavior. These are often provided by incentives. These framing effects have been investigated in many studies. Hoffman, McCabe, Shachat and Smith (1994; as cited in Bowles & Polania-Reyes, 2012) found that by making a game sound more competitive after relabeling it, generosity and fair-minded behavior in the participants were diminished. In some other studies (Ellingsen, Johannesson, Munkhammar, & Mollerstrom, 2008; as cited in Bowles & Polania-Reyes, 2012) the framing effect even appeared to have changed subjects’ beliefs about the actions of others. Framing effects can also be induced in other ways than simply renaming the experiment. Providing an incentive may already provide a powerful frame for the decision maker. In an experiment of Schotter, Weiss and Zapater (1996) subjects played an Ultimatum Game experiment in which player 1 is given an endowment and asked to propose a part of this endowment to player 2. Player 2 can either accept or reject this division. If he accepts, the proposed division is implemented. However, if he rejects both players receive nothing. Schotter et al (1996) found that if a market-like competition was included in the game, that is, subjects with lower earnings would be excluded from the second round in the game, player 1 proposed less generous divisions to player 2. Furthermore, lower offers were accepted by player 2. The authors interpreted these results as that implementing market-like competition â€Å"offers justifications for actions that in isolation would be unjustifiable†(p. 38). Thus, providing incentives in the form of a competition can lead to moral disengagement. The framing effects of incentives can occur in cases of government-imposed incentives as well. An example comes from an experiment from Cardenas, Stranlund and Willis (2000) where they studied the effects of external regulatory control of environmental quality. Participants were asked to choose how much time they would spend collecting firewood from a forest, while being aware that this activity has a negative effect on local water quality. Two treatments were considered to examine whether external control may crowd out group-oriented behavior. All subjects played eight initial rounds of the game without any treatment, that is, without being able to communicate with each other and without external regulation. After the initial rounds, one subset of groups played additional rounds in which they were able to communicate. The other subset of groups was confronted with a government-imposed regulation. The regulation also involved the possibility of imposing a fine to subjects that would withdraw too much of the firewood. Although standard economic theory predicted that the regulation would increase group-oriented behavior, this wasn’t the case. When subjects were able to communicate they made way more efficient decisions. However, regulatory external control caused subjects to make decisions that were closer to their self-interest. This means that the fine, although it was insufficient to enforce the social optimum, extinguished the subjects’ ethical aptitudes. 4. State-dependent preferences: incentives may compromise intrinsic motives and self-determination A third reason why social preferences may be state dependent is because providing incentives may lead to motivational crowding out. As Bowles (2008) put it: â€Å"where people derive pleasure from an action per se in the absence of other rewards, the introduction of explicit incentives may ‘overjustify’ the activity and reduce the individual’s sense of autonomy†(p. 607). According to Deci (1975; as cited in Bowles, 2008) the underlying psychological mechanism appears to be a desire for â€Å"feelings of competence and self-determination that are associated with intrinsically motivated behavior†(p. 1607). There is a large body of literature on the psychology of intrinsic motivations going back to the early work of Festinger (1957; as cited in ThOgersen, 2003) and his cognitive dissonance theory. In the past decades a lot of experiments have been done to test the crowding out of intrinsic motivation. One of these studies comes from Gneezy & Rustichini (2000b) who tested the effects of monetary incentives on student performance. 180 students were asked to answer 50 questions of an IQ test. They were all paid 60 NIS (New Israeli Shekel) for their participation in the experiment. The students were divided into 4 different groups, which were all corresponding to 4 different treatments. The students in the first treatment group were only asked to answer as many questions as possible. The students in the second group got an extra payment of 10 cents of a NIS per question that they answered correctly. Subjects in the third group were promised 1 NIS, and subjects in the fourth group 3 NIS per question that they answered correctly. The average number of questions correctly was approximately 28 in the first group and declined to 23 in the second group. Furthermore, the number increased to 34 in both the third and the fourth group. The differences in performance were significant. In a second experiment Gneezy & Rustichini (2000b) tested the effect of incentives on volunteer work performed by high school children. 180 children were divided into three groups. The subjects in the first group constituted the control group and they were only given a speech about the importance of volunteer work. The second group was given a speech as well, but was also promised to receive 1 per cent of the total amount of donations collected. The third group was promised 10 per cent of the amount collected. The average amount collected was highest in the first group and lowest in the second group. The average amount that was collected by the third group was higher than that of the second group but not as high of the amount that was collected in the first group. Also these results were significant. It appears to indicate that the effect of incentives can be detrimental, at least for small amounts. In another experiment, Falk and Kosfeld (2006; as cited in Bowles 2008) tested the idea that control aversion based on the self-determination motive is the reason that incentives reduce performance. They used a principal-agent game where agents could choose a level of production that was beneficial for the principal, but costly for themselves. If the agent chose to produce nothing, he would get a maximal pay-off. Before the agent’s decision the principal could decide to leave the choice f production level completely to the agent or to impose a certain lower bound on the agent’s production level. The experimenter varied the bounds across the treatments and the principal could only choose to impose it or not. Results showed that when the principal imposed the bound, the agents chose a lower production level than when the principal didn’t impose a bound. The ‘untrusting’ principals earned half of the profits of those who did trust the agents and thus didn’t impose a bound. In post-surveys, the agents indicated that imposing the lower bound was perceived as a signal of distrust. The results of this experiment suggest that the desire for self-determination and control aversion are not the only effects of imposing the bound. Imposing this minimum was informative for the agents about what the principals’ beliefs were regarding the agents: the principals who imposed the bounds had lower expectations of the agents. Thus, the results in the experiment of Falk and Kosfeld (2006; as cited in Bowles 2008) seem to be the result of both negative information about the principal (or incentive designer) as well as the result of self-determination. 5. Crowding in Although a lot of experiments show that providing incentives has a negative effect on social preferences, there is also some evidence that crowding in can occur, that is, social preferences and incentives enhance the effect on each other. This might happen when an incentive provides good news about the principal’s type or intentions, for example when he offers the agent a reward rather than a fine. It is also seen in experiments where the incentive designers are peers in a public goods game who pay to punish free riders in order to sustain cooperative behavior (Bowles & Polania-Reyes, 2012). The phenomenon of crowding in is interesting since it indicates how policies could be implemented optimally and how incentives and social preferences could become complements rather than substitutes (Bowles & Polania-Reyes, 2012). Besides that, it appears that crowding in happens often in Public Goods games and Common Pool Resources games, which display the same characteristics as public policy settings. Below I’ll give an example of an experiment in which crowding in was found. Fehr and Gachter (2000) conducted a public good experiment with and without the opportunity to punish. In the no-punishment treatment the dominant strategy is complete free-riding. In the punishment treatment free-riders could be punished by their altruistic peers, since it was costly for them to punish. Therefore, if there were only selfish individuals, as assumed in economic theory, there wouldn’t be a difference between the two treatments. However, in the no-punishment treatment the contributions of the players were substantially lower than in the punishment treatment. This suggests that powerful motives drive the punishments of free-riders. Furthermore there was evidence that the more free-riders deviated from cooperation, the more they were being punished. There are several mechanisms that can explain the effect of crowding in. In the first place when a peer imposes a fine on a free-rider, this may activate a feeling of shame. Barr (2001; as cited in Bowles & Polania-Reyes, 2012) found that just a verbal message of disapproval already can have a positive effect on the free riders’ contributions. A second mechanism that appears to be at work it that nobody wants to be the cooperator while all others are defecting. Shinada and Yamagishi (2007, as cited in Bowles & Polania-Reyes, 2012) found that students cooperated more in a public goods experiment when they were assured that defecting free-riders would be punished. They just didn’t want to be exploited by defectors. A third mechanism underlying crowding in was consistent with the findings of an experiment by Vertova and Galbiati (2010, as cited in Bowles & Polania-Reyes, 2012). They found that when a stated obligation was introduced, this produced a larger effect when it was accompanied with a small monetary incentive, rather than with a big incentive or than when no incentives were offered. The authors interpreted this phenomenon as that the salience of the stated obligation is enhanced by large explicit incentives. The latter phenomenon was also found in Ireland, where a small tax was imposed on plastic grocery bags (Rosenthal, 2008; as cited in Bowles & Polania-Reyes, 2012). After two weeks there was a 94% decline in the use of these bags. This result can be explained by the fact that the introduction of the tax was preceded by a large publicity campaign. Thus, the incentive was implemented jointly with a message of social obligation and it seems that it served as a reminder of the importance of one’s civic duty. Implications for policy Many policies are based on the self-interest hypothesis that predicts that all individuals are self-regarding. However, as we have seen social preferences play an important role as well when it comes down to behavior. This would mean that a lot of current policies are non-optimal. Therefore a big challenge is facing the mechanism designer: how to design optimal fines, taxes or subsidies when the individual’s responses depend on his preferences which in turn are determined by the incentive imposed? In most experiments the effects of incentives were studies and afterwards the mechanisms were identified that could explain the results. However, one of the problems that the designer is facing is that he must determine beforehand how incentives will affect behavior. Based on the experiments that have been done, several guidelines can be drawn. The first is that when crowding out is found, social preferences and incentives are substitutes. This means that a negative effect of incentives is less likely to be found when the social preferences are minimal. In contrast, when social preferences are prevalent among a society, it may be more convenient to reduce the use of incentives. Also, policies that are implemented in order to enhance social preferences will be more effective when incentives are little used. The second stems from Titmuss’s claim that if the crowding out effect is so strong that the incentive has an opposite effect than intended, incentives should be used less. However, in many cases the effectiveness of incentives is not reversed, but blunted and then the implications for the optimal use of incentive isn’t that obvious (Bowles & Hwang, 2008). How Bowles & Hwang (2008) state it: â€Å"the reduced effectiveness of the incentive associated with crowding out would entail a larger incentive for a planner designing a subsidy to ensure compliance with a quantitative target†(p. 4). Present evidence is insufficient in providing enough guidelines to the policy maker who wants to know ex ante what the effects are of the incentives that he considers to implement (Bowles & Polania-Reyes, 2012). What we do know is that the same incentives imposed by individuals who have no personal benefit but only want to promote pro-social behavior (as in the experiment of Fehr & Gachter, 2000) are more likely to increase contributions than when imposed by an untrusting principal (Fehr & Rockenbach, 2003). Furthermore it seems to be important to let the agent understand that the desired change in behavior would be socially beneficial rather than that the incentive is perceived as a threat to her autonomy or reflecting badly on the designer’s intentions (Bowles & Polania-Reyes, 2012). Conclusion The self-interest hypothesis assumes that individuals are only motivated by their own material self-interest. This assumption is used in the design of many policies. However, in the past decades a lot of experiments have shown that other-regarding social preferences rather than self-regarding preferences play a role in behavior. We have seen that some mechanisms can induce pro-socially oriented individuals to behave as they are selfish. On the other hand, there are also examples of experiments in which mechanisms induce self-interested individuals to behave at a more pro-social level. Thus, incentives can lead to both crowding out and crowding in phenomena. Whereas negative information about the principal and the over-justification effect may lead to crowding out of intrinsic motivation to contribute to a good, altruistic punishment by peers who do not benefit personally is more likely to increase contributions. Furthermore it seems important to make individuals aware of their civic duty, as was shown in Ireland where a small tax was imposed on plastic bags. Regarding to public policy, we have seen that small differences in institutional design can lead to many different outcomes. This imposes a big challenge on the policy designer who has to know ex ante what the effects of the incentive that he is considering to implement will be. When social preferences are not present, incentives may have a positive effect, predicted by economic theory. However, in areas where social preferences do play a role, the use of monetary incentives needs to be reconsidered.
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