In asserting that the number of firms reporting small profits is abnormally high, thus suggesting that earnings management has taken place, accounting researchers assume that the distribution of reported earnings should be smooth for unmanaged earnings. This has never in fact been demonstrated. This article seeks to confirm this assumption through a laboratory experiment, and also sets out to i...

The present article outlines the main developments of what may be called the ‘new innovation theory’. This theory is based on the work of Schumpeter and combines it with the profit strategy approach. The purpose of this combination is to show that innovation needs to be embedded in coherent profit strategies in order to be effective. Innovation capacity and economic performance are much more th...

In this experimental study we analyse three collective and one individual punishment rule in a public good setting. We show that under all punishment rules cooperation is stronger and more sustainable than reported from settings without punishment. Moreover, we present evidence and explanations for differences between the rules concerning punishment intensity, contribution and profit levels, as...

This paper proposes a heuristic algorithm for solving the project selection problem under budget constraint. A decision criterion of net profit in conjunction with the techniques of searching the feasible range and the reduced candidate set is applied to obtain better heuristic solution and to minimize the computation effort. Six cases with different data variances are tested using the algorith...

Light flashes of calibrated wavelength and intensity were presented to the turtle eye and electrical responses were simultaneously recorded from the cornea and the optic tectum. Spectral sensitivity curves derived from criterion-response levels showed a characteristic red-sensitive process at both sites. At high criterion levels the two curves were quite similar. At low criterion-response level...

This short note provides a systematic construction of market models without unbounded profits but with arbitrage opportunities.

We report our analysis, using account data from a large discount brokerage firm, of the common stock investment performance of 166 investment clubs from February 1991 through January 1997. The average club tilted its common stock investment toward high-beta, small-cap growth stocks and turned over 65 percent of its portfolio annually. The average club lagged the performance of a broad-based mar...

In many cases, buyers must incur search costs to find the price of a product. This search cost affects the behavior of consumers, and through that, it affects the profit maximizing behavior of the firms. As search costs change, so do the competitive marketing mix strategies of the firms. In predicting the effect of changing search costs on the equilibrium prices and allocations, it is important...