Testosterone and Greed

To keep libidos active after menopause, some women take testossterione.  It turns out that this may make them greedier.

Joe Pinsker wrires:  Results of a study done by researchers at the University of Lausanne ecently published in The Leadership Quarterly suggest that  people with high levels of testosterone were more likely to behave greedily.

There’s already a thorough body of research on how power contorts morality and reason. Power, it’s theorized, turns people selfish because it makes them feel entitled and emotionally detached. It can make them view others as less worthy, which is of course compounded by the finding that power can increase bias. Given also that power makes people feel immune to bad consequences, it makes sense that some of those in power do so many awful things.

Hormones are a less-scrutinized variable in moral decision making. High levels of testosterone have been linked to diminished generosity and empathy, but the connections between testosterone and corruption—defined by Lausanne’s researchers as ignoring social norms for personal gain at others’ expense—hadn’t been sketched until this study.

To trace this relationship, researchers designed two experiments—both variants of what’s called “the dictator game”—that culled subjects from a Swiss university. In the first setup, subjects were randomly assigned to be leaders or followers. Each leader was solely responsible for deciding how to distribute prize money given to the group. For example, leaders at one point chose between “$100 for me; $70 for you,” “$90 for me; $90 for you,” and “$150 for me; $10 for you.” These numbers were selected such that the more the leader chose the receive, the less his or her followers would get. The leaders with more power—that is, with more followers or more distribution choices—behaved more greedily.

The second experiment was more ambitious. Weeks before subjects were assigned leader/follower roles, they filled out a survey about the fairest way to distribute the money. The vast majority of people agreed that the “$100 for me; $70 for you” arrangement was fair—which allowed the researchers to declare that picking “$150 for me; $10 for you” would be violating a norm that everyone agreed on. Subjects also had their mouths swabbed to measure testosterone levels.

During the experiments, once subjects had been named either leaders or followers, they were frequently reminded of the survey results, making them aware of what their peers expected of them. When leaders’ power over a situation was relatively low, roughly half of them stayed true to the social norms they helped develop; this dropped to 19 percent when they were given more power. Also, the greediest behavior was linked to high baseline levels of testosterone.

Susan Case, a professor of organizational behavior at Case Western notes that the average age of the subjects is about 21 years—an age too collegiate to use in generalizing about the corporate world.

From the Lausanne study, it’s not clear whether testosterone levels control corrupt behavior, or whether high levels of it are linked to the presence of some other physiological feature that does.

David Mayer, a management professor at the University of Michigan, points out that this research is similar, in spirit, to fMRI studies indicating which parts of the brain light up when a certain decision is made.

Indeed, what can be done to make business executives more likely to act with the public good in mind?  Iit appears the best way to curb selfish behavior is to turn away from hormones and toward oneself. “Being self-aware … actually reduces people’s tendency to morally disengage from the tasks they are doing and act with greater integrity,” says Fordham University’s Kyle Emich. Specifically, Emich recommends installing mirrors in the offices of the powerful—”so people are forced to look at themselves,” he says.

Testosterone and Greed

Hillary Clinton Flubs a Line

Hillary Clinton’s gaffe does not take her out of the running for President of the US in 2016.  But it shows a weakness.  Joe Biden, another candidate, utters innocent gaffes. He may be dyslexic.  This hardly disqualifies a decent man, with broad foreiign policy experience from running.  In our opinion, the press should lay off his small errors.

Mrs. Clinton’s gaffe about businesses not originating jobs was more sinister.  She seemed to be groping for a phrase some of her political competition uses.  She missed the mark.

A Yale University economiist concluded a decade ago that 2.2 percent of the total present value of social returns to innovation are captured by innovators (although profits to these innovators start out somewhat higher and then decrease rapidly over time.  In other words, nearly 98 percent of the value of technological innovations accrues to consumers (through lower prices and increased productivity) rather than to the inventors themselves.

People who make jobs, enterpeneurs and business people, are to be sure doing this in a country that makes it possible by supporting creativity, risk-taking and effort.  We lead the world in this quality, which is rare and  valuable.  Look at a state like Texas today.  Because it supports this spirit, jobs are plentiful and people are profiting across the board.

Class warfare is not a useful possture from which to improve the economy and create jobs and train people to fill them.

Hillary Cinton Gaffe

 

 

LinkedIn Cracked the Chinese Market

How is Linked in different from all the other social media sites?

Katie Benner writes:  LinkedIn is the first U.S. company to enjoy Internet success in China. The country is at the center of one of the professional networking site’s fastest growing regions and represents one of its biggest opportunities. While LinkedIn has only 5 million members in China (if you combine its English and Chinese language sites) the country is home to more than 100 million professionals who are potential future members.

Last quarter, LinkedIn’s chief executive officer, Jeff Weiner, mentioned the positive effect that China has had on his company’s bottom line. Fueled by China, LinkedIn’s revenue from its Asia Pacific division grew 64 percent last quarter, faster than from its operations in any other part of the world. Investors hope to see that growth continue when the company reports earnings today, and in the future.

Most discussions of LinkedIn’s success inevitably focus on the fact that the company cooperates with the Chinese government and censors content from its Chinese users — a discussion that intensified when LinkedIn started blocking some of its users’ posts earlier this year.

Some critics have made much of the fact that LinkedIn tries to paint its so-called “professional content” — stories about management techniques and earnings and best practices that it features alongside resumes and job postings — as uncontroversial. Therefore, the argument goes, there isn’t much on the site to warrant the attention of censors.

Content isn’t the core reason LinkedIn has made strides in China. It’s been successful there because it’s the only foreign Internet company that offers something that a Chinese rival just can’t replicate — a direct connection between the world’s biggest companies, the world’s most respected universities, and bazillions of networking-starved Chinese who want to use the site’s services.

LinkedIn is a window onto, and in some cases a passport to, the middle class, white-collar professional world that Chinese citizens have craved ever since they traded in their Mao suits for Levis in the 1980s.

The world is watching to see how LinkedIn deals with censorship and the Chinese government. But that’s not the only way to gauge why it’s been successful at courting Chinese users and dodging Chinese hardliners. LinkedIn meets the aspirational needs of a generation hungry for opportunity and simply copying its content strategy won’t translate into duplicating its success.

LinkedIn in China

 

Cash or Virtual Currency for Small Businesses?

Getting rid of cash is an alluring prospect.   First off, cash is filthy. A recent study done by New York University’s Center for Genomics and Systems Biology showed that cash is full of bacteria – including the “bacteria related to pneumonia, food poisoning, gastric ulcers and staph infections.”

Cash is expensive to make. Think of the cost of the machinery upkeep, the materials and more to create each coin and paper dollar. In addition, criminals love cash according to Mashable. And the Federal Bureau of Investigations (FBI) says that bank robberies accounted for $30 million in theft in 2011, a figure that doesn’t include insurance fees or the 100 deaths or injuries that were related to those robberies that year. It might also put a dent in tax evasion, which has costs governments across the world as much as $3.1 billion annually.

Small businesses have more trouble with virtual currrency and the apps, cards and other forms of lectronic currency.  A study by LexisNexis and Javelin Strategy & Research discovered that smaller mobile merchants — small businesses that accept at least one type of payment through either mobile browsers, mobile applications or mobile point-of-sale systems — rely on fewer fraud-prevention solutions, meaning they are often more exposed to deceptive schemes.

Cash or Virtual Money?

 

Bears Milked for Bile in Asia

Robert Carmichael writes:  13,000 bears lived in small, cramped cages on ‘bear bile’ farms in China, Vietnam, laso and Myanmar.  They are milked for their bile, , a bitter, greenish-yelow digtive fuied produced by the gallbladder and used in tradiotional sian medicine.

The trafficking of wild-caught bears and bear parts receives less attention than the illicit trade in other exotic animals, such as elephants, rhinos, and tigers. Yet it is big business in Asia: A whole gallbladder can be worth as much as $2,000 in parts of the continent, while bear paws smuggled into China, where they are considered a delicacy, can be sold for more than 20 times what they cost to purchase in Russia. (Few estimates exist for the overall size of the bear trafficking industry in particular, but in 2012 the World Wildlife Fund placed the overall value of the global illicit trade in wildlife as high as $10 billion a year.) And unlike in the case of elephants and rhinos, which are protected by dedicated, sophisticated — and in some cases armed — task squads, bear trafficking takes place nearly unchecked across Asia, from Pakistan to Japan, from Russia to Indonesia, driven by corruption made worse by complacency and an international community that pays it little attention.    Bear Traffic

Bear Bile

Japanese Second Tier Car Companies Making a Profit

Conventional wisdom is that you have to sell 6  million cars to make a profit.  In Japan, Mitsubishi, Mazda, Suzuki and Subaru are proving it wrong.

Suzuki has only one big market outside Japan, and that’s India.  They withdrew from a deal with Volkswagen which could have helped it sell small cheap cars in developed counteis.

Mazda wound down an over two decade relationship with Ford as Ford tried to avoid bankruptcy in 2007-8.  Subaru does not like the 16.5% take Toyota holds in it.

The companies don’t have big bucs for r & d, but Mazda has developed SKyActv technology which improves the efficiency of gas and diesel engines.

Mitsubishi belongs to a large industrial group, and each of the companies has a leg up from larger companies.  The domestic market for japanese cars has declined but the cars are doing well abroad.

Japanese Cars

McDonald’s Trying Gluten Free in the UK

Vegetarians outnumber those people who avoid gluten, but there is no longer miuch money to be made in the meat free market.  Sales of meat free products have plummeted in America and the UK.  McDonald’s has a weekend long trial in the UK testing a burger that did not have gluten.

A radpily growing number of consumers demanding gluten free products.  Sales in America has grown from $5.4 billion to $8.88 billion in the last two years.

Most people who buy gluten-free food do so for medical reasons, so this may well be more than a fad.

Gluten-free

Improbable Possibilities for Entrepreneurs

Alaska has lured fortune seekers to drill for oil and catch crab, but the latest profit-making industry in the state is flowers, particularly peonies particularly sought by brides and mothers-of-the-bride.

The projected harvest in the state in 2017 is 1 million  roots.  Holland alone sells over 30 million stems in a single month.  The northernmost state in the US has one advantage over all other growers.  Alaska is one of the few places on earth where peonies bloom in July.

Michelle Le Freniere of Chilly Root Peonie Farm in Homer Alaska is excited by the prospect.  She makes compost of fishwaste and seaweed.  Her peonies are pampered princesses.

Due to the extended daylight hours in Alaska during the summer, flowers can grow as big as a human head.  The pink ‘Sarah Bernhardt”. a fragrant, double-petaled bloom, is one of the most popular.  A good entrepreneurial enterprise.  Demand for peonies is rising.

Peonies

Should Human Reproduction Be Commercialized?

After the frist surrogate deivery in India in 1994, India has become an international destination for surrogate birth.  Has India exploited women as baby producers?

Loosely draftd agreements with commissioning parents leave surropate mothers vulnerable.  What is parents decide against taking the child?  And from the parents point of view, are they guaranteed delivery of ths child by the surrogate?   These quesitons are seldom answered definitively in legal agreements.

The larger moral question about whether human reproduction should be commerdaized remains.

SUrrogate Parenthood

Alex Blumberg’s StartUp

In a new podcast, Blumberg describes how to start s business.  While there is nothing new under this sun, it may be comforting to know, if you’re embarking on your own busiiness that everyone has the same problems and that these probllems can be overcome.

Each episode as a business is built from scratch feels intimate and honest. He records his humiliating failed pitches to millionaire cpaptialists and explains how he improves his pitch for the next time.  Available on iTunes.

Startups