Business

Froberg, Matthew (University of Utah)
Faculty Advisor: Asparouhove, Elena (University of Utah, David Eccles School of Business (Finance))

This research examines two fundamental topics of economics: accuracy of prices and the effect of market participation on individuals. In particular, it asks how security structure affects price and allocational efficiency through the equilibration process.

Security structure is defined as the payoff correlation structure between tradable assets. Economists agree that the markets they are studying are in equilibrium and also that there are equilibration forces that will drive markets towards equilibrium if they are not already there (see, for example, Arrow and Hahn (1971)). There is much less agreement, however, on what these equilibration forces are. Furthermore, it is very difficult to learn about these driving forces through the analysis of historical data because not enough is known about the fundamentals (wealth, human capital, and preferences of individuals) of past markets. This represents a great opportunity for experimental finance, where markets can be created in a laboratory setting allowing researchers to know, control, and change the fundamentals of the markets they create. This research examines what asset structures yield the most efficient allocations as a result of imposed fundamentals. The trading platform is Continuous Double Auction and is implemented in a software called Flexemarkets (flexemarkets.com). The main hypothesis is that markets consisting of securities that correlate negatively will exhibit the highest allocational efficiency. Data collection with human traders will be collected in the months of November and December. Pilot sessions with humans suggest that negatively correlated assets aid price discovery but more data is needed to address allocational efficiency.

The question regarding asset structure and its effect on financial well-being is especially relevant given the increasing popularity of index funds (see Bogle (2016)), which are typically positively correlated. Results of the experiment could yield substantial policy implications concerning what types of security designs lead to optimal allocational outcomes.

Calzado Real, Tamara; Blair, Ariel; Tenney, Elizabeth (University of Utah)
Faculty Advisor: Blair, Barbara "Ariel" (David Eccles School of Business, Management)

The purpose of this study is to understand how racial dissimilarity affects people of color's voice behavior in a student or class group. In a group where a person's social category is underrepresented, they become more aware of that social identity and their ability to perform at their full potential reduces because they are more focused on monitoring their performance and suppressing negative thoughts and feelings than improving group performance. However, in situations where people are more identified with the group, they are more likely to feel committed to or express themselves in a group. Additionally, in groups where people of color don't perceive themselves as different from all or most of the other group members, subgroups and division among team members is less likely to occur. In order for people of color to contribute in meaningful and innovative ways, having the confidence to speak up and express new ideas is crucial. We will run a survey where participants recall groups that they have been a part of and rank their voice (participation) in the group, their perceived racial dissimilarity of the group, and the importance of race on their personal identity. Afterwards, they will placed in an online student group chat with high or low dissimilarity and will be asked to reflect on their experiences. In line with previous research we expect that the importance of race on their personal identity will be positively related to perceived racial dissimilarity and therefore, we expect peoples' voice behaviors to decrease when they are in a group where racial dissimilarity is high.

Westover, Jonathan; Hardy, Danielle; Arvizu, Annie; Johnson, Jace; Powell, Spencer (Utah Valley University)
Faculty Advisor: Westover, Jonathan (Woodbury School of Business, Academic Director, Center for Social Impact)

Purpose - The purpose of this presentation and paper is to explore work-life balance predictors of job satisfaction across various generations, using international sample of workers across 37 countries. The four generational cohorts included in the analysis include Silent Generation, Baby Boomers, Generation X, Millennial.

Design/methodology/approach: This study provides a comparative analysis of work-life balance indicators of overall job satisfaction across generational cohorts, utilizing data from the 2015 Work Orientations IV Wave of the International Social Survey Program (including stratified random samples of employees across 37 different countries).

Findings: Initial analyses indicate statistically significant differences in work-life balance related indicators of employee job satisfaction across generational cohorts. Additional analyses will be performed to clarify these relationships and further explore the causes behind the differences.

Originality/Value: While many studies have been performed on job satisfaction, very few studies have explicitly examined job satisfaction levels and its indicators across generations. Additionally, while many studies have examined the role of work-life balance saliency on job satisfaction across generational cohorts, and no research has previously been done examining these relationships cross-nationally.

Keywords Job satisfaction, Generational Differences, Work-life Balance, Cross-national

Purpose/Hypothesis:

We hope to supply statistical evidence that there are differences in the saliency and impacts of work-life balance variables on job satisfaction across generational cohorts. Specific hypotheses include:

H1: There are statistically significant differences in the mean scores of job satisfaction and work-life balance variables across generational cohorts.

H2: One's age (generational cohort grouping) has a positive statistically significant impact on job satisfaction.

H3: One's age cohort has a statistically significant impact on the determinants of job satisfaction.

H4: There are statistically significant cross-national differences in the impact of generational cohort on job satisfaction.

Johnson, Hayden Allen; Harris, Laurie (Southern Utah University)
Faculty Advisor: Harris, Laurie (Southern Utah University, College of Science and Engineering)

Rural communities in Utah may be an excellent place for technology companies to expand. Many rural Utah communities face major problems with declining economies. Adding to the problem, median incomes in nine rural counties is $48,306 while the statewide median income is $62,961 (US Census Bureau, 2017). Rural areas seem to be an untapped well of potential to help both the state’s economy and tech companies themselves. This research explores how to effectively use that potential.

The object of this research is to identify needs and limitations that currently exist in rural communities that would prevent or could be seen as obstacles for technology industry to grow in these areas. Ongoing research being conducted is looking into the viability of technology companies being able to expand and/or start up in rural Utah by exploring if those areas are ready for the technology industry. Specifically, the research examines:

1. Current educational opportunities related to technology in rural area school systems.

2. Interest among potential workforce in technological fields.

3. Presence of skilled workforce in these rural areas.

4. Potential to form partnerships between higher education and high schools to offer better education and generate interest.

5. Infrastructure of rural areas to support growing technology industry.

Additionally, obstacles that are preventing these areas from being able to support technology industry are found and examined. This research constitutes the first step in helping bolster rural economies through an increase of jobs and industry into those areas. By conducting extensive research and getting in on the “front-lines” of the problem, current situations are more understood and potential suggestions are being developed.

Alder, Jacob (Utah State University)
Faculty Advisor: Tainter, Joseph (S.J. & Jessie E. Quinney College of Natural Resources, Enviroment and Society Department); Robert, Davies (College of Science, Physics Department); Fjeldsted, Paul (Jon M. Hunstman School of Business, Economics and Finance Department)

Abstract: Have you ever wondered why economists always talk about a growing economy? Modern economists today rely on several fundamental assumptions in the same way physicists rely on laws governing energy and motion. Economists use growth—ideally unrestricted growth—as the key assumption upon which we build models and policy recommendations. The central economic theory explains that growth will enhance individual well-being over time. However, every known physical system has boundaries beyond which it will collapse, and the observed reality is that economic growth cannot be separated from physical resource consumption. As a result, many societies are overshooting physical, ecological boundaries.

This project focuses on outcomes generated by a few of those complexities in a growth-oriented economy in Northern Utah. It analyzes the ways traditional economic models prioritize growth as the primary means of improving quality of life. It explores several positive and negative impacts of limits to growth, whether they are elective policy measures (like paying a carbon tax) or reactions to a collapsed system (like depleted natural gas deposits). It draws on electricity data from two electricity utility providers and compares trends with interconnected behavioral and technological changes.

Ultimately, this project develops a case study to assess ways in which society could thrive without traditional economic growth. By using axioms from physics, primarily the first and second laws of thermodynamics (energy and entropy) this project assesses population projections and increased resource consumption, drawing connections between a growing population, a growing economy, and growing energy use.