Business & Entrepreneurship

The John M. Olin School of Business at Washington University in St. Louis has awarded a total of $70,000 in seed investment capital to two startup businesses in its annual Olin Cup entrepreneurship competition. The Olin Cup competition was launched last year with a new emphasis on life sciences, medicine, and technology startups, as well as other student started ventures. The business school’s Skandalaris Entrepreneurship Program sponsors the annual competition. This is the first time seed funding was awarded in the entrepreneurship contest.

As part of Washington University’s Sesquicentennial celebration, Mark R. Rank, Ph.D., the Herbert S. Hadley Professor of Social Welfare at the George Warren Brown School of Social Work (GWB), will host a lecture series titled “Exploring the Impact of Economic Inequality Upon American Society.” The series will kick off Jan. 21 with a lecture by Ichiro Kawachi, Ph.D., professor of epidemiology and director of the Harvard Center for Society and Health, on “”Why Inequality is Harmful to Your Health,” at 1:10 p.m. in Brown Hall Lounge.

Photo by Joe Angeles/WUSTL PhotoAre gamblers impulsive?Why do people engage in behaviors they know are harmful to them in the long run? Why do we give in to that incredible chocolate cake even though we’re trying to lose weight and stay fit? The answer, suggests a recent study on the psychology of gambling and impulsive behavior, is a simple economic phenomenon known as discounting. While good health may be its own reward, research suggests that the value of that reward diminishes as it’s delayed; and the longer it’s delayed, the less it controls your present behavior. Although gamblers may deserve their reputations as notorious risk-takers, they often do better than non-gamblers at delaying gratification to maximize long-term rewards.

SneiderMost retailers are enthusiastic about sales prospects for the holiday season. Estimates for same store sales growth of five to seven percent are expected, according to Martin Sneider, a professor of retailing at the John M. Olin School of Business at Washington University in St. Louis. “These forecasts are far more robust than the numbers posted last year. Estimates for price-driven stores like Wal-Mart and Costco are at the high end of analyst’s expectations,” Sneider says. Meanwhile, online holiday shopping is expected to grow by 20 to 40 percent, he says.

WeidenbaumThe economic power of American businesses is playing a key role in the war on terrorism: helping cut off the flow of money to terrorist groups, producing anti-terrorist equipment, screening employees and visitors entering company facilities, manufacturing the medicines to respond to biological and chemical attacks, and making the weapons used by our armed forces in the fight. Nevertheless, such responses often raise the cost of production and act like a new tax on private enterprise, suggests Washington University in St. Louis economist Murray Weidenbaum.

Despite the rejection of a provision to allow prescription drug imports from Canada in the Medicare bill passed by Congress, policymakers are still considering other bills that would allow the drug imports from North of the border. But Jackson Nickerson, a professor of organization and strategy at the Olin School of Business at Washington University in St. Louis, says that allowing the import of drugs from Canada would likely raise prices for both Canadians and U.S. consumers. Nickerson is currently engaged in a major research initiative with the Food & Drug Administration (FDA) and the pharmaceutical industry to improve the manufacturing process for drugs.

Washington University in St. Louis is one of eight U.S. universities selected by the Ewing Marion Kauffman Foundation to share $25 million in grants through a program designed to make entrepreneurship education available across campus and transform the way entrepreneurship is viewed, taught and experienced. “Entrepreneurship is not a fad – it’s an enduring American phenomenon that’s as common as getting married or having a baby, said Carl Schramm, president and CEO of the Kauffman Foundation.

Dec./Jan. Business, Law & Economics Tip Sheet

Photo courtesy of Tom Paule PhotographyMarrying for love … and money.Becoming wealthy and creating a happy family are two key components to achieving the American Dream, but do marriage and children have any impact on your chances of becoming rich? “Marriage substantially increases a person’s likelihood of becoming affluent,” says Mark R. Rank, Ph.D., professor of social work at Washington University in St. Louis and co-author of a study out this month that looks at earnings over the course of a person’s lifetime. “Having children, however, significantly lowers the probability of becoming wealthy for all people,” Rank adds.

Bernstein”The settlement of the grocery strike in St. Louis sends conflicting messages to the parties involved in similar strikes in California, West Virginia, Ohio and Kentucky,” says Neil Bernstein, an expert in labor law and legal issues relating to striking workers and a professor of law at Washington University in St. Louis. “In St. Louis, the Union did achieve an important victory in convincing the employers to eliminate the annual deductibles that they tried to impose for the first time. On the other hand, the contract requires them to make larger co-payments for doctor visits and prescription drugs.”