Liars and Outliers (50 page)

Ginger Paralysis Association
John Parascandola (1995), “The Public Health Service and Jamaica Ginger Paralysis in the 1930s,”
Public Health Reports,
110:361–3. Cecil Munsey (Winter 2006), “Paralysis in a Bottle: The Jake Walk Story,”
Bottles & Extras,
7–12.

this incident led
Paul M. Wax (1995), “Elixirs, Diluents, and the Passage of the 1938 Federal Food, Drug and Cosmetic Act,”
Annals of Internal Medicine,
122:456–61.

follow its charter
Joel Baken (2004),
The Corporation: The Pathological Pursuit of Profit and Power
, Free Press.

Moral pressure is
Maurice Punch (2000), “Suite Violence: Why Managers Murder and Corporations Kill,”
Crime, Law & Social Change,
33:243–80. Jenny White, Albert Bandura, and Lisa A. Bero (2009), “Moral Disengagement in the Corporate World,”
Accountability in Research,
16:41–74. Jennifer J. Kish-Gephart, David A. Harrison, and Linda Klebe Trevino (2010), “Bad Apples, Bad Cases, and Bad Barrels: Meta-Analytic Evidence About Sources of Unethical Decisions at Work,”
Journal of Applied Psychology,
95:1–3.

overseas sweatshops
Dexter Roberts, Pete Engardio, Aaron Bernstein, Stanley Holmes, and Xiang Ji (27 Nov 2006), “Secrets, Lies, and Sweatshops,”
Bloomberg Business Week.
Eric V. Edmonds and Nina Pavcnik (2005), “Child Labor in the Global Economy,”
Journal of Economic Perspectives,
19:199–220.

replace management
Leemore Dafny and David Dranove (2009), “Regulatory Exploitation and Management Changes: Upcoding in the Hospital Industry,”
Journal of Law & Economics,
52:223–50.

immortal sociopaths
Joel Baken (2004),
The Corporation: The Pathological Pursuit of Profit and Power
, Free Press.

good for their reputation
Charles J. Fombrun, Naomi A. Gardberg, and Michael L. Barnett (2000), “Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk,”
Business & Society Review,
105:85–106. David M. Kreps (2000), “Corporate Culture and Economic Theory,” in Nicolai J. Foss, ed.,
The Theory of the Firm: Critical Perspectives on Business and Management,
Taylor & Francis. Einer Elhauge (2005), “Sacrificing Corporate Profits in the Public Interest,”
New York University Law Review,
80:733–869.

Baron Thurlow
John Poynder (1844),
Literary Extracts, Vol. 1,
J. Hatchard & Sons, 2.

no soul to damn
John C. Coffee (1981), “'No Soul to Damn, No Body to Kick': An Unscandalized Inquiry Into the Problem of Corporate Punishment,”
Michigan Law Review,
79:386–459.

a lot of money
Kantar Media (17 Mar 2011), “Kantar Media Reports U.S. Advertising Expenditures Increased 6.5 Percent In 2010,” press release.

psychological manipulation
Robert B. Cialdini (1998),
Influence: The Psychology of Persuasion
, Collins.

dose of neuroscience
Samuel M. McClure, Jian Li, Damon Tomlin, Kim S. Cypert, Latané M. Montague, and P. Read Montague (2004). “Neural Correlates of Behavioral Preference for Culturally Familiar Drinks,”
Neuron,
44:379–87. Brian Knutson, Scott Rick, G. Eliot Wimmer, Drazen Prelec, and George Loewenstein (2007), “Neural Predictors of Purchases,”
Neuron
, 53:147–56. Dan Ariely and Gregory S. Berns (2010), “Neuromarketing: The Hope and Hype of Neuroimaging in Business,”
Nature Reviews Neuroscience,
11:284–92. Douglas Rushkoff (2000), “Advertising,” Chapter 5 of
Coercion: Why We Listen To What ‘They’ Say,
Putnam.

150 people died
U.S. Food and Drug Administration (2009), “Information on Adverse Event Reports and Heparin.” Alan Coukell (2009), “Protecting Consumers from Adulterated Drugs,” presentation at U.S. Food and Drug Administration, Public Meeting on Economically Motivated Adulteration, College Park, Maryland.

Cargill recalled
Tom Watkins (2011), “Cargill Recalls 36 Million Pounds of Ground Turkey,”
CNN News.

ChoicePoint allowed
Bob Sullivan (14 Feb 2005), “Database Giant Gives Access to Fake Firms,”
MSNBC.
Jaikumar Vijayan (26 Jan 2006), “FTC Imposes $10M Fine Against ChoicePoint for Data Breach,”
Computer World.

There's recognition
Daniel G. Goldstein and Gerd Gigerenzer (2002), “Models of Ecological Rationality: The Recognition Heuristic,”
Psychological Review,
109:75–90.

There's social proof
Herbert C. Kelman (1958), “Compliance, Identification, and Internalization: Three Processes of Attitude Change,”
Journal of Conflict Resolution
, 2:51–60.

attribute substitution
Daniel Kahneman and Shane Frederick (2002), “Representativeness Revisited: Attribute Substitution in Intuitive Judgment,” in Thomas Gilovich, Dale Griffin, and Daniel Kahneman, eds.,
Heuristics and Biases: The Psychology of Intuitive Judgment,
Cambridge University Press, 49–81.

a lemons market
George Akerlof (1970), “The Market for Lemons: Quality Uncertainty and the Market Mechanism,”
Quarterly Journal of Economics,
83:488–500. George E. Hoffer and Michael D. Pratt (1987), “Used Vehicles, Lemons Markets, and Used Car Rules: Some Empirical Evidence,”
Journal of Consumer Policy
, 10:409–14. Steven E. Kaplan, Pamela B. Roush, and Linda Thorne (2007), “Andersen and the Market for Lemons in Audit Reports,”
Journal of Business Ethics
, 70:363–73.

Globalization is making
Rick Mullin (2011), “Shock to the System: Big Questions About Drug Safety Arise in the Wake of Rampant Supply-Chain Globalization,”
Chemical & Engineering News,
89:11–20.

Glaxo Smith-Kline
Toni Clarke (26 Oct 2010), “Glaxo to Pay $750 Million in Adulterated Drugs Case,” Reuters.

died of kidney failure
Walt Bogdanich and Jake Hooker (6 May 2007), “From China to Panama, a Trail of Poisoned Medicine,”
New York Times.

prone to rollover
Joan Claybrook (2001), “Criminal Penalties for Corporate Misbehavior,”
Tort Source,
3:1, 4.

salmonella outbreak
Mary Clare Jalonick (22 Aug 2010), “A Supplier in Egg Recall Has History of Violations, Including in Maine,”
Portland Press Herald
. Brendan Flaherty (2010), “Salmonella Outbreak in Eggs: An Update,”
Food & Drug Law Institute Update,
6: 16–19.

the drug Rebif
U.S. Department of Justice (4 May 2011), “Pharmaceutical Giant, Serono, Agrees to Pay $44.3 Million to Settle False Claims Act Case,” press release.
Wall Street Journal
(5 May 2011), “Settlement Reached In MS Drug Case.”

using child labor
United States International Child Labor Program (1998), “By the Sweat and Toil of Children, Vol. V: Efforts to Eliminate Child Labor,” Federal Publications, paper 144.

oil industry wanting
Jonathan Fahey (12 May 2011), “How the Oil Industry Saves $4.4 Billion in Taxes,”
USA Today
.

law passed limiting
Fred J. Hellinger and Gary J. Young (2005), “Health Plan Liability and ERISA: The Expanding Scope of State Legislation,”
American Journal of Public Health,
95:217–23. Katherine L. Record (2010), “Wielding the Wand Without Facing the Music: Allowing Utilization Review Physicians to Trump Doctors' Orders, but Protecting Them from the Legal Risk Ordinarily Attached to the Medical Degree,”
Duke Law Journal,
59:955–1000.

licensing interior designers
Janet Zink (1 Apr 2011), “Real Knock-Down, Drag-Out Fight in Florida Is over Commercial Interior Design,”
St. Petersburg Times.
George F. Will (22 Mar 2007), “Wallpapering with Red Tape,”
The Washington Post.
Dick M. Carpenter II (2007), “Designing Cartels: How Industry Insiders Cut Out Competition,” Institute for Justice.

horizontal drilling technology
Carl T. Montgomery and Michael B. Smith (2010), “Hydraulic Fracturing: History of an Enduring Technology,”
Journal of Petroleum Technology
, 62:26–41.

shoddy building practices
Heather Timmons (25 Apr 2003), “Shoddy Building in the Housing Boom?” Bloomberg BusinessWeek.

used to be smaller
John Stopford (1998), “Multinational Corporations,”
Foreign Policy,
113:12–24. Gardiner C. Means (1931), “The Growth in the Relative Importance of the Large Corporation in American Economic Life,”
The American Economic Review,
21:10–42.

Ronald Coase first
Ronald Coase (1937), “The Nature of the Firm,”
Economica
, 4:386–405.

Nick Leeson's
Richard W. Stevenson (28 Feb 1995), “The Collapse of Barings: The Overview: Young Trader's $29 Billion Bet Brings down a Venerable Firm,”
New York Times.
Erik Ipsen (19 Jul 1995), “Bank of England Cites Fraud in Barings Collapse,”
New York Times.
Peter Culshaw (8 Jan 2009), “Nick Leeson: How the Original Rogue Trader at Barings Bank Is Thriving in the Credit Crunch,”
The Telegraph.

Kweku Adoboli
Victoria Howley and Emma Thomasson (16 Sep 2011), “UBS $2 Billion Rogue Trade Suspect Held in London,” Reuters. Haig Simonian (24 Sep 2011), “UBS Chief Resigns Over Rogue Trade Affair,”
Financial Times.

Different countries
John M. Connor and Darren Bush (2008), “How to Block Cartel Formation and Price Fixing: Using Extraterritorial Application of the Antitrust Laws as a Deterrence Mechanism,”
Penn State Law Review,
112:813–57. John M. Connor (2002), “The Food and Agricultural Global Cartels of the 1990s: Overview and Update,” Purdue University Department of Agricultural Economics, Staff Paper 02–4.

Amazon.com uses its
Jeanine Poggi (2011), “Amazon Sales Tax: The Battle, State by State,” TheStreet.com.

free is very different
Chris Anderson (2009),
Free: The Future of a Radical Price
, Hyperion. Dan Ariely (2008),
Predictably Irrational: The Hidden Forces That Shape Our Decisions
, HarperCollins.

Chemical plants
David Bollier, Frank Clemente, Laura MacCleery, Hugh Jackson, and Craig Aaron (2004), “Homeland Unsecured,” Public Citizen. Linda-Jo Schierow (2006), “Chemical Facility Security,” Congressional Research Service Report RL-31530.

hundreds of plants
Margaret E. Kosal (2006), “Terrorism Targeting Industrial Chemical Facilities: Strategic Motivation and the Implications for U.S. Security,”
Studies in Conflict & Terrorism,
29:719–51.

The problem is
Jeffrey Hahn, Donna Post Guillen, and Thomas Anderson (2005), “Process Control Systems in the Chemical Industry: Safety vs. Security,” Paper presented at the 20th Annual CCPS International Conference, Idaho National Laboratory, April 2005.

Chapter 14

Full-body scanners
Leon Kaufman and Joseph W. Carlson (2010), “An Evaluation of Airport X-Ray Backscatter Units Based on Image Characteristics,”
Journal of Transportation Security,
4:73–94. Andrew Welch (2010), “Full-Body Scanners: Full Protection from Terrorist Attacks or Full-On Violation of the Constitution,”
Transportation Law Journal,
37:167–98. David J. Brenner (2011), “Are X-Ray Backscatter Scanners Safe for Airport Passenger Screening?”
Radiology,
259:6–10.

the underwear bomber
Steve Lord (17 Mar 2010), “Aviation Security: TSA Is Increasing Procurement and Deployment of the Advanced Imaging Technology, but Challenges to This Effort and Other Areas of Aviation Security Remain,” Testimony of the Director, Homeland Security and Justice Issues, United States Government Accountability Office, before the Subcommittee on Transportation Security and Infrastructure Protection, Committee on Homeland Security, House of Representatives, Report GAO-10-484T.

strip-search every
Electronic Privacy Information Center (10 Mar 2011), “DHS: We Have the Authority to Routinely Strip-Search Air Travelers,” press release. Electronic Privacy Information Center (15 Jul 2011), “Federal Appeals Court: TSA Violated Federal Law, Must Take Public Comment on Body Scanners,” press release.
EPIC v. DHS
(15 Jul 2011), Opinion, Case No. 10N1157. DC Circuit Court of Appeals, filed November 1, 2010.

September 11 attacks
Nate Silver (4 Jan 2010), “The Skies Are as Friendly as Ever: 9/11, Al Qaeda Obscure Statistics on Airline Safety,”
FiveThirtyEight.com.

scale is too large
Bruce Schneier (2008), “Seven Habits of Highly Unsuccessful Terrorists,”
Wired News.
Max Abrams (2008), “What Terrorists Really Want,”
International Security,
32:78–105.

regulatory capture
Jean J. Laffont and Jean Tirole (1991), “The Politics of Government Decision-Making: A Theory of Regulatory Capture,”
The Quarterly Journal of Economics,
106:1089–127. Mark Jickling (2004), “Barriers to Corporate Fraud: How They Work, Why They Fail,” CRS Report for Congress RL32718, Congressional Research Service. Dieter Helm (2006), “Regulatory Reform, Capture, and the Regulatory Burden,”
Oxford Review of Economic Policy,
22:169–86. Ernesto Dal Bó (2006), “Regulatory Capture: A Review,”
Oxford Review of Economic Policy,
22:203–25.