Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Essay Example for Free

Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Essay Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Septtember 2013 Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Introduction Over the 46 years ending December 2012, Warren Buffett (Berkshire Hathaway) has achieved a compound, after-tax, rate of return in excess of 20% p.a. Such consistent, long term, out performance might be viewed as incompatible with modern finance theory. This essay discusses the Berkshire Hathaway phenomenon in the context of modern finance theory. Part 1 Modern Portfolio Theory Berkshire Hathaway’s investing strategies mainly differ with modern portfolio theory on two aspects. The first one is the attitude towards the undesirable thing in investment. And the second one is the perspective of diversification. As Harry Markowitz pointed out in Portfolio Selection, one of the assumptions is (Markowitz, 1952)â€Å"the investor does (or should) consider expected return as a desirable thing and variance of return an undesirable thing†. However, in Warren Buffet’s point of view, (Roberg G, 2005) the only undesirable thing should be the possibility of harm. He emphasizes on conducting fundamental analysis to work out a company’s future profits, so as to determine the intrinsic value instead of monitoring the stock prices. This is because in the long term, the investment outcome is mainly harmed by misjudging the business value, including misjudging of inflation rate and  interest rate etc. As such, risk is defined differently between Mr Buffett and Modern Portfolio Theory; one is defined by possibility of misjudging the  intrinsic value of business, the other being simplified to variance of expected returns. If we consider risk as a probability statement, then maybe Mr B uffett’s definition is closer to the original meaning. Also, the assumption of maximising one-period expected utility is not what Buffet focuses on in his investment strategies. (Roberg G, 2005)In this case, Justin Industries, which was acquired by Berkshire Hathaway in 2000, can serve as a good example. During the five years prior to the acquisition, stock price of Justin Industries dropped by 37 percent, which should result in a huge variance of expected return. But Mr Buffett saw it as a perfect opportunity to purchase a well-managed traditional business with over 100 years of history. He offered a 23 percent premium over stock price at the time, and the stock price shot up by 22% on the day of announcement. It is also stated by Markowitz that, (Markowitz, 1952)â€Å"a rule of behaviour which does not imply the superiority of diversification must be rejected both as a hypothesis and as a maxim†. On the contrary, Mr Buffett has his famous quote, (Roberg G, 2005)â€Å"diversification serves as a protection against ignorance. If you want to make sure that nothing bad happens to you relative to the market, you should own everything. There is nothing wrong with that. Its a perfectly sound approach for somebody who doesnt know how to analyse business†. One can always argue that Berkshire Hathaway does not operate in only one industry, and they tend to invest in more industries in recent years. But as the business grows in volume, it is reasonable to be involved in new industries when there are few sound investment opportunities in the industries they already operate in, let alone that the technology industry was rarely in the list of holdings of Berkshire Hathaway, not even when Apple’s stock was soaring. The reason being, (Roberg G, 2005)â€Å"investment success is not about how much you know but how realistically you define what you dont know†. Chart 1 (Martin Puthenpurackal, 2007) Distribution of Berkshire Hathaway Investments by Industry The chart above shows distribution of Berkshire Hathaway’s investments by industry and firm size during the time frame 1976-2006. Judging by the size and number of investments, it can be concluded that a large amount of wealth was placed in manufacturing industry during the 30 years in study, although for diversification purpose, more weight could have been placed in the industry of agriculture, forestry and fishing, construction or retail trade. Having compared the differences, it is still worth noting that Markowitz did not rule out fundamental analysis in portfolio selection process, as is said in his foregoing paper,(Markowitz, 1952)â€Å"the process of selecting a portfolio may be divided into two stages. The first stage starts with observation and experience and ends with beliefs about the future performances of available securities. The second stage starts with relevant beliefs about future performances and ends with the choice of portfolio. This paper is concerned with the second stage†. Part 2 Efficient Market Hypothesis The strong form of efficient market hypothesis states that all information, no matter public or private, instantaneously affects current stock price. Semi-strong form is only concerned with public information, while the weak form suggests that current stock price reflects information in the previous prices. In short, they simply imply that in the long run, no one should be able to beat the market in terms of investment return. As is said in Fama’s paper in 1970, (Eugene F, 1970)â€Å"the evidence in support of the efficient markets model is extensive, and (somewhat uniquely in economics) contradictory evidence is sparse†. However, Warren Buffet has always criticised efficient market hypothesis as much as he could. The major  reason is that, as a fundamental analysis advocate, (Roberg G, 2005)he thinks analysing all available information make an analyst at advantage. He once said, (Banchuenvijit, 2006)†investing in a market where people believe in efficiency is like playing bridge with someone who has been told it does not do any good to look at the cards.† Also in his speech at Columbia University in 1984, he mentioned, â€Å"ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace, and those who read their Graham Dodd will continue to prosper.† (Roberg G, 2005)To illustrate, we can take Berkshire Hathaway’s acquisition of Burlington Northern Santa Fe Corp. in 2009 for example. At the time, shares of Burlington Northern had dropped 13 percent in 12 months. Also, the market was soft during GFC, so the possibility of competitive bids was low according to Tony Russo, a partner at Gardner Russo Gardner, which holds Berkshire shares. If efficient market hypothesis does stand, the market would rebound quickly when GFC took place, and such opportunity of relatively low-priced acquisition would not exist. Even if it exists, other investor should anticipate quick upward adjustment of price and participate in bidding when they find out about this opportunity. However, this does not prove that fundamental analysis is superior, because intrinsic value is not yet clear defined, and how does Mr Buffet calculate the intrinsic value is still a mystery. Part 3 Capital Asset Pricing Model When examining assumptions of Capital Asset Pricing Model, it is obvious that Mr Buffett is at odds with almost every one of them. Firstly, the model assumes that all investors are Markowitz efficient, but as mentioned earlier, Mr Buffett does not treat variance of expected return as an absolute drawback, so the second rule that Markowitz Efficiency must follow does not stand. Secondly, the model is backed by the assumption that investors have  homogeneous expectations and equal access to opportunities, which suggests that everyone is supposed to have the same view of future profit stream. However, as a recent paper pointed out, (Frazzini, et al., 2013)Mr Buffett’s return is largely due to his selection of stocks. If everyone has the same view with Mr Buffett and the same access to the investment opportunities, then if not everyone, a large number of people should be as rich as Mr Buffett, when the reality is the opposite. So Mr Buffett would not agree with this assumption either. The third assumption is that capital markets are in equilibrium, which is practically what only efficient markets can achieve, which, as discussed above, is not in line with Mr Buffett’s view point. The final one, which is that Capital Asset Pricing Model only works within one period time horizon, is apparently against Mr Buffett’s long-term holding strategy. Apart from model assumptions, one of the strongest contradictions between Mr Buffett’s view point and Capital Asset Pricing Model is that the model is for short-term predicting purpose, which would clearly be categorised into (Roberg G, 2005)â€Å"speculation† instead of â€Å"investment† by Mr Buffett. In addition, â€Å"market portfolio† is not of practical use, compared with Mr Buffett’s way of only analysing businesses he is familiar with, because the market portfolio we use cannot truly represent the entire market. Part 4 Multi-factor Pricing Models Unlike Capital Asset Pricing Model, which has only one factor, in Multi-factor Pricing Models, such as Arbitrage Pricing Theory and Fama-French three-factor model, the rate of return is linked to several factors. As diversification is still suggested by the model, the same divergence on diversification exists with Mr Buffet’s strategies and Multi-factor Pricing Models. Moreover, differences also lie in the fact that multi-factor models usually take in some macroeconomic factors, which investors should not consider according to Mr Buffett, (Roberg G, 2005)the rationale being that if a single stock price cannot be predicted, the overall economic condition would be more difficult to predict. Despite the differences, some micro factors included in the multi-factor model, such as P/E ratio and book-to-market ratio, can also be used to conduct fundamental analysis to determine the intrinsic value and possibility of growth of a business. As such, the ideas of which factors to take into account can coincide within the two different approaches. Chart 2(Martin Puthenpurackal, 2007) Factor Regressions of Berkshire Hathaway and Mimicking Portfolios In a paper by Gerald S. Martin and John Puthenpurackal, they conduct a regression analysis using Fama-French three-factor and Carhart four-factor models on monthly returns of Berkshire Hathaway and mimicking portfolios. (Martin Puthenpurackal, 2007)The adjusted excess returns turn out to be significant with p-values 0.024; the excess market return and high-minus-low book-to-market factors are again significant with p-values 0.01. However, small-minus-big and prior 2-12 month return momentum factors are not significantly explanatory factors. As such, preliminary conclusion can be reached that book-to-value highminus-low can be a common factor in both multi-factor models and Mr Buffett’s fundamental analysis. In addition, the factors of firm size and momentum are not likely to be considered by Mr Buffett. Also, both Berkshire’s and mimicking portfolio’s returns outperform the multi-factor models in study. (Bowen Rajgopal, 2009)But as is pointed out in another thesis, the superior performance is attributed to the earlier years and they observe no significant alpha during the recent decade. Part 5 Black-Scholes Option Pricing Model According to Berkshire Hathaway’s letter to shareholders in 2008,(Buffett, 2008)their put contracts reported a mark-to-market loss of $5.1 billion, and this led to Mr Buffett’s â€Å"criticism† towards the Black-Scholes formula as is claimed by the media. However, the loss was in fact caused by inclusion of volatility in the formula when volatility becomes irrelevant as the duration before maturity lengthens. As Mr Buffett said in the letter,(Buffett, 2008)if the formula is applied to extended time periods, it can produce absurd results. In fairness, Black and Scholes almost certainly understood this point well. But their devoted followers may be ignoring whatever caveats the two men attached when they first unveiled the formula. As such, Mr Buffett’s comment on Black-Scholes formula is more of self-criticism than the other way around. This is reflected in his earlier comment on performance in the letter,(Buffett, 2008)†I believe each contract we own was mispriced at inception, sometimes dramatically so. I both initiated these positions and monitor them, a set of responsibilities consistent with my belief that the CEO of any large financial organization must be the Chief Risk Officer as well. If we lose money on our derivatives, it will be my fault.† We can understand why Mr Buffett gave this â€Å"fair† comment about the formulae when referring to the Black-Scholes paper,(Black Scholes, 1973)†if the expiration date of the option is very far in the future, then the price of the bond that pays the exercise price on the maturity date will be very low, and the value of the option will be approximately equal to the price of the stock. â€Å" Mr Buffett also commented that (Buffett, 2008)†The Black-Scholes formula has approached the status of holy writ in finance, and we use it when valuing our equity put options for financial statements purposes. Key inputs to the calculation include a contract’s maturity and strike price, as well as the analyst’s expectations for volatility, interest rates and dividends† and that â€Å"even so, we will continue to use  Black-Scholes when we are estimating our financial-statement liability for long-term equity puts. The formula represents conventional wisdom and any substitute that I might offer would engender extreme scepticism†. Despite Mr Buffett’s confession, a scholar studied the letter and reached a different conclusion why the loss was made:(Cornell, 2009)He first ruled out risk-free rate, inflation rate and drift and focused on volatility, which is consistent with where Mr Buffett thought he made a mistake. The lognormal diffusion assumption, which implies that volatility increases linearly with respect to the horizon over which it is measured, was discussed at length with controversial evidence. As such, its misuse is not a strong explanation regarding the absurd results. He then found out in the letter that Mr Buffett believed that inflationary policies of governments and central banks will limit future declines in nominal stock prices compared with those predicted by a historically estimated lognormal distribution. If Mr Buffet is right, then the Black-Scholes model will indeed significantly overvalue long-dated put options, to which a possible solution is making the left-hand tail truncated to reduce the value of long-dated put options. Summary Throughout this essay, we have discussed the common views and divergences between Mr Buffett’s investment strategies and Modern Finance Theories. Now we summarize the main points as follows: Common views Divergences Black-Scholes Option Pricing Model Modern Portfolio Theory Efficient Market Hypothesis Capital Asset Pricing Model Multi-factor Models Chart 3 Common Views and Divergences between Modern Finance Theory and Mr Buffett’s Strategies Modern Finance Theories Modern Portfolio Theory Divergences with Warren Buffet 1. Risk Defined as Volatility 2. Short Investment Horizon 3. Diversification Efficient Market Hypothesis Capital Asset Pricing Model Reliability of Fundamental Analysis 1. Markowitz Efficient Investors 2. Homogeneous Expectation and Equal Access to Opportunities 3. Markets in Equilibrium 4. Short Investment Horizon 5. Predicting Function Leads to Speculation 6. Impractical â€Å"Market Portfolio† 7. Diversification Multi-factor Models 1. Macro Factors 2. Diversification Chart 4 Detailed Divergences between Modern Finance Theory and Mr Buffett’s Strategies Bibliography Banchuenvijit, W., 2006. Investment Philosophy of Warren E. Buffet, Bankok: The University of Thai Chamber ofCommerce. Black, F. Scholes, M., 1973. The Pricing of Options and Corporate Liabilities. The Journal of Political Economy, 81(3), pp. 637-654. Bowen, R. M. Rajgopal, S., 2009. Do Powerful Investors Influence Accounting, Governance and Investing Decisions?, Washington D.C.: University of Washington. Buffett, W. E., 2008. Letter to Shareholders, Omaha: Berkshire Hathaway, Inc.. Cornell, B., 2009. Warren Buffet, Black-Scholes and the Valuation of Long-dated Options, Pasadena: California Institute of Technology. Davis, J., 1991. Lessons from Omaha: an Analysis of the Investment Methods and Business Philosophy of Warren Buffett, Cambridge: Cambridge University. Eugene F, F., 1970. Efficient Capital Markets: A Review of THeory and Empirical Work. The Journal of Finance, 25(2), pp. 383-417. Eugene F, F. Kenneth R, F., 1992. The Cross-Section of Expected Stock Return. The Journal of Finance, XLVII(2). Markowitz, H., 1952. Portfolio Selection. The Journal of Finance, VII(1), pp. 77-91. Martin, G. S. Puthenpurackal, J., 2007. Imitation is the Sincerest Form of Flattery: Warren Buffett and Berkshire Hathaway, Reno: University of Nevada. Roberg G, H., 2005. The Warren Buffet Way. 2 ed. Hoboken: John Wiley Sons, Inc.. William F, S., 1964. Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. The Journal of Finance, 19(3), pp. 425-442.

B. F. Skinner Essay -- Behaviorism Behavior Behaviorist

B. F. Skinner Burrhus Frederic Skinner, psychologist and behaviorist, was born in Susquhanna, Pennsylvania in 1904 to William Skinner and Grace Burrhus. His father was a lawywer and his mother was a naturally bright woman. Skinner had only one sibling; his brother died at the age of sixteen. Skinner lived most of his life in Susquhanna. He did not leave the house he was born in until he left to go to college. He was raised very close to his grandparents, who had a major impact on his early life. He was also close to his parents. He and his mother and father all graduated from the same high school. This was the same school that he had attended for all twelve years of his education. Skinner attended Hamilton College at the reccomadation of a family friend. He took many different types of courses before deciding to major in English and minor in Romance Languages. Skinner felt that he did not fit in at college. He disliked the fraterninty that he had joined and he did not understand why the college required the courses that it did. He felt that he was made to take too much physical education and not enough emphasis was place on actual academics. The summer before his senior year he attended the Middlebury School of English at Breadloaf, Vermont. During this summer he had lunch with Robert Frost. Frost asked to see his work and gave Skinner a lot of enfouragemant. This led him to the decision to become a writer. Skinner's father was not happy with this decision. He has hoped that his son would become a lawywer, like himself. His father eventually agreed to his decision, and Skinner moved back home to start his new career. He built himself an office in his parents' house where he could write. He was to try to be a writer ... ...ology of literature. She listened to him and gave him advice on his lectures. In the next ten years, he wrote three books all having to do with the psychology of literature. Yvonne and Skinner had two daughters, Julie and Deborah. It was the birth of their second child taht inspired one of Skinner's inventions. He invented the "baby box" to ease the burdens of chilcare for his wife. The box is still used today, but is not so widespread because changes in childacare are hard to make. Another of his most famous endeavors was "project pigion." This was an experiment designed to teach pigions to guide missles in the 1930's. B. F. Skinner died in 1990. He is stilled looked upon today as one of the most influential behaviorailists. His work is still studied and revered for it's genius. Skinner was an independent thinker who studied everyone, including himself. B. F. Skinner Essay -- Behaviorism Behavior Behaviorist B. F. Skinner Burrhus Frederic Skinner, psychologist and behaviorist, was born in Susquhanna, Pennsylvania in 1904 to William Skinner and Grace Burrhus. His father was a lawywer and his mother was a naturally bright woman. Skinner had only one sibling; his brother died at the age of sixteen. Skinner lived most of his life in Susquhanna. He did not leave the house he was born in until he left to go to college. He was raised very close to his grandparents, who had a major impact on his early life. He was also close to his parents. He and his mother and father all graduated from the same high school. This was the same school that he had attended for all twelve years of his education. Skinner attended Hamilton College at the reccomadation of a family friend. He took many different types of courses before deciding to major in English and minor in Romance Languages. Skinner felt that he did not fit in at college. He disliked the fraterninty that he had joined and he did not understand why the college required the courses that it did. He felt that he was made to take too much physical education and not enough emphasis was place on actual academics. The summer before his senior year he attended the Middlebury School of English at Breadloaf, Vermont. During this summer he had lunch with Robert Frost. Frost asked to see his work and gave Skinner a lot of enfouragemant. This led him to the decision to become a writer. Skinner's father was not happy with this decision. He has hoped that his son would become a lawywer, like himself. His father eventually agreed to his decision, and Skinner moved back home to start his new career. He built himself an office in his parents' house where he could write. He was to try to be a writer ... ...ology of literature. She listened to him and gave him advice on his lectures. In the next ten years, he wrote three books all having to do with the psychology of literature. Yvonne and Skinner had two daughters, Julie and Deborah. It was the birth of their second child taht inspired one of Skinner's inventions. He invented the "baby box" to ease the burdens of chilcare for his wife. The box is still used today, but is not so widespread because changes in childacare are hard to make. Another of his most famous endeavors was "project pigion." This was an experiment designed to teach pigions to guide missles in the 1930's. B. F. Skinner died in 1990. He is stilled looked upon today as one of the most influential behaviorailists. His work is still studied and revered for it's genius. Skinner was an independent thinker who studied everyone, including himself.

Think Like A Man

Think like A Man Battle of the Sexes Think like a Man: Battle of the Sexes â€Å"Don't hate the player, change the game†, this influential quote in Steve Harvers book starts a battle of the sexes in four relationships when the women read it in the movie Think like a Man (2012). The movie exploits different dating stereotypes that lead to conflict and upset the balance of power in romantic relationships. The types of power and different communication climates are all different in reach relationship because of how Steve Harvey says, in his book, to deal with each stereotype the women are dealing with.The women are all willing to listen to Harvey because he has expert power, and was endorsed by Opera which in a way almost gives him designated power as well. They learn how to deal with â€Å"non-committers†, â€Å"dreamers†, â€Å"players†, and â€Å"mama's boys†. However, when the men learn about this book and start to fght back with plays of their own , conflicts arise that can only be resolved with Meta communication rather than strategy. The first battle between the â€Å"non-committer† Jeremy and the â€Å"girl who wants the ring† Kristin begins when Kristin reads that she must â€Å"demand† a proposal in order to get one.They have been dating for seven years so in order to get what she wants Kristin uses the intimacy power she has over Jeremy by forcing him to get rid of his childish collection that he loves. Throughout this conflict Kristin uses disagreeing messages in order to express that she feels Jeremy should grow up. For example, when Kristin redecorates she makes an assertive statement by saying the couch needs to go. Then, as Jeremy refuses to agree she become aggressive as she accents her argument with gestures and a louder tone while reminding him his aunt peed all over it last Christmas.When Jeremy starts to read the book he realizes that he is going to have to present himself as growing up in order to make Kristin happy with him. He does this at first by structuring the conversations to avoid the topic of work, yet later loses control and lies to Kristin about putting in the resume at Neversoft. When Kristin realizes Jeremy nad betrayed ner trust and lied to ner sne moves in witn a triend and practices encounter avoidance in order to suppress her feelings towards Jeremy.After a moment of realization, Jeremy then comes to Kristin when she cannot avoid him and pologizes, he came to the compromise of finally proposing to Kristin in order to her back in his life. Their relationship highlights the natural tendency of progression in interpersonal relationships and the importance of recognition as a couple in the bonding stage. The next battle is between Dominic â€Å"the dreamer† and Lauren â€Å"the woman who is her own man†. Lauren has been unable to find love because she is caught in the emotional fallacy of should when it comes to her men.Whereas Dominic has had trouble finding women who are willing to believe in his dreams and ower their financial expectations in a boyfriend. Lauren first falls for Dominic because he presented himself as a wealthy, successful chef and she saw many tangible rewards in a relationship with him. Steve Harvey warns successful women that they don't need a man to be equal to them in power in order to be happy. So, on their first date the topic of work was avoided by both parties so they would not scare each other away from a relationship.However when Lauren realizes Dominic is a waiter at her company's event her expectations contradicted reality and she became uninterested. Dominic becomes upset when Lauren becomes very impersonal when terminating the relationship which makes Lauren realize that in order to have a deep connection you need intimate meta-communication to make it work. Only after a date with a successful business man does Lauren realize she needed a man that was complementary to her, not simila r and finally makes that clear when disclosing to Dominic her feelings about him.Their relationship highlights the importance of emotional rewards in interpersonal relationships and how the fallacy of perfection can ruin perceptions of significant others. In the battle between Maya â€Å"the 90-day rule girl† and Zeke â€Å"the player† Zeke believes he is in control because of his referent power that he typically has with women. However, because she had gotten her feelings hurt by men like Chris Brown's character who have slept with her yet did not know her name, Maya truly was winning the battle because she had reward power by making Zeke wait 90 days before getting â€Å"the cookie†.These two very different dating stereotypes created the largest clash of power when it came to goals of the relationship. Maya's unwillingness to sleep with Zeke until the 90 days were up made im work harder to figure out the compromise in this situation. Once Zeke gets a hold of t he â€Å"playbook† he realizes that he has to play the part of a loving boyfriend, without realizing that he actually is becoming one. When those â€Å"three magic words† slip out he is no longer Just practicing face work of a boyfriend he actually means it and in return, Maya compromises and â€Å"lets the cookie out of the Jar†.Zeke had been using strategy in order to get what he wanted from Maya, and when she found that out she was hurt because he betrayed the intimacy power she had given him. In rder to fix the problem he needed to be honest about his feelings towards Maya and regain her trust by taking on the role of a serious boyfriend. Their relationship highlights the importance that trust, specifically when it comes to not betraying intimacy, has in maintaining interpersonal relationships.In the battle between â€Å"single mom† Candice and â€Å"mama's boy' Michael there is a lot of outside influence on their relationship. Their conflicts occur when the balance between internal and external dialectical tensions arise. Michael succeeds in the tlrst test when ne is willing to include Candice's son Duke in their activities. However, tensions rise when Michael's mom is unwilling to be nice to Candice and that mother-son relationship seems out of the norm for Candice.She is intimidated by the idea that Michael is so close to his mother and that is why she does not like Candice, this is the fallacy of approval. It is upsetting for Candice that his mother has coercive power over Michael that is allowing him to put Candice in second place behind his mother. Once Michael reads the book and his friends point out to him, even though he is in denial, that he is the â€Å"mama's boy' chapter, Candice starts reappraising her thoughts because they eemed irrational once he changed his mother's caller id in his phone.She started to rationalize the unsettling feelings she had about the mama's boy until she answered his phone one day and fo und out that Michael was lying. In order to get Candice back, Michael needed to show in a big gesture that Candice was the number one women in his life. Their relationship highlights the importance of being a priority to another personal in an interpersonal relationship. The movie Think like a Man expresses dating stereotypes that lead to conflict in romantic relationships. These ifferent stereotypes result in different types of power within the relationships.Kristin and Jeremy highlight the importance of progression in a relationship and the effect of compromise when it comes to meta-communication about the future. Dominic and Lauren explain the concepts of complimentary attraction to others and how expectations and reality often clash while there is conflict in the relationship. Zeke and Maya are examples of the importance of commitment and communication about values of the relationship; they also highlight the necessity of honesty in a erious relationship through meta-communicati on.Candice and Michael represent the struggle between internal and external influences on a relationship and the importance of balancing priorities in interpersonal relationships. All conflict came from dating stereotypes and was influenced by the linear communication model of Steve Harvey's book. This movie is a representation of communication flaws that occur in interpersonal romantic relationships, and the appropriate, effective and ethical ways of reaching a compromise despite all outside influences and stereotypes. Think Like A Man Think like A Man Battle of the Sexes Think like a Man: Battle of the Sexes â€Å"Don't hate the player, change the game†, this influential quote in Steve Harvers book starts a battle of the sexes in four relationships when the women read it in the movie Think like a Man (2012). The movie exploits different dating stereotypes that lead to conflict and upset the balance of power in romantic relationships. The types of power and different communication climates are all different in reach relationship because of how Steve Harvey says, in his book, to deal with each stereotype the women are dealing with.The women are all willing to listen to Harvey because he has expert power, and was endorsed by Opera which in a way almost gives him designated power as well. They learn how to deal with â€Å"non-committers†, â€Å"dreamers†, â€Å"players†, and â€Å"mama's boys†. However, when the men learn about this book and start to fght back with plays of their own , conflicts arise that can only be resolved with Meta communication rather than strategy. The first battle between the â€Å"non-committer† Jeremy and the â€Å"girl who wants the ring† Kristin begins when Kristin reads that she must â€Å"demand† a proposal in order to get one.They have been dating for seven years so in order to get what she wants Kristin uses the intimacy power she has over Jeremy by forcing him to get rid of his childish collection that he loves. Throughout this conflict Kristin uses disagreeing messages in order to express that she feels Jeremy should grow up. For example, when Kristin redecorates she makes an assertive statement by saying the couch needs to go. Then, as Jeremy refuses to agree she become aggressive as she accents her argument with gestures and a louder tone while reminding him his aunt peed all over it last Christmas.When Jeremy starts to read the book he realizes that he is going to have to present himself as growing up in order to make Kristin happy with him. He does this at first by structuring the conversations to avoid the topic of work, yet later loses control and lies to Kristin about putting in the resume at Neversoft. When Kristin realizes Jeremy nad betrayed ner trust and lied to ner sne moves in witn a triend and practices encounter avoidance in order to suppress her feelings towards Jeremy.After a moment of realization, Jeremy then comes to Kristin when she cannot avoid him and pologizes, he came to the compromise of finally proposing to Kristin in order to her back in his life. Their relationship highlights the natural tendency of progression in interpersonal relationships and the importance of recognition as a couple in the bonding stage. The next battle is between Dominic â€Å"the dreamer† and Lauren â€Å"the woman who is her own man†. Lauren has been unable to find love because she is caught in the emotional fallacy of should when it comes to her men.Whereas Dominic has had trouble finding women who are willing to believe in his dreams and ower their financial expectations in a boyfriend. Lauren first falls for Dominic because he presented himself as a wealthy, successful chef and she saw many tangible rewards in a relationship with him. Steve Harvey warns successful women that they don't need a man to be equal to them in power in order to be happy. So, on their first date the topic of work was avoided by both parties so they would not scare each other away from a relationship.However when Lauren realizes Dominic is a waiter at her company's event her expectations contradicted reality and she became uninterested. Dominic becomes upset when Lauren becomes very impersonal when terminating the relationship which makes Lauren realize that in order to have a deep connection you need intimate meta-communication to make it work. Only after a date with a successful business man does Lauren realize she needed a man that was complementary to her, not simila r and finally makes that clear when disclosing to Dominic her feelings about him.Their relationship highlights the importance of emotional rewards in interpersonal relationships and how the fallacy of perfection can ruin perceptions of significant others. In the battle between Maya â€Å"the 90-day rule girl† and Zeke â€Å"the player† Zeke believes he is in control because of his referent power that he typically has with women. However, because she had gotten her feelings hurt by men like Chris Brown's character who have slept with her yet did not know her name, Maya truly was winning the battle because she had reward power by making Zeke wait 90 days before getting â€Å"the cookie†.These two very different dating stereotypes created the largest clash of power when it came to goals of the relationship. Maya's unwillingness to sleep with Zeke until the 90 days were up made im work harder to figure out the compromise in this situation. Once Zeke gets a hold of t he â€Å"playbook† he realizes that he has to play the part of a loving boyfriend, without realizing that he actually is becoming one. When those â€Å"three magic words† slip out he is no longer Just practicing face work of a boyfriend he actually means it and in return, Maya compromises and â€Å"lets the cookie out of the Jar†.Zeke had been using strategy in order to get what he wanted from Maya, and when she found that out she was hurt because he betrayed the intimacy power she had given him. In rder to fix the problem he needed to be honest about his feelings towards Maya and regain her trust by taking on the role of a serious boyfriend. Their relationship highlights the importance that trust, specifically when it comes to not betraying intimacy, has in maintaining interpersonal relationships.In the battle between â€Å"single mom† Candice and â€Å"mama's boy' Michael there is a lot of outside influence on their relationship. Their conflicts occur when the balance between internal and external dialectical tensions arise. Michael succeeds in the tlrst test when ne is willing to include Candice's son Duke in their activities. However, tensions rise when Michael's mom is unwilling to be nice to Candice and that mother-son relationship seems out of the norm for Candice.She is intimidated by the idea that Michael is so close to his mother and that is why she does not like Candice, this is the fallacy of approval. It is upsetting for Candice that his mother has coercive power over Michael that is allowing him to put Candice in second place behind his mother. Once Michael reads the book and his friends point out to him, even though he is in denial, that he is the â€Å"mama's boy' chapter, Candice starts reappraising her thoughts because they eemed irrational once he changed his mother's caller id in his phone.She started to rationalize the unsettling feelings she had about the mama's boy until she answered his phone one day and fo und out that Michael was lying. In order to get Candice back, Michael needed to show in a big gesture that Candice was the number one women in his life. Their relationship highlights the importance of being a priority to another personal in an interpersonal relationship. The movie Think like a Man expresses dating stereotypes that lead to conflict in romantic relationships. These ifferent stereotypes result in different types of power within the relationships.Kristin and Jeremy highlight the importance of progression in a relationship and the effect of compromise when it comes to meta-communication about the future. Dominic and Lauren explain the concepts of complimentary attraction to others and how expectations and reality often clash while there is conflict in the relationship. Zeke and Maya are examples of the importance of commitment and communication about values of the relationship; they also highlight the necessity of honesty in a erious relationship through meta-communicati on.Candice and Michael represent the struggle between internal and external influences on a relationship and the importance of balancing priorities in interpersonal relationships. All conflict came from dating stereotypes and was influenced by the linear communication model of Steve Harvey's book. This movie is a representation of communication flaws that occur in interpersonal romantic relationships, and the appropriate, effective and ethical ways of reaching a compromise despite all outside influences and stereotypes.

Analysis Essay Oedipus the King - 1017 Words

Casual Analysis Essay: Oedipus the King Sophocles play Oedipus the King has endured for over two thousand years. The plays lasting appeal may be attributed to the fact it encompasses all the classical elements of tragedy as put forth by Aristotle in Poetics nearly a century before it was written. According to Aristotle, tragedy needs to be an imitation of life according to the law of probability or necessity. Tragedy is serious, complete, and has magnitude. It must have a beginning, middle, and end and be spoken in language that is fit for noble characters. Furthermore it must be acted, as opposed to epic poetry, which is narrated. Tragedy shows rather than tells. Finally it must result in the purging of pity and fear, or a catharsis. Tragedy is based in the fundamental order of the universe, it creates a cause-and-effect chain that clearly reveals what may happen at any time or place because that is the way the world operates. Tragedy arouses not only pity but also fear, because the audience can envision themselves withi n this cause-and-effect chain. Tragedy as a whole is composed of six elements: plot, character, language, thought, spectacle and melody. Melody and language are the media by which the effect of imitation of action is carried out, spectacle is the manner or way the tragedy is carried out, and plot, character and thought are the means that initiate the action. Oedipus the King possesses all of these elements. Aristotle asserts the plot is the mostShow MoreRelatedAnalysis of Oedipus the King Essays1825 Words   |  8 Pages The tale of Oedipus and his prophecy has intrigued not only the citizens of Greece in the ancient times, but also people all over the world for several generations. Most notable about the play was its peculiar structure, causing the audience to think analytically about the outcomes of Oedipus’ actions and how it compares with Aristotle’s beliefs. Another way that the people have examined the drama is by looking at the paradoxes (such as the confrontat ion of Tiresias and Oedipus), symbols (such asRead MoreScript Analysis of Oedipus the King Essay848 Words   |  4 PagesScript Analysis of Oedipus Rex The complete fate of Oedipus Rex, is foreshadowed by Teiresias, the prophet in Scene II: But it will soon be shown that he is a Theban, A revelation that will fail to please. A blind man, Who has his eyes now; a penniless man, who is rich now; And he will go tapping the strange earth with his staff To the children with whom he lives now he will be Brother and father- the very same; to her Who bore him, son and husband- the very same Who came to hisRead MoreAnalysis Of The Play Oedipus Tyrannous By Sophocles 1749 Words   |  7 Pagesabout the play Oedipus Tyrannous by Sophocles, I found this play to be very encapsulating to the very end. I really enjoyed the suspense, as well as the turn of direction that the play took in the end as the plot thickened. In this essay, I will describe why I personally believe that this play was not just a tragic event and the many reasons why I believe that Oedipus can be viewed as a tragic hero by his actions throughout the play. I believe that some of my strengths in this essay will show thatRead MoreCharacter Analysis : Creon s Oedipus The King 1180 Words   |  5 PagesCounty College Character Analysis: Creon In Oedipus the King by Sophocles, a fatal curse is put upon the town of Thebes. Creon, current king and brother of Jocasta, gives the throne to Oedipus because he freed the city from the Sphinx. Creon is asked to seek help from Apollo, the son of Zeus and Leto, and twin brother of Artemis by Oedipus, his brother in law. Creon reveals to Oedipus that the only way to dismantle the curse is to discover who killed Laius, the former king of Thebes, and then toRead MoreSophocles The King And Antigone Essay1566 Words   |  7 Pages Sophocles wrote about kings. Mythological, or at least long dead, the regal protagonists of fraction of Sophocles’ surviving work embody the political realities of the ancients’ time. By examining and analyzing the origins and nature of kingship in Sophocles, one can glean a sliver of insight into a civilization that has all but disappeared. Sophocles’s kings were great human leaders, reaching their position through impressive deeds or standing in the community. Although they wielded great powerRead MoreA Greek Play Created By Sophocles1608 Words   |  7 Pagesplay created by Sophocles around 335 BC, Oedipus the King tells a story about one man’s irony to find the previous’ king’s murderer to seek justice. Oedipus stops at nothing to find the killer. As he questions the citizens, he only finds himself to be the killer. In this essay we explore how one major event can create multiple forms of conflict. The conflicts of Human vs. supernatural, the predestined fate of Oedipus and the gods. Human vs. human, when Oedipus heeds no warnings and stops at nothingRead More Oedipus the King: Does Oedipus Satisfy the Definition of a Good Man?1415 Words   |  6 PagesDoes Oedipus Satisfy the Definition of a Good Man?      Ã‚  Ã‚  Ã‚   As a young man, Oedipus learned of his fate to kill his father and marry his mother.   Oedipus flees to a distant land to escape his terrible fate and inadvertently fulfills the prophecy. Unknowingly, Oedipus kills his father and enters the bed of his mother.   Was Oedipus was a good man who happened to suffer an unfortunate fate, or was he a truly bad person, whose fate was only just?   If we accept the Aristotelian views of good and badRead MoreEssay on Inside the Head of Sigmund Freud1568 Words   |  7 Pagesclinical process of psychoanalysis, which treated psychopathology by using the â€Å"talking cure†. The talking cure is best known as a one to one talk between the patient and the doctor. He is also known for his radical and complex theories such as the Oedipus complex, and the Electra complex. His fields include neurology, philosophy, psychiatry, psychology, psychotherapy and psychoanalysis. Many question his authenticity since there is no proo f or record of Freud holding a degree, more less a doctorateRead MoreHeroism In Oedipus The King And The Odyssey1132 Words   |  5 PagesStobbe Dr. Dutch October 17 Heroism in Oedipus the King and The Odyssey Life is filled with a multitude of challenges and obstacles; in this case, life is often defined in relation to the ability if an individual to overcome and defeat such things. Aspects of heroism are evident in the situations and events that arise in the life of someone. This essay dives into the element of heroism that is evident is the stories: Oedipus the King and The Odyssey. Oedipus the King and The Odyssey share a multitudeRead MoreOedipus Rex, A Symbol Of Fate1517 Words   |  7 PagesThe most famous scene in Sophocles’, Oedipus Rex, is when Oedipus gouges out his eyes. But that’s not the only example of sight and blindness in this play. In Sophocles world, eyes play a big part in society, as the theme of vision invites the audience to look at the action with a double perspective, through own eyes and through the eyes of those on stage ( Mastronarde pp. 179-182). Considering eyes as an essential piece, it places them as a motif of the play. Within Greek literature, scholars focus