Up or Down?

It’s an issue that has plagued humankind ever since men and women began living together - with indoor plumbing.
And while most of us come to some kind of “resolution’ with our better halves (one way or another), the issue of whether the toilet seat should be left up or down is nonetheless one of those things that generates a lot of “passion’ among the parties concerned (particularly in the wee hours of the morning). Scientific inquiries into the matter are almost non-existent. What, you say? ALMOST non-existent?
Indeed, we have unearthed an analysis, titled “The Social Norm of Leaving the Toilet Seat Down: A Game Theoretic Analysis,’ by Hammad Siddiqi that purports to apply scientific analysis to this societal challenge.
Other Studies
Nor is he the first to take on the topic. Siddiqi cites two relevant studies on the matter, specifically (Choi, P., “Up or down? A male economist’s manifesto on the toilet seat etiquette,’ Michigan State Working Paper (2002); and Harter, R., (2005), “A game theoretic approach to the toilet seat problem,’ Science Creative Quarterly. However, he writes that the former “argues that the rule of leaving the toilet seat down after use is inefficient in the sense that there is at least one other rule that outperform this rule. The unit of analysis in Choi (2002) is the household and the efficient rule is defined as one that minimizes the total cost of toilet seat operations per household.’ However, he notes that Choi does not model the issue as a situation of conflict (I’m betting Choi has never been on the wrong side of a toilet seat placement), and hence, from the perspective of Hammad Siddiqi, the author of the newer paper, “ignores the game theoretic aspects of the problem.’
On the other hand, Siddiqi says that Harter’s 2005 analysis models the situation as a cooperative game and “proposes a contract that splits the costs of toilet seat operations evenly among the parties.’ Siddiqi notes, however, that both papers agree that the social norm of leaving the toilet seat down is “inefficient,’ in the sense that it does not minimize the total cost of toilet seat operations per household. He goes on to find fault with the two papers for failing to address an important concern: If a female finds the toilet seat in a wrong position, then she will most probably yell at the male involved. “This yelling inflicts a cost on the male,’ Siddiqi writes, and “based on this omission, women may argue that the analysis in these papers is suspect.’
The Costs of Yelling
In what purports to be an effort to redress this shortcoming, Siddiqi’s paper internalizes the cost of yelling and models the resulting conflict as a non-cooperative game between two species, males and females. The paper proceeds to outline the situation as a non-cooperative game of conflict between two people: one male (John) and one female (Marsha), who initially live alone, and who each have access to a separate restroom with one toilet. The two “use this toilet for two operations” (which he aptly refers to as #1 and #2), he goes on to say – and then assigns an inconvenience cost alongside a probability factor.
Having established that as a baseline, he turns his attention to the situation, “popularly known as marriage,’ when these different approaches can come into conflict.
Ultimately, he finds that, while the social norm of leaving the toilet seat down is inefficient, he notes that, “to our dismay, we also find that the social norm of always leaving the toilet seat down after use is not only a Nash equilibrium in pure strategies, but is also trembling-hand perfect. So, we can complain all we like, but this norm is not likely to go away.’
Not that I understand either a Nash equilibrium (in pure or impure strategies), and I’m almost afraid to ask what “trembling hand perfect’ is supposed to suggest – but the essence seems to be that it may be “inefficient’ to leave the seat down, but that doesn’t mean society won’t expect certain behaviors.

Citigroup Settles Inadequate Supervision Charges with NASD

For failing to properly supervise brokers delivering misleading information to plan participants during retirement seminars, Citigroup Global Markets, Inc. will settle with the NASD for more than $15 million and brokers involved will pay between $30,000 and $125,000.
According to a press release from the private-sector regulator, NASD alleged that the bank failed to supervise a team of Citigroup brokers who, through misleading presentations, led more than 400 BellSouth employees in North Carolina and South Carolina to open more than 1,100 accounts with the Citigroup brokers and made “exaggerated and unwarranted projections of future earnings without fully explaining the risks involved” in withdrawing money from their retirement accounts early and rolling it over into brokerage accounts.
The employees were unsophisticated investors with little experience in the financial markets, who retired in their mid-50s. These employees, mostly with retirement savings of less than $350,000, typically cashed out their pensions and 401(k) accounts, and invested these proceeds and other retirement assets with the Citigroup brokers.
The Settlement
Citigroup will pay $3 million to settle the charges with NASD and pay $12.2 million in restitution to more than 200 former BellSouth employees, who saw the principal of their retirement savings drop by that amount as a result of basing their decisions off the brokers’ materials.
The greatest disciplinary fine by NASD against an individual broker went to the reported mastermind behind the sales campaign, Jeffrey Sweitzer, who was slapped with a $125,000 fine and an 18-month suspension. Matthew Muller was given a $50,000 fine and a nine-month suspension. Other brokers involved in the scheme received less than $60,000 fines.
Using charts, graphs, handouts and other documents at the seminars and meetings, the brokers’ sales presentations led the employees to expect that for 30 years they could earn approximately 12% annually on their investments and withdraw approximately 9% annually, according to NASD.
For instance, one document projected the amount a generic 53-year-old BellSouth employee would earn from an initial investment of $300,000. The projection sheet suggested that this typical employee would earn more than $1.8 million, could withdraw from $27,000 to $69,000 annually, and still have more than $770,000 in principal remaining 30 years later, at age 83.
NASD also found that as a result of Sweitzer’s and Muller’s sales presentations many of the BellSouth employees came to believe that they could afford to retire early by relying upon monthly withdrawals from their retirement savings, hinging their decision on the Internal Revenue Service rule that says a person under the age of 59 세 can withdraw a fixed stream of regular and equal payments from their retirement accounts without having to pay the usual 10% tax penalty for early withdrawals.
Many of these customers cashed out their nearly risk-free BellSouth pensions, their 401(k) accounts and other retirement assets and invested the proceeds with the brokers. Fees and commissions from those BellSouth employee accounts comprised a majority of the compensation earned by Sweitzer and Muller.

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