Contributions of social capital theory in predicting rural community inshopping behavior

The social environment in which the retailer conducts business is not often measured for its fundamental influences on consumers’ local purchasing behavior. This study, using social capital theory as a theoretical framework, examines whether reciprocal actions exist between community members as consumers and retailers and if these actions are persuasive in predicting the economic activity regarded as consumer inshopping. Determinants of inshopping behavior are analyzed from the community member’s perspective in a study of the rural community marketplace. The sample population consisted of consumers living in two rural Iowa communities with populations less than 10,000, agricultural-based economies, and retail mixtures of locally owned and operated small-sized businesses as well as national chain and discount organizations. Structural equation modeling estimated the causal patterns among consumers’ attachment to community with two endogenous variables regarding reciprocity and inshopping behavior. Findings offer supporting evidence that social relationships aid in predicting rural marketplace relationships.     

Is a good deal always fair? Examining the concepts of transaction value and price fairness

Previous research has shown that if consumers are aware that they are paying more than another customer for a similar transaction, then they may perceive the price to be unfair. A concept closely related to fairness is transaction value, defined as consumers’ perceptions of the psychological satisfaction or pleasure from taking advantage of a price deal. In this research, we conceptualize that although consumers’ perceptions of price fairness and transaction value share many similarities, nevertheless there are also important differences. Using three studies, we empirically examine these differences. We show that although a “bad deal” is typically perceived to be an unfair price, a “good deal” is not necessarily perceived to be the fairest price.     

Envisioning agricultural sustainability from field to plate: Comparing producer and consumer attitudes and practices toward ‘environmentally friendly’ food and farming in Washington State, USA

A substantial body of sociological research has examined the relationship between farmers’ environmental attitudes and their conservation behaviors, but little research has compared the attitudes of producers and consumers toward the environment with their behaviors or practices in support of sustainable agri-food systems. This paper addresses these shortcomings by analyzing the intersection between producer and consumer attitudes toward environmental sustainability with their actual practices, drawing data from focus group interviews and surveys with producers and consumers in Washington State, USA. We compare farmers’ attitudes toward several agricultural and environmental policies with their self-reported practices to examine whether support for environmental policies aligns with sustainable farming practices. For consumers, we investigate the relationship between their attitudes toward the same agricultural and environmental policy issues with their interest in purchasing food produced in an environmentally sustainable manner. Through our analyses, we find that consumers’ and producers’ practices are not always consistently correlated with their environmental attitudes, but that support for agricultural land preservation is one policy area in which the interests of producers and consumers intersect with their interest in sustainable farming and food. Findings from our individual and focus group interviews assist us in understanding the multiple, sometimes competing, factors that consumers and producers must weigh in making decisions about environmentally sustainable food and farming.     

Endogenizing consumers' expectations in four major EC countries

This article examines the relationship between consumers' opinions and a number of measurable economic variables. It concludes that consumers' opinions are not easily explained by economic variables only. The implication is that consumer surveys do actually contain original information. helpful in very short-term forecasting. The paper invalidates previous investigations on the basic characteristics of opinion variables.     

Correlates of Clients’ emotional and Behavioral Responses to Treatment Termination

This study investigates the associations between clients’ emotional and behavioral responses to treatment termination and eight sets of indepentent variables, covering the source of termination (client, therapist, external source); the termination process (speed, centrality, control, choice, and desire), and the perceived outcome (failure, goal achievement) of the therapy. Subjects were 92 student therapists and 40 professional therapists, who reported on their clients’ perceptions, experiences, and responses. All the variables examined were associated with one or another client response. The findings support the view of treatment termination not only as a loss experience but also as a transition. They highlight the need for therapists to pay careful attention to both the source and the process of treatment termination.     

Envy, malice and Pareto efficiency: An experimental examination

Economists have long speculated that envy and malice play important roles in economic decisions. Surprisingly little empirical evidence has been offered in support of such claims. This paper uses experimental and multinomial logit techniques to estimate the effects of envy and malice in economic decisions involving Pareto efficiency. Envy and malice turn out to be powerful motivations with strong differential impacts across countries and relative positions. In some cases, opposition to Pareto gains reaches 60%. Behind a veil of ignorance, however, opposition falls to 10% overall. Pareto efficiency thus garners its greatest support under conditions which can lay claim to greatest legitimacy, those free of situational and personal bias. “... the greater part of human actions have their origin not in logical reasoning but in sentiment. This is particularly true for actions that are not motivated economically.... Man, although impelled to act by nonlogical motives, likes to tie his actions logically to certain principles; he therefore invents these a posteriori in order to justify his actions.” V. Pareto in The rise and fall of the elites (1968, p. 27) Received: 2 February 2000/Accepted: 6 November 2000     

Fairness judgments in household decision making

The behavioral economic study of fairness was applied to household decision making. A sample of household partners judged the fairness of a number of hypothetical decisions of a household partner, varying in the context of the decision. Decisions made by the partner to make a large personal expenditure or to reduce time spent on household chores were considered by the subjects as more fair if the outcome was framed as a forgone gain then if it was framed as a straight loss. Partners’ decisions to reduce household chores were also considered as more fair in the case of overtime work than when the partner received a salary increase or windfall income. We conclude that asymmetric valuation of losses and forgone gains, and (behavioral) costs as compared with income increase of the partner, influenced the fairness judgments concerning the partner’s behavior.     

A reverse sunk cost effect in risky decision making: Sometimes we have too much invested to gamble

The sunk cost effect refers to the empirical finding that people tend to let their decisions be influenced by costs made at an earlier time in such a way that they are more risk seeking than they would be had they not made these costs. This finding seems to be in conflict with economic theory which implies that only incremental costs and benefits should affect decisions. The effect is often explained in terms of prospect theory of (Kahneman, D., Tversky, A., 1979. Prospect theory: An analysis of decision under risk. Econometrica 47, 263–291), suggesting that sunk costs may induce a ‘loss frame,’ consequently causing risk seeking behavior. We argue that sunk costs may also result in risk aversion. In the present study we investigated the effect of time and effort investments (Behavioral Sunk Costs) on risky decision making in gain and loss situations. The results show that, in agreement with prospect theory, participants were more risk averse in gain situations than in loss situations. Moreover, incurring Behavioral Sunk Costs appeared to increase risk aversive choices, i.e., a reverse sunk cost effect. Furthermore, the results suggest that, in loss situations, Behavioral Sunk Costs mainly lead to risk aversive behavior if opting for the ‘safe’ alternative is not accompanied by an increased possibility to regret the decision.     

Subjective measures of household preferences and financial decisions

In intertemporal models of household consumption or portfolio choice, household behaviour depends on, for example, the household's rate of time preference, the rate of risk aversion, and the household's information set. In this paper we use a survey of Dutch households which contains direct subjective information on risk aversion and time preference and on interest in financial matters. We first describe these data and analyze how they relate to household characteristics and household income. We then investigate whether these variables are related to households' financial decisions on home ownership, mortgages and ownership of risky assets. Our results are broadly in accordance with economic theory.     

Role of motives and attributes in consumer motion picture choice

The study focuses on consumer motion picture motives and choice criteria. Its purpose can be specified into the following objectives: (1) to examine the motivational basis of cinema attending. (2) to examine the predictive ability of movie motives and consumers' attribute importances in preference regressions of four types of movie, (3) to carry out a motion picture choice analysis by predicting audience membership with discriminant analysis. The data is based on a convinience sample of Finnish consumers (N = 228) attending one of the following types of movie: adventures/ thrillers, human/ social dramas, sex movies, entertainment movies.The results of a group of multivariate analyses (factor analysis, canonical correlation, preference regression, and discriminant analysis) indicate that consumers attending different types of films have distinctly separate motivation bases, as well as attribute importance profiles, underlying their movie choices. Each movie type had a specific preference structure, expressed by the regression coefficients. Finally, the discriminant analysis suggests that the general motive and attribute variables are effective also in predicting motion picture choice. On balance, the results were mutually supportive and exemplify the managerial usefulness of quantitative consumer analysis also in the case of such abstract leisure products as motion pictures.     

Perceptions and expectations of price changes and inflation: A review and conceptual framework

Drawing on relevant literature from a diverse range of academic disciplines we present a conceptual framework intended to further our understanding of perceptions and expectations of price changes and inflation. Based on this framework, we provide a detailed review of the literature and an analysis of open issues in current research. The review is primarily concerned with individuals’ perceptions and expectations of price changes and inflation, which can influence individuals’ economic behaviour (e.g. spending and saving decisions). The main insight from the review is that while consumers may have a limited ability to store and recall specific prices, and even succumb to a number of biases in the way in which they form perceptions and expectations of global price changes, they do seem to have some feel for, and ability to judge and forecast, inflation. How they achieve this, however, is still an open question, although plausible explanations have been proposed. While much important research has been undertaken and significant progress made in our understanding of the psychology of inflation, there remain many unanswered questions and interesting avenues for future research, which are discussed in the final part of the paper.     

Tax evasion, tax morale and policy maker's effectiveness

This paper aims to show that aggregate tax evasion may be largely explained by tax morale and that tax morale is dependent on the taxpayers’ intrinsic attitudes to honesty and social stigma. The theoretical hypothesis is that these attitudes are influenced by the taxpayers’ perceptions of the size of tax evasion as well as by their perceptions of the policy maker's effectiveness in exercising control over the relevant macroeconomic variables and safeguarding the interests of citizens. Applying Gordon's [Gordon, J.P.F., 1989. Individual morality and reputation costs as deterrents to tax evasion. European Economic Review 33(4), 797–805] framework, a dynamic model of aggregate tax evasion is proposed whereby multiple equilibria may emerge. Econometric analysis on Latin American countries supports the assumptions made in the model.     

Motivating teammates: The leader’s choice between positive and negative incentives

Team leaders often provide incentives for cooperation. A challenging question is how different incentive schemes and their actual choice by the leader shape the team’s culture and contribute to the team’s success. To shed light on this issue we investigate how a leader chooses between rewards or punishment in an experimental team setting and how teammates’ contributions are influenced by this choice. Leaders show a clear initial preference for rewards, which diminishes over time in some teams. Leaders who observe more free-riders in their teams tend to switch to punishment incentives. A change from rewards to negative incentives results in an immediate and enduring increase in contributions. On the other hand, contributions show a decreasing trend in teams with a leader who sticks to rewards.     

Explaining Satisfaction with Volunteering in Emergencies: Comparison Between Organized and Spontaneous Volunteers in Operation Protective Edge

The study aimed to identify factors that explain general satisfaction with volunteering among volunteers in Operation Protective Edge, in Israel, through a comparison between organized volunteers affiliated with volunteer organizations and spontaneous volunteers who arrived at the scene independently. Based on the social exchange theory as the theoretical framework, the contribution of several variables to explaining general satisfaction with volunteering was examined: satisfaction with the intrinsic and extrinsic rewards of volunteering, personal sacrifice in volunteering, and motives for volunteering (social solidarity, personal empowerment, and escape from reality). The findings revealed that among organized volunteers, satisfaction with the intrinsic and extrinsic rewards of volunteering mediated between motives for volunteering and general satisfaction with volunteering. Among spontaneous volunteers, the motives of social solidarity and personal empowerment as well as satisfaction with intrinsic and extrinsic rewards were the main variables that explained general satisfaction with volunteering. In contradistinction, the main variables that explained general satisfaction with volunteering among organized volunteers were the motive of personal empowerment and satisfaction with the extrinsic rewards of volunteering.     

DIVIDEND POLICY IN REGULATED NETWORK INDUSTRIES: EVIDENCE FROM THE EU

We study the dividend policy of firms in regulated network industries, focusing on the impact of different regulatory regimes and government control. We link payout and smoothing decisions to different regulatory mechanisms (cost‐based vs. incentive regulation) and state versus private ownership. We test our predictions on a panel of listed European electric utilities, accounting for potential endogeneity of the choice of regulatory and ownership patterns. We find that incentive‐regulated firms smooth their dividends less than cost‐based regulated firms and that they report higher target payout ratios. Consistent with the interest group theory of regulation, we find that incentive regulation schemes are less likely when the state is still an important shareholder in the sector. Additionally, our results show that government control undermines the efficiency‐enhancing effects of incentive regulation on dividend policy, for example, lower smoothing is only due to private firms. (JEL G35, L51, L32, L9)     

PERSONALITY,INFORMATION ACQUISITION,AND CHOICE UNDER UNCERTAINTY: AN EXPERIMENTAL STUDY

This article studies the role of personality in choice under risk and uncertainty. We explore the hypothesis that personality plays a role in decision making in situations of uncertainty but not in situations of risk. In addition to offering support for this main hypothesis, we explore the various pathways through which personality exerts its influence. What we find is that in uncertain environments, where decision makers are able to acquire information about the unknown probability distributions they face, personality variables influence the type of information people acquire, which then influences their choice. Our experimental design brings in two novel aspects of choice under uncertainty: information acquisition and advice. The findings indicate that indeed, under uncertainty, personality matters for choice in a way it does not under risk. Furthermore, the results suggest that personality can play a role at multiple levels, such as people's preferences for certain types of information and the likelihood of following advice. (JEL C90, D03, D81)     

The role of natural heritage in rural development: An analysis of economic linkages in Scotland

There is growing recognition of the important role played by natural heritage in rural economic development, but limited empirical work as yet to inform this debate. This paper examines the nature and strength of local economic linkages associated with the natural heritage in four case study areas in Scotland, differentiated in terms of their peripherality and dependence on the natural heritage. A framework for identifying ‘natural heritage activities’ in different localities is developed and applied in each study area. The framework distinguishes between three types of natural heritage activities, ‘core’ activities, such as environmental management; ‘primary production and extraction’ activities; and ‘reliant’ activities where the natural heritage is highly important to a business's commercial viability. Analysis of first-round economic linkages and multiplier effects of local economic activity in the four case study areas indicates that natural heritage ‘reliant’ activities have the greatest potential for generating local economic benefits through their propensity to source locally. They are also found to contribute more significantly to the economic base of the study areas through sales of goods and services to visitors. The policy implications of the findings are discussed.     

The role of networks of practice and webs of influencers on farmers' engagement with and learning about agricultural innovations

Drawing on the UK research project, ‘Farmers’ understandings of GM crops within local communities’, this paper considers the application of the concepts of communities of practice and networks of practice in the agricultural context. A brief review of theories about communities of practice and networks of practice is given and some of our findings are discussed in the context of those theories.Farmers were found to be a particular type of network of practice, characterised by a weak organisational framework but with a relatively stable network of other communities of practice (or networks of practice) they interact with, which we have called a ‘web of influencers on practice’. Together, farmers’ network of practice and their web of influencers on practice represent the whole environment in which learning may occur, and so provide insights into their social learning system. Most farmers have to work at the boundary of their network of practice and their web of influencers, which creates a significant load on their knowledge management. This is in contrast to other networks of practice where only some members take on this boundary brokering role. The paper concludes that these theories (on networks and communities of practice) provide a useful lens through which to view farmers and their practice, highlighting important points for policy. However, in such contexts these theories need to be extended to include the role of a broader ‘web of influencers on practice’.     

Social Cognitive Approach to Career Development: An Overview

This article provides an overview of a social cognitive framework for understanding career interest, choice, and performance processes. Derived primarily from Bandura's (1986) general social cognitive theory, the framework features several variables (self-efficacy, outcome expectations, personal goals) through which people help to guide their own career development. It also includes a discussion of how these variables interrelate with other aspects of persons (e.g., gender) and their environments (e.g., supports, barriers) within the process of career development. The framework is intended as a base both for unifying existing career theories and for conceptualizing developmental and remedial career interventions.