Walking in the shoes of others: Experimental testing of dual-interest and empathy in environmental choice

This paper further tests dual interest theory and the metaeconomics approach to environmental choice, recognizing a possible role for empathy–sympathy (the basis for an internalized, shared other-interest) in tempering and conditioning the more fundamental tendency to pursue self-interest. To test, we focus on rivers flowing through agricultural areas carrying sediments, chemicals, and fertilizers which are making their way into downstream rivers and lakes. We conduct a framed laboratory experiment modeling this problem: farmers decide on the usage of conservation technology to lessen impacts on the water quality (i.e. on the commons, the capacity to absorb these wastes) in downstream areas, which is more costly than the alternative intensive technology. The results confirm our hypotheses, demonstrating that Upstream Farmers who practice conservation are tempering profit maximization with empathy-based, environmentally conscious behavior. Such behavior better serves the farmers’ own-interest, and also helps Downstream Water Users. Environmental economics models need to explicitly include empathy–sympathy and the moral–ethical context it produces, providing a more scientific basis for conservation policy and programs.     

Market hours,household work,child care,and wage rates of partners: an empirical analysis

The aim of this paper is to provide new evidence on the effect of partners’ wages on partners’ allocation of time. Earlier studies concluded that wage rates are an important determinant of partners’ hours of market and non-market work and also that house work may lower married women’s wage rates. However, the bulk of earlier literature in this area failed to account for the endogeneity of wages or the simultaneity of partners’ time allocation choices. Here we take a reduced form approach and specify a ten simultaneous equations model of wage rates, employment and hours of market work, house work and childcare of parents. Non-participants are included in the model. We exploit a rich time use dataset for France to estimate the model. We find that the own wage affects positively own market hours and negatively own house work and childcare hours. The wage of the father has a significantly negative effect on the mother’s market hours while her wage rate has a significantly positive effect on his house work hours.     

ADHD and Brain Anatomy: What Do Academic Textbooks Used in the Netherlands Tell Students?

Studies of brain size of children classified with ADHD appear to reveal smaller brains when compared to ‘normal’ children. Yet, what does this mean? Even with the use of rigorously screened case and control groups, these studies show only small, average group differences between children with and without an ADHD classification. However, academic textbooks used in the Netherlands often portray individual children with an ADHD classification as having a different, malfunctioning brain that necessitates medical intervention. This conceptualisation of ADHD might serve professional interests, but not necessarily the interests of children.     

Output-Flexibilität in der Dienstleistungsproduktion

Zusammenfassung  Den Ausgangspunkt der überlegungen bildet die Interpretation von Dienstleistungen als Probleml?sungen, die eine M?glichkeit zur formalen Analyse der Output-Flexibilit?t er?ffnet. Im vorliegenden Beitrag werden in einer eigenschaftsorientierten Betrachtung zun?chst die Komponenten der Output-Flexibilit?t identifiziert, um dann darauf aufbauend ein Kalkül zur Gestaltung der Output-Flexibilit?t von Dienstleistungsunternehmungen abzuleiten.

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Summary  Output flexibility enables the service provider to cope with both uncertainties in demand and the external production factor. This paper aims at formulating a calculus for the design of output flexibility based on production theory. The interpretation of services as specific problem solutions serves as a basis for a feature-oriented modelling of service production.

Die Autoren danken zwei anonymen Gutachtern für wertvolle Verbesserungsvorschl?ge.     

The impact of acquisitions on firm performance: A review of the evidence

This paper presents a review of empirical research on the impact of acquisitions on firm performance. The evidence suggests that, in the short run, acquisitions have at best an insignificant impact on shareholder wealth. Long‐run performance analysis reveals overwhelmingly negative returns, while the evidence using accounting performance measures is mixed. The review also examines the impact of bid characteristics on performance. The acquisition of hostile targets, transactions that are paid for with cash and acquisitions of larger targets are associated with superior (or at least less negative) performance, while there is mixed evidence on the benefits of related acquisitions. A number of recent studies find that acquirers with superior pre‐bid performance tend to experience significant underperformance in the post‐bid period.     

Consumer Selection of Food-Safety Information Sources

The aim of this study is to examine the preferences of consumers for different information sources when they have a question about food safety. On the basis of a nationally representative survey conducted in the Netherlands, five distinct consumer groups are identified that not only differ on the reported use of information sources but also regarding several personality characteristics and sociodemographic variables. The empirical results show that two-thirds of the consumers are selective in their use of information sources and prefer either institutional or social sources. So, multiple information-acquisition patterns exist among the general public. The study illustrates how these findings can help to develop effective risk communication strategies.     

Dynamic Pricing to Minimize Maximum Regret

We consider a dynamic pricing problem that involves selling a given inventory of a single product over a short, two‐period selling season. There is insufficient time to replenish inventory during this season, hence sales are made entirely from inventory. The demand for the product is a stochastic, nonincreasing function of price. We assume interval uncertainty for demand, that is, knowledge of upper and lower bounds but not a probability distribution, with no correlation between the two periods. We minimize the maximum total regret over the two periods that results from the pricing decisions. We consider a dynamic model where the decision maker chooses the price for each period contingent on the remaining inventory at the beginning of the period, and a static model where the decision maker chooses the prices for both periods at the beginning of the first period. Both models can be solved by a polynomial time algorithm that solves systems of linear inequalities. Our computational study demonstrates that the prices generated by both our models are insensitive to errors in estimating the demand intervals. Our dynamic model outperforms our static model and two classical approaches that do not use demand probability distributions, when evaluated by maximum regret, average relative regret, variability, and risk measures. Further, our dynamic model generates a total expected revenue which closely approximates that of a maximum expected revenue approach which requires demand probability distributions.     

How People Perceive and Will Cope with Risks from the Diffusion of Ubiquitous Information and Communication Technologies

Information and communication technologies (ICTs) are increasingly pervasive and continue to reshape our environment. This trend carries different risks. Therefore, the early sensitization of people to these risks, as well as improving their capacity for protective coping behavior, is essential. Based on the protection motivation theory (PMT), we examined with structural equation modeling the relationships between different components of threat and coping appraisal to explain protective and nonprotective responses. Calculations were performed with data from a representative survey on perception and use of ICT among German residents (N= 5,030). Our findings largely supported the proposed model: an increased perceived threat was positively related to the intentions to react protectively and nonprotectively. Perceived coping efficacy increased the protective and decreased the nonprotective responses. Negative affect enhanced the perceived threat and the nonprotective response, but inhibited protective intentions. The implications of these findings on how to sensitize people to the risks of these new technologies are outlined.     

Marital Aspirations,Sexual Behaviors,and HIV/AIDS in Rural Malawi

We explore how marital aspirations are related to the sexual behaviors of adolescents and young adults in Malawi, where HIV/AIDS prevalence among adults exceeds 10%. We also consider whether the specter of AIDS is shaping ideals about marriage. By combining survey data (N = 1,087) and in‐depth interviews (N = 133) with young Malawians from the Malawi Diffusion and Ideational Change Project, we show that looking for and finding a suitable spouse are linked to sexual behaviors and, thus, HIV risks. Moreover, concerns about contracting HIV are closely tied to the ideal characteristics of a future spouse. Our findings draw long‐overdue attention to the importance of marital aspirations in understanding adolescent sexual behaviors and risks in the era of AIDS.     

Small firms and the information problem

Information is essential for decision-making and strategy by small and medium-sized enterprises. Hans Pleitner explores the content of information used by SMEs based on internal and external information and finds much deficiency. SMEs also have problems with the technicalities of handling information, although there has been a big take-up of personal computers. A lot depends on businessmen's attitudes, and these vary greatly. Dr Pleitner recommends that external institutions should try harder to encourage businessmen in the greater use of information and its technology.