A Theory of the Stakeholder Corporation

There is a widely held view within the general public that large corporations should act in the interests of a broader group of agents than just their shareholders (the stakeholder view). This paper presents a framework where this idea can be justified. The point of departure is the observation that a large firm typically faces endogenous risks that may have a significant impact on the workers it employs and the consumers it serves. These risks generate externalities on these stakeholders which are not internalized by shareholders. As a result, in the competitive equilibrium, there is under‐investment in the prevention of these risks. We suggest that this under‐investment problem can be alleviated if firms are instructed to maximize the total welfare of their stakeholders rather than shareholder value alone (stakeholder equilibrium). The stakeholder equilibrium can be implemented by introducing new property rights (employee rights and consumer rights) and instructing managers to maximize the total value of the firm (the value of these rights plus shareholder value). If there is only one firm, the stakeholder equilibrium is Pareto optimal. However, this is not true with more than one firm and/or heterogeneous agents, which illustrates some of the limits of the stakeholder model.     

Bayesian methods for the cross-design synthesis of epidemiological and toxicological evidence

Summary.  Systematic review and synthesis (meta-analysis) methods are now increasingly used in many areas of health care research. We investigate the potential usefulness of these methods for combining human and animal data in human health risk assessment of exposure to environmental chemicals. Currently, risk assessments are often based on narrative review and expert judgment, but systematic review and formal synthesis methods offer a more transparent and rigorous approach. The method is illustrated by using the example of trihalomethane exposure and its possible association with low birth weight. A systematic literature review identified 13 relevant studies (five epidemiological and eight toxicological). Study-specific dose–response slope estimates were obtained for each of the studies and synthesized by using Bayesian meta-analysis models. Sensitivity analyses of the results obtained to the assumptions made suggest that some assumptions are critical. It is concluded that systematic review methods should be used in the synthesis of evidence for environmental standard setting, that meta-analysis will often be a valuable approach in these contexts and that sensitivity analyses are an important component of the approach whether or not formal synthesis methods (such as systematic review and meta-analysis) are used.     

Race and Redistricting: What the Print Media Conveys to the Public about the Role of Race

In a series of voting rights cases, the U.S. Supreme Court held that race-based redistricting, particularly the intentional formation of majority–minority districts (districts in which voters of color constitute a majority of eligible voters) may be unconstitutional if race was the predominant factor in the formation of the district. The Court stated that "redistricting legislation that is so bizarre on its face that it is unexplainable on grounds other than race" may violate the Constitution because of the messages such districts send to the public ( Shaw v. Reno , 1993 ). Yet neither the Court nor social scientists have examined whether the existence of race-conscious majority–minority districts sends messages to voters and what the nature of these messages may be. This research begins to address this scientific issue. In a quantitative content analysis, we examined messages about racial redistricting conveyed to citizens via the print media. Our sample consisted of 355 newspaper articles about redistricting included in the Lexis–Nexis database between 1990 and 2005. We found that newspaper coverage of racial districting contains messages to citizens about the motives involved in redistricting, the individuals and groups who are responsible for it, and its actual and expected effects. This finding is consistent with the Supreme Court's assumption that districts, particularly bizarrely shaped ones, convey distinct messages to voters. The specific messages communicated varied in important ways across the articles. Newspapers in states subject to Section 5 of the Voting Rights Act because of their history of discrimination against voters of color covered racial redistricting differently than states not subject to Section 5. We discuss the legal and theoretical implications of these findings for understanding the role of race in legislative redistricting efforts.     

Linking Citizen Satisfaction with E-Government and Trust in Government

This article asks how Internet use, citizen satisfaction withe-government, and citizen trust in government are interrelated.We first review the literature on trust and explore how radicalinformation technologies may work to alter the production ormaintenance of trust. We then develop hypotheses about how citizens'experience with e-government, satisfaction with e-governmentand government Web sites, and trust in government are interrelated.Moreover, the model for e-government and Web site satisfactionincorporates citizen perspectives on electronic transaction,transparency, and interactivity. Using data obtained from theCouncil on Excellence in Government, we then develop and testa two-stage multiple-equation model that simultaneously predictsexperience, satisfaction, and trust. Findings indicate thatgovernment Web site use is positively associated with e-governmentsatisfaction and Web site satisfaction and that e-governmentsatisfaction is positively associated with trust in government.We also find that while citizens are generally satisfied withthe electronic provision of information (transparency), thereis some dissatisfaction with the transaction and interactivityof Web sites. We conclude that electronic government strategies—transaction,transparency, and interactivity—are important factorsthat directly affect e-government satisfaction and indirectlyaffect trust. Individuals who use government Web sites are notonly critical consumers but also demanding citizens.     

A House Divided: How Nonprofits Experience Union Drives

Drawing from forty in‐depth interviews as well as personal experiences, the researchers identify the areas for argument in unionization drives among nonprofit organizations. The topic is placed in the context of the nonprofit sector's ongoing discussion of its relationship with, and distinction from, the government and business sectors.     

Childrearing,Self‐Control,and Crime: Additional Evidence*

Gottfredson and Hirschi's model of caregiving to produce high self‐control is examined using survey data from a city population of adults. The data permit assessment of the predictive ability of all three elements of the regimen, separately and in com‐bination. While a combination of the elements of the specified model and some of the individual components prove to be statistically significant predictors of self‐control, the coefficients are only modest ones. In addition, the sequential model of crime production set forth by the theorists proves to be questionable. These findings add to an emerging body of research suggesting that self‐control may be dependent on things other than the childhood caregiving regimen identified in self‐control theory.     

Image segmentation using voronoi polygons and MCMC, with application to muscle fibre images

We investigate a Bayesian method for the segmentation of muscle fibre images. The images are reasonably well approximated by a Dirichlet tessellation, and so we use a deformable template model based on Voronoi polygons to represent the segmented image. We consider various prior distributions for the parameters and suggest an appropriate likelihood. Following the Bayesian paradigm, the mathematical form for the posterior distribution is obtained (up to an integrating constant). We introduce a Metropolis-Hastings algorithm and a reversible jump Markov chain Monte Carlo algorithm (RJMCMC) for simulation from the posterior when the number of polygons is fixed or unknown. The particular moves in the RJMCMC algorithm are birth, death and position/colour changes of the point process which determines the location of the polygons. Segmentation of the true image was carried out using the estimated posterior mode and posterior mean. A simulation study is presented which is helpful for tuning the hyperparameters and to assess the accuracy. The algorithms work well on a real image of a muscle fibre cross-section image, and an additional parameter, which models the boundaries of the muscle fibres, is included in the final model.