Social-Self-Interest

This paper is about rational sociality. Retaining rational choice as its basic framework, it aims to enrich it by taking seriously a well-established cultural, social and psychological phenomenon: that some inter-personal relationships have intrinsic value. These are termed primary. Utility maximisation includes the binary choice to enter or not to enter a primary relationship: this on the one hand has a direct impact on utility, and on the other imposes restrictions on consumption choices. The model encompasses standard economic choice theory as a special case, while explicitly recognising that self-interested agents make choices that are sometimes group dependent. The broad scope of this approach is illustrated by a number of extensions and applications, some of which lead to distinctly unorthodox conclusions.     

Labour Market Governance and the Creation of Outsiders

Using case‐study data, the article examines the contention that protective labour market policies and trade union action are responsible for growing divisions between labour market ‘insiders and outsiders’. Case studies are reported on developments in collective bargaining in the hospitals and engineering sectors from seven western and central European countries. The article finds that managerial strategies, and interactions between management and unions, have to be considered to give a full account of the growth of precarious employment.     

Business Angel Networks and the Development of the Informal Venture Capital Market in the U.K.: Is There Still a Role for the Public Sector

Business angel networks (BANs) provide a channel of communication between private venture capital investors (business angels) and entrepreneurs seeking risk capital. Most operate locally on a not-for-profit basis with their costs underwritten by the public sector. However, the recent establishment of BANs by private sector organisations in the U.K. has led to a questioning of the government's continuing role in the financing of BANs. This paper demonstrates that there are significant differences between public sector and other not-for-profit BANs and private sector, commercially-oriented BANs in terms of the investments that they facilitate. Private sector BANs are primarily involved with larger, later stage deals whereas investments made through not-for-profit BANs are generally smaller, involve start-ups and other early stage businesses and are local. The emergence of private sector BANs has therefore not eliminated the need for public sector support for locally-oriented networks.     

Ethics and corporate governance: The issues raised by the Cadbury report in the United Kingdom

In the late 1980s there was a series of sensational business scandals in the United Kingdom. There was particular public outrage at the plundering of pension funds by Robert Maxwell, at the failure of auditors to expose the impending bankruptcy of the Bank of Credit and Commerce International, and at the apparently undeserved high pay raises received by senior business executives. The City of London responded by creating a special committee to examine the financial aspects of corporate governance. This paper describes the resulting Code of Best Practice produced by the Cadbury Committee. To reduce the power of executive directors in the boardroom the Code recommends a greater role for non-executive directors, changes in board operations, and a more active role for auditors. The paper reviews the various published reactions to the Cadbury Report, and concludes that the Code is unlikely to halt the incidence of business scandals in the United Kingdom.Colin Boyd teaches at the College of Commerce, University of Saskatchewan. His study of the Zeebrugge Car Ferry Disaster is published in a number of strategy and ethics case-books. In 1993/94 he was a Visiting Research Fellow at the Centre for Applied Ethics, University of British Columbia, which provided financial support for the production of this paper.     

Environmentally conscious consumption: The role of retailers and peers as external influences

Environmentally conscious consumption is one of the key concerns in modern society generally, and increasingly among the consumer population. However, consumers often overstate their willingness to purchase environmentally conscious products, with global purchasing of these products relatively low. Much research has considered the role of drivers internal to an individual in making such consumption choices; however there is less knowledge as to how external influences may impact environmentally conscious consumption behaviour. As retailers increasingly strive to adopt and communicate their environmentally sustainable business practices, and encourage parallel consumer behavior, the question arises: what role do retailers play in influencing consumers’ environmentally conscious consumption? In this paper we investigate this notion, specifically how external influences (the retailer and peers) impact environmentally conscious behavior. We investigate this behavior in terms of two outcomes; sustainable consumption (direct costs) and willingness to accept environmental taxes (indirect costs). Our research demonstrates that retailers can influence consumers to be more environmentally conscious in their consumption, with retailer influence a stronger mediator than peers in this relationship. One important implication of this research is that retailers have the opportunity to shape environmentally conscious consumption if they adopt sustainable business practices.     

Simple Procedures for Testing Autoregressive Versus Moving Average Errors in Regression Models

This paper develops several simple separate (or non-nested) procedures for testing autoregressive versus moving average errors in regression models. These asymptotically valid tests are straightforward to calculate: after estimating both models by maximum likelihood methods, the procedure involves testing the significance of variables added to a linearized version of the null model, the added variables being the predictions, or the residuals from the specified alternative model, or the difference of the predictions of the two models. Some small sample evidence on the properties of the tests is presented, as is an empirical application on the Australian unexpected inflation rate series.
JEL Classification Numbers: C12, C22, C52, E31.