Exchangeability, Correlation, and Bayes' Effect

We examine the difference between Bayesian and frequentist statistics in making statements about the relationship between observable values. We show how standard models under both paradigms can be based on an assumption of exchangeability and we derive useful covariance and correlation results for values from an exchangeable sequence. We find that such values are never negatively correlated, and are generally positively correlated under the models used in Bayesian statistics. We discuss the significance of this result as well as a phenomenon which often follows from the differing methodologies and practical applications of these paradigms – a phenomenon we call Bayes' effect.     

Business Ethics on the Internet: 2

In a previous article the authors provided an introduction to using the internet as a resource for business ethics. In this sequel they look at newsgroups and chatrooms, and conclude by looking at the websites of Shell and a Shell critic on the controversial ethical aspects of its corporate policy and behaviour. Ben Fairweather is a Research Fellow, and Steve Dixon is Webmaster, at the Centre for Computing and Social Responsibility, De Montfort University, The Gateway, Leicester LEl 9BH, England (email: ccsr@dmu.ac.uk) (website http://www.ccsr.cms.dmu.ac.uk/).     

Agrarian movements and rural populism in Indonesia

In this article, we reflect on the changing trajectories of agrarian movements in Indonesia. In the two decades after independence, a left-populist alliance of peasants, plantation workers, and other affiliate organizations achieved a mass following and were embraced by President Sukarno. In the aftermath of their violent destruction, the Suharto regime reordered agrarian movements into a single corporatist model. Suharto's downfall opened the way for the re-emergence of agrarian organizations and movements. But two decades later, they remain small and fragmented, with little influence at the national level. In the changing conditions of rural life, and the increasingly authoritarian political context, progressive rural movements face dilemmas on questions both of their focus and goals and of tactical alliances with other progressive movements and political elites. A broader, more inclusive progressive populist alliance is a possibility, but with the continuing danger of co-optation by forces of the populist right.     

Branding Decisions for Retailers’ Private Labels

Umbrella branding (UB) strategies for manufacturers’ products have received considerable attention in the literature. Not much is known about this strategy for private labels. Using a game-theoretic approach, we reassess the benefits of introducing a private label in a distinct category, and provide favorable conditions for the retailer to implement umbrella or individual branding for his private labels. We find that (1) UB leads to lower wholesale and retail prices for both national brands; (2) national brands’ manufacturers prefer individual branding over UB for private labels; and (3) the profitability of UB is not always guaranteed for the retailer.     

Destructive behavior in a Fragile Public Good game

Socially destructive behavior in a public good environment–like damaging public goods–is an underexposed phenomenon in economics. In an experiment we investigate whether such behavior can be influenced by the very nature of an environment. To that purpose we use a Fragile Public Good (FPG) game which puts the opportunity for destructive behavior (taking) on a level playing field with constructive behavior (contributing). We find substantial evidence of destructive decisions, sometimes leading to sour relationships characterized by persistent hurtful behavior. While positive framing induces fewer destructive decisions, shifting the selfish Nash towards minimal taking doubles its share to more than 20%.     

Difference in degrees: CEO characteristics and firm environmental disclosure

We contribute to the literature on firms' responses to institutional pressures and environmental information disclosure. We hypothesize that CEO characteristics such as education and tenure will influence firms' likelihood to voluntarily disclose environmental information. We test our hypotheses by examining firms' responses to the Carbon Disclosure Project (CDP) and find that firms led by newly appointed CEOs and CEOs with MBA degrees are more likely to respond to the CDP, while those led by lawyers are less likely to respond. Our results have implications for research on strategic responses to institutional pressures and corporate environmental performance. Copyright © 2013 John Wiley & Sons, Ltd.     

Driving factors for eco-innovation orientation: meeting sustainable growth in Tunisian agribusiness

The agricultural and agri-food sectors have substantial environmental impacts due to the great volumes of food, energy, water, and packaging waste that these businesses generate. Eco-innovations present an important opportunity to mitigate this effect. Even though eco-innovation seeks to reduce environmental damage in the food and agri-food sectors, researchers have paid slight attention to the role of eco-innovation in agribusiness; however, several insights suggest that it would be worthwhile to examine the motivation drivers toward the adoption of eco-innovations. The current study sheds light on the driving forces of eco-innovation and its impact on sustainable business growth. This paper tests a set of hypothesized relationships that focus on a sample of 306 Tunisian enterprises. We harness structural equation modelling to examine the relationship between the driving factors of eco-innovation and enterprises’ sustainable business growth by analysing the eco-innovation strategy's mediating effects. The findings reveal: (1) regulatory-side drivers constitute the most influential factor that motivates entrepreneurs to adopt an eco-innovation strategy, (2) there is a positive relationship between eco-innovation strategy and enterprises’ sustainable business growth, and (3) eco-innovation strategy plays a fully mediating role between the driving factors and enterprises’ sustainable business growth. The present study led us to consider that an entrepreneur with an emotional attachment to the environment is designed as a decisive driver for eco-innovation.