INSTITUTIONAL ECONOMICS: SURVEYING THE ‘OLD’ AND THE ‘NEW’

This paper surveys and compares the literature on the ‘new’ institutionalism (North, Williamson, etc.) with that of the ‘old’(Veblen, Commons, Mitchell). A criterion for distinguishing these two schools is suggested, along with criticisms of the limitations of each. The ‘new’ institutionalism is associated with methodological individualism and the idea that the individual should be taken as given. Particular attention is paid to ‘new’ institutionalist treatments of markets and firms. The paper moves on to examine some ‘old’ institutionalist criticisms of ‘economic man’ as well as some negative features of the ‘old’ institutionalism. On the positive side, the latter is seen to have an ‘evolutionary’ dimension, related to modern work in the area of technological change.     

Customer loyalty to food retailers in Northern Ireland: ‘devoted loyals’ or ‘promiscuous switchers’?

Store loyalty is a major challenge for food retailers, and the food retail market in Northern Ireland has been subject to considerable change in the past decade. Although shoppers will often patronize many stores, they typically have a primary affiliation to a ‘main’ food store that captures the majority of their food purchases. This study uses a unique approach to segmenting customers into groups based on loyalty in terms of both the type of data used to generate a loyalty score and the data collection techniques used. Innovative projective techniques have been used alongside traditional questioning techniques to reveal ‘behavioural’ and ‘emotional’ loyalty indicators, and in doing so create a holistic measure of customer loyalty to a main food store, allowing customers to be segmented into groups based on loyalty. A paper‐based questionnaire was administered to 152 food shoppers from throughout Northern Ireland. Responses to traditional questioning formats and projective techniques (cartoon friends and mini case studies) were analysed and used to generate a loyalty score for each respondent. The first group of customers nearly always visit the same store, are willing to recommend the store to others and are less likely to switch to a competitor, even when offered an incentive to do so. They also rate the ‘hard’ attributes of this store highly. As a result of these characteristics, customers in this segment were termed ‘devoted loyals’. The second group of customers may occasionally use a different supermarket for food shopping, some would consider switching to a competitor if offered an incentive, and they rate ‘hard’ store attributes at a slightly lower level than the ‘devoted loyals’. Based on their group profile, these customers were assigned the title of ‘susceptibles’. The third group of customers are less willing to actively encourage friends and family to shop at a specific store. Many in this group did not consider their current store as their number one choice in the next few years. An incentive to switch to a competitor store is more likely to trigger a transfer of loyalty by this group. These customers were termed ‘promiscuous switchers’.     

Assessing the Performance of ‘Inflation Targeting Lite’ Countries

This paper deals with what is referred to in the literature as the ‘Inflation Targeting Lite’ (ITL) countries. These are a category of emerging countries, whose main characteristics are that they are least developed and small economies that pursue IT. They use inflation targeting to define their monetary policy framework, but for a number of reasons they are not in a position to put top priority to IT in relation to other objectives. This paper deals with a set of ITL countries for which consistent data could be gathered, and for which a date for setting inflation targeting could be discerned. The object of the paper is to study the impact of IT on actual inflation and inflation expectations. We utilise intervention analysis to time series on inflation for a number of ITL countries, which have actually implemented IT. In doing so our main concern is to assess whether, due to the IT intervention, there has been a significant change in the trend corresponding to these series and the extent to which inflation rates have actually been ‘locked‐in’ at low levels after the implementation of IT. Two major results emerge. The first is that ITL countries have been successful in ‘locking‐in’ inflation rates. The second is that non‐IT countries have also been successful in terms of the ‘lock‐in’ effect. Our overall conclusion, then, is that other factors in addition to IT underpin the apparent success of the control of inflation.     

Consumer education between ‘consumership’ and citizenship: experiences from studies of young people

The aim of consumer education has been mainly to teach and educate students to act as informed, rational and prudent consumers. This perception of consumption as reasoned behaviour or action is inadequate in the late modern society, where consumerism is first and foremost characterized by globalization, cultural change and the liberation of the individual. The results of a research study involving Danish pupils aged 12–19 years present a picture of consumption connected both to material and non‐material aspects of life. Consumption as such has a significant impact on and meaning for the individual: it becomes a means by which human beings communicate and interact. Consumption is part of children's and young people's education and socialization, and plays a role in the development of identity and self‐image. Institutional consumer enlightenment and the education of students in school stand in contrast to informal consumer socialization and the education of individuals. The aim of formal consumer education may be described as ‘educating for critical consumer awareness and action competence’. However consumer education finds itself in the dilemma between ‘consumership’ and ‘citizenship’. This pilot study is aimed at understanding consumer socialization in order to improve formal consumer education and to reflect on how empowerment becomes part of consumer education.     

Professional Ethics in a Virtual World: The Impact of the Internet on Traditional Notions of Professionalism

Numerous articles in the popular press together with an examination of websites associated with the medical, legal, engineering, financial, and other professions leave no doubt that the role of professions has been impacted by the Internet. While offering the promise of the democratization of expertise – expertise made available to the public at convenient times and locations and at an affordable cost – the Internet is also driving a reexamination of the concept of professional identity and related claims of expertise and standards of integrity.This paper begins with a presentation of case studies illustrating the ease by which impostors infiltrate the ranks of professionals. Reports of individuals masquerading as professionals via the Internet often reveal that these imposters cause harm to the unwary victims who rely on assertions of professional expertise. Such reports motivated the authors to examine the origins and evolution of the traditional roles of professions and professionals in today’s society, as well as question how, or whether, the standards for professional practice have been adapted to the challenges posed by technology, i.e., do statements of professional ethics provide a ‘guiding light’ for practitioners and their clients in the cyber age? The authors challenge the professions to consider the notion that technology forces a confrontation between the guild-like aspects of a profession that have served, on the one hand, to protect a profession from encroachment and, on the other hand, have purportedly protected the public.The authors conclude by presenting an examination of websites that show recognition of the challenges that the Internet poses to professionalism, as we have known it. Detailed discussion of the websites of two professions illustrates different approaches to responding to these challenges.     

Transitioning into a ‘throwaway planet’

It is generally considered to be safer for the environment to repair a malfunctioning product for further reuse than to dispose of it and replace it with a newly manufactured product, unless the product is being replaced with a more energy efficient alternative. However, whereas United States has long been labelled a ‘throwaway society’, this paper presents the results of an international consumer survey which demonstrates that as other nations develop with respect to GDP per Capita (Gross Domestic Product per Capita), they too start transitioning into throwaway societies. This transition then calls into account of just how environmentally damaging this practice will become.     

Virtuous Professionalism in Accountants to Avoid Fraud and to Restore Financial Reporting

Over the past decade, a number of accounting and financial reporting frauds have led to lost stock wealth, destroyed public trust, and a worldwide recession that called for necessary reform. Regulatory responses and systemic reforms quickly followed, and we show that, while necessary, these reforms are insufficient. The purpose of this paper is to forward virtuous professionalism as a necessary path toward restoring financial reporting systems. We take the position of external observer and analyze the accounting profession over time to assess what has transpired within our financial reporting systems. Our analysis reveals that the combined influence of commercialism and regulatory response has led to a systemic decline in accounting’s professional ideals and, as a result, an erosion of public trust. We then propose virtuous professionalism as a necessary process for restoring financial reporting systems based on sociological, professional, and philosophical theories. We argue that virtuous professionalism is necessary for restoring the public servant identity of the accounting professional. We conclude that efforts to restore financial reporting systems should begin with reforms that restore professional identity shaped by virtues.     

Accounting education,socialisation and the ethics of business

This study provides empirical evidence in relation to a growing body of literature concerned with the ‘socialisation’ effects of accounting and business education. A prevalent criticism within this literature is that accounting and business education in the United Kingdom and the United States, by assuming a ‘value‐neutral’ appearance, ignores the implicit ethical and moral assumptions by which it is underpinned. In particular, it has been noted that accounting and business education tends to prioritise the interests of shareholders above all other stakeholder groups. This paper reports on the results of a set of focus group interviews with both undergraduate accounting students and students commencing their training with a professional accounting body. The research explores their perceptions about the purpose of accounting and the objectives of business. The findings suggest that both university and professional students' views on these issues tend to be informed by an Anglo‐American shareholder discourse, whereby the needs of shareholders are prioritised. Moreover, this shareholder orientation appeared to be more pronounced for professional accounting students.     

Food or ‘virtual’ food? The construction of children's food in a global economy

This paper explores the pattern of change and development in the marketization and reconstitution of food products for children. It is in the past few decades that global corporations’ search for new markets has come to focus intensely on children. In the eyes of global corporations, children are a huge, multibillion dollar market. Childhood may be understood as a social construction but its form is historically specific. At present, the market is defining and reconstituting cultural meanings of childhood without being contested by other significant groups in society. The paper goes on to explore how transnational corporations have transformed the production and marketing of food. The paper discusses the food risks and the challenges faced by the fast food industry which specifically targets children. The reconstitution and the rebranding of popular children's food is producing ‘virtual’ food rather than real food. We live in an era where childhood offers untold opportunities in the northern hemisphere. However, the global market has come to dominate and define the social construction of childhood. Other cultural forms of identity outside of consumerism are not making the same impression. The food risks associated with the global processing of food and the health risks that have been linked to these new food forms ultimately has consequences not only for children but for society as a whole.     

‘Blame it on marketing’: consumers' views on unsustainable consumption

This paper addresses consumers' attitudes towards consumption, the extent to which excessive consumption is perceived as an environmental problem and what consumers perceive as their personal responsibility vs. that of marketing for this consumption. Findings from a focus group and a survey administered to lecturers of a university in Portugal are reported. A critical reflection upon the findings reveals that participants view consumption as excessive and mostly due to marketing, but do not associate high levels of consumption with environmental damage. The consumers surveyed did not accept personal responsibility for excessive consumption, and many of them do not perceive their actions to have a significant impact on the environment. The high educational level of our sample makes these findings of particular concern. This paper feeds the debate on sustainable marketing and expresses the need to address consumers', as well as marketing's, place in sustainability. Implications of this study are drawn and directions for future research are suggested.     

‘Best Practices’ in Regional Trading Agreements: An Application to Asia

Regionalism in Asia, particularly in the form of free‐trade areas (FTAs), is a recent trend that is becoming increasingly important. This has been disturbing to many, given the significance of trade and investment in Asian economic growth and development and the region's key role in global commerce. In light of this trend, the goal of this paper is to develop a blueprint, or a set of 10 ‘best practices’, that can be used as a guide to FTAs in order to ensure that they approximate first‐best outcomes to the greatest extent possible. Next, the paper applies this framework to the existing FTAs between Asian countries and their regional and extra‐regional partners. The results suggest that the more advanced regional accords generally receive high grades, with the notable exception of rules of origin, which tend to be even more problematic in the context of accords in which an OECD country is a party.     

Pet‐related consumption as a consumer identity constructor

The objective of this paper was to analyse how pet‐related consumption can be connected to consumer identity construction. This objective is based on the idea that consumers use symbolic meanings from possessions to construct and communicate their identities. Objects of attachment have especially been found to be closely connected to the formation of consumer identity. Furthermore, it is often assumed that consumers struggle to maintain a true sense of self or personal identity while retaining a feeling of belonging and social identity. This may be portrayed through layers of identity, which are composed of personal identity, social identity and other people. Empirical research was conducted using focus groups to create individual collages. The findings indicated that pet‐related consumption was used in the following six ways to construct consumer identity: ‘character developer’, ‘source of well‐being’, ‘means to connect’, ‘status communicator’, ‘object of devotion’ and ‘intermediary’, all of which found their places in the layers of identity. Each of these ways of using pet‐related consumption was paired with one other so that the extremes formulated three dimensions in a consumers' identity construction: the personal dimension, the social dimension and the dimension of emotional attachment. In conclusion, it was proposed that consumer identity construction illustrated via pet‐related consumption as created within both social interactions with meaningful others and those three dimensions is multi‐levelled and multifaceted. The paper invites future research to study both identity construction and emotional attachment, being such multifarious phenomena, and to explore the dynamic interactions that may exist.     

‘I send the wife to the doctor’– Men's behaviour as health consumers

This paper explores men's behaviour and attitudes in relation to health matters. While there has been some practical and research progress in engaging with users of health services, there is less development in the area of engaging non‐users. In effect, all members of the society can be the consumers/users of health promotion, though not all are. This paper reports on the first stage of a wider project aimed at increasing the effectiveness of skin cancer awareness messages aimed at men. The project focuses on men over 50 from an area of socio‐economic disadvantage, since these men tend to have the lowest life expectancies in general, and the highest incidences of mortality for skin cancer both at a national and international level. The research was conducted through community‐based focus groups and while the sample was relatively, small it produced some interesting outcomes in terms of how this cohort audited and responded to public health promotion campaigns; how they perceive cancer and health issues in general; how they respond to health issues; and how they view both the public health service in Ireland and the ways health professionals relate to them. It confirms many theories about how men view their health and how they respond to health promotion campaigns. Among other points, it raises questions about the possible mixed benefits of testimonial‐based advertising. It also indicates that there may be further layers of complexity connected to identity, fatalism, problem solving and respectful treatment that have not been sufficiently articulated in the literature. It points to the need for greater engagement by service planners and providers with the needs of their target audience, which may require a more encompassing definition of service user.     

‘Don't give us an assignment where we have to use spinach!’: food choice and discourse in home and consumer studies

The aim of the study was to describe classroom Discourses about vegetables during the planning, cooking, eating and evaluation of meals in the Swedish school subject Home and Consumer Studies. Fifty‐nine students and five teachers were recruited from five northern Swedish villages and towns, and then observed, recorded and in some cases video‐taped during lessons that took place between 2010 and 2012. Based on 56 instances of talk about vegetables, four Discourses were identified and related to the three aspects of Belasco's culinary triangle of contradictions: identity, responsibility and convenience. The results indicated that the identity‐based sensory and cultural Discourses sometimes clashed with the more responsibility‐oriented health and evaluation Discourses. The health Discourse was only used when there was an element of evaluation, with assignments connected to grades. In all other cases, the sensory and cultural Discourses guided vegetable use. Sometimes different sensory or cultural assumptions could clash with each other, for example when the teacher insisted on the use of a specific recipe regardless of a student's taste preferences. Since these preferences did not always harmonize with curricular demands for responsibility, there might be a risk of basing grades on aspects of students’ identity. Alternatively, students might feel constrained to argue against their own identity in order to be favourably evaluated. Then again, if teachers always bow to student tastes, this limits their chances of learning about food and physical health. Viewing the dilemma through the lens of the culinary triangle of contradictions may help teachers and researchers develop teaching methods that take all aspects of food choice into account.     

‘Better safe than sorry’: consumer perceptions of and deliberations on nanotechnologies

Although nanotechnologies are considered key technologies that can drive growth‐generating innovations in well‐saturated markets, worldwide investment in nanotechnologies has to date focused largely on technology‐related development programmes and little effort has been expended to research associated risks. As a result, even though prior discourses have sensitized western consumers to potential health‐related dangers, solid knowledge on, for example, the toxicological and eco‐toxicological risks and unintended side effects of nanotechnology are scarce. This paper therefore presents an overview of the current evidence on consumer knowledge and perceptions of nanotechnology and public engagement with it, with a focus on the US, the UK and Germany. Overall, even though survey data suggest that awareness of the term ‘nanotechnology’ has risen slightly, today's consumers are generally ill informed about its nature and its applications in consumer‐related products. Hence, based on our analysis of these data, we argue that early political engagement in the nanotechnology issue – for example, consumer policy options that support consumer interest in the marketing of ‘nanos’– would facilitate objective public discourse.     

Reconceptualizing risk perception: perceiving Majority World citizens at risk from ‘Northern’ consumption

The premise of this paper is that the consumption behaviour of ‘Northern’ citizens places Majority World citizens at great risk. A theoretical evolution suggested in this paper is the extension of the notion of risky consumption to include the impact of consumption on the human security of others. Until people can envision that their consumption behaviour places others at risk of exposure to harm, they will not see the need to perceive, assess and manage the risk. The paper tenders a preliminary reconceptualization of risk perception, using the conventional consumer behaviour model constructs of personal, distribution channel and situational factors. From this new perspective, instead of judging whether the good or service is risky for a ‘Northern’ citizen to consume, risk perception scholars would examine people's perceptions of whether their consumption places fellow citizens at risk, the people labouring and producing the goods and services.     

Public Professional Accountability: A Conditional Approach

In the past decades, profession(al)s have increasingly been called to account. Several authors have reported that this increased public professional accountability, in the form of showing that professional conduct meets predefined standards or rules, has had severe negative consequences for professionals, their clients and society, and call for ‘intelligent’ forms of accountability; forms of accountability that may inform a wider public about professional conduct but do not harm it. In this paper, we propose a form of ‘intelligent’ public professional accountability. Taking Freidson’s (Professionalism. The third logic, Polity Press, Cambridge, 2001) notion of institutional ethics as a point of departure, we develop a form of accountability that seeks to account for the conditions required for professional conduct. The paper first discusses the current ‘dilemma of professional accountability,’ describes ‘ideal-type professional conduct’ and goes into the conditions it requires. Next, it shows what accounting for these conditions entails and that this form of accountability fits the criteria for intelligent accountability, as set by O’Neill (in: Morris and Vines (eds.) Capital failure: rebuilding trust in financial services, Oxford University Press, Oxford, 2014).     

Capital Controls Re‐examined: The Case for ‘Smart’ Controls

The global financial crisis which began in east Asia in 1997 is not over, neither is the inquest into its implications for adjustment policy. In the wake of this crisis, we focus here on the role of capital controls, which formed a much publicised part of the crisis‐coping strategy in one country (Malaysia) and, less openly, were also deployed by other crisis‐afflicted countries. Evaluation so far has examined different target variables with different estimation methods, generally concentrating on efficiency and stability indicators and ignoring equity measures; it has also typically treated ‘control’ as a one‐zero dummy variable, ignoring the ‘quality’ of intervention and in particular the extent to which efficiency gains are obtained in exchange for controls. Partly because of these limitations, the literature has reached no consensus on the impact of controls; however, it is moving over towards acknowledging that the quality and type of controls is important, as well as their intensity. We propose an approach in which the government plays off short‐term political security against long‐term economic gain; the more insecure its political footing, the greater the weight it gives to political survival, which is likely to increase the probability of controls being imposed. The modelling of this approach generates a governmental ‘policy reaction function’ and an impact function for controls, which are estimated by simultaneous panel‐data methods across a sample of thirty developing and transitional countries between 1980–2003, using, for the period since 1996, the ‘new’ IMF dataset which differentiates between controls by type. We find that controls appear to cause increases in income equality, and are significantly associated with political insecurity and relatively low levels of openness to trade. They do not, in our analysis, materially influence the level of whole‐economy productivity or GDP across the sample of countries examined, although they do influence productivity in particular sectors. But the dispersion around this central finding is wide: the tendency for controls to depress productivity by encouraging rent‐seeking sometimes is, and sometimes is not, counteracted by purposive government policy actions to maintain competitiveness. Whether or not this happens is vital, on both efficiency and equity grounds. We make the case for ‘smart’ capital controls – controls which are time‐limited and contain an inbuilt incentive to increased productivity.     

How well do ‘off-price’ retailers satisfy consumers?

Off-price retailing is a new form of discount or low-price retailing that has become prominent in the U. S. during the past decade. In an attempt to satisfy today's quality-and price-conscious consumers, off-price retailers have utilized a marketing strategy of ‘brand and designer names for less’. Based on research assessing consumers' attitudes towards apparel offerings of off-price versus conventional retailers, we suggest that off-price retailers are not yet successful at satisfying consumers' needs and wants in their special niche of the market. We recommend several revised marketing strategies to enable off-price retailers to satisfy consumers better, and thereby maintain their niche in the ever competitive consumer market. We conclude by observing that it is important that consumer-orientated professionals take an advocacy role in encouraging retail institutions such as off-price stores to revise their marketing strategies to serve consumer interests better.     

Is the ‘Globalization’ of Science Always Good for Scientific Productivity and Economic Growth?

Modern science is characterized by an increasing trend in collaborations and interactions among researchers. This paper aims to analyse the effects of this phenomenon on the productivity of the science sector and on the growth rate of the economy. Basic research is modelled as a contest where only those who arrive first at an innovation obtain the reward and where the interactions among researchers do contribute to production of scientific knowledge. An important result is that when interactions are significant multiple steady states emerge. Hence the ‘science globalization’ process could have enhanced the heterogeneity among scientific sectors of different countries. When there are low interactions, policies that increase connectivity could have low or even perverse effect at improving the efficiency of science, the contrary happens in high connectivity environments.