Reconsidering the political economy of farm animal welfare: An anatomy of market failure

Animal welfare is often cited as a classic public good, which implies market failure and, thus, that government intervention is required. However, the current literature does not provide an accessible account of how governed markets are supposed to cope with the issues of animal welfare. This paper seeks to fill this gap by re-considering the political economy of animal welfare. Conceptual analysis shows that the major cause of market failure in the case of farm animal welfare is a problem of consumption externalities. It is the specific regulation of animal welfare conditions which is a public good (or bad). Two important conclusions follow from this analysis, which are largely unexplored in the literature on animal welfare. First, measurement of potential market failure, through identifying actual willingness to pay (WTP) for animal welfare friendly products, is potentially misleading. The difference between citizen votes and consumer WTP for animal welfare is not prima facie evidence for either market failure or a gap in the market. Second, conventional arguments in favour of subsidies and assistance to producers for better animal welfare are misconceived and potentially counterproductive. A more rational policy is to subsidise the consumption of animal welfare friendly products.     

Green logistics at Eroski: A case study

In today’s highly competitive environment, green logistics issues are gaining interest. This paper analyses how logistics managers could lead the initiative in this area by incorporating environmental management principles into their daily decision-making process. A case study is given to show how they can turn practices into green while simultaneously meet the efficiency objectives. We have chosen one of the leader companies of the Spanish food distribution sector to check this hypothesis. The study covers the introduction of several changes into its fleet management and the implementation of a methodology to solve vehicle routing problems with environmental criteria minimisation.     

Print news coverage of the 2010 Iowa egg recall: Addressing bad eggs and poor oversight

This paper examines the print news coverage of the 2010 Iowa egg recall, the largest in the United States, in order to determine how the news media conveyed messages regarding the recall and its causes, as well as what consumers might do in response to the recall. The news media has long been both a primary source of consumer information relating to food safety and a notable contributor to the policy agenda. A content analysis of 160 articles from four national US newspapers, the largest regional paper in Iowa, and the Associated Press revealed that the recall was framed both as a failure of government oversight and as an instance of poor production practices by the farmers in question. Proposed responses to the recall similarly fell into two distinct categories: changing consumer purchasing and food preparation habits in order to minimize the immediate risk of infection, and supporting legislative and regulatory food safety reforms that would minimize the risk of future outbreaks. Particular media focus was given to both the US Food Safety Modernization Act and the FDA Egg Rule. Relatively little media attention was given to industrial agriculture as a causal frame or the purchasing of “alternative” eggs as a potential response. Overall, coverage conveyed the policy relevance of the recall but failed both to fully contextualize the outbreak within the history of previous outbreaks and food safety concerns and to convey the relationship of the outbreak to the current system of industrial agriculture.     

Assessing the economic costs of a foot and mouth disease outbreak on Brittany: A dynamic computable general equilibrium analysis

Outbreaks of animal diseases such as foot and mouth disease (FMD) are of great concern for agriculture. In this paper, we quantify the potential dynamic impacts of such a disease on Brittany, a French region with an important livestock sector. In order to do this, we develop a dynamic computable general equilibrium model that allows us to measure the impacts on the livestock sectors and downstream food industries. We study the impacts of a FMD outbreak including the culling infected animals, a temporary decline in demand, and restrictions on movements of live animals and meats during the FMD outbreak period.Our results show that economic losses following this disease are spread over many periods even with a one-time shock. We also find that the impacts on the various primary sectors and downstream food sectors are quite different, depending on their initial trade position. Our general equilibrium results show the great incidence of potential constraints affecting factor markets. Capital and wage constraints severely increase the aggregate costs of such disease. These results challenge the definition of a simple efficient management policy for this disease.     

An assessment of the potential consumption impacts of WHO dietary norms in OECD countries

The member countries of the World Health Organization (WHO) have recently endorsed its global strategy on diet, physical activity and health. The strategy emphasises the need to limit the consumption of saturated fats and trans-fatty acids, salt and sugars, and to increase consumption of fruits and vegetables in order to combat the growing burden of non-communicable diseases. This paper attempts a broad quantitative assessment of the consumption impacts of these norms in OECD countries using a mathematical programming approach. We find that adherence to the WHO norms would involve a significant decrease in the consumption of vegetable oils (30%), dairy products (28%), sugar (24%), animal fats (30%) and meat (pig meat, 13.5%, mutton and goat 14.5%) and a significant increase in the human consumption of cereals (31%), fruits (25%) and vegetables (21%).     

Effects of employees' perceived dependability on success of enterprise applications in e-business

Electronic business (e-business) plays a major role in modern economic networks due to its shorter cycle time and faster information transactions. Building enterprise applications that can coordinate activities, decisions, and knowledge across many functions is a good solution for e-business. Hence, how to implement enterprise applications successfully has become an increasingly important management issue. Although success of information systems (IS) has received fairly extensive attention from prior research, issues regarding whether functions and service delivered by systems can be justifiably relied on by users are seriously ignored, especially complex systems like enterprise applications. Thus, this paper attempts to extend this kind of concept, perceived dependability, into DeLone and McLean's IS success model to explore how it influences success of enterprise applications. Results from a survey of 170 respondents taken from six internationalized e-businesses in Taiwan strongly support that perceived dependability is indeed an important factor for success of enterprise applications. Additionally, over and beyond the effects of dependability on success of enterprise applications, it can help practitioners and managers get deep insights into how to implement e-business successfully.     

Legitimizing Academic Research in Design: Lessons from Research on New Product Development and Innovation

This article traces how academic research in the domain of new product development and innovation has become “legitimized” over the last several decades and makes three suggestions for how academics in the research domain of design can pursue a similar legitimization process. Specifically, academics researching design issues should: (1) partner with a professional design association; (2) develop a high‐quality peer‐reviewed journal focusing on design issues; and (3) organize an A‐level association design special‐interest group.     

The effects of environmental focus and program timing on green marketing performance and the moderating role of resource commitment

Should firms adopt sustainable marketing policy and develop green products? Most popular press says yes, but industry remains slow to act upon such initiatives. Drawing upon recent research in the Industrial Marketing Management Sustainability Special Issue, this research investigates the impact of green initiatives on firm performance and how the related commitment of resources impacts the effectiveness of those initiatives. The goal of this paper is to explore the effectiveness of green marketing on firm performance, in terms of financial performance, market performance, and service quality. Further, resource commitment is examined as a possible boundary condition of these relationships. Using multi-source data, the findings suggest that the commitment of proper resources is critical to the success of any green initiative. This study also supports the notion that being the first firm in an industry to initiate a green program provides few tangible benefits. More importantly, even firms with an environmental focus neglect to realize superior performance unless the specific strategy is matched with consistent support from top management.     

Citizens,consumers and farm animal welfare: A meta-analysis of willingness-to-pay studies

The sustainable intensification of animal production systems is increasing as a consequence of increased demand for foods originating from animals. Production diseases are particularly endemic in intensive production systems, and can negatively impact upon farm animal welfare. There is an increasing need to develop policies regarding animal production diseases, sustainable intensification, and animal welfare which incorporate consumer priorities as well as technical assessments of farm animal welfare. Consumers and/or citizens may have concerns about intensive production systems, and whether animal production disease represent a barrier to consumer acceptance of their increased use. There is a considerable body of research focused on consumer willingness-to-pay (WTP) for improved animal welfare. It is not clear how this relates specifically to a preference for reduced animal production disease incidence in animal production systems. A systematic review and meta-analysis were conducted to establish the publics’ WTP for farm animal welfare, with a focus on production diseases which arise in intensive systems. Systematic review methodology combined with data synthesis was applied to integrate existing knowledge regarding consumer WTP for animal welfare, and reduced incidence of animal production diseases. Multiple databases were searched to identify relevant studies. A screening process, using a set of pre-determined inclusion criteria, identified 54 studies, with the strength of evidence and uncertainty for each study being assessed. A random effects meta-analysis was used to explore heterogeneity in relation to a number of factors, with a cumulative meta-analysis conducted to establish changes in WTP over time. The results indicated a small, positive WTP (0.63 standard deviations) for farm animal welfare varying in relation to a number of factors including animal type and region. Socio-demographic characteristics explained the most variation in the data. An evidence gap was highlighted in relation to reduced WTP for specific production diseases associated with the intensification of production, with only 4 of the 54 studies identified being related to this. A combination of market and government based policy solutions appears to be the best solution for improving farm animal welfare standards in the future, enabling the diverse public preferences to be taken into consideration.     

Privacy in AI and the IoT: The privacy concerns of smart speaker users and the Personal Information Protection Law in China

In recent years, the development of Artificial Intelligence (AI) and the Internet of things (IoT) has attracted a lot of attention. One IoT device is the smart speaker that is equipped with an integrated assistant controlled by spoken commands. In the global smart speaker market, Chinese brands account for a significant share. Since smart speakers have a natural advantage when collecting user data in diverse scenarios, privacy and personal information protection have become crucial issues for both smart speaker manufacturers and users in China. This paper applies the socio-technical system (STS) framework to portray the technology subsystem, the industry/market subsystem and the regulators, law/regulation subsystem that are related to smart speakers in China, and how they interact with each other. It also uses focus group discussions to understand the smart speaker users' privacy concerns and the smart speaker industry's implementation of personal information protection. By employing the document analysis method, this study analyzes the laws and regulations related to privacy and personal information protection in the context of AI and the IoT. In particular, the potential impacts of the Personal Information Protection Law (PIPL) on smart speakers are discussed in detail. With its goal of balancing personal information protection and technological development, this paper provides recommendations for the regulatory bodies and the smart speaker industry players in China that can shed light on other countries and regions.     

Independence and the regulatory state—Telecommunications in Scotland and the rest of the United Kingdom

In the autumn of 2014 the residents of Scotland, but not other parts of the UK, will vote on whether to leave the UK and to become a separate state, with a positive vote leading to an independent parliament expected to be elected in 2016. It would remain within the EU and in compliance with its acquis communitaire. This paper identifies issues that would have to be addressed in preparing for and creating a new system of governance for telecommunications markets on that tight timescale.     

Leveraging agriculture for nutrition in South Asia: What do we know,and what have we learned?

Despite significant improvements over recent decades, rates of undernutrition remain high in South Asia, with adverse impacts on morbidity and mortality. Overweight/obesity, among children and adults, is now an additional and major public health concern. While agriculture has the potential to improve nutrition through several pathways, this potential is currently not being realised in the region. The Leveraging Agriculture for Nutrition in South Asia (LANSA) research consortium (2012–2018) set out to improve understanding about how agriculture and related food policies and programs in South Asia (specifically in India, Bangladesh, Pakistan and Afghanistan) can be better conceptualised and implemented in order to enhance impacts on nutrition outcomes, especially those of young children and adolescent girls. This paper provides a snapshot of the agriculture-nutrition nexus in the region, outlines the pathways through which agriculture can influence nutrition outcomes, elaborates on the objectives of the LANSA research consortium within this context, and highlights the core findings of the six papers that form the body of this Special Issue. The paper ends with five key lessons that have emerged from this research, during this decade.     

Sustainability research in business-to-business markets: An agenda for inquiry

Corporate interest in the topic of sustainability has increased in prominence. Most of the research on sustainability has a business-to-consumer focus, with limited research emphasizing sustainability in the context of business-to-business marketing. The paper examines research on sustainability, published in the journal Industrial Marketing Management, where thirty-eight articles have appeared in the past twenty-seven years, the majority on supply-chain research. Research on sustainability in business-to-business markets is sparse, and some of the fundamental research questions in this area have gone unaddressed. This paper addresses three interrelated research issues associated with sustainability in business-to-business markets. First, what research is available to researchers and practitioners? Second, what framework can be used to examine sustainability research in business-to-business markets? Third, what subareas of sustainability research need focus and deeper examination, and what are the associated research questions? Overall, the findings from this paper suggest the need for additional research in the area because of its substantial implications for theory, research, and practice.     

The dynamics of wealth,profit, and sustainable advantage

This paper shows how idiosyncratic resources can drive sustained profitability and persistent heterogeneity under competitive conditions. Generic inputs purchased in the market become idiosyncratic resources as the result of firms' investments in customization. Analytically, we show how heterogeneous firms coexist in equilibrium as a function of customization costs. Computationally, we show that sustainable profits can emerge without ‘monopolistic’ imperfections. We consider how capability heterogeneity, resource customization cost, and ease of expansion interact to drive short-run and sustainable profits. Our results illustrate that sustainable profits may represent a small part of the total wealth created over time by a firm or industry, and that changes in factors shaping a sector's evolutionary trajectory may be more important than changes in factors that determine profits' ultimate sustainability. Copyright © 2012 John Wiley & Sons, Ltd.     

Managing in complex business networks

For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled systems, to what extent are business networks manageable? Furthermore, how can a firm's ability to manage a network be characterized and measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms will need to successfully manage complex business networks.     

A combinatorial auction to sell TV broadcasting rights in league sports

The centralized sale of TV broadcasting rights in league sports constitutes a cartel which in many European countries is allowed only if it complies with certain conditions set by competition authorities. Two of the most important conditions are: i) partial unbundling, i.e. the rights must be unbundled into several separate packages; and ii) the no-single-buyer rule, i.e. the packages must be sold to different broadcasters. This article shows how a combinatorial auction can be employed to sell broadcasting rights allocating them endogenously based on the broadcasters’ bids and, thus, without requiring the seller to pre-determine the packages of such rights. This feature can address various competition policy issues, including facilitating market entry and preventing coordination among bidders. Also, a combinatorial auction has the potential to achieve higher levels of allocative efficiency and higher revenue levels compared to auctions with pre-determined packages of broadcasting rights.     

Economic doctrines and network policy

Disagreements over how to craft Internet policy have become more and more contentious and political. Beyond the technical and engineering aspects are economic questions, and the points of view of various stakeholders and participants on such network policy issues stem from differing economic philosophies. This paper postulates and describes four competing economic doctrines: conservative neoclassical, liberal neoclassical, neo-Keynesian, and innovation economics. It explains how each doctrine leads to different views of appropriate network policy and explores the influence of doctrine on four controversial network policy issues: broadband competition, net neutrality, copyright, and privacy. Understanding this doctrine based source of differences over network policy should help policy makers better understand core issues and make more informed policy decisions.     

Child dietary quality in rural Nepal: Effectiveness of a community-level development intervention

Nutrition-sensitive agricultural interventions have the potential to improve child dietary quality in rural households, as evidenced by a growing body of work which concurrently measures agricultural and nutrition indicators. Our objective was to investigate whether children in rural farming communities of Nepal participating in a community-level, nutrition-sensitive development intervention had improved dietary quality compared with children living in non-participating matched rural communities. Six rural communities of Nepal where livelihoods were predominantly agricultural were selected to participate in the phased implementation of a community-level development intervention by Heifer International. Households and children in each community were surveyed at baseline, and follow-up surveys were implemented every six months for twenty-four months. Detailed data on food consumption for children older than 6 months of age were collected using a 24 h recall for 17 foods and food groups; parents responded for children. A difference-in-differences model with household fixed-effects and an analysis of covariance model were used to analyze the resulting panel data. Results indicated that the impacts of the intervention varied by agro-ecological region and by season. In the Hills region, which is poorer on average and more conducive to livestock production, children who had received the intervention for two years were 2.2 times as likely to have consumed food from an additional food group, 1.27 times as likely to have achieved minimum dietary diversity and 1.38 times as likely to have consumed animal source foods as children who received the intervention for only one year. In the Terai region, which is more conducive to crop production, there was no significant change in dietary quality attributable to the intervention. These results provide evidence that particularly vulnerable families can take advantage of community-level development activities. Given that the effects of community-level development activities were disparate across communities within the same country, we conclude that tailoring development activities for particular locations is necessary for success.     

People’s willingness to eat meat from animals vaccinated against epidemics

Animal epidemics are associated with significant economic damage and they negatively influence consumers’ meat consumption. Vaccination can be used as a strategy to prevent the outbreak of animal epidemics. The current study examines people’s willingness to eat meat from animals vaccinated against an animal epidemic. We asked people separately about their willingness to eat meat from animals vaccinated against both animal epidemics and against zoonoses. Zoonoses are also animal epidemics, but they might affect human health. A questionnaire was sent out to a representative sample of Swiss people and yielded N = 1033 completed datasets. Although animal vaccinations were highly accepted among those surveyed, compared to a wide range of other animal applications such as antibiotics, only about a quarter of those surveyed indicated that they would eat meat from animals vaccinated against a zoonosis. Some 60% indicated they would eat meat from animals vaccinated against an animal epidemic. We found attitudes about animal vaccination, knowledge about human vaccination, misunderstanding of animal treatments, and average meat consumption to significantly influence people’s willingness to eat meat from animals vaccinated against a zoonosis. Therefore, it is necessary that regulatory bodies provide information on both the safety of meat for human consumption and ways to minimize any potential health risks from the handling or consumption of meat products that might be infected in cases of zoonotic outbreaks.