Harnessing Wicked Problems in Multi-stakeholder Partnerships

Despite the burgeoning literature on the governance and impact of cross-sector partnerships in the past two decades, the debate on how and when these collaborative arrangements address globally relevant problems and contribute to systemic change remains open. Building upon the notion of wicked problems and the literature on governing such wicked problems, this paper defines harnessing problems in multi-stakeholder partnerships (MSPs) as the approach of taking into account the nature of the problem and of organizing governance processes accordingly. The paper develops an innovative analytical framework that conceptualizes MSPs in terms of three governance processes (deliberation, decision-making and enforcement) harnessing three key dimensions of wicked problems (knowledge uncertainty, value conflict and dynamic complexity). The Roundtable on Sustainable Palm Oil provides an illustrative case study on how this analytical framework describes and explains organizational change in partnerships from a problem-based perspective. The framework can be used to better understand and predict the complex relationships between MSP governance processes, systemic change and societal problems, but also as a guiding tool in (re-)organizing governance processes to continuously re-assess the problems over time and address them accordingly.     

The Benefits of Diverse Preferences in Library Consortia

We study the case in which a library consortium increases the aggregate payoff of the member libraries. We find that libraries with similar preferences are likely to lose from building a consortium and that those with diverse preferences are likely to gain by doing so. Combining libraries with diverse preferences implies that their valuation for different publishers' journals is more symmetric, which intensifies competition among publishers for scarce combined budgets. A tension between short term and long term considerations might generate a ‘library consortium trap.’ Our insight can be applied to other buyer groups as long as competition is generated by buyers' budget constraints.     

The Effects of Extrinsic Cues on Olive Oil Price in Brazil

Over the past two decades, world olive oil consumption registered an impressive growth. Although olive oil consumption remains concentrated in the main producer countries surrounding the Mediterranean Sea (“traditional” markets), it is also growing rapidly in many other countries all over the world, where olive oil is still largely perceived as a novelty food (“nontraditional” markets). This study focuses on the Brazilian market of olive oil, which is one of the most important nontraditional markets in terms of both its dimension and growth rates. A hedonic price model has been used to evaluate whether, and to what extent, extrinsic cues impact on the retail price of olive oil. Data were collected via direct observation of several e-shops where Brazilian consumers could purchase olive oil. Results show that the retail price of olive oil is highly influenced by extrinsic cues such as branding, labeling, and packaging.     

Gender Norms and the Gendered Distribution of Total Work in Latin American Households

This study uses time-use survey data for Mexico, Peru, and Ecuador (from 2009, 2010, and 2012, respectively) to analyze differences between countries in terms of the gendered distribution of total work, which includes both paid and unpaid work. It explores whether the variations in the total time worked by women and men, and, particularly, the gender gap unfavorable to women, can be explained by substantive national differences in gendered social norms. Using data from the World Values Survey (WVS; 2010–14), this study computes a gender norms index to measure cross-country differences in gender norms. It finds that more egalitarian countries exhibit higher levels of equality in the gendered distribution of total work.     

Optimal auctions under collusion of buyers with discrete valuations

The potential seller of an indivisible good faces two potential buyers whose valuations for the good are private information. We derive the optimal selling mechanism under the assumption that the buyers collude both when the valuations are independently distributed and when they are correlated. We find that when the valuations are independent the seller can obtain the same expected revenue as if the buyers behaved noncooperatively; if instend the valuations are correlated then collusion harms the seller. In this latter case, moreover, each buyer’s information at the collusion stage about the other buyer’s valuation turns out to be very relevant for the effectiveness of collusion.     

Cognitive job crafting: A possible response to increasing job insecurity and declining professional prestige

Recent research has shown that job crafting, which describes individuals' attempts to craft a job to make it correspond more to personal inclinations, skills, and abilities, can generate significant work and nonwork benefits for individuals. Using the theoretical lens of activation theory, we examined whether professionals are prompted to cognitively craft their jobs in response to the increasing perception of precarisation of their profession, measured in terms of job insecurity and perceived external prestige. We adopted a mixed methods approach among professional accountants operating in Southern Italy and the results indicated the presence of two curvilinear relationships. More specifically, we found that accountants were more likely to engage in cognitive crafting when experiencing moderate levels of job insecurity (rather than high or low) and in the presence of both low and high levels of perceived external prestige (rather than a moderate level). Implications for theory and practice are discussed.     

Does skilled migration reduce investment in human capital? An investigation on educational choices in Italian regions (2001–2016)

This paper investigates the effects of prospective migration on students’ investment in tertiary education. A simple theoretical model is presented in which individual educational choices, different across potential students because of heterogeneity in migration costs, are driven by expected returns and costs of tertiary education. In this framework, a larger probability of after-graduation migration is shown to affect educational choices by both reducing the rate of enrollment at home and favoring pre-graduation migration (i.e., enrollment at universities outside the residence region). The theoretical predictions are confirmed by the empirical investigation carried out on Italian interregional graduate migration in 2001–2016. In the lagging regions of Southern Italy, out-migration of students and graduates, and weak incentives to acquire tertiary education turn out to bring about depletion of local human capital.     

When is the optimal lending contract in microfinance state non-contingent?

Whether a microfinance institution should use a state-contingent repayment or not is very important since a state-contingent loan can provide insurance for borrowers. However, the classic Grameen bank used state non-contingent repayment, which is puzzling since it forces poor borrowers to make their payments even under hard circumstances. This paper provides an explanation to this puzzle. We consider two modes of lending, group and individual lending, and for each mode we characterize the optimal lending and supervisory contracts when a staff member (a supervisor) can embezzle borrowers’ repayments by misrepresenting realized returns. We identify the main trade-off between the insurance gain and the cost of controlling the supervisor's misbehavior. We also find that group lending dominates individual lending either by providing more insurance or by saving audit costs.     

Three decades of money demand studies: differences and similarities

Recent empirical contributions on procyclical productivity have focused on the dynamic implications of persistent aggregate fluctuations on sectoral productivity. Given a permanent innovation in aggregate output, unobserved variations of labour (or capital) utilization may have only a transitory effect on measured productivity, whereas external effects should produce permanent effects. It is found that persistent aggregate fluctuations have a permanent effect on productivity of four-digit US manufacturing industries. While a number of alternative explanations of this evidence are discussed and ruled out, the findings are consistent with a simple model with external or thick market effects.