CHOQUET INSURANCE PRICING: A CAVEAT

We show that, if prices in a market are Choquet expectations, the existence of one frictionless asset may force the whole market to be frictionless. Any risky asset will cause this collapse if prices depend only on the distribution with respect to a given nonatomic probability measure; the frictionless asset has to be fully revealing if such dependence is not assumed. Similar considerations apply to law-invariant coherent risk measures.     

Civil economy: definition and strategies for sustainable well-living

The civil economy paradigm presented in this paper has two main characteristics. First, it identifies the philosophical roots of the limits of our socioeconomic system in the reductionist views of human beings, corporations, and well-being. The three reductionist views not only fail to capture an important part of the reality, but also produce poverty of sense of life (also defined as eudaimonic well-being) and of life satisfaction, thereby generating a suboptimal level of well-being. The civil economy paradigm proposes an alternative where it is acknowledged that (1) part of the individuals depart from purely self-regarding preferences and develop other-regarding and relational skills enabling them to overcome social dilemmas, (2) part of the productive system depart from the profit maximization paradigm and aim to satisfy the interests of a wider range of stakeholders beyond shareholders, and (3) well-being is, beyond GDP, the stock of cultural, environmental, spiritual, and economic resources that a community can enjoy. The second qualifying point of the civil economy paradigm is that it proposes a richer four-hand approach to political economy (as an alternative to the traditional two-hand approach) where actions of the traditional invisible hand of the market and the visible hand of institutions in solving failures are complemented and supported by the complementary action of the two additional hands of grassroot citizens’ participation and socially and environmentally responsible companies. In our paper, we explain and document that these two additional hands are already at work, thereby confirming that the reductionist hypothesis on individuals and corporations is rejected by empirical evidence. In the paper, we argue that the civil economy paradigm, by increasing social participation and generativity of all actors, has the power of bridging the gap between the current suboptimal and the socially optimal sense of life (well described in the concept of “common good”). We as well provide evidence showing that the paradigm is far from being unrealistic and that its sprouts are already working in several fields of our society, preparing a more thorough transformation and full replacement of the old paradigm at a theoretical level that is near to come.     

Investments in worker health and production: Evidence from Vietnam

In manufacturing industries, occupational health and safety measures ensure better working conditions for employees, which may influence their productivity. We study the impact of investments undertaken by small and medium enterprises in Vietnam in mitigating indoor pollution (including air quality improvements, heat and noise protection as well as lighting) on firm-level gross output and value added. We find that the amount invested by the firm in health has a significant positive effect on both outcomes. Given historically poor working conditions in Vietnam, policy implications relate to incentivizing and enabling firms to undertake such investments, on both moral and economic grounds.     

The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa

Review of Industrial Organization - This article reviews an abuse of dominance decision against the main outsourced ticketing firm in South Africa. The decision of the Competition Tribunal in...     

Telework quality and employee well-being: Lessons learned from the COVID-19 pandemic in Italy

The coronavirus disease 2019 (COVID-19) forced organisations to implement intensive telework for many of their workers overnight. This scenario was completely new, and the emergency caused by COVID-19 created the possibility of experimenting with new ways of working with an unknown impact on employee well-being. Drawing on previous literature, we defined a model of telework quality consisting of the following four core domains: agile offices within organisations, functional remote workstations, flex-time and engaging management. We identified two high-quality and low-quality telework profiles using latent profile analysis on a data sample of 2295 insurance and financial sector employees. Demographic, occupational and procedural characteristics were associated with the probability of being in the positive or negative profiles. Our results showed that employees' emotional exhaustion and work engagement levels were related to telework quality. This study suggests that organisations need to consider the quality of telework to effectively adopt new ways of working that foster employee well-being.     

Forward-Looking Belief Elicitation Enhances Intergenerational Beneficence

Environmental and Resource Economics - One of the challenges in managing the Earth’s common pool resources, such as a livable climate or the supply of safe drinking water, is to motivate...