Competition for Power and Altruism

The paper analyzes the trade-off between power and altruism by using an experimental framework which involved a group of experimental agents, undergraduate students of the University of Siena. The results show that the introduction into the experimental structure of a tournament for the power appreciably altered the behaviour of agents. More specifically the degree of altruism, measured by the dictator offers, significantly decreased when the agents were able to trade altruism for power. The results were more clear-cut and robust in the case of the dictator game, but also in the case of the ultimatum game the introduction of the tournament for power altered the behavior of subjects. A significant gender effect emerged.     

Innovation management techniques and development degree of innovation process in service organizations

Service markets are becoming global, open and competitive. Knowledge is more available, technology more complex and service life‐cycles are shortening. In order to satisfy this challenge, more innovation management tools are required to get better and more successful new or improved products and services. This paper analyzes the relationship between the use of innovation management tools (IMT) and the degree of development of innovation process through the application of a five phase innovation model (TEMAGUIDE). This is undertaken in a group of service organizations from three sectors: trade, healthcare and education. The sequence of the innovation process development is defined between activities and use of innovation tools. Results show that activities and practices are more developed than use of innovation management tools, and also show that leading innovation organizations have a higher use of IMT.     

Lombard Enlightenment and Classical Political Economy

Abstract

This paper discusses the formative steps of ‘Classical’ Political Economy under the joint influence of the Italian and Scottish Enlightenment. Pietro Verri is a leading figure of the Italian Enlightenment and he belongs to the Lombard branch of the Italian School of Political Economy (sometimes named ‘School of Milan’) during the latter half of the eighteenth century. Schumpeter's treatment of the ‘School of Milan’ describes Pietro Verri as ‘the most important pre-Smithian authority on Cheapness-and-Plenty’. A careful canvass of the texts substantiates Schumpeter's suggestion. Verri stands out as a key figure in the transition from Physiocracy to the Smithian system.     

Effect of Risk Aversion on the Incentive to Share Information

To the current state of knowledge the explanation of stock market behavior raises difficult theoretical problems. In this paper a critical review of the theoretical research on the issue is made. The traditional adaptive characterization of rationality is criticized, and it is proposed that a new theoretical framework, namely the projectual characterization of rationality, might be the right perspective from which to look at the thing. The empirical implications of this new approach, and its implications in terms of testable propositions are at the moment poorly understood, however; some suggestions for future research, both theoretical and empirical, are provided. [G14]     

SCALE ECONOMIES AND HETEROGENEITY IN BUSINESS MONEY DEMAND: THE ITALIAN EXPERIENCE

This paper investigates the demand for money by firms and the existence of economies of scale in the Italian manufacturing industry. We estimate a model for cash elaborated by Fujiki and Mulligan using a different estimation procedure from the previous literature. We then introduce an iterative procedure based on backward exclusion of firms from model estimation which points out the high heterogeneity of Italian companies in money demand. Our estimates show that the Italian manufacturing industry, considered as a whole, does not enjoy scale economies in money demand. However, our iterative procedure points out that the cause of this result has to be ascribed to small firms which are characterized by thin cash money holdings and a consequent very modest opportunity cost.     

Sri Lankans’ residential segregation and spatial inequalities in Southern Italy: an empirical analysis using fine-scale data on regular lattice geographies

Quality & Quantity - Sri Lankans constitute one of Italy's oldest foreign communities. A comparative geographic study of Sri Lankans’ settlement patterns in three main municipalities...     

The impact of faking on Cronbach’s alpha for dichotomous and ordered rating scores

In many psychological inventories (i.e., personnel selection surveys and diagnostic tests) the collected samples often include fraudulent records. This confronts the researcher with the crucial problem of biases yielded by the usage of standard statistical models. In this paper we applied a recent probabilistic perturbation procedure, called sample generation by replacement (SGR)—(Lombardi and Pastore, Multivar. Behav. Res 47:519–546, 2012), to study the sensitivity of Cronbach’s alpha index to fake perturbations in dichotomous and ordered data, respectively. We used SGR to perform two distinct SGR simulation studies involving two sample size conditions, three item set sizes, and twenty levels of faking perturbations. Moreover, in the second SGR simulation study we also evaluated an additional factor, type of faking model, to study sample reliability under different modulations of graded faking (uniform faking, average faking, slight faking, and extreme faking). To simulate these more complex faking models we proposed a novel extension of the SGR perturbation procedure based on a discrete version of the generalized beta density distribution. We also applied the new procedure to real behavioral data on emotional instability.     

The effects of environmental,social and governance disclosure on the cost of capital in small and medium enterprises: The role of family business status

Environmental, social, and governance (ESG) disclosure has become a critical component of corporate reporting. However, the effectiveness of this type of disclosure remains poorly explored among small and medium enterprises (SMEs), despite the fact that these businesses represent the majority of firms around the world. By leveraging on a dataset of Italian listed SMEs, we fill this gap to shed new light on the effects of nonfinancial disclosure on the cost of capital. The study reveals that, in stark contrast with the evidence on large companies, environmental disclosure for SMEs is bound to provoke an increase in the cost of capital. Yet this pattern is capsized when the company is a family SME, as it benefits from environmental disclosure, as large companies do.     

Corporate governance and sustainability in water utilities. The effects of decorporatisation in the city of Naples,Italy

The recent economic literature has largely investigated sustainability in the provision of public utilities, highlighting the role of governance models in the determination of economic results. Little attention however has been devoted to the social and environmental dimensions of sustainability. In Italy, a long-lasting debate on governance structures in the water sector has been fuelled by scholars and policymakers for more than 30 years, whereas the first (and unique) experiment involving the return of full public management in water provision is taking place in the city of Naples. The present work analyses this peculiar case study, aiming to assess the effects of a major governance shift that occurred in the early 2010s—that is, decorporatisation—in terms of economic, social and environmental sustainability. We resort to a bundle of qualitative and quantitative techniques to address the research question and our exploratory results suggest that decorporatisation was overall beneficial: Although little changed in terms of economic sustainability, the social and environmental dimensions benefitted from the shift in governance.     

Horizontal mergers and product quality

We study the effects of a horizontal merger when firms compete on price and quality. In a Salop framework with three symmetric firms, several striking results appear. First, the merging firms reduce quality but possibly also price, whereas the outside firm increases both price and quality. As a result, the average price in the market increases, but also the average quality. Second, the outside firm benefits more than the merging firms from the merger, and the merger can be unprofitable for the merger partners, i.e., the “merger paradox” may appear. Third, the merger always reduces total consumer utility (though some consumers may benefit), but total welfare can increase due to endogenous quality cost savings. In a generalized framework with n firms, we identify two key factors for the merger effects: (i) the magnitude of marginal variable quality costs, which determines the nature of strategic interaction and (ii) the cross‐quality and cross‐price demand effects, which determines the intensity of price relative to quality competition. These findings have implications for antitrust policy in industries where quality is a key strategic variable for the firms.