Innovation and Information Acquisition under Time Inconsistency and Uncertainty

When an agent invests in new industrial activities, he has a limited initial knowledge of his project's returns. Acquiring information allows him both to reduce the uncertainty on the dangerousness of this project and to limit potential damages that it might cause on people's health and on the environment. In this paper, we study whether there exist situations in which the agent does not acquire information. We find that an agent with time-consistent preferences, as well as an agent with hyperbolic ones, will acquire information unless its cost exceeds the direct benefit they could get with this information. Nevertheless, a hyperbolic agent may remain strategically ignorant and, when he does acquire information, he will acquire less information than a time-consistent type. Moreover, a hyperbolic-discounting type who behaves as a time-consistent agent in the future is more inclined to stay ignorant. We then emphasize that this strategic ignorance depends on the degree of precision of the information. Finally, we analyse the role that existing liability rules could play as an incentive to acquire information under uncertainty and with regard to the form of the agent's preferences.     

How Well Do Owner–Managers Forecast Potential Future Bankruptcy? Assessing Fear of Failure Using Employment Insurance for SMEs

The literature so far has not addressed how owner–managers deal with the risks associated with potential future bankruptcy. We propose here a new way to assess the fear of failure experienced by SME owner–managers and examine whether these risks are being anticipated accurately, by focusing on the benefits to be gained from French unemployment insurance. We compare the valuation of the benefits of the unemployment insurance scheme for the two populations of insured and uninsured owner–managers after matching. We rely on matching procedures and a five‐step protocol. Our results show that owner–managers' awareness of possible future problems increases when becoming insured and after experiencing a failure, suggesting some business failure myopia in this population. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Use and knowledge of food labels of shoppers in a city with a high proportion of heart disease

This study aimed to assess consumers’ use and understanding of food labelling and the improvements that they would like. Systematically selected supermarket shoppers were interviewed using a questionnaire. Data showed that the use of food labels was low. Among those who read food labels, at least occasionally, use‐by‐date was the most reported information looked at. Understanding of the content of five nutrients on a standard food label provided was poor. Although a high proportion of participants claimed to have no problem with the current format, those who had problems wanted food labels that were ‘bigger’, ‘highlighted’ or written in ‘plain English’. These results suggest that before improved food labels can have an impact on consumers’ food choice, strategies to encourage shoppers to read them are needed.     

The Centrality of Community Capacity in State Low‐income Housing Provision in Cape Town,South Africa

The development of low‐income housing continues to be a political imperative and an urban reconstruction priority for the post‐apartheid South African state. But, even though policies for housing construction and delivery by the state are in place, in practice many homeless families initiate, direct and drive the process through which they secure state‐provided housing. I analyse in this study two such cases where homeless residents in peripherally located, poor areas of the Cape Metropolitan Area successfully accessed state‐provided housing. In both instances, homeless families organized around the different sets of capacities that structured the nature of the linkages that each forged to resources outside of their respective areas, and thus the ways in which they pursued their need for housing. I argue in this study that uneven and place‐specific, community‐based capacity often directs the manner in which communities interpret, interface with and access state‐run urban reconstruction projects such as housing provision. An analysis of community‐based capacity thus proves useful to investigate the potential and the problems that underlie state initiatives for development and the manner in which communities participate and engage with urban reconstruction and development. L'expansion du logement social reste un impératif politique et une priorité de la reconstruction urbaine pour l'État sud‐africain de l'après‐apartheid. Des politiques de construction et de fourniture de logements par l'État ont été mises en place mais, en pratique, de nombreuses familles sans‐domicile induisent, orientent et mènent le processus par lequel elles s'assurent un logement public. Cette étude analyse deux de ces cas dans lesquels des sans‐domicile vivant dans des quartiers pauvres à la périphérie de la zone métropolitaine du Cap ont réussi à se loger. Dans les deux situations, les familles se sont organisées autour des capacités spécifiques qui structuraient la nature des liens établis pour trouver des ressources hors de leurs quartiers respectifs, définissant ainsi leurs modalités d'action pour obtenir un logement. L'étude démontre qu'une capacité inégale, particulière à un lieu et à un groupe, oriente souvent la manière dont les communautés interprètent, interagissent avec et accèdent aux projets de reconstruction urbaine menés par l'État tels que la fourniture de logement. Il apparaît donc utile d'analyser la capacité propre à une communauté, si l'on veut déterminer non seulement le potentiel et les problèmes fondamentaux des initiatives gouvernementales de développement, mais aussi la manière dont les communautés participent et contribuent à la reconstruction et à l'aménagement urbains.     

HR practices and affective organisational commitment: (when) does HR differentiation pay off?

We argue that differentiating HR practices across employees leads employees to compare their situation with colleagues to assess the favourability of HR practice outcomes (e.g. money). These perceptions can be negative (i.e. feeling set back), neutral (i.e. feeling treated the same) or positive (i.e. feeling advantaged). Data from 13,639 Belgian employees showed that perceived favourability of HR practice outcomes is positively associated with affective organisational commitment, but the relationship is attenuated at positive levels. Thus, differentiation may be a double‐edged sword as the losses among employees feeling set back may temper, neutralise or even outweigh the benefits among those feeling advantaged. The relationships found were especially salient for work practices (e.g. autonomy) compared with economic practices (e.g. bonuses). Developmental practices were found to be least suited for differentiation across employees. No evidence of a moderating role of employees’ preference for equality (vs. differentiation) was found.     

Incomplete model specification in a multi-pollutants setting: The case of climate change and acidification

This paper analyses the consequences of incomplete environmental model specification on policy design in a multi-pollutants framework. Focusing on the correlations between aerosols and greenhouse gases, the paper compares abatement and stock targets setting for various cases of incomplete model specification. Both cases of lax and stringent regulation, compared to what is socially optimum, may arise. Furthermore, the lax/stringent nature of the policies may evolve over time, so that the time horizon of policy design matters in assessing the impact of incomplete model specification.     

New development: A game of responsibility? The regulation of health and social care professionals

The UK's law commissions in a recent joint report have recommended that individual regulatory bodies for medical and other healthcare professions receive more decision-making power and that procedural regulation (for example fitness to practice proceedings) be standardized. Patient wellbeing and professional standing of practitioners are likely to be deeply affected. The legislative process needs to be scrutinized closely to ascertain that government and regulatory bodies do not use the reform to shirk accountability and engage in a blame game.