Qualitative valuation of environmental criteria through a group consensus based on stochastic dominance

This paper introduces a qualitative valuation method to elicit stakeholders' intensities of preferences for a complex environmental issue and multiple social groups. Environmental valuation studies have shown that in any complex environment with a diversity of environmental services, stakeholders have difficulties using a monetary valuation to make trade-offs between different environmental services. Stated preference methods such as the Contingent Valuation Method (CVM) have been criticised for their individualistic format and assumptions of commensurability between environmental criteria. To alleviate both of these criticisms, we propose a qualitative valuation method. The method contains a discursive step to allow stakeholders to discuss and construct a list of environmental criteria and alternative plans. The list of criteria and plans is subsequently used by a group of experts to formulate an Impact Matrix (IM), which is to be used in the succeeding individualistic steps of the methodology. The first individualistic step consists of asking the stakeholders to rank Alternative Impacts (AIs) in the IM for each single criterion. The stakeholders are then asked to express intensities of their preferences through pairwise comparisons between the AIs of the constructed rank order on each single criterion. These intensities are expressed on a qualitative scale. Subsequently, to provide social intensities of preferences, a social preference (social rank order) is first determined for each single criterion. We propose to use the median value among the intensities of preferences as the social intensity of preference by assuming interpersonal comparability and taking into account stochastic monotonocity. This is a pre-processing step, which allows us to reach social intensities of preferences in the Lar rangeland (Iran), where several social groups have conflicting interests on rangeland services, leading to conflicting preferences on environmental criteria.     

Two measures of organizational flexibility

Since the second half of the past century, increasingly flexible organizational forms have been appearing among firms. However, while hierarchies are easily described, too few mathematical tools are available for flexible organizations. In this article, two measures are proposed in order to assess the state and trend of flexible organizations. The first of these measures is based on information waste, which occurs whenever information is classified into categories. The second measure is based on duplication of operations. The underlying idea is that firms have an endogenous drive towards organizational configurations where waste of information and duplication of operations are minimized. However, environmental uncertainty may require some flexibility, which is ensured by cognitive processes that discard some information as well as by parallel undertaking of similar actions.     

EVIDENCE THEORY AS A PROCEDURE FOR HANDLING NOVEL EVENTS

Evidence Theory is a branch of the mathematics of uncertain reasoning that entails profound epistemological differences with respect to Probability Theory. In fact, its paradigmatic situation is the judge who must evaluate testimonies, rather than the gambler who must evaluates odds. Unlike a gambler, who faces a definite set of possibilities, a judge maybe forced to change her evaluation because of novel possibilities suggested by unexpected testimonies. In this sense, Evidence Theory provides a formalization of some among Shackles intuitions. While the details of the connections between Shackle's theory and Evidence Theory have been explored elsewhere, this article is devoted to a detailed explanation of the working of Evidence Theory. An example is discussed in detail and several domains of application are briefly sketched.     

Trust,risk and time preferences: evidence from survey data

The paper shows that time preferences and risk preferences are key covariates of self-reported trust. They both predict negatively a measure of generalized trust; however, risk aversion is positively correlated with an index of particularized trusting behaviour (which refers to the circle of known people).     

Neither bad apple nor bad barrel: how the societal context impacts unethical behavior in organizations

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational and egocentric utility‐maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve.     

Informal export barriers and poverty

This paper investigates the poverty impacts of informal export barriers like transport costs, cumbersome customs practices, costly regulations and bribes. In low-income countries, these informal barriers act as export taxes that distort the efficient allocation of resources, lower wages and agricultural income, and increase poverty. I investigate the case of Moldova, a very open economy where poverty is widespread, agriculture is a key sector, formal trade barriers are low, and informal export barriers are widespread. I find that improving export practices would benefit the average Moldovan household across the whole income distribution. Poverty would also decline, affecting 100-180 thousand individuals.     

The Impact of Interactive Corporate Social Responsibility Communication on Corporate Reputation

Companies increasingly communicate about corporate social responsibility (CSR) through interactive online media. We examine whether using such media is beneficial to a company’s reputation. We conducted an online experiment to examine the impacts of interactivity in CSR messages on corporate reputation and word-of-mouth intentions. Our findings suggest that an increase in perceived interactivity leads to higher message credibility and stronger feelings of identification with the company, which also boost corporate reputation and word-of-mouth. This result implies that using interactive channels to communicate about CSR can improve corporate reputation. Our results also show that the detrimental impacts of negative user evaluations on corporate reputation are much higher than the favorable impacts of positive evaluations. This finding suggests that, despite the effectiveness of interactive communication channels, firms need to carefully monitor these channels.     

Dynamic inefficiency in an overlapping generations economy with production

Reichlin [Equilibrium cycles in an overlapping generations economy with production, J. Econ. Theory 40 (1986) 89-102] has shown in an OLG model with productive capital that whenever the steady state is locally indeterminate and undergoes a Hopf bifurcation, it is Pareto-optimal. While these results were established under the assumption of Leontief technology, the author has partially extended them to show that the Hopf bifurcation is robust with respect to the introduction of capital-labor substitution. In this note, we prove that the Pareto-optimality of the steady state does not extend to technologies with capital-labor substitution. When the steady state is a sink or undergoes a Hopf bifurcation, it is characterized by over-accumulation with respect to the Golden Rule—the interest rate is negative—hence not Pareto-optimal. Most importantly, it follows that stabilization policies targeting the steady state leave room for welfare losses associated with productive inefficiency, apart from the very special case of Leontief technology.     

Europe’s energy policy and the task ahead

The oil shock of 1973 and the subsequent world recession have drastically demonstrated the weakness of countries dependent on external energy supplies. In the following, Guido Brunner, the competent Member of the Commission of the European Communities, describes the changes we are facing in the energy field and what the Community is doing to face up to them.     

Farmland for tomorrow in densely populated areas

The paper describes the results of a research that aimed to come up with a well structured method to estimate future farmland requirements in densely populated areas. By using in depth interviews, scenario analysis and strategic orientation rounds, a method is developed to support policy optimization and to explore alternative future developments. The method is applied to the case of agriculture in the Flemish part of Belgium to show the feasibility of the model and to provide input for the discussion among policy makers in Flanders. The research results can be used by policy makers to build a new Spatial Plan Flanders for the period 2007–2013.