Entitling the Pollutee: Liability versus Standard under Private Information

This paper considers and compares two different legal means -- full liability and standard – to reduce and to regulate pollution at a local level accounting for private information about benefits and costs. The familiar polluter pays principle makes the polluter liable for any damage. Since the courts lack information about the true damage the pollutee can and presumably will overstate this damage. Nevertheless, voluntary arrangements bypassing the courts exist (e.g., for Coasean reasons). However, such out-of court arrangements fail to improve in many cases the inefficient allocation of pollution due to agency costs. Given these unsatisfactory consequences of the polluter pays principle even after allowing for contracts around the law, we propose a modification of standards: the pollutee is entitled that a certain standard is satisfied, yet can trade this right for financial compensations. Contracts induced by this legal rule are countervailing (the optimal mechanism switches between subsidies and payments and first best efficiency holds at both ends) and this characteristic allows such a privatized standard to track the first best quite well and (often) better than the polluter pays principle. This relative ranking under private information is the opposite of the one that holds under uncertainty (here liability dominates the standard).JEL classification: D62, D82     

Modelling as a Tool for Cross‐border Analysis of the Position of Insolvency Office Holders

This paper presents a framework and a model applied to make a cross‐border analysis of the position of Insolvency Office Holders. Both the framework and the model were developed in the course of an assignment to design Principles and Best Practices for Insolvency Office Holders for INSOL Europe. The framework is developed by induction from a variety of sources of rules and regulations regarding Insolvency Office Holders, while the model subsequently has been derived by deduction from the framework. Finally, the paper shows how this method assisted in determining the issues to be covered by Principles and Best Practices. The authors argue that commencing international legal comparison with abstract reasoning and modelling may lessen the effect of researcher's academic or professional blind spots and cultural bias and has the potential to enhance the value of cross‐border analysis in terms of coherence, consistency and completeness. Copyright © 2016 INSOL International and John Wiley & Sons, Ltd     

Critical and strategic factors for scenario development and discontinuity tracing

This paper discusses the contribution of critical and strategic factors to three open questions in scenario development and futures research: discontinuities, multi-dimensionality in scenarios, and communicating and learning about change and complexity. It is observed that discontinuities do not necessarily take the form of rapid breaks within one single field. The term “hidden discontinuity” is employed to describe developments that arise from (a) the combination of several trends that may each be unspectacular or (b) gradual, long-term processes. The second open question concerns the tension between the need to work in multi-dimensional spaces while also keeping complexity manageable and selecting “representative” futures. The third problem concerns difficulties to recognize, accept and communicate the above two effects (a) and (b). After discussing these questions, two examples of recent scenario studies are used to illustrate how the identification of critical factors can contribute to identifying meaningful discontinuities and meaningful subsets within the multidimensional space of possibilities, and to learning about the scale and scope dimensions of long-term change processes and the impact of the interplay between different fields.     

Sustainable food consumption among young adults in Belgium: Theory of planned behaviour and the role of confidence and values

This study investigates determinants of sustainable food consumer behaviour in Belgium. To gain a better insight in sustainable consumption, a study was conducted in which attitudes and behaviour as well as the role of individual characteristics like confidence and values related to sustainable products are analyzed. The focus of the analysis is on exploring the influence of determinants as hypothesised by the theory of planned behaviour (TPB) - attitudes, perceived behavioural control, social norms - on sustainable consumption intention in general, and specifically depending on consumer's perceived confidence and personal values. The empirical research builds on a survey with a sample of 456 young adults using a questionnaire and showing an advertisement for hypothetical sustainable dairy products. Stepwise multiple regression models showed that 50% of the variance in intention to consume sustainable dairy was explained by the combination of personal attitudes, perceived social influences, perceived consumer effectiveness and perceived availability. In addition, different levels of confidence and value orientation yield different strengths of the determinants. The findings yield public policy and marketing recommendations for stimulating sustainable food consumption among young adults.     

Practical Wisdom: Management’s No Longer Forgotten Virtue

Whistleblowing refers to the disclosure by organization members of illegal, immoral, or illegitimate practices to persons or organizations that may be able to effect action. Most studies on the topic have been conducted in North American or European private sector organizations, and less attention has been paid to regions such as Turkey. In this study, we study the whistleblowing intentions and channel choices of Turkish employees in private and public sector organizations. Using data from 327 private sector and 405 public sector employees, we find that public sector employees are more idealistic and less inclined to whistleblow externally and anonymously. Higher idealism among public sector employees does not moderate these effects. We find that private sector employees are more relativistic, and that they are more inclined to whistleblow through external and anonymous channels. More relativistic private sector employees are more likely to prefer external whistleblowing; however sector does not moderate the propensity to whistleblow anonymously.     

Interactive analysis of high-dimensional association structures with graphical models

Graphical chain models are a powerful tool for analyzing multivariate data. Their practical use may still be cumbersome in some respects, since fitting the model requires a lengthy selection strategy based on the calculation of an enormous number of different regressions. In this paper, we present a computer system especially designed for the calculation of graphical chain models, which will not only automatically carry out the model search but also visualize the corresponding graph at each stage of the model fit. In addition, it allows the user to modify the graph and to fit the model interactively.     

Oikonomia Versus Chrematistike: Learning from Aristotle About the Future Orientation of Business Management

As a philosopher, whose theory about economics and business is systematically connected to a moral and political philosophy, Aristotle provides a rich conceptual framework to reflect upon personal well-being, the wealth of households, and the welfare of the state. Even though Aristotle has mainly been portrayed as an enemy of business, interest in his teachings has been on the rise among management scholars. Several articles have examined Aristotle’s position with regard to current managerial approaches such as total quality management, knowledge management, crisis management, and networking. Even though Aristotle is a constant reference point for business ethics scholars, only rarely have there been attempts to see what consequences his thinking would have for reorienting business philosophy and organizational strategy. In this study, we will outline how Aristotle’s theory of household management can be applied to the management of modern corporations. We argue that conceptions of chrematistike and oikonomia provide a basis to discuss the relationship between business and society and to draw important conclusions for business management.     

Who is afraid of political risk? Multinational firms and their choice of capital structure

This paper investigates how multinational firms choose the capital structure of their foreign affiliates in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, such as expropriation, unreliable intellectual property rights and confiscatory taxation. In our theoretical analysis we find that, as political risk increases, the ownership share tends to decrease, whereas leverage can both increase or decrease, depending on the type of political risk. Using the Microdatabase Direct Investment of the Deutsche Bundesbank, we find supportive evidence for these different effects.