Self-interest and fairness: self-serving choices of justice principles

We introduce non-enforceable property rights over a bargaining surplus in a dictator game with production, where the agent’s effort is differentially rewarded and subsequently determines the size of the surplus. Using experimental data, we elicit individual preferences over the egalitarian, accountability and libertarian principles and provide evidence to support the inability of these justice principles to individually account for the observed behavior. We show that the justice principle that can be used to explain dictators’ choices depends on whether dictators are paid more or less than recipients for their effort. Our findings suggest that dictators do employ justice principles in self-serving ways and choose in each context the justice principle that maximizes their financial payoffs.     

Competition,Quality and Contract Compliance: Evidence from Compulsory Competitive Tendering in Local Government in Great Britain, 1987–2000*

The introduction of competition has frequently been found to cause costs to fall. There has, however, been a question as to whether this was partly achieved at the cost of quality. Auction theory predicts prices would fall more the greater the competition to provide the service. There has been some debate about whether the smaller budgets would make contract compliance more difficult. Evidence is found in support of this hypothesis. We also find some evidence that the better recorded performance of the in‐house direct service organisations (DSOs) during this period was due to the information advantage they had from being incumbents.     

On the distributional effects of trade policy: Dynamics of household saving and asset prices

This paper studies the effect of trade liberalization on inequality. We develop a theoretical framework that generates economy-wide distributions of wealth and income for different levels of trade protection. The model unambiguously determines the effect of liberalization on inequality; and rationalizes why larger inequality can be the outcome of a welfare enhancing policy, as households reduce their buffer savings when liberalization lowers the price of food. The framework reconciles the increase in inequality, the fall in the value of land, and farmers’ opposition to freer trade, that have featured in different liberalization episodes. We also present empirical support for the model’s predictions.     

Endogenous restricted participation in general financial equilibrium

We consider an incomplete market model with numeraire assets. Each household faces an individual constraint on its participation in the asset market. In related literature, the constraint is described by a function whose sole argument is the asset portfolio. On the contrary, in our analysis the constraint depends not only on the asset portfolio, but also on asset and good prices—hence the reference to endogenous (in contrast to exogenous) in the title.     

Institutional constraints on organizations: the case of Spanish car dealerships

We study the effect of organizational choice and institutions on the performance of Spanish car dealerships. Using outlet‐level data from 1994, we find that vertically integrated dealerships showed substantially lower labor productivity, higher labor costs and lower profitability than franchised ones. Despite these gaps in performance, no vertically integrated outlet was separated until 1994, yet the few outlets that were eventually separated systematically improved their performance. We argue that the conversion of integrated outlets into franchised ones involved significant transaction costs, due to an institutional environment favoring permanent, highly unionized employment relations. In line with this argument, we find that the observed separations occurred in distribution networks that underwent marked reductions in worker unionization rates, following the legalization of temporary labor contracts. Copyright © 2008 John Wiley & Sons, Ltd.     

Ewom and 2.0 Opinion Leaders in the Food Context: A Study with a Sample of Spanish Food-Related Weblogs

There is no doubt that the arrival of the internet has modified dramatically the way and rhythm of our lives which it reflects directly on our consumption patterns and the way in which individuals interact and search for information. Online platforms, generally known as web 2.0, are usual websites where consumers read reviews from other consumers before making a final decision. In turn, opinion leaders emerge preponderantly within this context exerting an unequal amount of influence on the decision of others. The food sector is not apart from this scenario. This study dives into web 2.0 and ewom with reference to food topics in the Spanish arena. For that purpose, a group of opinion leaders in regard to food aspects is selected. Afterwards, the content of the ewom they emit is determined by means of a cluster analysis. This information is of great importance for businesses and professionals in marketing. Discussion and further lines of research are also included in order to guide interesting future studies.     

Kitchen concerns at the boundary between markets and consumption: agencing practice change in times of scarcity (Husmodern,Sweden 1938–1958)

ABSTRACT

This paper investigates practice dynamics in kitchens situated at the boundary between markets and consumption. The kitchen is conceptualized as a market-consumption junction, a space where multiple concerned actors in markets and consumption come to shape, and get shaped by, the practices in the kitchen. Drawing upon archival research of the Swedish household magazine Husmodern (1938–1958), this study traces two matters of concern in and around the kitchen: the scarcity of resources in food markets and the scarcity of time to prepare food for consumption. Findings reveal how thrifty and convenient practices became enacted, and their transformative implications for consumption, demand, and market action. The mechanisms involved in disrupting and reconnecting the dynamic elements of practices (meaning, competence, and objects) are explained through the notions of concerning, agencing, and overflows, which recursively work to redraw the boundaries between markets and consumption to establish novel practices.     

Ethical consumer behaviour in Germany: The attitude‐behaviour gap in the green apparel industry

In today's society, the trend of ethical consumerism is undeniable. Yet, even though consumers are ethically concerned, they rarely transform their intentions into a green purchasing behaviour—and this phenomenon is also evident in the sustainable fashion industry. This study aims to understand the prevailing attitude‐behaviour gap and explores the barriers that constrain consumers in purchasing green apparel. A total of 13 in‐depth interviews were conducted and analysed to the principles of grounded theory. The analysis reveals that the following barriers impede consumption of sustainable fashion: price, availability, knowledge, transparency, image, inertia and consumption habits. The impact of each dimension on consumers' purchase decisions might be of interest to apparel manufacturers and retailers who should implement strategies to encourage eco‐conscious apparel acquisition and focus on diminishing these barriers. Accordingly, three major recommendations are made: (a) to concentrate on specific product attributes; (b) to adopt an efficient digital communication strategy; and (c) to make a greater effort on making green apparel attainable. This study contributes to the overall understanding of consumer behaviour in the ethical fashion industry and examines in‐depth the purchasing criteria for sustainable fashion for consumers.     

Decentralization and sectoral expenditures in Europe

This article presents an empirical analysis of the recent impact of fiscal decentralization in Europe on total expenditure for specific government functions as well as on total government size. A panel data set for the years 2000–2009 for European countries has been constructed from EUROSTAT data. The effects of decentralization interact with the degree of vertical imbalances and tend to be negative as predicted by the Leviathan view of government. Effects vary strongly across government functions and are strongest in relative terms for social spending and infrastructure. Moderate restraining effects are found for education, while health spending is not significantly affected. This is consistent with competition between subnational entities, which try to attract taxpayers and shift expenses away from policies that benefit neighbouring jurisdictions.     

Specialisation in key enabling technologies and regional growth in Europe

This paper explores the specialisation of European Union (EU) regions in key enabling technologies (KETs) and assesses whether or not being specialised in these technological areas has an effect on regional growth. The evidence presented shows that regions specialised in KETs are concentrated in central Europe; however, over the period taken into account (1996–2011), less innovative and peripheral EU regions have been increasing their specialisation in these technological areas at the expense of the most advanced regions. There is also evidence that (spatial) diffusion of KETs often occurs across regions contiguous to each other. The results of the econometric estimations show that being specialised in KETs affects regional economic growth (per capita gross domestic product) and that this effect is stronger in the case of less innovative EU regions. Overall, these results hint at the pervasive nature and enabling role of KETs and demonstrate the importance for EU regions to target these technologies as part of their smart specialisation strategies.