Oligopolistic equilibrium and financial constraints

We model a dynamic duopoly in which firms can potentially drive their rivals from the market. For some parameter values, the Cournot equilibrium outcome cannot be sustained in an infinitely repeated setting. In those cases, there is a Markov perfect equilibrium in mixed strategies in which one firm, eventually, will exit the market with probability one. Producer surplus in the maximum collusive outcome is greater under bankruptcy consideration, because the outcome that maximizes joint profits is skewed in favor of the more efficient firm. Consumer surplus and social welfare also increase in many cases, although those effects are generally ambiguous.     

Avoiding household food waste,one step at a time: The role of self-efficacy,convenience orientation,and the good provider identity in distinct situational contexts

A primary cause of food waste in households is a lack of food capabilities. Yet, the antecedents of food capabilities and its relationship with causes of food waste across different situational contexts remain poorly understood. We apply self-efficacy theory in combination with convenience orientation and good provider identity in a mixed-methods study. Findings reveal that the sequential structure of self-efficacy explains how capabilities contribute to food waste avoidance. A good provider identity, however, increases food waste, and also turns out to further convenience orientation. Food capabilities, in turn, reduce convenience orientation. Qualitative insights shed light on consumer's own accounts of their abilities. The findings contribute to a theory-based understanding of how consumers manage the complex issue of food waste. Findings imply that public policy and marketing should aim to strengthen consumers' self-efficacy beliefs and redefine the good provider identity, in particular in social contexts, to reverse its effect on waste.     

Looking for sustainable development: Socially responsible mutual funds and the low-carbon economy

Sustainable investment responds to demands for carbon and climate-neutral societies. To address the urgency around climate change and provide investors with more qualified information, Morningstar has developed the Low Carbon Designation (LCD) to indicate that the companies held in a portfolio are in general alignment with the transition to a low-carbon economy. The designation is given to portfolios that have low carbon risk and fossil fuel exposure scores. The present study builds on the LCD by examining the relationship between these scores and financial performance. With this aim, we analyze 3920 socially responsible mutual funds from across the world. Results show differences in financial performance according to scores and investment areas. We find evidence that funds considered to have higher levels of sustainability achieved better performance than funds with higher exposure to companies involved in carbon and fossil fuel industries. We provide insights on the informativeness of these new scores with a focus on climate change and their relevance in helping investors to identify climate-aware funds. This study highlights the importance of introducing strategies to develop green finance; the analysis confirms that sustainability improves performance. Finally, the LCD indicator is shown to be relevant for making fairer comparisons among socially responsible funds and, ultimately, for developing low-carbon economies.     

Technology as a tool to rebuild heritage sites: the second life of the Abbey of Cluny

Technology has made changes in communication, lifestyle, and cultures, creating a new challenge to heritage sites. Technology can be the answer to connecting with local communities and tourists, reducing the gap between people and their inheritance, making it more understandable, creating awareness and value and eliminating time and space limitations. It can be used to communicate, interpret, teach, analyze, and make heritage accessible. And it can also be applied to make virtual reconstructions of what no longer exists. This paper analyzes the effect of technology at a heritage site, using the Abbey of Cluny as a case. This Abbey is a monument in France due to its importance during the Middle Ages as the monastic capital of Europe. Today, there are only a few traces of what the Maior Ecclesia used to be. New technologies were applied to rebuild what was destroyed with time using augmented reality and 3D reconstruction. Qualitative methods were used to describe what effects in visitors and promotion of the site were observable.     

Enrolling in Higher Education: The Impact of Regional Mobility and Public-Private Substitution Effects

Abstract:

In this article, we study the enrollment decision of candidates to Portuguese public Higher Education Institutions (HEIs). We classify candidates according to their revealed preference for regional mobility and measure the impact of their mobility status on the likelihood of enrollment. For instance, candidates succeeding to be placed in their home district are about fourteen percentage points more likely to enroll than those pushed away. We also show that distance deters enrollments, even for candidates that reveal a preference for migrating. Finally, we measure the impact of the availability of private sector alternatives in the home district on the likelihood of enrollment and show that their existence reduces the likelihood of enrollment by up to nine percentage points.     

Dismantling the myths about managerial (in)capabilities in micro-firms. SEAM intervention-research to develop management practices

Extant literature on SMEs currently offers an incomplete and deterministic characterisation of micro-firms (M-Fs) that are not growth-oriented start-ups, so very little is known about the actual functioning and internal challenges that hinder the adoption of management practices of these companies, and how to facilitate their management development. Using the Socio-Economic Approach to Management (SEAM) as theoretical lens and SEAM intervention-research as methodology, the study uncovers myths in the managerial characterisation of micro-firms and suitable patterns of change management practices for them. Our research contributes to the study of M-Fs by being the first study specifically devoted to mature M-Fs, and by proposing a theoretical framework that shows the dynamic nature of the characteristics associated with M-Fs.     

Editors’ note

Portuguese Economic Journal -     

Exploring the effects of leaders’ individualized consideration in extreme contexts

Abstract

Role clarity and trust in leadership are two crucial factors supporting soldiers in coping with uncertainty and imperfect knowledge. The present study examined the effects of leaders’ individualized consideration on both factors in a sample composed of 161 paratroopers from a parachute division of the NATO Airborne Forces. Conditional process modeling revealed that (1) leaders showing individualized consideration increase followers’ role clarity and, in parallel, develop a trusting relationship with them; (2) critical upward communication and perceived workload mediated and moderated these relationships, respectively. The implications of these findings for safety research and their practical applications are outlined.     

Sustainable development and circular economy: The role of institutional promotion on circular consumption and market competitiveness from a multistakeholder engagement approach

The transition from a linear economy to a circular economy (CE) is a real challenge to achieve long‐term sustainability. To push CE in the market, institutional promotion could become a key driver to positively impact both circular consumption and the competitiveness of the market. This paper analyzes the influence that soft and hard initiatives have on circular consumption and market competitiveness. Based on a survey of 1,281 respondents from different types of stakeholders, structural equations modeling statistical analysis was run. Results show that soft initiatives support the achievement of both objectives, whereas hard ones only influence greater circular consumption. However, the perception of the different stakeholders considered is very heterogeneous. It is indicative that not all institutional promotion initiatives are effective. Thus, institutions should guide, in an adequate and differentiated manner, their efforts to promote CE and sustainable development depending on the stakeholder they are targeting.     

Women Mayors and Management of Spanish Councils: An Empirical Analysis

This paper analyzes the relationship between the gender of mayors in Spanish local government and different budget items. It uses a sample of local budgets for 8,112 town councils between 2002 and 2010, totaling 64,361 observations. The Spanish context is characterized by decentralization of public responsibility to a greater extent than in neighboring countries, feeding the debate on the operational efficiency of local government and the importance of gender in public management. Results show that councils with women mayors have lower annual interest and debt repayment obligations and have higher expenditure on security, protection, and social promotion. Thus, the presence of women in politics may serve to improve councils’ economic situations, which is necessary not only for social justice but also for economic efficiency. In addition, in councils with more inhabitants, women mayors are more common, but women are less likely to occupy the office for longer periods.