Reinventing the rattling tin: How UK charities use Facebook in fundraising

Using a multicase study approach, this paper explores how the three biggest UK cancer charities by donations use Facebook in their fundraising campaigns, in order to facilitate understanding of the dynamics of philanthropic asking in a social networking site‐mediated environment. The analysis reveals that Facebook is primarily used to strengthen relationships with supporters, mainly via humanising the brand, fostering obligations, and encouraging social interaction. The mobilization of these relationships in fundraising is facilitated by persuasive strategies, including public recognition, authority, and the fostering of a sense of efficacy among fans, and the most common outcome of this mobilization is public endorsement of charities' fundraising campaigns via sharing. At a time when harsh public spending cuts have left gaps in charity funding that need to be filled by philanthropy, this study aims to make a practical contribution to knowledge by examining what works and how in Facebook fundraising.     

ON THE DELIBERATE CENTRALITY OF AN INVISIBLE HAND: REPLY TO GAVIN KENNEDY,RYAN HANLEY AND CRAIG SMITH

We previously showed that ‘led by an invisible hand’ was physically central in original editions of The Theory of Moral Sentiments and The Wealth of Nations. We suggested that Adam Smith did that deliberately. Three authors commented on our paper, Gavin Kennedy, Ryan Hanley and Craig Smith. In this article we reply to their comments.     

Estimating the effect of a gasoline tax on carbon emissions

Recently the proposal has been made to raise gasoline taxes in the United States to curb carbon emissions. The existing literature on the sensitivity of gasoline consumption to changes in price may not be appropriate for evaluating the effectiveness of such a tax. First, most of these studies fail to address the endogeneity of gasoline prices. Second, the responsiveness of gasoline consumption to a change in tax may differ from the responsiveness of consumption to an average change in price. We address these challenges using a variety of methods including traditional single‐equation regression models, estimated by least squares or instrumental variables methods, and structural vector autoregressions. Our preferred approach exploits the historical variation in US federal and state gasoline taxes. Our most credible estimates imply that a 10‐cent per gallon increase in the gasoline tax would reduce carbon emissions from vehicles in the United States by about 1.5%. Copyright © 2010 John Wiley & Sons, Ltd.     

Is mark-to-market accounting destabilizing? Analysis and implications for policy

Fundamental economic principles provide a rationale for requiring financial institutions to use mark-to-market, or fair value, accounting for financial reporting. The recent turmoil in financial markets, however, has raised questions about whether fair value accounting is exacerbating the problems. In this paper, we review the history and practice of fair value accounting, and summarize the literature on the channels through which it can adversely affect the real economy. We propose a new model to study the interaction of accounting rules with regulatory capital requirements, and show that even when market prices always reflect fundamental values, the interaction of fair value accounting rules and a simple capital requirement can create inefficiencies that are absent when capital is measured by adjusted book value. These distortions can be avoided, however, by redefining capital requirements to be procyclical rather than by abandoning fair value accounting and the other benefits that it provides.     

Latin American franchise internationalization: The impact of institutional environment

We analyze the internationalization of Brazilian franchise chains in Latin America. A total of 119 observations verify international commitment in each country in relation to institutional environment factors and how they are moderated by chain size and industry. The results show that despite all institutional aspects having a significant effect, their explanatory power depends on chain size. Larger franchise chains usually choose countries with better institutional aspects in terms of contract compliance and business freedom, even if the efficiency of business conditions in these countries are not the best in Latin America. In this study, were used public data from international organizations that report on the ease of doing business, level of corruption, political risk, and legal regulations. Specifically, it contributes by using institutional theory in franchising in order to understand the process of chain internationalization originating from emerging markets. Our results, in part, contradict the idea that the origin disadvantage is always an advantage of internationalization.     

Blockholder dispersion and firm value

Multiple blockholder structures are a widespread phenomenon in the U.S. The theoretical literature, however, provides conflicting predictions on whether a single large blockholder or a set of dispersed smaller blockholders is better for firm value. Using U.S. data, we find a negative correlation between Tobin's Q and blockholder dispersion. The findings are robust to a wide variety of model specifications and controls and differ from results for other geographic regions such as Europe and Asia.     

Black,white or grey magic? Our future with artificial intelligence

ABSTRACT

Are new technologies driving us towards dystopia or utopia – or something in between? Marketers not only have a stake in finding out the answer to this question but also a direct (and indirect) influence on determining the answer. This commentary discusses recent developments in artificial intelligence (AI) and robotics, and how these are influencing marketers, consumers and society by either leading to a dystopian (black magic), utopian (white magic) or ‘dualopian’ future (grey magic). We argue that the net effect is squarely in the grey and that marketers have a unique power to leverage AI and robotics developments for good. The commentary concludes with 24 research questions forming an agenda for future research under three streams: marketing power, understanding the bias and ethics revisited.     

Separation of powers and the tax level in the U.S. states

We estimate a nonlinear and discontinuous relationship between the tax level and the degree of alignment between the legislature and the governor, measured as the number of seats in the legislature that belong to the governor's party. In the states with the line‐item veto, the tax level jumps at the point where the government switches from divided to unified. With a regression discontinuity design, we show that this jump can be interpreted as a causal effect. We propose a simple model to account for this nonlinear relationship. The sequential nature of the budget bargaining game, that is, the legislature proposes and the governor cuts with the line‐item veto, implies that the tax level is determined by the overlap between the supporters of the governor and the supporters of the legislative majority. Changes in the size of the overlap determine the tax level.