The Labor-Managed Firm: Permanent or Start-Up Subsidies?

We explore a new argument that seeks to explain the near absence of the labor-managed firm or cooperative, despite a range of inefficiencies attributed to the present-day capitalist firm. We derive the crucial condition for the emergence of labor-managed firms and show that it is unduly restrictive from an efficiency point of view. The policy implication is that public intervention to promote labor-managed firms should primarily be in the form of start-up subsidies rather than in providing permanent tax subsidies.     

Genetic and neurological foundations of customer orientation: field and experimental evidence

We explore genetic and neurological bases for customer orientation (CO) and contrast them with sales orientation (SO). Study 1 is a field study that establishes that CO, but not SO, leads to greater opportunity recognition. Study 2 examines genetic bases for CO and finds that salespeople with CO are more likely to have the 7R variant of the DRD4 gene. This is consistent with basic research on dopamine receptor activity in the brain that underlies novelty seeking, the reward function, and risk taking. Study 3 examines the neural basis of CO and finds that salespeople with CO, but not SO, experience greater activation of their mirror neuron systems and neural processes associated with empathy. Managerial and research implications are discussed.     

Integrating public demands into model-based design for multifunctional agriculture: An application to intensive Dutch dairy landscapes

The contribution of agriculture to the welfare of society is determined by its economic, social and environmental performance. Although theoretical discussions can be found in the literature, few reports exist that integrate the social demand for multifunctional agriculture in the evaluation of the sustainability and the global welfare of society. This paper presents a methodology that combines economic valuation, integrated modelling, stakeholder analysis, and multi-criteria evaluation. It consists of three steps to determine: (1) social demands for multifunctional agriculture; (2) feasible technical alternatives available from the supply part of the market; (3) the net utility of alternatives for society measured as the change in social net benefit, i.e. the sum of changes compared to the current situation expressed in utility of market and non-market net benefits. Market net benefits are represented by their monetary value. Quality Function Deployment combined with Analytic Network Process (QFD/ANP) were used to estimate the non-market net benefits. The methodology is applied to the case study of a dairy-farming based agricultural landscape in the Northern Friesian Woodlands, The Netherlands. Social net benefit depended on land use, i.e. pasture management regimes on each of the agricultural fields and on presence or absence of hedgerows around the fields. Changes in market net utility were expressed in terms of changes for farmers, consumers and government. Changes in non-market net utility were expressed in terms of changes in landscape quality, nature value and environmental health for Dutch society as a whole, as estimated from European public surveys (Eurobarometer). The complete solution space defined by the market and non-market net benefits of landscapes with alternative patterns of land use was estimated to offer insight in the trade-off between market and non-market performance and enable selection of ‘icon’ landscapes to target or avoid. Improvement of the current landscape towards the social optimum would involve changes in pasture management resulting in higher gross margin for farmers, slightly relaxing current environmental restrictions, which could be reached at lower levels of subsidies in agri-environmental programs. In addition to such overall optimum the results demonstrate the trade-off between market and non-market benefits and the characteristics of current, utopian and dystopian landscapes. The approach provides an alternative to current economic valuation methods which focus on assessment of economic value as an input to analysis. Here, economic value emerges as the trade-off between market and non-market functions which is an output of the analysis.     

Open access,common property and scarcity rent in fisheries

Open access resources are frequently not managed efficiently, resulting in falling stock levels and a declining income for fishermen. In the late 1970's, the policy response to this problem was the implementation of 200-mile fishing zones, which enabled the European Union to formulate and implement the Common Fisheries Policy, aimed at (among other things) conservation and distribution of available stocks. In Germany, this shift from an open access regime towards a common property regime had favourable outcomes. The trend of falling prices was reversed. The conclusion was that intertemporal efficiency had increased as a result of (inter)governmental policy. Apparently, a wedge was formed between price and marginal harvesting costs, implying that scarcity rent had returned as a component of prices.     

Teaching and learning the nature of technical artifacts

Artifacts are probably our most obvious everyday encounter with technology. Therefore, a good understanding of the nature of technical artifacts is a relevant part of technological literacy. In this article we draw from the philosophy of technology to develop a conceptualization of technical artifacts that can be used for educational purposes. Furthermore we report a small exploratory empirical study to see to what extent teachers’ intuitive ideas about artifacts match with the way philosophers write about the nature of artifacts. Finally, we suggest a teaching and learning strategy for improving (student) teachers’ concepts of technical artifacts through practical activities.     

WHICH AGGLOMERATION EXTERNALITIES MATTER MOST AND WHY?

This paper revisits the ongoing discussion on the importance of agglomeration externalities – specifically specialization, diversity and competition effects – that may contribute to innovation, productivity and urban employment growth. Previous meta‐analyses suggested that the evidence on agglomeration externalities is strongly context‐specific. Expanding an earlier analysis of 31 articles, we seek to draw in this paper more robust conclusions by means of the statistical evidence for agglomeration externalities presented in 73 scientific articles, all building on the seminal work of Glaeser et al. (1992). Our results confirm that the heterogeneity among studies is huge and can only be partially accounted for by means of an ordered probit analysis. Additionally, some evidence of publication bias is found. We conclude that the conventional lines of inquiry in this literature may now have reached strongly diminishing returns. New lines of inquiry, using rich micro‐level data on firms and workers, dynamic general equilibrium models at the macro level, more attention for spatial and temporal variation in the impacts of agglomeration, and further investigations into the spatial scope of externalities are promising avenues for further research that can enhance our understanding of how agglomeration externalities continue to fuel our increasingly urbanized world.