Economic Properties of Statistical Indices: The Case of a Multidimensional Gini Index

This paper seeks to construct a Gini index of the distribution of standard of living. Since standard of living has various dimensions, we need a multidimensional Gini index (MGI). The literature on index numbers contains two distinct approaches: the statistical and the economic. In the context of MGIs the statistical approach (which obtains the indices from conditions based on statistical or data-related considerations) seems to be open to the criticism that it sometimes yields indices that violate economic norms. However, the economic approach (where the indices are derived from norms based on economic theory) also does not seem to have succeeded so far in obtaining an MGI satisfying the various normative requirements that have been proposed in the literature. This paper shows that it is possible to obtain an MGI from the statistical approach ensuring, at the same time, that the economic norms are satisfied. In this sense it is an attempt to bring the two disparate traditions in index construction referred to above closer to each other. The index that is developed here does not appear in the existing literature. Moreover, the literature does not seem to contain any other MGI satisfying all of the proposed economic norms.

     

Trading in derivatives when the underlying is scarce

Regulatory restrictions and market frictions can constrain the aggregate quantity of long and short positions in a security. When these constraints bind, we refer to the security as scarce, and its price becomes distorted relative to its value in a frictionless market. We show that an otherwise redundant derivative can reduce the price distortion of the underlying security by relaxing its scarcity. We also show that it is especially important to analyze the underlying and derivative markets jointly when evaluating the impact of regulation, such as short-sales bans and position limits in derivatives, that restricts trade.     

Partial Assimilation of Technology: Prognosis and Remedial Measures

Prior research mentions that there may be technology assimilation gaps in that a technology may be cumulatively assimilated over a period of time depending on knowledge and experience from initial usage. Thus, stages of partial assimilation are indicated that, if not accounted for, could lead to erroneous understanding of technology adoption and diffusion. However, the phenomenon has not received serious academic attention, and there is still a lack of understanding as to when and why partial assimilation may occur, its consequences to organizations, and remedial steps that could be taken to minimize it. We investigate these issues in the context of assimilation of third-party business-to-business (B2B) e-market by four small firms. Our findings reveal that partial assimilation occurred because of different perceptions of benefit and risk of the two different features of the B2B e-market—the informational (buyer/supplier and product information) and the transactional (auction, request for quote, price negotiation, message archiving, payment systems), arising from different moderating impacts of the organizational (relational norms and the type of business handled) and environmental (perceptions of competitive pressure and institutional norms of technology usage and work practices) contexts of deployment and usage of the two features. The consequences of partial assimilation were mixed; while it was found to be detrimental to firms with low relational norms with their clients, it proved to be gainful for firms with high relational norms. Theoretical and practical implications of the findings are discussed.     

Does trade size restriction affect trading behavior? Evidence from Indian single stock futures market

Algorithmic traders use their advantage of speed to execute a large number of small-sized trades in a very short time. In the presence of a minimum trading unit (MTU) restriction, they are forced to trade at the smallest possible sizes, often restricted by the MTU. Using a novel data set of single stock futures market obtained from the National Stock Exchange of India, we show that the MTU restriction acts as a binding constraint for traders while optimizing trade sizes. Contrary to expectation, we find weak evidence that liquidity is positively impacted by the contract size revision.     

Morally Contentious Technology-Field Intersections: The Case of Biotechnology in the United States

Technologies can be not only contentious—overthrowing existing ways of doing things—but also morally contentious—forcing deep reflection on personal values and societal norms. This article investigates that what may impede the acceptance of a technology and/or the development of the field that supports or exploits it, the lines between which often become blurred in the face of morally contentious content. Using a unique dataset with historically important timing—the United States Biotechnology Study fielded just 9 months after the public announcement of the successful cloning of the first mammal (i.e., Dolly the sheep)—we find that microlevel factors (i.e., conservative Christianity) predict unfavorable judgments of the technology-field intersection while macrolevel representations [i.e., exposure to Science, Technology, Engineering, and Mathematics disciplines and media coverage] predict more favorable judgments.     

The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri-environmental schemes: A systematic review

Agri-environmental schemes (AESs) are increasingly implemented to promote the adoption of environmentally friendly practices by farmers. We use a systematic review to explore the role of behavioural factors and opportunity costs in farmers' decisions to participate in AESs in Australia, Europe and North America. Behavioural factors influence how farmers value and perceive options, while opportunity costs relate to farmers' forgone utility when choosing to participate in schemes. We synthesise insights from 79 articles and over 700 factors explaining the participation in AESs. We find that a set of behavioural factors seem consistently connected to participation, including agricultural training, advice and having positive attitudes towards AESs. Moreover, several factors related to opportunity costs also have a rather consistent relationship with AES participation, including market conditions, implementation efforts, profitability, and management and contract flexibility. However, many relationships of behavioural factors and opportunity costs with AES participation are not as consistent and generalizable as sometimes portrayed and require context-specific interpretation. Those factors with mixed results can still provide insights into farmers' participation decisions as several of them are either ‘positively and insignificantly’ or ‘negatively and insignificantly’ related to participation, such as environmental attitude, trust and farm size. These results suggest that their relationship with AES participation depends on other factors or the setting, highlighting interactions and raising important new research questions. Overall, our results provide several entry points for both researchers and policy-makers, highlighting uncertainties in relationships between factors and participation that should be considered when designing policies.     

Managerial incentives and corporate control auctions

An analysis of the sequence of bidding in corporate control contests involving white knights reveals a category of white knights termed as ‘delayed bid’ white knights who make their bid after two consecutive hostile bids. The ‘immediate bid’ white knights make their bid in relative haste after the first hostile bid. Overpayments by white knights are much larger for the ‘immediate bid’ white knights. An analysis of the respective compensation packages shows that the managers of the ‘immediate bid’ white knights have a lower proportion of their income linked to stock value (relative to their annual cash income) compared to ‘delayed bid’ white knights and hostile bidders.     

System of crop intensification for more productive,resource-conserving,climate-resilient,and sustainable agriculture: experience with diverse crops in varying agroecologies

With continually increasing demand for food accompanied by the constraints of climate change and the availability and quality of soil and water, the world’s farmers are challenged to produce more food per hectare with less water, and with fewer agrochemical inputs if possible. The ideas and methods of the system of rice intensification which is improving irrigated rice production are now being extended/adapted to many other crops: wheat, maize, finger millet, sugarcane, tef, mustard, legumes, vegetables, and even spices. Promoting better root growth and enhancing the soil’s fertility with organic materials are being found effective means for raising the yields of many crop plants with less water, less fertilizer, reduced seeds, fewer agrochemicals, and greater climate resilience. In this article, we review what is becoming known about various farmer-centred innovations for agroecological crop management that can contribute to agricultural sustainability. These changes represent the emerging system of crop intensification, which is being increasingly applied in Asian, African, and Latin American countries. More research will be needed to verify the efficacy and impact of these innovations and to clarify their conditions and limits. But as no negative effects for human or environmental health have been identified, making these agronomic options more widely known should prompt more investigation and, to the extent justified by results, utilization of these methodologies.     

Non-coercive influence: Scale development and validation based on resource and relational paradigms

To overcome competition in an increasingly network dependent market, retailers are required to influence upstream channel partners while sustaining relationships. However, the contemporary supply chain literature has not sufficiently leveraged the resource and relational paradigms to examine influence. Grounded on resource dependency theory and commitment-trust theory paradigms, this study describes conceptualization and operationalization of a 12-item scale for measuring non-coercive influence on upstream channel partners in retail supply chain management (R-SCM) context. The study is based on responses from 547 retail professionals in India obtained over four successive surveys. Psychometric properties were assessed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The proposed scale demonstrates construct validity. Invariance-testing carried out over 4-levels of increasingly demanding equivalence confirmed cross-validation. Nomological validity of the scale was tested by evaluating association with suppliers’ intention to cooperate. The results indicate existence of three dimensions of non-coercive influence: collaborative intent, market intelligence dissemination, and operational support. Retailers can use the scale to assess their personnel's non-coercive influence behavior over suppliers.     

Impatience implication of weakly Paretian orders: Existence and genericity

We study order theoretic and topological implications for impatience of weakly Paretian, representable orders on infinite utility streams. As a departure from the traditional literature, we do not make any continuity assumptions in proving the existence of impatient points. Impatience is robust in the sense that there are uncountably many impatient points. A general statement about genericity of impatience cannot be made for representable, weakly Paretian orders. This is shown by means of an example. If we assume a stronger sensitivity condition, then genericity obtains.