Towards a brain-to-society systems model of individual choice

Canonical models of rational choice fail to account for many forms of motivated adaptive behaviors, specifically in domains such as food selections. To describe behavior in such emotion- and reward-laden scenarios, researchers have proposed dual-process models that posit competition between a slower, analytic faculty and a fast, impulsive, emotional faculty. In this paper, we examine the assumptions and limitations of these approaches to modeling motivated choice. We argue that models of this form, though intuitively attractive, are biologically implausible. We describe an approach to motivated choice based on sequential sampling process models that can form a solid theoretical bridge between what is known about brain function and environmental influences upon choice. We further suggest that the complex and dynamic relationships between biology, behavior, and environment affecting choice at the individual level must inform aggregate models of consumer choice. Models using agent-based complex systems may further provide a principled way to relate individual and aggregate consumer choices to the aggregate choices made by businesses and social institutions. We coin the term “brain-to-society systems” choice model for this broad integrative approach.     

Interorganizational cost management in the exchange process

This paper explores interorganizational cost management (IOCM) practices in the exchange process. IOCM can be defined as buyers’ and suppliers’ coordinated efforts to reduce costs. Past research has primarily argued that such practices depend on component characteristics, relationship characteristics, and characteristics of the transaction. Based on a study of three buyer–supplier relationships, this article also finds variations in IOCM practices between six main activities in the exchange process. In this process, the supplier's management accounting is found to be more important than recognized by prior research. The deepest collaboration around IOCM issues and the greatest joint use of suppliers’ management accounting in the three cases typically occurs in earlier activities in the exchange process, including supplier selection, joint product design and joint manufacturing process development. In later activities in the process, during full-speed production as well as in product and manufacturing process redesign, suppliers’ managerial accounting plays a lesser role in our study.     

Statistical approximation of plane convex sets

Summary

Given a convex set F in the plane with a sufficiently smooth boundary we try to approximate it by polygons in the following way. Using some specified sampling procedure we pick out n points on the boundary. Through each such point we draw the tangent. Consider the polygon F*_n spanned by all these tangents. If n is large we would expect F*_n to be close to F. Measuring the deviation by the area of F*_n — F we will derive an asymptotic expression for this area when n becomes large. This expression can be used to choose the optimum sampling procedure in the sense of smallest asymptotic deviation.

The problem arose from a problem of statistical approximation in propositional calculus, see section 1.     

Retailers' management of corporate social responsibility (CSR) in their supplier relationships – does practice follow best practice?

The aim of this study is to further explore (a) the extent to which retailers deploy corporate social responsibility (CSR) best practices to ensure social and environmental sustainability in international supplier relationships and (b) the association between firm characteristics and the retailers' CSR activities in the supply chain. As a first step, the study identifies eight best practices based on earlier research and the authors' qualitative studies of IKEA. As a second step, a survey of Swedish retailers was conducted. The results of the study suggest that a significant amount of the actors in the Swedish retail sector do not follow the majority of best practice as outlined and discussed in this study. Furthermore, it is found that sector belonging has a considerable impact on the extent that a retailer follows best practice, while firm size and internationalization experience also have a significant, albeit limited, impact on retailer behavior.     

Why do some multinational corporations relocate their headquarters overseas?

This paper examines the decision by a multinational corporation (MNC) to relocate its business unit and/or corporate HQ overseas. We argue that business unit HQs move overseas in response to changes in the internal configuration of their unit's activities and the demands of the product markets in which they operate, whereas corporate HQs move overseas in response to the demands of external stakeholders, in particular global financial markets and shareholders. Using data on 125 business unit HQs and 35 corporate HQs, we test and find support for these arguments. The research highlights important differences between corporate‐ and business‐level strategy, and it suggests ways in which the theory of the MNC needs to be reconsidered. Copyright © 2006 John Wiley & Sons, Ltd.     

New Findings on Firm Investment and Monetary Transmission in the Euro Area

In this paper we present comparative results on the determinantsof firms' investment and their link to monetary policy. Theresults have been obtained by the Eurosystem Monetary TransmissionNetwork. This network has produced a series of papers in whichthe use of micro data permits estimating and quantifying therelevance of two channels of monetary policy transmission: theinterest-rate and the broad-credit channels. The research findingsprovide evidence of an operative interest-rate channel in allcountries examined. Moreover, the results indicate that variableswhich proxy firms' financial conditions play a role. Firms characterizedby weaker balance sheets show higher liquidity sensitivity.     

A Meta-analysis of Loss Aversion in Product Choice

Loss aversion is a behavioral phenomenon with game-changing implications for economic theory and practice. We conduct a meta-analysis of 33 studies (providing 109 observations) investigating loss aversion in random utility models of brand choice. Specifically, we use multilevel modeling techniques to examine potential moderators of preference asymmetries as well as the variability of loss-aversion effects within and between studies. We find that loss aversion is manifest in product choice, but that it exhibits substantial variation across research contexts. Product-related variables (e.g., the category type), consumer characteristics (e.g., reference-point mechanisms), and particularly methodological decisions (e.g., model specifications) determine the observed degree of loss–gain disparity. Practical implications of the specific findings and opportunities for future research are discussed.     

‘Beautiful Serbia’ ‐ objective and subjective outcomes of active labour market policy in a transition economy

This paper studies the causal impact of participation in the Beautiful Serbia programme providing training and temporary work in the construction sector in Serbia on labour market outcomes as well as on measures of subjective well‐being approximating individual welfare. According to our estimates, the positive impact of this particular programme appears much stronger when judged by subjective well‐being than when judged by the immediate labour market effect.     

The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness

Many studies have focused on the effects of MNC subsidiaries’ external relational embeddedness. Little attention has been given to its antecedents and especially to the potential effect that the business network context might have. We try to fill this gap and attempt to explain variation among subsidiaries’ degree of relational embeddedness. Our results show a strong and robust effect of the business network context – i.e. the network context in which the direct business relationships between the subsidiary and its partners are embedded – on the degree of relational embeddedness. However, contrary to previous literature, we find an inverted u-shaped relationship. We discuss our findings with regard to the issue of over-embeddedness and the literature on the strength of weak vs. strong ties.