Interoperability: Our exciting and terrifying Web3 future

This article introduces the next major generational evolution of the web: Web3. We review the fundamental evolution of the internet and the web over the past 3 decades, including a brief presentation of the publications in Business Horizons that are important in a discussion of the emergence of Web3. We then discuss what these recent developments mean to organizations, consumers, and the public. Though the degree to which Web3 will be widely adopted is uncertain, these technologies are already creating both exhilarating and terrifying implications for e-commerce, digital media, online social networking, online marketplaces, search engines, supply chain management, and finance, among others. We propose the consideration and management of technical, organizational, and regulatory interoperability for Web3 to deliver on its promises of value and that failure to consider these interoperability components may destroy economic value, consumer confidence, or social issues online. We also call on our fellow researchers to focus on these interoperability issues and how they might impact the positive and negative sides of Web3 technologies to help us understand and shape our Web3 future.     

The promise of a decentralized internet: What is Web3 and how can firms prepare?

What is Web3, and what does it mean for established companies? Web3 describes a broad range of emerging internet applications for blockchain technology (i.e., a decentralized, public database that allows information to be securely recorded on a network of computers rather than verified and controlled by centralized entities). Central to this evolution of the internet are four distinct blockchain-enabled applications: fungible tokens (cryptocurrencies), nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), and metaverses. In this article, we define each of these applications and discuss their capacity to increase peer-to-peer interactions, decrease large companies’ control of information and services, and facilitate access to user networks at a much lower cost than currently possible. These distinctions make Web3 both a natural evolution of Web 2.0 and a broader paradigm shift that may fundamentally alter the online interface, organizational structure, and business practices. We conclude by addressing how established companies can prepare for a more decentralized internet.     

Environmental regulation,political incentives,and mortality in China

China enacted an environmental regulation policy in 1998, the “Two Control Zones” (TCZ) policy, to control air pollution in selected cities. Using a panel dataset of 208 prefectural cities for 2001–2012, this study applies a difference-in-differences approach to examine the policy's impact on mortality and identify the role of political incentives. We find the following aspects. (1) The policy significantly reduces mortality in TCZ cities relative to that in non-TCZ cities by 0.305‰ in the period when the policy is strictly enforced. On average, it translates into a 5.2% reduction in mortality. (2) The effect is particularly salient in the years when local officers are evaluated for political promotion and/or when they face stronger pressure for promotion, thus suggesting that political incentives play an important role in determining the effectiveness of environmental regulation policy. (3) The policy reduces industrial emissions of sulfur dioxide instantaneously, while the accumulation of which eventually leads to a lagged reduction in mortality in the cities. (4) The policy yields health benefits worth 1.1 trillion yuan for the treatment period in our sample (i.e., 2006–2012), which accounts for approximately 5.1% of GDP in 2006.     

Can internet surveys represent the entire population? A practitioners’ analysis

A general concern with the representativeness of internet surveys is that they exclude the “offline” population that does not use the internet. We run a large-scale opinion survey with (1) onliners in internet-survey mode, (2) offliners in face-to-face mode, and (3) internet users in face-to-face mode. We find marked response differences between onliners and offliners in different modes (1 vs. 2). Response differences between onliners and offliners in the same face-to-face mode (2 vs. 3) disappear when controlling for background characteristics, indicating mode effects rather than unobserved population differences. Differences in background characteristics of onliners in the two modes (1 vs. 3) indicate that mode effects partly reflect sampling differences. In our setting, re-weighting online-survey observations appears a pragmatic solution when aiming at representativeness for the entire population.     

Mad about Austerity? The Effect of Fiscal Consolidation on Public Opinion

We explore the impact of fiscal austerity on three different dimensions of public opinion in 26 European Union countries (consumer confidence, attitude toward national authorities, and European institutions) on annual data between 1997 and 2017. Our main finding is that the independent effect of a tighter fiscal stance on public opinion is not large and, when present, seems to closely follow the impact of fiscal austerity on economic activity. Our results therefore are inconsistent with the view that fiscal austerity necessarily implies a negative effect on public opinion and a decline in popularity of national and European institutions.     

Vertical transmission of overweight: Evidence from a sample of English adoptees

Vertical influences can significantly shape children overweight by affecting both genetics and the environment children are exposed to. This paper examines the vertical (parental) transmission of child overweight drawing upon a fifteen year sample of English adults and their children, both adopted and biological, for which we can retrieve clinical measures height and weight. We find that, when both parents are overweight, children exhibit an increased likelihood of overweight, irrespective of whether they are adopted or biological children. When both parents are obese as opposed to overweight the picture is different. We find that the likelihood of child overweight increases by 16.7 percentage points among natural (non-adopted) children but only by 4.5 percentage points among adopted children. This suggests that the transmission of overweight when both parents are obese is not merely genetic, and what has been called vertical or parental transmission plays a non-negligible role. Our findings are validated by are a battery of robustness checks.     

Household telecommunications expenditure in Australia

Using a mix of survey data from the Household Income and Labour Dynamics in Australia survey and the Household Expenditure Survey, we examine the changing nature of telecommunications expenditure in Australia in the period 2006–2015. We show that it behaves like a core necessity such as food. Households with youth or young adults spend more on telecommunications than other households. The elderly and disadvantaged groups spend less. We propose measures to identify low-income households with relatively high or relatively low expenditure on telecommunications. These measures can be used to identify households that potentially have “telecommunications inadequacy” or “unsustainable telecommunications expenditure”.     

The strange case of the Matthew effect and beauty contests: Research evaluation and specialisation in Italian universities

The paper aims to determine whether the distribution of funds that prizes the best-performing institutions relatively more has the effect of replicating the Matthew effect within them in terms of personnel policies and allocating proportionally more resources to the best departments to strengthen their output considering the prospect of future assessments. Data from the Italian public university system between 2011 and 2016 as well as the outcomes of the national evaluation of research produced between 2004 and 2010 and between 2011 and 2014 in 14 disciplinary research areas are used. The empirical evidence shows that Italian universities have tended to increase their specialisation in the research areas in which they ranked below or slightly above the national mean, revealing that they chose to try to strengthen the weak sectors through both promotions and new recruitments. The results suggest the existence of a dual policy. When the Ministry of Education, University and Research tries to foster a Matthew effect mechanism, allocating more resources to the best-performing universities, the latter seem to opt to implement a beauty contest strategy to make their weak areas converge towards the national mean. When considering the effects of the recruiting strategies following the national evaluation of research, the results indicate the existence of some Matthew effects, showing that increasing specialisation is more fruitful for the best than for the worst universities.     

Too few university graduates. Inclusiveness and effectiveness of the Italian higher education system

Despite the absence of formal entry barriers, Italy is lagging behind the majority of the developed countries in the share of young individuals with tertiary education. Exploiting the administrative data of a large public Italian institution, we analyze student academic careers across recent matriculation cohorts. We propose a flexible discrete-time competing risks estimation that allows overcoming some major limitations of conventional competing risks models. We find that student pathways vary tremendously across prior schooling profiles: for example, the within 4-year dropout probability ranges between 10% and 77%. We observe improvements over time in retention and time-to-degree, and by decomposing changes into components related to the composition of the enrolled population, the choice of the field of study and ‘individual behavior’ after enrolment, we find that the latter plays a major role. However, the improvement is limited in size and does not interest students from the vocational track. Since this progress is not accompanied by an increase in the share of students making the transition from high school to university, altogether our results call for great concern over the inclusiveness and effectiveness of the Italian university system.     

Exact parametric restrictions for 3-cycles in the RSS model: A complete and comprehensive characterization

This paper presents necessary and sufficient conditions for 3-period cycles in the two-sector Robinson–Solow–Srinivasan (RSS) model, taking as its point of departure an independently-(and simultaneously-) discovered exact discount-factor restriction for a general class of growth models by Mitra and Nishimura–Yano (MNY) in 1996. Our investigation of this remarkable result in the specificity of the RSS model enables a broadened inquiry that goes beyond the discount factor to parameters of labor-productivity and capital-depreciation. Since the RSS model, despite its concrete simplicity, is not covered by the general MNY model, the exact discount-factor restriction presented here does not follow from the MNY theorem, and necessitates new argumentation. Furthermore, we present a novel exact parametric region as our second result.