Showing papers by "Stockholm School of Economics published in 2015"
Alexander A. Aarts, Joanna E. Anderson1, Christopher J. Anderson2, Peter Raymond Attridge3 +287 more•Institutions (116)
TL;DR: A large-scale assessment suggests that experimental reproducibility in psychology leaves a lot to be desired, and correlational tests suggest that replication success was better predicted by the strength of original evidence than by characteristics of the original and replication teams.
Abstract: Reproducibility is a defining feature of science, but the extent to which it characterizes current research is unknown. We conducted replications of 100 experimental and correlational studies published in three psychology journals using high-powered designs and original materials when available. Replication effects were half the magnitude of original effects, representing a substantial decline. Ninety-seven percent of original studies had statistically significant results. Thirty-six percent of replications had statistically significant results; 47% of original effect sizes were in the 95% confidence interval of the replication effect size; 39% of effects were subjectively rated to have replicated the original result; and if no bias in original results is assumed, combining original and replication results left 68% with statistically significant effects. Correlational tests suggest that replication success was better predicted by the strength of original evidence than by characteristics of the original and replication teams.
5,532 citations
TL;DR: Recommendations are provided that trials should be designed to evaluate effectiveness when possible, should include clinical outcome measures, and should obtain health resource use and health state utilities directly from study subjects, and articles should adhere to established standards for reporting results of cost-effectiveness analyses.
530 citations
TL;DR: Creativity and psychosis share genetic roots, and higher polygenic risk scores for schizophrenia and bipolar disorder would predict creativity could not be accounted for by increased relatedness between creative individuals and those with psychoses.
Abstract: We tested whether polygenic risk scores for schizophrenia and bipolar disorder would predict creativity. Higher scores were associated with artistic society membership or creative profession in both Icelandic (P = 5.2 × 10(-6) and 3.8 × 10(-6) for schizophrenia and bipolar disorder scores, respectively) and replication cohorts (P = 0.0021 and 0.00086). This could not be accounted for by increased relatedness between creative individuals and those with psychoses, indicating that creativity and psychosis share genetic roots.
328 citations
TL;DR: Mobile operator data is a highly promising data source for improving preparedness and response efforts during cholera outbreaks, and may be particularly important for containment efforts of emerging infectious diseases, including high-mortality influenza strains.
Abstract: Effective response to infectious disease epidemics requires focused control measures in areas predicted to be at high risk of new outbreaks. We aimed to test whether mobile operator data could predict the early spatial evolution of the 2010 Haiti cholera epidemic. Daily case data were analysed for 78 study areas from October 16 to December 16, 2010. Movements of 2.9 million anonymous mobile phone SIM cards were used to create a national mobility network. Two gravity models of population mobility were implemented for comparison. Both were optimized based on the complete retrospective epidemic data, available only after the end of the epidemic spread. Risk of an area experiencing an outbreak within seven days showed strong dose-response relationship with the mobile phone-based infectious pressure estimates. The mobile phone-based model performed better (AUC 0.79) than the retrospectively optimized gravity models (AUC 0.66 and 0.74, respectively). Infectious pressure at outbreak onset was significantly correlated with reported cholera cases during the first ten days of the epidemic (p < 0.05). Mobile operator data is a highly promising data source for improving preparedness and response efforts during cholera outbreaks. Findings may be particularly important for containment efforts of emerging infectious diseases, including high-mortality influenza strains.
237 citations
TL;DR: A substantive theory of ambidexterity is constructed that identifies and explains the paradoxes that managers need to resolve in IT transformation programs and finds that the nature of paradoxical tensions differs across the six areas and requires slightly different management strategies for paradox resolution.
Abstract: Though information technology IT transformation programs are gaining in importance, we know little about the nature of the challenges involved in such programs and how to manage them. Using grounded theory methodology, we conducted a multiyear case study of a large IT transformation program in a major commercial bank, during which we encountered the interrelated themes of paradoxes and ambidexterity. Grounded in our case, we construct a substantive theory of ambidexterity in IT transformation programs that identifies and explains the paradoxes that managers need to resolve in IT transformation programs. The ambidexterity areas we identified are 1 IT portfolio decisions i.e., IT efficiency versus IT innovation, 2 IT platform design i.e., IT standardization versus IT differentiation, 3 IT architecture change i.e., IT integration versus IT replacement, 4 IT program planning i.e., IT program agility versus IT project stability, 5 IT program governance i.e., IT program control versus IT project autonomy, and 6 IT program delivery i.e., IT program coordination versus IT project isolation. What weaves these six areas together is the combined need for IT managers to employ ambidextrous resolution strategies to ensure short-term IT contributions and continuous progress of IT projects while simultaneously working toward IT transformation program success as a foundation for IT-enabled business transformation. However, in addition to this commonality, we find that the nature of paradoxical tensions differs across the six areas and requires slightly different management strategies for paradox resolution. Ambidexterity areas 1, 2, and 3 are associated with IT transformation strategizing and, in addition to balancing short-and long-term goals, require the mutual accommodation and blending of business and IT interests in the spirit of IT-business partnering to achieve IT-enabled business change and IT-based competitiveness. Ambidexterity areas 4, 5, and 6 are associated with IT program and project execution and, in addition to balancing short-and long-term requirements, require a recurrent and dynamic act of balancing "local" needs at the IT project level and "global" needs at the IT program level.
219 citations
TL;DR: The authors explored the link between the gender gap in stock market participation and financial literacy and found that women participate less than men in the stock market and score lower on financial literacy than men.
206 citations
TL;DR: This paper used prediction markets to quantify the reproducibility of 44 studies published in prominent psychology journals and replicated in the Reproducibility Project: Psychology and found that the hypotheses being tested in psychology typically have low prior probabilities of being true (median, 9%) and that a "statistically significant" finding needs to be confirmed in a well-powered replication to have a high probability of being false.
Abstract: Concerns about a lack of reproducibility of statistically significant results have recently been raised in many fields, and it has been argued that this lack comes at substantial economic costs. We here report the results from prediction markets set up to quantify the reproducibility of 44 studies published in prominent psychology journals and replicated in the Reproducibility Project: Psychology. The prediction markets predict the outcomes of the replications well and outperform a survey of market participants' individual forecasts. This shows that prediction markets are a promising tool for assessing the reproducibility of published scientific results. The prediction markets also allow us to estimate probabilities for the hypotheses being true at different testing stages, which provides valuable information regarding the temporal dynamics of scientific discovery. We find that the hypotheses being tested in psychology typically have low prior probabilities of being true (median, 9%) and that a "statistically significant" finding needs to be confirmed in a well-powered replication to have a high probability of being true. We argue that prediction markets could be used to obtain speedy information about reproducibility at low cost and could potentially even be used to determine which studies to replicate to optimally allocate limited resources into replications.
194 citations
TL;DR: A conceptual replication study of the findings of Carney et al. found that power posing affected levels of hormones such as testosterone and cortisol, financial risk taking, and self-reported feelings of power, and found no significant effect of power posing on hormonal levels or in any of the three behavioral tasks.
Abstract: In a growing body of research, psychologists have studied how physical expression influences psychological processes (see Riskind & Gotay, 1982; Stepper & Strack, 1993, for early contributions to this literature). A recent strand of literature within this field has focused on how physical postures that express power and dominance (power poses) influence psychological and physiological processes, as well as decision making (e.g., Carney, Cuddy, & Yap, 2010; Cesario & McDonald, 2013; Yap, Wazlawek, Lucas, Cuddy, & Carney, 2013). Carney et al. found that power posing affected levels of hormones such as testosterone and cortisol, financial risk taking, and self-reported feelings of power in a sample of 42 participants (randomly assigned to hold poses suggesting either high or low power). We conducted a conceptual replication study with a similar methodology as that employed by Carney et al. but using a substantially larger sample (N = 200) and a design in which the experimenter was blind to condition. Our statistical power to detect an effect of the magnitude reported by Carney et al. was more than 95% (see the Supplemental Material available online). In addition to the three outcome measures that Carney et al. used, we also studied two more behavioral tasks (risk taking in the loss domain and willingness to compete). Consistent with the findings of Carney et al., our results showed a significant effect of power posing on self-reported feelings of power. However, we found no significant effect of power posing on hormonal levels or in any of the three behavioral tasks.
180 citations
TL;DR: It is demonstrated here that smoking is associated with LOY in blood cells in three independent cohorts, and the finding that smoking induces LOY thus links a preventable risk factor with the most common acquired human mutation.
Abstract: Tobacco smoking is a risk factor for numerous disorders, including cancers affecting organs outside the respiratory tract. Epidemiological data suggest that smoking is a greater risk factor for these cancers in males compared with females. This observation, together with the fact that males have a higher incidence of and mortality from most non–sex-specific cancers, remains unexplained. Loss of chromosome Y (LOY) in blood cells is associated with increased risk of nonhematological tumors. We demonstrate here that smoking is associated with LOY in blood cells in three independent cohorts [TwinGene: odds ratio (OR) = 4.3, 95% confidence interval (CI) = 2.8 to 6.7; Uppsala Longitudinal Study of Adult Men: OR = 2.4, 95% CI = 1.6 to 3.6; and Prospective Investigation of the Vasculature in Uppsala Seniors: OR = 3.5, 95% CI = 1.4 to 8.4] encompassing a total of 6014 men. The data also suggest that smoking has a transient and dose-dependent mutagenic effect on LOY status. The finding that smoking induces LOY thus links a preventable risk factor with the most common acquired human mutation.
162 citations
TL;DR: This study provides evidence that increased stature and cognitive function have been positively selected in human evolution, whereas many important risk factors for late-onset complex diseases may not have been.
Abstract: Homozygosity has long been associated with rare, often devastating, Mendelian disorders, and Darwin was one of the first to recognize that inbreeding reduces evolutionary fitness. However, the effect of the more distant parental relatedness that is common in modern human populations is less well understood. Genomic data now allow us to investigate the effects of homozygosity on traits of public health importance by observing contiguous homozygous segments (runs of homozygosity), which are inferred to be homozygous along their complete length. Given the low levels of genome-wide homozygosity prevalent in most human populations, information is required on very large numbers of people to provide sufficient power. Here we use runs of homozygosity to study 16 health-related quantitative traits in 354,224 individuals from 102 cohorts, and find statistically significant associations between summed runs of homozygosity and four complex traits: height, forced expiratory lung volume in one second, general cognitive ability and educational attainment (P < 1 × 10(-300), 2.1 × 10(-6), 2.5 × 10(-10) and 1.8 × 10(-10), respectively). In each case, increased homozygosity was associated with decreased trait value, equivalent to the offspring of first cousins being 1.2 cm shorter and having 10 months' less education. Similar effect sizes were found across four continental groups and populations with different degrees of genome-wide homozygosity, providing evidence that homozygosity, rather than confounding, directly contributes to phenotypic variance. Contrary to earlier reports in substantially smaller samples, no evidence was seen of an influence of genome-wide homozygosity on blood pressure and low density lipoprotein cholesterol, or ten other cardio-metabolic traits. Since directional dominance is predicted for traits under directional evolutionary selection, this study provides evidence that increased stature and cognitive function have been positively selected in human evolution, whereas many important risk factors for late-onset complex diseases may not have been.
145 citations
TL;DR: In this paper, the long-term impact of entrepreneurship education and training in high school on entrepreneurial entry, performance, and survival was studied using propensity score matching, using three Swedish cohorts from JACP alumni with a matched sample of similar individuals and follow these for up to 16 years after graduation.
Abstract: This paper studies the long-term impact of entrepreneurship education and training in high school on entrepreneurial entry, performance, and survival. Using propensity score matching, we compare three Swedish cohorts from Junior Achievement Company Program (JACP) alumni with a matched sample of similar individuals and follow these for up to 16 years after graduation. We find that while JACP participation increases the long-term probability of starting a firm as well as entrepreneurial incomes, there is no effect on firm survival.
TL;DR: In this paper, the authors show that target leverage ratios evolve counter-cyclically once cyclicality is measured comprehensively, accounting for variation in explanatory variables and model parameters, which is robust to different subsamples of firms, data samples, empirical models of leverage, and definitions of leverage.
Abstract: Surprisingly little is known about the business cycle dynamics of leverage. The existing evidence documents that target leverage evolves pro-cyclically either for all firms or financially constrained ones. In contrast, we show that, on average, target leverage ratios evolve counter-cyclically once cyclicality is measured comprehensively, accounting for variation in explanatory variables and model parameters. These counter-cyclical dynamics are robust to different subsamples of firms, data samples, empirical models of leverage, and definitions of leverage. There is a fraction of 10 to 25% of firms with pro-cyclical dynamics whose characteristics are consistent with counter-cyclical dynamics for loss-given-default and probability of default.
TL;DR: In this paper, the authors define market innovation as "changing existing market structure, introducing new market devices, altering market behavior, and reconstituting market agents." Market innovation means altering the way in which business is done.
TL;DR: A new conceptual framework that reflects network dynamics in Internet of Things (IoT)-enabled service innovation processes, consisting of four interacting variables: overlapping, intermediating, objectification of actors and business modelling is developed.
Abstract: Purpose – The purpose of this paper is to develop a new conceptual framework that reflects network dynamics in Internet of Things (IoT)-enabled service innovation processes. Design/methodology/approach – Based on literature on service innovations, business networks and IoT, dynamic concepts are selected. Aided by information about an evolving case “The connected vehicle”, propositions about interaction between the variables in the framework are formulated. Findings – A conceptual framework consisting of four interacting variables: overlapping, intermediating, objectification of actors and business modelling is developed, linking several streams of research. Propositions are motivated and issues for further research questions formulated. Research limitations/implications – The framework may stimulate further research on IoT-enabled service innovations. Practical implications – Understanding network dynamics for developing and implementing business models for service innovations. Originality/value – The con...
TL;DR: In this paper, the authors consider the relationship between theory and practice in marketing and explore the performativity of marketing theories, practices, and devices, focusing on how marketing theories not only describe reality but contribute to bring that reality about.
Abstract: The academic discipline of marketing has been understood and, some may argue, has been designed to be performative. That is, the theories and models developed in marketing are typically intended to bring about effects, rather than simply to describe. Since its inception in the early 1900s,1 the discipline has concerned itself with developing theories and tools that can be picked up and put to work by marketing practitioners. Examples of such theories and tools include models of market segmentation, marketing communication, consumer behaviour, branding and marketing strategy frameworks, which can be found in most marketing textbooks. Its purportedly close link to practical business problems may have contributed to make marketing a popular subject, equipping students to make practical, valuable judgments about markets and marketing activities. However, over the past 20 years, the academic discipline of marketing has become increasingly concerned about a ‘practice-theory’ gap and the diminishing practical value and relevance of its theories, practices and devices.Calls for marketing scholars to turn their critical analysis onto themselves, their scholarly activities and the types and presentations of theory they produce, abound (Maclaran, Miller, Parsons, & Surman, 2009; Tadajewski, 2010). Such calls have questioned both the purpose of theorising and the relationship between theory and practice in marketing. Brownlie, Hewer, and Ferguson (2007) observe that accounts of the gap between marketing theory and practice typically employ the rhetoric of ‘distance’ between cultures: between the worlds of ‘scholarship’ and ‘practice’. By taking an interest in the performativity of marketing – how marketing theories not only describe reality but contribute to bring that reality about – this Special Issue presents one way of rethinking the relationship between theory and practice. It directs our attention to the concrete ways in which marketing ideas travel between actors (from marketing practitioners to marketing scholars and vice versa) and how such ideas become increasingly abstracted or concretised in that process (Czarniawska & Sevon, 1996; Latour, 1986, 1999). Brownlie et al. (2007) further point out that we have a very limited understanding of how ‘relevance’ might be accomplished and performed (also see, Maclaran et al., 2009). Here, a performative stance encourages us to empirically investigate how marketing theories are made to matter in specific situations. Studying the performativity of marketing offers a response to calls for marketing researchers to reflect on their roles during and after research encounters (Wallendorf & Brucks, 1993) by advancing reflexive resources beyond researcher introspection.This Special Issue, ‘Exploring the Performativity of Marketing: Theories, Practices and Devices’, tries to address these concerns by asking: ‘how is marketing theory performative?’ The individual contributions look at how marketing theories are used in practice and what this means for our understanding of the practicing–theorising landscape of marketing. The issue comprises 10 empirical studies that inquire into how, why and to what effect marketing theories are used and ‘performed’ in marketing practice. We begin this editorial by considering what performativity is and how this concept is used in the marketing literature. We then consider three themes concerning the performativity of marketing that emerge from the articles. Finally, we summarise the implications of these themes and sketch a few research areas for further developing our understanding of the performativity of marketing.
TL;DR: In this article, the authors show that after the revelation of corporate fraud in a state, household stock market participation in that state decreases and that the negative effect of fraud revelation is likely to be due to a loss of trust in the stock market.
Abstract: We show that after the revelation of corporate fraud in a state, household stock market participation in that state decreases. Households decrease their holdings in fraudulent as well as non-fraudulent firms, even if they did not hold stocks in fraudulent firms. Within a state, households with more lifetime experience of corporate fraud hold less equity. Furthermore, following the arguably exogenous increase in fraud revelation due to the Arthur Andersen’s demise, a one-standard-deviation increase in fraud revelation due to the presence of Arthur Andersen’s clients increases the probability that a household exits the stock market by 7 percentage points. We provide evidence that the negative effect of fraud revelation on stock market participation is likely to be due to a loss of trust in the stock market.
TL;DR: This article examined the outcome additionality of prestigious early-stage government subsidies and found that subsidies attract more human and financial capital than their non-subsidized counterparts because the association with a prestigious government organization signals legitimacy of the new venture.
06 Jan 2015
TL;DR: It is suggested that testosterone functions to modulate risky behaviors in ways that appear to be adaptive, and may help to make sense of a number of well-documented behavioral anomalies involving economic risk.
Abstract: Since precise forecasting of the future is not possible, most of life’s decisions are made with uncertain outcomes. One important facet of uncertainty that is of particular interest to decision scientists is risk—the choice between an option that is less rewarding but more certain and an option that is less certain, but potentially more rewarding. Recent developments in both neuroscience and behavioral endocrinology have helped to reveal the biological mechanisms that support decision-making involving economic risk, and consequently, potential factors associated with individual differences in risk taking. This review is dedicated to surveying recent developments that link the hormone testosterone to economic risk taking. Like neuroeconomics, endocrinological approaches may provide a potentially powerful framework from which to understand decision-making and may help to make sense of a number of well-documented behavioral anomalies involving economic risk. Specifically, we suggest that testosterone functions to modulate risky behaviors in ways that appear to be adaptive. Still, more work is needed to understand the nature of the relationship between testosterone and risk in both sexes.
TL;DR: Overt marketing had a negative effect on behavioural intentions, such as future interest in the blogger, intention to engage in word-of-mouth, and purchase intention, and covert marketing did not affect the intended behaviour.
Abstract: Purpose – The purpose of this paper is to study the responses of young consumers to suspected covert and overt product-brand recommendations in a blog. Design/methodology/approach – Experimental design was applied to investigate the effect of covert and overt marketing on young consumers’ perceptions of blogger credibility and their behavioural intentions. Findings – Overt marketing had a negative effect on behavioural intentions, such as future interest in the blogger, intention to engage in word-of-mouth, and purchase intention. Covert marketing did not affect the intended behaviour. Neither covert nor overt marketing influenced the blogger’s credibility. Research limitations/implications – The study was delimited to a small sample; one blog, one type of product recommendation, and a well-known brand. Young, well-educated consumers with experience in reading blogs may be able to filter the brand recommendations and focus on the content of the blog. Practical implications – This study has implications fo...
TL;DR: In this article, the authors study how Chinese private entrepreneurs benefit from participating in politics and identify several ways through which firms gain preferential treatment when the controlling entrepreneur participates in politics: better access to debt financing, preferential tax treatment, more government subsidies, and superior access to regulated industries.
Abstract: We study how Chinese private entrepreneurs benefit from participating in politics. Using original hand-collected data on listed firms controlled by private entrepreneurs, we document a significant positive relationship between political participation and subsequent change in firm performance. We also provide evidence that the change in social status cannot explain the change in performance. We then identify several ways through which firms gain preferential treatment when the controlling entrepreneur participates in politics: better access to debt financing, preferential tax treatment, more government subsidies, and superior access to regulated industries.
TL;DR: In this paper, the effects of a revelation to blog readers that the blog has been sponsored by a company in exchange for favorable reviews of their products were investigated, and the responses of two readers were compared.
Abstract: This paper investigates the effects of a revelation to blog readers that the blog has been sponsored by a company in exchange for favorable reviews of their products. We compare the responses of tw ...
TL;DR: In this article, it has been well over a decade since Lumpkin and Dess first suggested new entry to represent the principal outcome of an entrepreneurial orientation (EO), yet, little consideration has been given t...
Abstract: It has been well over a decade since Lumpkin and Dess first suggested new entry to represent the principal outcome of an entrepreneurial orientation (EO). Yet, little consideration has been given t...
TL;DR: In this article, the authors examine the functioning of electricity markets and compare different market designs used to handle congestion in electricity transmission networks using game-theoretical models and empirically the link between information and price formation process.
Abstract: This thesis consists of four essays examining the functioning of electricity markets. The first article builds on a game-theoretical model, the three other articles discuss empirically the link between information and price formation process.Comparison of congestion management techniques: Nodal, zonal and discriminatory pricing, compares different market designs used to handle congestion in electricity transmission networks.Market-specific news and its impact on forward premia on electricity markets is an empirical analysis of the impact messages informing about sudden events affecting the power market have on price differences between the day-ahead and the intra-day Nordic electricity market.Strategic withholding through production failures, studies a previously unexamined way through which electricity producers can withhold capacity in order to increase prices on the Nordic electricity market and verifies whether the decision to stop production and inform about a sudden failure is based on economic incentives or rather is a result of a technical problem.Private and public information on the Nordic intra-day electricity market is an investigation of how traders on the Nordic intra-day electricity market react to public news about sudden failures on the power grid and whether they use private information about forthcoming outages in trading.
TL;DR: In this article, a detailed examination of the psychometric and empirical properties of some commonly used survey-based measures of risk preferences in a population-based sample of 11,000 twins was conducted, showing that the small amounts of variation that the risk measures have previously been reported to explain are in part artifacts of imperfect measurement.
Abstract: We conduct a detailed examination of the psychometric and empirical properties of some commonly used survey-based measures of risk preferences in a population-based sample of 11,000 twins. Using a model that provides a general framework for making inferences about the component of measured risk attitudes that is not due to measurement error, we show the measurement-error adjustment leads to substantially larger estimates of the predictive power of risk attitudes, of the size of the gender gap, and of the magnitude of the sibling correlation. Risk attitudes are predictive of investment decisions, entrepreneurship, and health behaviors such as smoking and drinking, are robustly associated with cognitive ability and personality, and our estimates are often larger than those in the literature. One implication of our results is that the small amounts of variation that the risk measures have previously been reported to explain are in part artifacts of imperfect measurement.
TL;DR: This article studied asset markets in which ambiguity averse investors face Knightian uncertainty about the fundamentals, and coexist with agents who have resolved their uncertainty, although not risk, as a result of a rational information acquisition process.
Abstract: This paper studies asset markets in which ambiguity averse investors face Knightian uncertainty about the fundamentals, and coexist with agents who have resolved their uncertainty, although not risk, as a result of a rational information acquisition process. In these markets, there are complementaries in information acquisition (the larger the number of informed agents, the higher the incentives for anyone else to become informed), multiplicity of equilibria, history-dependent prices, and large price swings occurring after small changes in the uncertainty surrounding the assets fundamentals. Our model predicts the typical market response to an uncertainty shock: a crash, followed by a sustained rally, which the model generates due to the information complementarities. Our model highlights uncertainty as a new channel for episodes of extreme price volatility, media frenzies and neglects.
TL;DR: In this paper, the authors examined three types of rewards in a retail loyalty program context and their impact on perceived distributive justice, customer satisfaction, and repatronize intentions, and found that equity-reward produced higher levels of perceived distributional justice than both under-and over-payments.
TL;DR: This paper found that genetic differences explain a sizeable fraction of the variance in political orientations but little is known about the pathways through which genes might aff ect ect ect the pathways of political orientation.
Abstract: Recent research has demonstrated that genetic differences explain a sizeable fraction of the variance in political orientations but little is known about the pathways through which genes might affe ...
TL;DR: The question is asked whether individuals in uninvadable population states will appear to be maximizing conventional goal functions (with population‐structure coefficients exogenous to the individual's behavior), when what is really being maximized is invasion fitness at the genetic level.
Abstract: A long-standing question in biology and economics is whether individual organisms evolve to behave as if they were striving to maximize some goal function. We here formalize this "as if" question in a patch-structured population in which individuals obtain material payoffs from (perhaps very complex multimove) social interactions. These material payoffs determine personal fitness and, ultimately, invasion fitness. We ask whether individuals in uninvadable population states will appear to be maximizing conventional goal functions (with population-structure coefficients exogenous to the individual's behavior), when what is really being maximized is invasion fitness at the genetic level. We reach two broad conclusions. First, no simple and general individual-centered goal function emerges from the analysis. This stems from the fact that invasion fitness is a gene-centered multigenerational measure of evolutionary success. Second, when selection is weak, all multigenerational effects of selection can be summarized in a neutral type-distribution quantifying identity-by-descent between individuals within patches. Individuals then behave as if they were striving to maximize a weighted sum of material payoffs (own and others). At an uninvadable state it is as if individuals would freely choose their actions and play a Nash equilibrium of a game with a goal function that combines self-interest (own material payoff), group interest (group material payoff if everyone does the same), and local rivalry (material payoff differences).
TL;DR: The authors analyzes the conflicts and compatibilities arising when advanced welfare states introduce corporate social responsibility (CSR), focusing on how the two traditions diverge and on how conflicts are reconciled.
Abstract: Corporate social responsibility (CSR) was historically a business-oriented idea that companies should voluntarily improve their social and environmental practices. More recently, CSR has increasingly attracted governments’ attention, and is now promoted in public policy, especially in the European Union (EU). Conflicts can arise, however, when advanced welfare states introduce CSR into public policy. The reason for such conflict is that CSR leaves key public welfare issues to the discretion of private business. This voluntary issue assignment contrasts starkly with advanced welfare states’ traditions favoring negotiated agreements and strong regulation to control corporate conduct. This article analyzes the conflicts and compatibilities arising when advanced welfare states introduce CSR, focusing on how the two traditions diverge and on how conflicts are reconciled. Empirically the study focuses on four Nordic countries—Denmark, Finland, Norway, and Sweden—widely recognized as the most advanced welfare st...
TL;DR: The authors assesses how CEO transitions shape labor contracts within firms and find evidence of a wage insurance mechanism during a CEO transition, and show that differences, in terms of job separations, between dynastic and non-dynastic CEO successions are significantly greater when labor markets are more frictional.