The risky investment game of Gneezy and Potters :631–645, 1997) has been proposed as a simple tool to measure risk aversion in applied settings, especially attractive in settings where participants may have limited education. However, this game can produce a significant endowment effect, so that analysis of the behavior in this game should not be done in the Expected Utility Theory framework. The paper illustrates this point, by showing that risk tolerance can be much higher when (...) the initial endowment concerns a risky lottery. (shrink)

Although trust and reciprocity are ubiquitous in social exchange, their neurobiological substrate remains largely unknown. Here, we investigated the effect of damage to the ventromedial prefrontal cortex (vmPFC)—a brain region critical for valuing social information—on individuals’ decisions in a trust game and in a risk game. In the trust game, one player, the investor, is endowed with a sum of money, which she can keep or invest. The amount she decides to invest is tripled and sent to (...) the other player, the trustee, who then decides what fraction to return to the investor. In separate runs, ten patients with focal bilateral damage to the vmPFC and control participants made decision while playing in the role of either investor or trustee with different anonymous counterparts in each run. A risk game was also included in which the investor faced exactly the same decisions as in the trust game, but a random device (i.e., a computer), not another player, determined the final payoffs. Results showed that vmPFC patients’ investments were not modulated by the type of opponent player (e.g., human vs. computer) present in the environment. Thus, vmPFC patients showed comparable risk-taking preferences both in social (trust game) and nonsocial (risk game) contexts. In stark contrast, control participants were less willing to take risk and invest when they believed that they were interacting with people than a computer. Furthermore, when acted as trustee, vmPFC patients made lower back transfers toward investors, thereby showing less reciprocity behavior. Taken together, these results indicate that social valuation and emotion subserved by vmPFC have a critical role in trusting and reciprocity decisions. The present findings support the hypothesis that vmPFC damage may impair affective systems specifically designed for mediating social transaction with other individuals. (shrink)

This paper investigates how reports concerning a given country’s prospects affect investment decisions in two stylized, artificial organizational settings. We designed a role-game laboratory experiment, where subjects were asked to make investment decisions for two types of fictitious companies from the same country. We found that when available reports included positive country prospects, subjects strategized more on investments regardless of the characteristics of their organization. When reports included negative prospects, however, certain organizational peculiarities influenced the subjects’ interpretations, (...) with decision-makers opting for more prudent plans when managing a more traditional company. Cognitive maps of decision makers showed that subjects considered investment strategies as a means to fulfil a company’s role expectations regarding appropriate decisions. Notwithstanding all caveats due to the artificial and simplified nature of our experimental setting, our findings indicate the need for more research on the effect of reports and prospect analysis on strategic decisions of companies, especially when business prospects are uncertain. (shrink)

Can the perception that one’s partner is investing effort generate a sense of commitment to a joint action? To test this, we developed a 2-player version of the classic snake game which became increasingly boring over the course of each round. This enabled us to operationalize commitment in terms of how long participants persisted before pressing a ‘finish’ button to conclude each round. Our results from three experiments reveal that participants persisted longer when they perceived what they believed to (...) be cues of their partner’s effortful contribution. Crucially, this effect was not observed when they knew their partner to be an algorithm, nor when it was their own effort that had been invested. These results support the hypothesis that the perception of a partner’s effort elicits a sense of commitment, leading to increased persistence in the face of a temptation to disengage. (shrink)

Can the perception that one’s partner is investing effort generate a sense of commitment to a joint action? To test this, we developed a 2-player version of the classic snake game which became increasingly boring over the course of each round. This enabled us to operationalize commitment in terms of how long participants persisted before pressing a ‘finish’ button to conclude each round. Our results from three experiments reveal that participants persisted longer when they perceived what they believed to (...) be cues of their partner’s effortful contribution. Crucially, this effect was not observed when they knew their partner to be an algorithm, nor when it was their own effort that had been invested. These results support the hypothesis that the perception of a partner’s effort elicits a sense of commitment, leading to increased persistence in the face of a temptation to disengage. (shrink)

Players of electronic games, particularly on-line role-playing games, may invest a substantial degree of time, effort, and personal identity into the game scenarios they generate. Yet, where the wishes of players diverge from those of game publishers, the legal and ethical interests of players remain unclear. The most applicable set of legal principles are those of copyright law, which is often grounded in utilitarian justifications, but which may also be justified on deontological grounds. Past copyright cases involving video (...) arcade and per-sonal computer gaming suggest that the gaming scenaria generated by players may constitute original selec-tion and arrangement of the game elements, thus qualifying such gaming sequences for copyright protection as either derivative works or works of joint authorship. But this result may be difficult to justify on utilitarian theories. Rather, the personal investment of game players suggests a deontological basis for claims of game sequence ownership. (shrink)

When heterogeneous players make strategic investment decisions in multi-stage contests, they might conserve resources in a current contest to spend more in a subsequent contest, if the degree of heterogeneity in the current contest is sufficiently large. We confirm these predictions using data from German professional soccer, in which players are subject to a one-match ban if they accumulate five yellow cards. Players with four yellow cards facing the risk of being suspended for the next match are less likely (...) to be fielded when the heterogeneity in the current match increases and more likely to receive a fifth yellow card in the current match when heterogeneity in the next match increases or heterogeneity in the next match but one decreases. (shrink)

Communication is an inherently strategic matter. This paper introduces simple game theoretic models of information transmission to identify different forms of uncertainty which may pose a problem of trust in testimony. Strategic analysis suggests discriminating between trust in integrity, trust in competence, trust in (the will to invest) effort and trust in honesty. Whereas uncertainty about the sender's honesty or integrity may directly influence a rational receiver's readiness to rely on sender's statements, neither uncertainty about the competence of a (...) sender nor uncertainty about his willingness to invest effort has any direct impact on rational reliance on its own. In this regard, trust in honesty and trust in integrity appear to be more basic than trust in competence or effort. (shrink)

Construction is one of the most dangerous industries because of its open working environment and risky construction conditions. In the process of construction, risk events cause great losses for owners and workers. Most of the risk events are closely related to unsafe behaviors of workers. Therefore, it is of great significance for contractors to establish management measures, e.g., incentive and punishment mechanism, to induce workers to reduce unsafe behaviors. This paper aims to take the incentive and punishment mechanism into consideration (...) and develop an evolutionary game model to improve the effectiveness of safety management. The evolutionary stability strategies which can help reduce unsafe behaviors are obtained and analyzed. Results show that there are 12 equilibrium strategies under the condition of different parameters. Specifically, the incentive and punishment mechanism has played an important role for the evolution direction. A balanced incentive and punishment mechanism for the investment and positive stimulus for workers can effectively promote both sides to take positive behaviors, and then realize good evolutionary stable situations. In addition, the initial perceptions of both sides have a decisive impact on the evolution direction. Strengthening communication with the mutual trust between both sides can improve safety performance of both sides. This study is valuable for contractors to design appropriate incentive and punishment measures and establish relevant strategies to promote safe behaviors of construction workers. (shrink)

The present paper investigates investor decision-making from a psychological standpoint and explores the role of consciousness and mindfulness on investors’ analytical ability and investment efficacy. A comprehensive survey instrument including sub-scales of different behavioural constructs is administered to 222 individual investors. We find evidence supporting the positive influence of cognitive capability on investment efficacy. The findings also suggest that mindfulness reliably mediates consciousness to cause an effect on cognitive capability. Higher cognitive capability will manifest in the form of (...) detailed analysis and interpretation of available information and improve stock selection, asset allocation, and market timing, thus increasing investment efficacy. A mindful investor can mitigate negative stimuli, emotional turmoil, dilemmas and distress in stock trading in a far more superior way to mediate consciousness for higher cognitive capability. The implications of the study indicate that consciousness and mindfulness-based interventions may facilitate making the investors stronger to manage difficult times and perform a careful rational assessment to eventually become successful investors. (shrink)

The wicked problems that constitute sustainability require students to learn a different set of ethical skills than is ordinarily required by professional ethics. The focus for sustainability ethics must be redirected towards: (1) reasoning rather than rules, and (2) groups rather than individuals. This need for a different skill set presents several pedagogical challenges to traditional programs of ethics education that emphasize abstraction and reflection at the expense of experimentation and experience. This paper describes a novel pedagogy of sustainability ethics (...) that is based on noncooperative, game-theoretic problems that cause students to confront two salient questions: “What are my obligations to others?” and “What am I willing to risk in my own well-being to meet those obligations?” In comparison to traditional professional ethics education, the game-based pedagogy moves the learning experience from: passive to active, apathetic to emotionally invested, narratively closed to experimentally open, and from predictable to surprising. In the context of game play, where players must make decisions that can adversely impact classmates, students typically discover a significant gap between their moral aspirations and their moral actions. When the games are delivered sequentially as part of a full course in Sustainability Ethics, students may experience a moral identity crisis as they reflect upon the incongruity of their self-understanding and their behavior. Repeated play allows students to reconcile this discrepancy through group deliberation that coordinates individual decisions to achieve collective outcomes. It is our experience that students gradually progress through increased levels of group tacit knowledge as they encounter increasingly complex game situations. (shrink)

#1 NEW YORK TIMES BESTSELLER • A bold work from the author of The Black Swan that challenges many of our long-held beliefs about risk and reward, politics and religion, finance and personal responsibility In his most provocative and practical book yet, one of the foremost thinkers of our time redefines what it means to understand the world, succeed in a profession, contribute to a fair and just society, detect nonsense, and influence others. Citing examples ranging from Hammurabi to Seneca, (...) Antaeus the Giant to Donald Trump, Nassim Nicholas Taleb shows how the willingness to accept one’s own risks is an essential attribute of heroes, saints, and flourishing people in all walks of life. As always both accessible and iconoclastic, Taleb challenges long-held beliefs about the values of those who spearhead military interventions, make financial investments, and propagate religious faiths. Among his insights: • For social justice, focus on symmetry and risk sharing. You cannot make profits and transfer the risks to others, as bankers and large corporations do. You cannot get rich without owning your own risk and paying for your own losses. Forcing skin in the game corrects this asymmetry better than thousands of laws and regulations. • Ethical rules aren’t universal. You’re part of a group larger than you, but it’s still smaller than humanity in general. • Minorities, not majorities, run the world. The world is not run by consensus but by stubborn minorities imposing their tastes and ethics on others. • You can be an intellectual yet still be an idiot. “Educated philistines” have been wrong on everything from Stalinism to Iraq to low-carb diets. • Beware of complicated solutions (that someone was paid to find). A simple barbell can build muscle better than expensive new machines. • True religion is commitment, not just faith. How much you believe in something is manifested only by what you’re willing to risk for it. The phrase “skin in the game” is one we have often heard but rarely stopped to truly dissect. It is the backbone of risk management, but it’s also an astonishingly rich worldview that, as Taleb shows in this book, applies to all aspects of our lives. As Taleb says, “The symmetry of skin in the game is a simple rule that’s necessary for fairness and justice, and the ultimate BS-buster,” and “Never trust anyone who doesn’t have skin in the game. Without it, fools and crooks will benefit, and their mistakes will never come back to haunt them.”. (shrink)

Due to excessive greenhouse gas emissions, carbon emission-reducing measures are urgently needed. Important emission-reduction measures mainly include carbon trading and low-carbon cost subsidies. Comprehensive consideration of these two policies is a research hotspot in the field of low-carbon technology investment. Based on this background, this paper considers the impact of consumer low-carbon preferences on market demand and the impact of uncertainty in carbon emission-reduction behaviour. We construct a stochastic differential game model with upstream and downstream enterprises based on (...) cost-sharing coordination under a cost subsidy. From a dynamic perspective, this paper researches the optimal equilibrium strategy and evolution characteristics of the joint emission-reduction mechanism in a supply chain. This paper discusses the sensitivity of the parameters and uses numerical simulation to verify the impact of each parameter on the emission-reduction decision-making activities of stakeholders after introducing the cost subsidy. The results show that a cost subsidy policy can promote carbon emission-reduction investment and supply chain profit. Thus, it is important to strengthen technical cooperation and exchange among enterprises. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:No Fun and Games Until Someone Loses an Eye: Transgression and Masculinity in Bataille and FoucaultJudith Surkis (bio)In August 1963 Critique published an “Hommage à Georges Bataille,” a special issue commemorating the death of its founder. How did the volume’s contributors go about the seemingly tricky business of pledging fealty to the philosopher of sovereignty? How did they profess loyalty to, in effect recognize, the sovereign subject known to (...) insistently refuse masterful identity?Apparently undisturbed by this difficulty, the articles written by Bataille’s acquaintances—Alfred Metraux, Michel Leiris, Raymond Queneau, André Masson, and Jean Piel amongst them—establish an explicitly fraternal relation to their contemporary. Piel begins his homage with an account of their initial encounter chez Queneau in 1927, noting his “impression of extraordinary fraternity, an impression which, through our last meeting days before his death, never diminished” [721]. Intermingling intellectual and personal history, these occasional pieces remember Bataille in a variety of contexts: the awakening of his interest in ethnology and work on Documents in the 1920s, his early “confrontations” with Hegel and work on Critique sociale and Contre-attaque in the 1930s, his sensitivity to events and developments in post-World-War-II Europe. While significantly diverse in focus, these articles manifest a similar approach, at once biographical and autobiographical, detailing the unfolding of shared intellectual amitié in favorite cafés, apartments, and studios. Bataille emerges here as a historical subject whose interests and investments, while multiple and, to use Leiris’s metonym, even “impossible,” are repeatedly linked to a variety of intellectual and political milieux.Michel Foucault’s “Preface to Transgression” assumes a more reverential tone than the pieces written by members of Bataille’s own generation. While framed as an explicit “homage” in its recognition of a certain debt to Bataille, Foucault’s essay also plays upon the contradiction of pledging loyalty to a “sovereign” who repeatedly renounces his own claim to mastery. Bataille’s death becomes an occasion on which to herald the “breakdown” and “shattering” of the masterful philosophical subject conventionally assumed to be in control of the “natural” language of dialectics [42–43]. For Foucault, a new possibility for philosophy is seen to arise in “the non-dialectical language of the limit which arises only in transgressing the one who speaks” [44], a transgression repeatedly performed, according to Foucault, in Bataille’s own writing and metaphorically enacted in and by his death. Bataille had, after all, proclaimed in the conclusion to Erotism: “To give transgression to philosophy as a foundation (it is the approach of my thought)...” Bataille’s theory of transgression aims to evoke a “world of play” in which “philosophy disintegrates” [275]. Yet, if the disintegration of philosophy in and through transgression is already Bataille’s “project,” we might inquire into why Foucault frames his article as a preface. [End Page 18]In introducing this presumably already achieved transgression, the “Preface” affects a curious, alternating temporality, a certain confusion of anteriority and posteriority. 1 At once following and preceding Bataille, Foucault remains out of sync and hence unable to coincide with Bataille in the shared amitié inscribed by the author’s contemporaries; it would appear that this generational gap introduces a certain shift in the recollection of Bataille’s legacy. Following in his footsteps, Foucault appropriates one of Bataille’s own disorienting gestures—the tactical use of prefaces, itself mentioned in the “Preface” [43]—in order to dislodge Bataille from his anterior position; instead, Bataille comes to epitomize the transgression predicted by Foucault’s “philosophical” preface. Bataille’s (and, by implication, Foucault’s own) “location” becomes confused and obscured; as I hope to show, Foucault is invested in achieving this state of indeterminacy for both himself and Bataille.To honor Bataille in death assumes a double significance for Foucault: it represents a “transgression of the philosopher’s being” which “has sent us to the pure transgression of his texts” [40] and simultaneously allows Foucault to sacralize Bataille. “Pure transgression” becomes liberated from the historically located being of the philosopher. And further, since the language of transgression is linked by Foucault to the “death of God,” Bataille becomes, in a sense, “deified” in the announcement and celebration of... (shrink)

We obsess about what our politicians are doing, but ignore that our companies are no longer investing, instead they are focusing on next quarter's profits in order to justify ever higher executive compensation. This is in turn accelerating the West’s economic decline versus the East. While the short-term focus of business is becoming widely acknowledged, we are not doing enough to reverse this. Looking at the less known history of companies shows us the choices we can no longer afford to (...) ignore. Some current reforms need to go further and some areas that need reform are currently being ignored. Encouraging our businesses to invest again is one of the most important issues of our time. (shrink)

How does a board of directors decide what is right? The contest over this question is frequently framed as a debate between shareholder value and stakeholder rights, between a utilitarian view of the ethics of corporate governance and a deontological one. This paper uses a case study with special circumstances that allow us to examine in an unusually clear way the conflict between shareholder value and other bases on which a board can act. In the autumn of 2010, the board (...) of Liverpool Football Club sold the company to another investing group against the explicit wishes of the owners. The peculiar circumstances of this case provide insight into the conflict between ethical approaches to board decisions, allowing us to see certain issues more clearly than we can in listed corporations with many shareholders. What the analysis suggests is that the board saw more than one type of utility on which to base its ethical decision, and that one version resonated with perceived duties to stakeholders. This alignment of outcomes of strategic value with duties contrasted with the utility of shareholder value. While there are reasons to be cautious in generalizing, the case further suggests reasons why boards may reject shareholder value, in opposition to mainstream notions of corporate governance, without rejecting utility as a base of their decisions. Further, the partial alignment of duty and utility facilitates a pragmatic decision rather than one based on a priori claims. (shrink)

How does a board of directors decide what is right? The contest over this question is frequently framed as a debate between shareholder value and stakeholder rights, between a utilitarian view of the ethics of corporate governance and a deontological one. This paper uses a case study with special circumstances that allows us to examine in an unusually clear way the conflict between shareholder value and other bases on which a board can act. In the autumn of 2010, the board (...) of Liverpool Football Club sold the company to another investing group against the explicit wishes of the owners. The peculiar circumstances of this case provide insight into the conflict between ethical approaches to board decisions, allowing us to see certain issues more clearly than we can in listed corporations with many shareholders. What the analysis suggests is that the board saw more than one type of utility on which to base its ethical decision, and that one version resonated with perceived duties to stakeholders. This alignment of outcomes of strategic value with duties contrasted with the utility of shareholder value. While there are reasons to be cautious in generalizing, the case further suggests reasons why boards may reject shareholder value, in opposition to mainstream notions of corporate governance, without rejecting utility as a base of their decisions. Further, the partial alignment of duty and utility facilitates a pragmatic decision rather than one based on a priori claims. (shrink)

What motivates manufacturing companies to make costly investments in producing in an environmentally clean manner? The traditional argument is that such behaviour is value reducing, and that therefore, firms must be forced by regulation to invest in "green" production processes. A counter-argument is that firms have an incentive to make environmental investments in an attempt to attract "green" consumers and investors, hence gaining competitive advantage over their rivals. In this paper, we employ a game-theoretic approach that demonstrates that competing (...) firms' incentives to make voluntary investments in environmental "clean-up" are affected by the size of the investment costs and the extent of consumer and investor "green" awareness. We argue that an increase in green behaviour can be induced by a combination of governmental subsidies for firms that invest in environmentally clean production processes, together with an education program that promotes "green" awareness amongst consumers, investors and the managers themselves. (shrink)

Subjects communicated prior to playing trust games; the richness of the communication media and the topics of conversation were manipulated. Communication richness failed to produce significant differences in first-mover investments. However, the topics of conversation made a significant difference: the amounts sent were considerably higher in the unrestricted communication conditions than in the restricted communication and no-communication conditions. Most importantly, we find that first-movers' expectations of second-movers' reciprocation are influenced by communication and strongly predict their levels of investment.

Farming computer games enable the ‘desk chair countryside’—millions of people actively engaged in performing farming and rural activities on-line—to co-produce their desired representations of rural life, in line with the parameters set by game creators. In this paper, I critique the narratives and images of farming life expressed in the popular computer game ‘Stardew Valley’. Stardew is based on a scenario whereby players leave a [meaningless] urban desk job to revitalize the family farm. Player are given a choice (...) to invest in the Community Center or to support ‘JojaMart’, a ‘big-box’ development. The farming narrative demonstrates the hallmarks of classical American agrarianism: farming as the basic profession on which other occupations depend, the virtue of hard work, the ‘natural’ and moral nature of agricultural life, and the economic independence of the farmer. More recent discourses of critical agrarianism are noticeably absent, particularly in relation to environmental protection. Conflict is centred on urban-based big business, whereas the farm is represented as a ‘bolt-hole’ or sanctuary from urban life. I argue that embedding issues of big-box development in gameplay enrols players in active reflection and debate on desirable responses, whereas the emphasis on reproducing classical agrarian tropes risks desensitizing game players to contemporary agrarian social and environmental justice issues. However, Stardew Valley gameplay implicitly reinforces the ideal that low input farming is the way that agriculture should be practiced. The success of the game in eliciting on-line debates, and the requirement for active performance and decision-making, demonstrates the specific potential of computer games as mediums for influencing and intervening in ongoing reworking of farming imaginaries, and enabling more critically engagement of the ‘desk chair countryside’ in important global debates. (shrink)

What motivates manufacturing companies to make costly investments in producing in an environmentally clean manner? The traditional argument is that such behaviour is value reducing, and that therefore, firms must be forced by regulation to invest in “green” production processes. A counter-argument is that firms have an incentive to make environmental investments in an attempt to attract “green” consumers and investors, hence gaining competitive advantage over their rivals. In this paper, we employ a game-theoretic approach that demonstrates that competing (...) firms’ incentives to make voluntary investments in environmental “clean-up” are affected by the size of the investment costs and the extent of consumer and investor “green” awareness. We argue that an increase in green behaviour can be induced by a combination of governmental subsidies for firms that invest in environmentally clean production processes, together with an education program that promotes “green” awareness amongst consumers, investors and the managers themselves. (shrink)

We report results from two original surveys of 500 firms conducted in 2000 and 2007 in eight regions in Russia that explore the business environment for manufacturing and service sector firms. We find that the formal and informal rules of the game for everyday firms in Russia have changed dramatically in the Putin years. Most importantly, while the informal and formal rules of the game in 2000 were quite similar for firms that were investing and those that were (...) not, in 2007 regional governments had come to favor the former through a variety of informal and formal means. This shift in the rules of the game in favor of firms that invest suggests that a core group of firms in the regions under study have managed to cooperate with the regional government to temper the weak institutional environment in Russia, but also that the playing field for businesses in Russia is not level. (shrink)

The real estate industry is characterized by a high degree of financial intensity and is more significant in certain areas. The relative enterprises require certain financial ability and large shareholders’ controlling power to support their survivals and competitiveness. However, due to the multiple adverse impacts of current state policies on banks and private capital, the problem of capital restraints of real estate has become increasingly serious. From a corporate governance perspective, this paper studies the interactions among financial constraints, ownership concentration (...) and corporate performance under different shareholding states: by analyzing the quantitative characteristics of equity structure and searching for the appropriate range of the largest shareholder holding ratio, which has considered both the financial sustainability and characteristics. It is found that raising the ownership concentration could enhance supervision effect rather than encroachment, effectively ease the financial constraints and improve the performance of enterprises, both of which are significant under high ownership concentration. Financial constraints play a significant intermediary effect in absolute holdings and have obvious regulatory effects in decentralized equity. Also, the mechanisms of ownership concentration are reflected in the strengthening of corporate supervision, reduced agency costs, improved operating efficiency, and increased investment attractiveness. The adjusted behavior adds to the responsibility awareness rather than free-ride psychology, forming a dynamic game on financial decisions. Their financial sustainability in areas would provide a nationwide reference for governance reform and managerial behavior. (shrink)

We use a controlled laboratory experiment to study firm’s protection against potential technological damages. The probability of a catastrophic event is known, and the firm’s costly investment in safety reduces it. The firm can also buy an insurance with full or partial refund against the consequences of the catastrophic event, which ultimately reduces the variance of the firm’s investment-in-safety lottery. The firm makes these two choices simultaneously, after observing the insurance contract proposed by an insurer who chooses this (...) contract within a set of premium–deductible combinations. We parametrize the insurer–firm game such that a risk-neutral insurer maximizes his expected profit by offering an actuarially fair contract with full insurance; a risk-neutral firm is indifferent between investing in safety and accepting a fair insurance contract. We aim at understanding whether investment in safety and insurance are substitutes or complements in the firm’s risk management of catastrophic events. In line with our predictions, the experimental results suggest that they are substitutes rather than complements: the firm’s investment in safety measures is affected by the insurer’s proposed contract, the latter usually involving only partial insurance. (shrink)

Standard models of portfolio investment rely on various statistical measures of dispersion. Such measures favor returns smoothed over all states of the world and penalize abnormally low as well as abnormally high returns. A model of portfolio investment based on the tradeoff between expected return and expected loss considers only abnormally low returns as undesirable. Such a model has a comparative advantage over other existing models in that a first-order stochastically dominant portfolio always has a higher expected return (...) and a lower expected loss. Expected return—expected loss model of portfolio investment can rationalize the equity premium puzzle. Two random variables are not comoving if there is at least one state of the world in which one random variable yields a positive return and the other—a negative return. Such random variables provide hedging benefits from diversification in portfolio investment according to the expected return—expected loss model. A special case of this model, when an investor linearly trade-offs expected returns and expected losses, is also a special case of the prospect theory when a decision-maker has a piece-wise linear value function without any probability weighting. (shrink)

Wittgenstein argues that understanding a language consists of mastery of techniques for playing language?games rather than some sort of mental state or episode such as mental imagery, rule invocation, or atmosphere investing our experience of words. His elimination of the three mentalistic alternatives presupposes the peculiar distinction, or its virtual lack, between speaker and listener presupposed by his positive claim, instead of establishing the latter. This paper vindicates the episodic nature of certain types of understanding, and gives each of his (...) three alternatives a suitably qualified role therein, by drawing the distinctions in a less biassed way. (shrink)

In this paper, a two-level green supply chain composed of a manufacturer and a retailer is taken as the background. Considering the consumer’s double consumption preference and the manufacturer’s green product R&D investment, a differential game model of the green supply chain under the government cost subsidy strategy is constructed. Firstly, the equilibrium points of the system are solved and their stability is discussed and analyzed. Secondly, the dynamic evolution process of Nash equilibrium under the parameters of green (...) degree, green preference coefficient, retail channel preference coefficient, coefficient of the sensitivity of price, and adjustment speed are described by numerical simulation. The results show that the two ways of a system entering chaos are Flip bifurcation and N-S bifurcation, respectively, by 2D bifurcation graph, and it is also verified in 1D bifurcation diagram. When the bifurcation parameters are small, the system maintains Nash equilibrium stability. If the green degree of products is increased, the green preference coefficient will also increase; on the contrary, the retail preference coefficient will decrease. Research and development cost subsidy policy can effectively improve the green degree of products and increase the sales volume of products, so as to improve the profit of supply chain members. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

Banks have an important social responsibility to serve the real economy and to maintain financial stability, and they also need to be responsible to borrowers and others. Against the backdrop of the COVID-19 pandemic affecting the global economy and increasing financial risks, it is particularly important for banks to assume social responsibilities. This study theoretically analyzed the outstanding applicability of stakeholder governance theory. Using a two-stage game method, the optimal pressure intensity of the social responsibility stakeholders was calculated, and (...) the dynamic performance of shareholders was deduced. We found that the establishment of the social responsibility stakeholder governance mechanism will prompt the bank to fulfill its social responsibilities; rational social responsibility stakeholders will not lead to poor bank management due to excessive behavior; and shareholders with social responsibility can self-consciously choose the investment projects with lower negative externalities. The conclusions can be summarized as follows: The participation of stakeholder and the establishment of the social responsibility function of the board of directors can help promote a bank's social responsibility performance. This work studied the social responsibility of banks from the new perspective of stakeholder governance, expands the theoretical boundaries, and puts forward relevant suggestions to enhance the application value of this research. (shrink)

In this paper we study the distribution of power in the Basque Parliament since the restoration of the Spanish democracy. The classic simple games do not fit with the particular voting rule that it is used to invest the president of the regional government. In order to model this voting mechanism we incorporate coalitional externalities to the game. We use the extensions of the most popular power indices to games with externalities that have been proposed in the most recent (...) literature. Moreover, we propose a method to estimate the probability of a given coalition based on the ideological positions of its members in a two-dimensional political spectrum. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

For nineteenth century British scientific naturalists like Charles Darwin, Thomas Henry Huxley, and John Tyndall, translation, and the issues of language that it raised, were crucial. Dealing with these issues became a major part of their strategy to reform British science, and it involved opening up the scientific community to French and German research. Early in their careers, both Huxley and Tyndall invested time translating science books from the continent into English. Later, as they themselves wrote books that were in (...) demand across the channel, they, and Darwin, put a great deal of time and energy into locating the best possible translators for their writings. Translation was not only a key to reforming British science; it was also essential as a means of circulating the evolutionary worldview of scientific naturalism globally. But Darwin, Huxley, and Tyndall were not fully prepared for the challenges they would encounter in authorizing translations of their own works. (shrink)

Through a phenomenological study of horse-human relations, this article explores the ways in which, as embodied beings, we live relationally, rather than as separate human identities. Conceptually this challenges oppositional logic and humanist assumptions, but where poststructuralist treatments of these issues tend to remain abstract, this article is concerned with an embodied demonstration of the ways in which we experience a relational or in-between logic in our everyday lives.

In this paper, private gardens are portrayed as spaces and implements of aristocratic passion for plant collecting, of competition within the gentry, as well as of scientific professionalisation for botanists. This paper traces the early history of botanical collections in the Russian Empire from the 18th to the early 19th century as part of an elite culture which encouraged amateur patrons to invest in expeditions, gardens, and, consequently, in professionals to manage such projects. Young graduates of European universities who began (...) their careers working at private botanical institutions could later successfully apply for academic positions. The circulation of specimens had developed as a key element of botanical collection and an important basis for the networking of professionals and amateurs around the world. This paper argues that collecting plant specimens became an important means for engaging in “power games” and even “plant diplomacy.” These new responsibilities significantly increased botanists' status as experts. A diverse group of personalities, such as the Empress Catherine II, King George III of England, the industrialist Prokophy Demidov, aristocrat Alexei Razumovsky, Joseph Banks, President of the Royal Society, the academician Peter Simon Pallas—all shared a passion for botanical collecting and were engaged in power games at different levels, using botany as an instrument of influence. (shrink)

We argue that pedagogic authority relies on love, which is misunderstood if seen as a matter of actions and subjects. Love is based not on finite subjects and objects existing in Euclidean space and linear time, but, rather, on the non-finite ontology, space and time of relations. Loving authority is a matter of calling and vocation, arising from the spontaneous and simultaneous call-and-response of a lively relation. We make this argument through a reading of Buber’s I–You relation and Murdoch’ s (...) account of the responsiveness of ascetic discipline. In presenting this analysis, we draw upon a case study from a research project on Australian teachers and students. (shrink)

Prior research suggests brokers do not always act in the best interests of clients, although morally obligated to do so. We empirically investigated this issue focusing on trades executed at best execution price, before and after the introduction of electronic limit-order trading, on the London Stock Exchange. As a result of limit-order trading, the proportion of trades executed at the best execution price for the customer significantly increased. We attribute this to a sustained increase in the liquidity of stocks as (...) a result of limit-order trading, regardless of market capitalisation. We discuss the ethical implications of our findings and conclude that market structures that enhance market competitiveness may help reconcile broker and client interests. (shrink)

This study examined the link between employees’ adult attachment orientations and perceptions of line managers’ interpersonal justice behaviors, and the moderating effect of national culture. Participants from countries categorized as low collectivistic and high collectivistic completed an online survey. Attachment anxiety and avoidance were negatively related to interpersonal justice perceptions. Cultural differences did not moderate the effects of avoidance. However, the relationship between attachment anxiety and interpersonal justice was non-significant in the Southern Asia cultural cluster. Our findings indicate the importance (...) of ‘fit’ between cultural relational values and individual attachment orientations in shaping interpersonal justice perceptions, and highlight the need for more non-western organizational justice research. (shrink)

How can cooperation be achieved between self-interested individuals in commonly-occurring asymmetric interactions where agents have different positions? Should agents use the same strategies that are appropriate for symmetric social situations? We explore these questions through the asymmetric interaction captured in the indefinitely repeated investment game (IG). In every period of this game, the first player decides how much of an endowment he wants to invest, then this amount is tripled and passed to the second player, who finally (...) decides how much of the tripled investment she wants to return to the first player. The results of three evolutionary studies demonstrate that the best-performing strategies for this asymmetric game differ from those for a similar but symmetric game, the indefinitely repeated Prisoner’s dilemma game. The strategies that enable cooperation for the asymmetric IG react more sensitively to exploitation, meaning that cooperation can more easily break down. Furthermore, once cooperation has stopped, it is much more difficult to reestablish than in symmetric situations. Based on these results, the presence of asymmetry in an interaction appears to be an important factor affecting adaptive behavior in these common social situations. (shrink)