infonet-economy

Many studies that aim to detect model-free and model-based influences on behavior employ two-stage behavioral tasks of the type pioneered by Daw and colleagues in 2011. Such studies commonly modify existing two-stage decision paradigms in order to better address a given hypothesis, which is an important means of scientific progress. It is, however, critical to fully appreciate the…

Counterproductive reactions to unfavorable trading prices can cause inefficiencies in economic exchange. This paper studies whether the use of a competitive pricing mechanism reduces such wasteful activities. We report data from a laboratory experiment where a powerful buyer can trade with one of two sellers—an environment that can lead to very low prices for the sellers. We find…

Foreign direct investment (FDI) plays a crucial role in enabling developing economies to embark on a path of inclusive growth. This applies in particular if local subsidiaries of multinational enterprises (MNEs) are committed to ‘principled embeddedness’ meaning that they are prepared to integrate parts of the local economy into global value chains by enabling them to comply with the…

The study examines the banana production operations of Chiquita in the remote region of Changuinola in Panama and contrasts it with experiences from Guatemala and Costa Rica. Of particular interest are the local context and the socio-economic framework conditions in which the company is operating. They are essential to assessing the embeddedness of the company in the region. Moreover…

A variety of studies assess the impact of multinational enterprises (MNE) in developing countries. They mainly focus on the negative externalities of these companies. Therefore, this study focuses on the positive effects emanating from the presence of MNEs in developing countries. It is hypothesised that positive externalities resulting from MNEs have their source in the local…

The know-your-customer (KYC) due diligenceprocess is outdated and generates costs of up to USD 500million per year per bank. The authors propose a newsystem, based on distributed ledger technology (DLT), thatreduces the costs of the core KYC verification process forfinancial institutions and improves the customer experi-ence. In the proposed system, the core KYC verificationprocess…

Although almost all employees have heard of or witnessed their colleagues being mistreated, we have an incomplete understanding of how employees perceive and respond to such events. Whereas past research has established that observer emotions can be congruent with victim emotions, we examine observer schadenfreude, an incongruent emotion that is also prevalent in organizations. Based…

We investigate the welfare effects of vertical integration of regional sports networks (RSNs) with programming distributors in U.S. multichannel television markets. Vertical integration can enhance efficiency by reducing double marginalization and increasing carriage of channels, but can also harm welfare due to foreclosure and incentives to raise rivals' costs. We estimate a…