Do high stakes and competition undermine fair behaviour? Evidence from Russia
This paper reports the results of a series of competitive labour market experiments in whichsubjects have the possibility to reciprocate favours. In the high stake condition subjectsearned between two and three times their monthly income during the experiment. In thenormal stake condition the stake level was reduced by a factor of ten. We observe that bothin the high and the normal stake condition fairness concerns are strong enough to outweighcompetitive forces and give rise to non-competitive wages. There is also no evidence thateffort behaviour becomes generally more selfish at higher stake levels. Therefore, our resultssuggest that fairness concerns may play an important role even at relatively high stakelevels.
State Capitalism could be characterized by a triple role of the state: the state performs as a “programmer” to guide economic activity; it acts as a “protector” to safeguard national economic interests; and it also plays the role as a “producer” to create national wealth through its state-owned enterprises (SOEs). However, the influences of State Capitalism in a country are not only limited to the domestic sphere. They often extend internationally, either through the globalization of SOEs, or through Sovereign Fund investments, or by means of other influences. Many recent acquisition projects by SOEs, often in strategic sectors, highlight the importance of understanding this new geopolitical investment which has created special relations between State Capitalism and the free market. They also raise the question of the need for updating national economic security concerns in the context of globalization. As the value of Sovereign Funds reaches several trillion dollars, the controversy surrounding these Funds is evolving. For many, these Funds do not necessarily always look for maximizing business performance, but are sometimes also accompanied by political and strategic ambitions of the respective states from where they originate. The phenomenon of State Capitalism has gained prominence in recent years especially in several emerging markets. It appeared, firstly, because of multiple government interventions in the economy,and secondly, emphasis given to the globalization of their SOEs / economic organizations in international markets (China, Russia, Brazil, Malaysia, Saudi Arabia, India, Korea, etc.). In January 2012, The Economist published another special article on State Capitalism and wondered if the new balance of power that is being built-up with the emergence of market oriented SOEs will pose a challenge to the liberal capitalist model. The objectives of this conference are manifold: to examine the characteristics of State Capitalism in the world economy, especially in emerging countries, to assess its real impact on economic development, to identify its scope to other developing countries, and also to explore the major challenges that it poses to the liberal capitalist model in the world of free-markets.
The article is a reply to M. Dodlova and M. Yudkevich. In their recent paper they undertake an attempt to use the notion of gift in the analysis of principal–agent relationship and to generalize the idea of gift in order to obtain a theory of gift exchange in the workplace. However, the analysis suggested lacks conceptual clarity and rests upon false presuppositions regarding the nature of gift. As a result, authors draw erroneous conclusions and fall victims of the magic of the gift. This short reply points to these deficiencies and suggests some ideas for alternative approaches to the analysis of certain phenomena observed in the workplace.
The article discusses the controversial concept of marketing for non-profit organizations. The existing theory of marketing for non-profit organizations developed with borrowing some concepts from the social sciences. From sociology, organizational behavior and anthropology were borrowed the concept of the organization as an open system, motivation, self-interest, bilateral voluntary exchange. Alternative concepts of organization, motivation and relationships with the environment created within the social sciences, allow to formulate an alternative approach to the study of non-profit marketing organizations. Recommendations for future research are offered.
The author deconstructs the prevailing conceptualization of non-profit marketing and concludes it rests on three principles: voluntary exchange, an open system organization, and self-interest motivation. A review of the genesis of these principles revealed that alternative principles were ignored in the social science literature. Based on a qualitative analysis and critical hermeneutic approach a revised conceptualization of non-profit marketing was suggested which incorporated the principles of reciprocity, the features of a contingency-choice organization, and altruistic interest motivation. A revised definition of non-profit marketing is offered based on these principles.
Although the concept of non-profit sector marketing has been widely embraced by marketing academics, many scholars and managers in the non-profit field remain skeptical. Skeptics of the appropriateness of the marketing concept in the non-profit field argued that its application distorted a non-profit organization's objectives, antithetical to its social service ethic, and invited inappropriate commercialization of non-profit services P. Kotler and his associates modified existing political communication and public advertising theories to formulate the marketing approach comprised of the «4 Ps» model, voluntary exchange, and the marketing philosophy of meeting customers’ needs. This explanation of the notion of marketing resulted in the term «social marketing». In 1972, Kotler formulated his broadened, generic, and axiomatic concept of marketing that was conceptualized as being universal for any type of product or organization including non-profit organizations. Three major principles underling the school's conceptualization of non-profit marketing: An open-system model of formal organizations, borrowed from organizational theory and the concept of social exchange, adapted from individualistic sociology. An alternative explanation can be based on: A closed-system model of formal organizations. The closed-system perspective is older stemming from Weber's classical analysis of bureaucracy. «Coercion mutually agreed upon « motivation. Self-interest motivation has limited usefulness in context of non-profit organizations. In many contexts it is antithetical to the philosophy of non-profit services and, hence, is inconsistent with a legitimate conceptualization of non-profit marketing. The application of self-interest motivation is integral to the social exchange school of marketing, but in the context of non-profit agencies it is inappropriate. Reciprocity and Redistribution. The relationship of formal organizations with their environments can be explained not only from an exchange perspective but also from reciprocity and redistribution perspectives.
Monetary incentives in online experiments are not always easy to implement. Yet online experiments are advantageous in terms of natural decision-making environment, less stress on participants and large number of the latter. Can we obtain plausible results from online experiments by using non-monetary in- centives like altruism and curiosity? We investigate the role of non-monetary incentives in a simple Ellsberg-type experiment which can be easily compared to similar lab experiments.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.