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The current paper aims to present a formal model illustrating how payoff imbalances among the members of a team of decision makers (DMs) who must undertake a project condition the final outcome obtained. This result builds on the fact that payoffs imbalances would lead to different performance levels among the employees and managers who compose a team. The analysis is applied to a strategic environment, where a project requiring coordination among the DMs within the team must be developed.

The intuition behind the strategic framework on which the results are based is twofold. The authors build on the literature on social comparisons and assume that employees and managers acquire information on the payoffs received by other members of the team while being affected by the resulting comparisons, and they follow the economic literature on firm boundaries determined via incomplete contracts. In this case, employees and managers may underperform if they feel aggrieved by the outcome of the contract giving place to deadweight losses when developing the project.

The authors illustrate how a team-based performance reward structure may lead to a coordinated equilibrium even when team managers and employees receive different payoffs and exhibit shading incentives based on the payoff differentials between them. The authors will also illustrate how identical shading intensities by both groups of DMs imply that shading by the managers imposes a lower cost on the profit structure of the firm because it leads to a lower decrease in the cooperation incentives of the other members of the team. Finally, the authors show how differences in shading intensity between both types of DMs trigger a strategic defect mechanism within the team that determines the outcome of the project.

The novel environment of team cooperation and defection through shading introduced in this paper is designed to deal with the strategic decisions taken by DMs when undertaking a project within a group. In particular, the intensity of shading applied by the DMs will be endogenously determined by the relative payoffs received, which allows to account for different scenarios, where relative payoff differentials among DMs determine the outcome of the project.

This study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased export growth, and the fragility of the credence-based export model. Much of the growth in value of yerba mate exports from Paraguay is due to positioning of the good within the universe of products where consumption is driven by perceptions of sustainable production and health benefits to consumers. Credence claims for yerba mate—benefits to indigenous producing communities, environmental sustainability under certain production processes, healthful alternatives to energy drinks—are now widely known, but the growth of this awareness came via a new entrepreneurial strategy of a single firm.

Primary information was collected through interviews of actors in the Paraguayan yerba mate value chain during spring/summer 2020. These included representatives from three exporting companies, processors, public institutions and indigenous producers.

The Paraguayan yerba mate export boom was stimulated through the careful cultivation of an image of healthful consumption and sustainable production processes. The cost of this cultivation was borne mainly by a single firm. Findings suggest that future marketing efforts will need to reinforce credence claims, highlighting the benefits to indigenous producers.

This case study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased growth, and the fragility of the credence-based model.

Findings are supported by field interviews with value chain participants and detailed analysis of extant data. The paper is the first to discuss the fragility of relying on credence attributes for long-term demand growth.

This chapter reviews the recent developments at the intersection of personalization and AI in marketing and related fields. We provide a formal definition of personalized policy and review the methodological approaches available for personalization. We discuss scalability, generalizability, and counterfactual validity issues and briefly touch upon advanced methods for online/interactive/dynamic settings. We then summarize the three evaluation approaches for static policies – the Direct method, the Inverse Propensity Score (IPS) estimator, and the Doubly Robust (DR) method. Next, we present a summary of the evaluation approaches for special cases such as continuous actions and dynamic settings. We then summarize the findings on the returns to personalization across various domains, including content recommendation, advertising, and promotions. Next, we discuss the work on the intersection between personalization and welfare. We focus on four of these welfare notions that have been studied in the literature: (1) search costs, (2) privacy, (3) fairness, and (4) polarization. We conclude with a discussion of the remaining challenges and some directions for future research.

The purpose of this paper is to study the informational role played by an intermediary in the service industry.

The paper used survey and choice data collected from agents and customers, respectively, in the hotel industry.

The paper shows that informational role of agents in choice varies from mere facilitation of the transaction (e.g. making reservation) to a more active role involving accurate predictions about attributes that consumers will perceive important, more realistic performance evaluation of choice options and providing information about experience attributes. The results also show how an agent's role depends on customer's prior knowledge about the choice options, the goal underlying service consumption (e.g. business vs vacation travel), benefits sought by the consumer and the agent's perception about a long term relationship with the consumer. Finally, the results also reveal a unique pattern of differences between agents and consumers in the perceived importance and performance ratings of various features of the service.

This research is limited to agents in the hotel industry. The hypotheses should be tested on other service agent industries such as airlines and restaurants. Future research should consider other alternative sources of information that consumers may use, such as printed material.

The unique nature of the data set – that is, information from the agent as well as the consumer on the same transaction – offers a great opportunity to study the two different points of view and test some hypothesis regarding the degree to which the players understand each other.

The purpose of this paper is to explore the link between R&D internationalization and finance decisions by providing survey evidence on the funding sources of R&D in light of recent perceptions of MNEs' decentralized knowledge-related competitiveness.

The study draws upon a survey of 83 decentralized R&D units located in countries outside the EU core of mature economies. Funding sources are classified as MNE-internal and external. Using simulation-based models, six ordered probit regression models were run with each funding source forming the dependent variable.

There are three significant findings. First, decentralized R&D funding relies mainly on MNE-internal sources. Second, decentralized R&D funding patterns reflect on the interdependencies within an overall MNE R&D strategy that is articulated through varied laboratory roles. Third, while the strategy-finance interaction is confirmed, the prevalence of parent funding is challenged. Instead, evidence recorded here suggests support for the decentralized, “subsidiary-focused” perspective that has recently regained a considerable momentum in the literature.

Notwithstanding that this study reinforces the interaction between strategic decisions and funding patterns, more work is required to identify the effects of other aspects of strategy on the funding sources of decentralized R&D activity. However, it is seemingly the first study that investigates MNEs' R&D financial decisions in economies outside the EU core, incorporating also a wide array of external funding sources.

Funding choices for decentralized R&D labs should be contingent upon their unique contribution to the competitive evolution of the MNE group. Further, R&D activity seems to leverage the autonomy of subsidiary managers.

This research is one of the very few empirical studies providing evidence on the funding sources of decentralized R&D laboratories, and suggests possible predictors that have not been put forward hitherto.

CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract Foreign Direct Investment (FDI), and the privatisation of State-Owned Enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm’s own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China.

Although a basic need, housing and its development activities impinge on the environment. As part of efforts to promote sustainability, there have been several initiatives since the Brundtland Commission's work in 1987 to minimise the adverse impact of housing development activities on the environment in the developing world such as sub-Saharan Africa (SSA). This chapter explores housing development activities in Ghana within the context of environmental sustainability based on the extant literature. The aim is to examine the state and promotion of environmental sustainability in the housing development sector. The chapter establishes that although there are some efforts to promote environmental sustainability within the housing development sector, uptake of environmental sustainability practices has been less satisfactory due to lack of incentives as stakeholders perceive that environmentally sustainable homes are more expensive than conventional ones. The chapter, therefore, recommends further investigations into the cost and benefit of environmentally sustainable homes as well as other drivers in Ghana to give additional insights to provide the appropriate doses of incentives both contrived and instinctive to drive uptake.

This study explores the difference in occupants' satisfaction with biophilic features in high-rises, townhouses, and villas in Dubai to identify new strategies that promote more human-nature connections. The study also serves as a benchmark for applying Biophilic Design in the Gulf region and bridging between biophilic theory and practice.

A mixed-mode approach was used, combining surveys from occupants and interviews with experts (3 policymakers, a developer, and a biophilic design educator). The survey collected occupants' satisfaction and acceptance of proposed strategies, and the interviews validated the potentially accepted solutions.

The results indicated high overall satisfaction with biophilic features despite neutral/low satisfaction with specific features. In high-rise buildings, respondents showed high acceptance for different proposed strategies; 76.4% for adaptive control of balconies by season, 82.7% for utilizing outdoor roof gardens, 78.9% for indoor gardens, and 71.8% for vertical farming. Additionally, respondents accepted social strategies; 63.6% agreed to join clubs promoting environmental events, and 75.4% accepted participating in outdoor recreational activities accompanied by local environmental education. The interviews showed an inclination toward incentive programs instead of obligations.

Unlike former studies that assessed indoor environmental qualities without referring to biophilic theory or limited reference to biophilic design, this study provides a novel approach for bridging theory and practice by integrating biophilic design into residential buildings for Dubai's future developments. Additionally, the authors suggest validated proposals to enhance the occupants' biophilic living experience, serving as a benchmark for biophilic application in the Gulf region.

Although a UK trajectory toward zero-carbon development for all new housing by 2016 has been set, the cost of building such homes and the changes implied for current constructional culture, together with lack of fiscal incentives, makes the target very difficult to achieve. Moreover, the recent governmental clarification of the definition of zero-carbon housing may make it impossible. This paper proposes a prototype construction (see also the associated paper in this issue) and examines in detail both the constructional and cost barriers to eliminating carbon emissions from tightly limited total thermal and electrical consumption targets (not more than 70 kWh/m2). Having established generous access to sunlight and daylight as prerequisites, a related health issue is air quality, especially with air-tight construction. While thermal and hygroscopic capacity can mediate between quality and efficiency, current norms for Scottish housing are notably poor in both respects. A key aim is to assess whether specification for a ‘low-carbon house’ can be cost effective. An analysis is undertaken to asses the increased cost associated with integration of energy efficient measures in the proposed prototype model. The specification of the building envelope and associated renewable technologies are addressed with reference to their cost implication on the overall build cost. Finally potential governmental incentives are proposed to not only meet the 2016 target, but also to promote enthusiasm by the end user. The paper concludes that low-carbon and zero-carbon scenarios would require radical changes of funding/fiscal and building cultures.

The researchers analyzed factors affecting the adoption of the Leadership in Energy and Environmental Design (LEED) green-building certification system in Jordan, including financial performance of certified projects along with broader barriers that may impact developers’ interest in LEED.

The authors first reviewed online data for all LEED registered and certified projects in Jordan, recruited LEED-certified project stakeholders, collected documents related to LEED projects and conducted LEED category credit summaries, financial cost-benefit analyses and spot-checking reported values in local markets. The authors then visited projects sites and interviewed various project stakeholders to understand better stakeholders' decision-making processes concerning LEED and relevant factors (financial, branding, cultural, political, etc.).

Obtaining LEED certification in Jordan was financially feasible as evinced in both the quantitative analysis and interviews. However, the authors found that there was very limited interest in LEED among Jordanian developers. Barriers included widespread cynicism toward green building concepts as well as a lack of local expertise in installing and maintaining green technologies. To overcome these barriers, the authors recommend that green building initiatives place a greater emphasis on education and public-promotion activities.

The research data were limited to projects that had successfully achieved LEED certification. Broader qualitative research conducted across the Jordanian building community could provide additional insights, but such an investigation is beyond the scope of the current study.

The complexity of adapting a Western green building standard (LEED) to a non-Western context is discussed in detail. The findings suggest that understanding regional development challenges, local markets and cultural differences is vital for successfully implementing green building certification systems.