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Article

Benjamin Ferguson

The concept of exploitation is often invoked in situations where relatively impoverished people are treated unfairly in economic and social contexts. While the claim that exploitation involves taking unfair advantage is broadly accepted, there is little consensus about what fairness requires and whether unfairness is seriously wrong in the context of exchanges. One family of accounts claims that exploitation involves the maldistribution of resources, either because exploitative transactions result in distributions that violate substantive norms of fairness, or because procedural flaws in the way exploitative transactions come about entail that their outcomes are unfair. A second, domination-based approach to exploitation claims that the moral flaw embodied by exploitative relations is the exploiter’s disrespectful use of his power over the exploitee. While exploiters’ domination of others may lead to maldistributions, defenders of the domination-based approach argue that distributive unfairness is neither necessary nor sufficient for exploitative relations. These approaches both face two kinds of challenges. The first concerns the scope. Neither appears to provide necessary and sufficient conditions that are adequate to capture all and only cases commonly described as exploitation. The second concerns the normative status. Exploitation is typically assumed to be morally impermissible, yet neither approach seems to satisfactorily explain how exploitations that nevertheless generate significant welfare gains for both parties can be wrong.

Article

Katina Sawyer and Judith A. Clair

Stereotypes are a central concern in society and in the workplace. Stereotypes are cognitions that drive what individuals know, believe, and expect from others as a result of their social identities. Stereotypes predict how individuals view and treat one another at work, often resulting in inaccurate generalizations about individuals based on their group membership. As such, it’s important to break down and combat the use of stereotypes in decision-making at work. If stereotypes can be overcome in the workplace, fairness and equity in organizations becomes more likely.

Article

For decades, scholarly inquiry into political trust has been motivated by concerns about declining levels of public trust in politics. Because political trust is considered a necessary precondition for democratic rule, a decline in trust is thought to fundamentally challenge the quality of representative democracy. Fundamentally, political trust can be understood as citizens’ support for political institutions such as government and parliament in the face of uncertainty about or vulnerability to the actions of these institutions. While political trust is conventionally treated as a pro-democratic value, its absence is not evidently detrimental to democracy. Rather, skepticism stimulates political engagement and signals a willingness to judge political institutions by their own merits. In cross-national comparisons political trust is consistently highest in countries that are not considered liberal democracies. Within the set of liberal democracies, the Nordic countries tend to have the highest trust rates, while the former communist countries in Central and Eastern Europe have the lowest. Despite evidence that political trust declines in many longstanding democracies in the 1960s and 1970s, the last few decades are characterized by trendless fluctuations in most countries. While scholars have made great headway in understanding the sources of political trust—most notably corruption, procedural fairness, (economic) performance, inclusive institutions, and socialization—this article argues that knowledge about its consequences has remained remarkably scarce.

Article

Frej Klem Thomsen

The conceptualization and moral analysis of discrimination constitutes a burgeoning theoretical field, with a number of open problems and a rapidly developing literature. A central problem is how to define discrimination, both in its most basic direct sense and in the most prominent variations. A plausible definition of the basic sense of the word understands discrimination as disadvantageous differential treatment of two groups that is in some respect caused by the properties that distinguish the groups, but open questions remain on whether discrimination should be restricted to concern only particular groups, as well as on whether it is best conceived as a descriptive or a moralized concept. Furthermore, since this understanding limits direct discrimination to cases of differential treatment, it requires that we be able to draw a clear distinction between equal and differential treatment, a task that is less simple than it may appear, but that is helpful in clarifying indirect discrimination and statistical discrimination. The second major problem in theorizing discrimination is explaining what makes discrimination morally wrong. On this issue, there are four dominant contemporary answers: the valuational and expressive disrespect accounts, which hold that discrimination is wrong when and if the discriminator misestimates or expresses a misestimate of the moral status of the discriminatee; the unfairness account, which holds that discrimination is wrong when and if the discriminator unfairly increases inequality of opportunity; and the harm account, which holds that discrimination is wrong when and if the discriminator harms the discriminatee. Each of these accounts, however, faces important challenges in simultaneously providing a persuasive theoretical account and matching our intuitions about cases of impermissible discrimination.

Article

Dirk D. Steiner

Organizational justice refers to people’s perceptions of the fairness or unfairness of the treatment they receive in the organizations where they work. The ways authorities, such as supervisors and managers, make decisions and implement them are evaluated by employees in terms of their fairness. Other agents, such as coworkers and customers who interact with employees, also can generate judgments of fairness or unfairness at work. These fairness perceptions can be conceived according to four dimensions of organizational justice as well as in general terms. The four dimensions are distributive, procedural, interpersonal, and informational. Typically, distributive justice evaluates the equity of treatment, where people expect outcomes proportionate to their contributions. Workers also evaluate the fairness of procedures used to make decisions and the quality of their interpersonal relations with the various actors of the organization, including the information the actors communicate regarding decisions and the procedures followed to make them. When people perceive that they are treated fairly, positive consequences result for them and for their organizations. Thus, they tend to be more satisfied, evaluate their management more favorably, engage in more prosocial behaviors within their organizations, perform at higher levels, and remain in their employing organizations for longer periods. When people experience unfair treatment, negative consequences include stress and health-related concerns for employees, negative attitudes toward the organization, and counterproductive behaviors, such as theft, vandalism, or absenteeism. People react strongly to fair or unfair treatment for different reasons. They may believe that fair treatment will allow them to receive the rewards that they deserve, it may communicate that they are valued in a group, or fair treatment may be valued as an important and basic principle of human functioning. Research on organizational justice in 2020 focuses on understanding the mechanisms producing fairness judgments and their consequences and on the boundary conditions limiting the observed relations with their antecedents and outcomes.

Article

Marcus M. Weymiller and Christopher W. Larimer

“Decision outcomes” refers to mass political behavior as well as decisions by elites in the policy arena. Such outcomes are naturally the product of the decision-making process, a process that has been informed considerably by research in areas outside of political science. Political and policy processes are less defined by rational responses to incoming information than by pre-existing cognitive biases favoring narratives, stories, and symbols. Thus, to accurately understand decision outcomes requires an interdisciplinary approach, and, indeed, the discipline of political science has increasingly incorporated insights from psychology, social psychology, sociology, behavioral economics, and other social and natural sciences. Decision outcomes may reflect the true preferences of decision-makers, but behavior and outcomes have also been shown to change dramatically depending on who knows (or will know) the decision. Considering decision outcomes as the dependent variable, several factors have been identified that consistently and significantly shape outcomes in the political and policy worlds. Political outcomes, such as voting (by citizens and elites), are often explained by focusing on party ID or partisanship, and for good reason, but there are also instances in which decision outcomes are better encapsulated by more localized factors or influences. Policy outcomes, on the other hand, are less easily defined or predicted. Emotional testimonies and random fluctuations affect whether an issue is acted upon by a legislative body. Attention to social context and a concern for fairness is a primary driver of decision outcomes in social situations. In particular, leader–follower dynamics and group outcomes are significantly affected by the process in which decisions are made.

Article

Without copyright law, authors would be unable to internalize the benefits of their writings. Copyright law reacts to this by providing authors with a period of exclusivity. The relevant legislation has a contract-like character; authors receive a period of exclusivity, and the public benefits by virtue of original writings that eventually pass into the public domain. Ideally each contract between the public and an author would be individually negotiated. Because U.S. copyright law is strictly utilitarian, authors would be “paid” the lowest amount possible to bring their works into existence. For example, popular authors may be able to internalize sufficient returns in just a few years. In other cases, a longer period of exclusivity is necessary. Huge transaction costs prohibit individual transactions and, at this writing, most works are protected for the life of the author plus 70 years. As an economic matter, the actual implementation of copyright law is hard to rationalize. Works with even a modicum of creativity are copyrightable. This can result in a disincentive to be creative and invites expensive legal disputes about works that are socially irrelevant. In addition, works receive levels of protection that are independent of their value to the public. In some instances Congress with the approval of the Supreme Court has extended the copyright term for works already in existence. Retroactive extension of the copyright term cannot have an impact on works in existence. Oddly, copyright law views authors as profit maximizers but also limits the value of their works by allowing heirs to terminate assignments after a set period of time. Finally, the remedy for copyright infringement is the damages suffered by the author plus all profits made by the infringer that can be traced to the infringement. It is not clear that this remedy is consistent with the goals of copyright law.

Article

Federal housing policy has been primarily devoted to maintaining the economic stability and profitability of the private sector real estate, household finance, and home-building and supply industries since the administration of President Franklin D. Roosevelt (1933–1945). Until the 1970s, federal policy encouraged speculative residential development in suburban areas and extended segregation by race and class. The National Association of Home Builders, the National Association of Realtors, and other allied organizations strenuously opposed federal programs seeking to assist low- and middle-income households and the homeless by forcing recalcitrant suburbs to permit the construction of open-access, affordable dwellings and encouraging the rehabilitation of urban housing. During the 1980s, President Ronald Reagan, a Republican from California, argued it was the government, not the private sector, that was responsible for the gross inequities in social and economic indicators between residents of city, inner ring, and outlying suburban communities. The civic, religious, consumer, labor, and other community-based organizations that tried to mitigate the adverse effects of the “Reagan Revolution” on the affordable housing market lacked a single coherent view or voice. Since that time, housing has become increasingly unaffordable in many metropolitan areas, and segregation by race, income, and ethnicity is on the rise once again. If the home mortgage crisis that began in 2007 is any indication, housing will continue to be a divisive political, economic, and social issue in the foreseeable future. The national housing goal of a “decent home in a suitable living environment for every American family” not only has yet to be realized, but many law makers now favor eliminating or further restricting federal commitment to its realization.

Article

Traditional trade theory has focused on the allocation of resources between various sectors of the economy and how it changes in response to trade liberalization while maintaining the assumption of free mobility of resources across sectors within an economy. This simplifying assumption is at odds with empirical evidence which shows considerable frictions in the movement of resources between sectors, at least in the short to medium run. Workers who lose their jobs in the import competing sector may find it hard to find a job immediately in the export sector. This has given rise to a growing literature that incorporates frictions in the mobility of factors of production in general, and labor in particular, in trade models. This article surveys the literature on trade and unemployment where unemployment is caused by search frictions or wage rigidity of some kind such as minimum wage, efficiency wage, or implicit contracts. While the focus is on unemployment, any model studying the impact of trade on labor markets features wage effects, too, and a brief discussion of wage effects is also provided. Trade affects unemployment in these multi-sector models through two main channels: sectoral unemployment rates and intersectoral reallocation of resources. In newer trade models with heterogeneous firms, trade can change unemployment by affecting the allocation of resources within a sector. While the theoretical models in this literature identify various channels through which trade liberalization affects unemployment, many of these channels have opposing implications for unemployment, rendering the net effect of trade liberalization on unemployment ambiguous in many settings. This has also given rise to an empirical literature studying the implications of trade liberalization on unemployment.

Article

International organizations (IOs) have effectively modified the structure of international law. For more than six decades, IOs have echoed the aspirations of humankind, in pursuit of the ideal of realization of justice, and have furthermore contributed to that end. IOs are provided with privileges and immunities that are intended to ensure their independent and effective functioning. These are specified in the treaties that give rise to the organization, which are normally supplemented by further multinational agreements and national regulations under the international law. Rather than by national jurisdiction, legal accountability is intended to be ensured by legal mechanisms that are internal to the IO itself and by access to administrative tribunals. In the course of many court cases, where private parties tried to pursue claims against IOs, there has been a gradual realization that alternate means of dispute settlement are required, as states have fundamental human rights obligations to provide plaintiffs with access to court in view of their right to a fair trial. Otherwise, the organizations’ immunities may be put in question in national and international courts.

Article

Insider trading is not widely understood. Insiders of corporations can, in fact, buy and sell shares of those corporations. But, over time, Congress, the courts and the Securities and Exchange Commission (SEC) have imposed significant limits on such trading. The limits are not always clearly marked and the principles underlying them not always consistent. The core principle is that it is illegal to trade if one is in the possession of material, nonpublic information. But the rationality of this principle has been challenged by successive generations of law and economics scholars, most notably Manne, Easterbrook, Epstein, and Bainbridge. Their “economic” analysis of this contested area of the law provides, arguably, at least a more consistent basis upon which to decide when trades by insiders should, in fact, be disallowed. A return to genuine “first principles” generated by the nature of capitalism, however, allows for more powerful insights into the phenomenon and could lead to more effective regulation.

Article

Michela Menegatti and Monica Rubini

Language is one of the most powerful means through which sexism and gender discrimination are perpetrated and reproduced. The content of gender stereotypes, according to which women should display communal/warmth traits and men should display agentic/competence traits, is reflected in the lexical choices of everyday communication. As a consequence, language subtly reproduces the societal asymmetries of status and power in favor of men, which are attached to the corresponding social roles. Moreover, the hidden yet consensual norm according to which the prototypical human being is male is embedded in the structure of many languages. Grammatical and syntactical rules are built in a way that feminine terms usually derive from the corresponding masculine form. Similarly, masculine nouns and pronouns are often used with a generic function to refer to both men and women. However, such linguistic forms have the negative effects of making women disappear in mental representations. Although the use of gender-fair linguistic expressions can effectively prevent these negative consequences and promote gender equality, there are even more implicit forms of gender bias in language that are difficult to suppress. By choosing terms at different levels of abstraction, people can affect the attributions of the receiver in a way that is consistent with their stereotypical beliefs. Linguistic abstraction, thus, is a very subtle resource used to represent women in a less favorable way and thus to enact gender discrimination without meaning to discriminate or even be aware that this linguistic behavior has discriminatory results. In order to reduce gender bias, it is necessary to change people’s linguistic habits by making them aware of the beneficial effects of gender-fair expressions.

Article

Jean Andreau

An auction is a type of sale consisting of a public competition between several buyers; whoever bids the highest price obtains the object being sold. Such auctions existed in the Greek as well as in the Roman world. Some were organized by the public authorities, while others were organized by individuals selling some of their goods at auction. In Roman Italy, these private auctions served a commercial function. In addition, they facilitated the sale of guarantees for unrepaid loans; likewise, they facilitated the management of private inheritance and estates. Between the 2nd century bce and the 3rd century ce, professional bankers regularly participated in these private auctions by providing credit to the buyers.An auction is a procedure consisting of a public competition between several potential buyers. It was a common practice in Greco-Roman antiquity. The object being sold was awarded to the highest bidder, and he alone paid the object’s full price to the seller. Scholars do not know when auctions first began. They are well attested in the Classical Greek period, as well as in the Hellenistic world and in Rome. In Roman Italy, Plautus and Cato the Elder (in .

Article

In 1944 President Franklin D. Roosevelt’s State of the Union address set out what he termed an “economic Bill of Rights” that would act as a manifesto of liberal policies after World War Two. Politically, however, the United States was a different place than the country that had faced the ravages of the Great Depression of the 1930s and ushered in Roosevelt’s New Deal to transform the relationship between government and the people. Key legacies of the New Deal, such as Social Security, remained and were gradually expanded, but opponents of governmental regulation of the economy launched a bitter campaign after the war to roll back labor union rights and dismantle the New Deal state. Liberal heirs to FDR in the 1950s, represented by figures like two-time presidential candidate Adlai Stevenson, struggled to rework liberalism to tackle the realities of a more prosperous age. The long shadow of the U.S. Cold War with the Soviet Union also set up new challenges for liberal politicians trying to juggle domestic and international priorities in an era of superpower rivalry and American global dominance. The election of John F. Kennedy as president in November 1960 seemed to represent a narrow victory for Cold War liberalism, and his election coincided with the intensification of the struggle for racial equality in the United States that would do much to shape liberal politics in the 1960s. After his assassination in 1963, President Lyndon Johnson launched his “Great Society,” a commitment to eradicate poverty and to provide greater economic security for Americans through policies such as Medicare. But his administration’s deepening involvement in the Vietnam War and its mixed record on alleviating poverty did much to taint the positive connotations of “liberalism” that had dominated politics during the New Deal era.

Article

Richard C. van Kleef, Thomas G. McGuire, Frederik T. Schut, and Wynand P. M. M. van de Ven

Many countries rely on social health insurance supplied by competing insurers to enhance fairness and efficiency in healthcare financing. Premiums in these settings are typically community rated per health plan. Though community rating can help achieve fairness objectives, it also leads to a variety of problems due to risk selection, that is, actions by consumers and insurers to exploit “unpriced risk” heterogeneity. From the viewpoint of a consumer, unpriced risk refers to the gap between her expected spending under a health plan and the net premium for that plan. Heterogeneity in unpriced risk can lead to selection by consumers in and out of insurance and between high- and low-value plans. These forms of risk selection can result in upward premium spirals, inefficient take-up of basic coverage, and inefficient sorting of consumers between high- and low-value plans. From the viewpoint of an insurer, unpriced risk refers to the gap between his expected costs under a certain contract and the revenues he receives for that contract. Heterogeneity in unpriced risk incentivizes insurers to alter their plan offerings in order to attract profitable people, resulting in inefficient plan design and possibly in the unavailability of high-quality care. Moreover, insurers have incentives to target profitable people via marketing tools and customer service, which—from a societal perspective—can be considered a waste of resources. Common tools to counteract selection problems are risk equalization, risk sharing, and risk rating of premiums. All three strategies reduce unpriced risk heterogeneity faced by insurers and thus diminish selection actions by insurers such as the altering of plan offerings. Risk rating of premiums also reduces unpriced risk heterogeneity faced by consumers and thus mitigates selection in and out of insurance and between high- and low-value plans. All three strategies, however, come with trade-offs. A smart blend takes advantage of the strengths, while reducing the weaknesses of each strategy. The optimal payment system configuration will depend on how a regulator weighs fairness and efficiency and on how the healthcare system is organized.

Article

Organizations (whether they are permanent or temporary) have stakeholders, that is, individuals and groups that can affect or be affected by the organization’s activities and achievements. Assuming that the fundamental driver of value creation is stakeholder relationships, managing those relationships well is a prerequisite for obtaining and sustaining success in all businesses, regardless of the success measures applied. Therefore, applying a stakeholder perspective is of significant importance for any manager or entrepreneur. However, the essentials as well as the implications of applying such a perspective are not clear. Researchers and practitioners have offered many contributions, however, the existing literature is inconclusive. To provide clarity, stakeholder concepts (e.g. stakeholder definition, systems perspective, separation thesis, stakeholder analysis, stakeholder engagement, perception of fairness, stakeholder utility function, stakeholder salience, stakeholder disaggregation, stakeholder multiplicity, managing for stakeholders, Value Creation Stakeholder Theory, value destruction, shadows of the context) are defined and 15 propositions for further inquiry are offered. The Scandinavian and American origins of stakeholder thinking are presented. The propositions are intended to invite discussion—and could form the basis for future research questions as well as provide guidance for managers. By drawing on (a) Professor Eric Rhenman, who in the 1960s first proposed an explicit theoretical framework on stakeholder thinking; (b) Professor R. Edward Freeman, who has been the most influential contributor to the field; and (c) additional, selected contributions, the aim is to providevalue for both new and seasoned researchers as well as for managers, consultants, and educators. In order to give the reader the opportunity to self-assess and interpret the “raw data,” the text is rich on citations.

Article

In the last decades of the 18th century, with the visit in 1784 of José Antonio Calderón to the Maya ruins at Palenque and the discovery in 1790 of the statue of Coatlicue and the Stone of the Sun in the central plaza of Mexico City, the study of ancient Mexico entered a new era. In the century that followed, teams of field surveyors, mapmakers, graphic artists, and artifact collectors worked across central and southern Mexico as well as in Guatemala. Some were commissioned by the Spanish Crown or later by national governments; many arrived from England, France, Germany, and eventually the United States. Early on they worked side by side with geologists, geographers, and field biologists as part of natural history expeditions, accumulating collections of artifacts that would be displayed in curiosity cabinets and early museums alongside trays of colorful butterflies and stuffed tropical birds. And then, as foreign travel books won popular audiences in Europe and the United States, and as international investors arrived in Mexico and Central America, archaeology also was taken up by enthusiastic amateurs looking to sell books, build private collections, or organize international trade fairs. For serious students of ancient history, field exploration and advances in archaeological record-keeping transformed a body of research and scientific speculation that since the 16th century had been dominated by theologians, historians, and philologists, who studied Spanish chronicles and native language annals but paid scant attention to the remnants of material culture. In the process, Aztecs and Maya were rediscovered as historical subjects, their histories disconnected from that of contemporary Indian peasants and recast as rivals to the great civilizations of the Old World. Ruins of monumental architecture, recovered artifacts in sculptured stone or finely crafted metals, and ancient texts inscribed on wooden lintels and bark cloth were reclaimed as part of national patrimonies to be protected by new state agencies and displayed in modern museums. On January 20, 1911, the International School for American Archaeology and Ethnology formally opened in Mexico City, and this formative period in the archaeological study of ancient peoples ended. Manuel Gamio introduced the study of stratigraphy to fieldwork practices in Mexico and the discipline was transformed once again.

Article

Mexico’s involvement in world’s fairs and other international expositions is examined. From 1867 to 1929, governments promoted nationalism and industrialization through world’s fairs in Europe and international expositions in America. Mexico, which had recently achieved independence from Spain, became involved in these fairs to bolster its economy and image, competing with other nations to sell local goods and offer investment opportunities to foreigners. Since 1850, Mexicans have encouraged commerce and industry while enthusiastically marketing their country as a tourist “wonderland.” Accounts of Mexico’s participation in world’s fairs draw attention to the imperialism embedded in such events, suggesting that they were deeply problematic. Defined as cultural palaces and trade shows, fairs have chronicled changing ideas about nationalism, modernity, and, more recently, branding. In the wake of the Mexican Revolution, Mexicans have recognized their strategic importance, although a persistent theme in the literature is that these are inherently tiresome and expensive undertakings and a significant drain on economic and political life.

Article

Copyright exceptions and limitations in the United States have experienced dynamic evolution in light of new technological developments. There has been significant legal debate in the courts and in the United States Congress about the scope of the defense of fair use. The copyright litigation over Google Books has been a landmark development in the modern history of copyright law. The victory by Google, Inc., over the Authors Guild in the decade-long copyright dispute is an important milestone for copyright law. The ruling of Leval J emphasizes that the defense of fair use in the United States plays a critical role in promoting transformative creativity, freedom of speech, and innovation. The Supreme Court of the United States was decisive in its rejection of the Authors Guild’s efforts to challenge the decision of Leval J. There has been significant debate in the United States Copyright Office and United States Congress over the development of “the Next Great Copyright Act.” Hearings have taken place within the United States Congressional system about the history, nature, and future of the defense of fair use under United States copyright law. There remains much debate about the internationalization of the defense of fair use, and the need for the trading partners of the United States to enjoy similar flexibilities with respect to copyright exceptions. There has been concern about the impact of mega-regional trade agreements—such as the Trans-Pacific Partnership—upon copyright exceptions, such as the defense of fair use.

Article

Jeanette C. Takamura

Public policy advances in the field of aging in the United States have lagged compared to the growth of the older adult population. Policy adjustments have been driven by ideological perspectives and have been largely incremental. In recent years, conservative policy makers have sought through various legislative vehicles to eliminate or curb entitlement programs, proposing private sector solutions and touting the importance of an “ownership society” in which individual citizens assume personal responsibility for their economic and health security. The election of a Democratic majority in the U.S. House and the slim margin of votes held by Democrats in the U.S. Senate may mean a shift in aging policy directions that strengthens Social Security, Medicare, and Medicaid, if the newly elected members are able to maintain their seats over time. The results of the 2008 presidential election will also determine how the social, economic, and other policy concerns will be addressed as the baby boomers join the ranks of older Americans.