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In the offline world, firms often benefit from responding to consumer complaints. However, the effect of responding to negative comments on social media in the online environment is unclear. A direct firm response may address the negative experience and reduce similar complaints, but such responses are also observable to others engaging with the brand on social media and thus may fuel them to imitate the negative sentiment and complain even more. The authors explore this vicious cycle by analyzing the exogenous Facebook policy change that facilitates firms and users to directly respond to negative comments posted on brand pages. The results indicate that in the wake of Facebook’s revised policy, firms’ responses to negative comments on social media brand pages increase the volume of negative posts and intensify the negative tone directed at firms in the airline, automotive, and hotel industries. This vicious cycle manifests through an “economic” mechanism such that the adverse impact becomes more severe when firms offer financial compensation in their response content on Facebook brand pages. This study contributes to the literature by assessing the impact of firm response to complaints on one of the largest social media platforms, Facebook. Our findings help account for the mixed findings in previous research with respect to the effect of managerial response. In addition, this study introduces a machine learning technique to account for emoticons, linguistic rules, and sentence contexts for unstructured social media data analytics. The findings caution managers against traditional complaint-handling tactics in the new era of social media marketing.

Why do firms offer non-wage compensation instead of the equivalent amount in financial compensation? We argue that firms use non-wage benefits, specifically maternity leave, to efficiently target workers with desirable characteristics. Using Glassdoor data, we show that firms offer higher quality maternity benefits in industries and locations where female talent is relatively scarce -- a relationship robust to an instrumental variable analysis. Second, using plausibly exogenous variation in the timing of government policy, we show that these benefits can increase firm value. Third, we document novel stylized facts about non-wage benefits and how they are correlated with firm characteristics.

Empathy is considered a core virtue, yet fails in many situations. Understanding empathy lapses addresses a basic question about pro-sociality: to what extent do people choose to avoid empathy? Answering this question informs debates over the automaticity of empathy, and in particular, experience sharing: our tendency to resonate with the experiences of others. Experience sharing is often assumed to be effortless and automatic; here, we suggest that people perceive experience sharing to be effortful, aversive, and difficult, and avoid it for that reason. We develop a new measure of empathy regulation behavior called the Empathy Selection Task. In this task, participants make a series of binary choices, selecting into situations that instruct them to engage in empathy or an alternative course of action. Across 19 studies (N = 2,174) we find strong and replicable empathy avoidance, which is associated with perceiving empathy as effortful, aversive, and inefficacious. People avoid sharing in both negative and positive experiences of others, and empathy avoidance is not reducible to emotion avoidance. People subjectively devalue empathy, requiring higher financial compensation to empathize in an Empathy Discounting Paradigm, and empathy avoidance reduces when the alternative to empathy is comparably effortful. Finally, experimentally increasing perceived efficacy at empathizing eliminates avoidance of experience sharing, suggesting that psychological costs directly cause empathy regulation. These results qualify claims that empathy is a default, and that empathy limits are fixed rather than chosen. When given the choice to share in others’ feelings, people act as if it’s not worth the effort.

Patent disputes between branded and generic pharmaceutical manufacturers are often settled with financial compensation from the brand (the patent holder) to the generic (the alleged infringer), along with restrictions on the generic's entry date. Such agreements are known as "reverse payment" settlements. To quantify the effect of reverse payment settlements on the timing of generic entry, we propose using bargaining theory to infer the unobserved patent strength from the firms' observed settlement choice. The estimated patent strength can then be used to construct a counterfactual world without reverse payments. Applying our framework to the specific case of the drug Lamictal (lamotrigine), we find that the settlement the firms reached likely delayed generic entry, costing buyers of lamotrigine tablets more than $100 million in the form of higher drug prices.

Energy facility presence can be understood as an intangible property characteristic. However, little research has been conducted on its importance in the context of property asset pricing. Existing appraisal approaches for energy facility presence are often grounded on the intuition that house buyers demand a financial compensation for living near such a facility, implicit price. This study provides an overview of the existing empirical literature on the property value impact of nuclear, wind, biomass, and biogas energy facilities. Evidence suggests that general statements concerning the implicit price of energy facility presence may not hold true because this presence is a location-specific phenomenon.

Energy facility presence can be understood as an intangible property characteristic. Up to now, little research has been conducted on its importance in the context of property asset pricing. Existing appraisal approaches for energy facility presence are often grounded on the intuition that house buyers charge a financial compensation for living near such a facility – the implicit price. This paper provides an overview of the existing empirical literature on the property value impact of nuclear, wind and biomass and biogas energy facilities. Evidence suggests that general statements concerning the implicit price of energy facility presence are not possible as this presence is a location specific phenomenon.

For over ten years, academics, practitioners, policy makers, consumers and other stakeholders have debated whether and how governments should regulate the Internet with an eye toward promoting accessibility, affordability and neutrality. This issue has triggered grave concerns about the Internet’s ability to continue generating substantial and widespread benefits. Advocates for various outcomes have vastly different assessments about many baseline subjects including the viability of sustainable competition and self-regulation. Consumers become agitated and confused by different framing of the issues, particularly when participants in the Internet ecosystem cannot reach closure on interconnection and compensation issues. Increasingly these disputes trigger temporary degradation in service leaving consumers unclear why they cannot view “must see” video content free of congestion.This paper will report on how the network neutrality/open Internet debate persists with an eye toward identifying new problems and opportunities for resolution. The paper concludes that developments in the Internet ecosystem will trigger more conflicts in the near term. Increasingly the Internet has become the primary broadband medium for information, communications and entertainment (“ICE”), including an ever increasing torrent of bit streams running from the Internet cloud downstream to individual subscribers served by “retail” Internet Service Providers (“ISP”) that install so-called first and last mile connections. Growing reliance on the Internet to deliver bandwidth intensive content to multiple screens has triggered more disputes on the technical way to interconnect networks as well as the financial compensation owed. How quickly parties can resolve their disputes will have a profound impact on whether governments need to intervene to ensure robust networks capable of accommodating ever increasing demand.

Social media websites have inspired considerable attention from social scientists in recent years because they offer the potential to collect an unprecedented amount of data about social relationships in situ. Though millions of lines of texts can be mined from such sites in seconds, these data lack critical information about the broader social context of social media users and their online activity. In this article, I introduce Social Media Survey Apps (SMSAs) to address these limitations. These new tools 1) extract large amounts of data about social media users; 2) survey these users to collect additional data required by a researcher; and, 3) return the results of a scholarly analysis — or financial compensation — back to the user to incentivize participation in social science research. SMSAs thus provide an efficient, cost-effective, safe, and easily scalable tool for systematically extracting highly detailed data from very large samples of social media users. This article describes the software engineering and internet infrastructure necessary to create an SMSA and provides an illustration of this new technology as part of a study of how non-profit organizations attract public attention on Facebook. I conclude with a discussion of the logistical and legal issues that may arise in the implementation of this new methodology and suggest directions for SMSAs on Facebook and other social media sites.

In 2009 Cuadrilla, a gas drilling company requested a permit for a test drilling for shale gas in the community of Boxtel, the Netherlands. At that point Cuadrilla already received a concession of the national government for drilling at several places. The local town council negotiated the conditions under which this drilling would be acceptable to them – for example in a designated area for industrial development and with financial compensation – and indeed gave Cuadrilla the permission to start building a test drilling location. It was after this permitting process, that local and national policy controversy over this issue developed. In this paper, I theoretically and empirically explore the development of this societal and scientific controversy from an interpretative approach. I study frame shifts in the debate. In addition I focus on the boundary work – the interpretation and rhetorical demarcations of facts – that was part of the frame shifts. I demonstrate how the framing of the issue, and boundary work part of it, contributed to the emergence of this controversy, and how that resulted in a temporary national moratorium on fracking for shale gas.

Contracts lie at the heart of the regulatory system governing the creation and dissemination of cultural products in two respects: (1) The exclusive rights provided by copyright law only turn into financial reward, and thus incentives to creators, through a contract with a third party to exploit protected material. (2) From a user perspective purchases of protected material may take the form of a licensing contract, governing behaviour after the initial transaction. Thus, a review of the relationship between copyright and contract law has to address both supply- and demand-side issues. On the supply side, policy concerns include whether copyright law delivers the often stated aim of securing the financial independence of creators. Particularly acute are the complaints by both creators and producers that they fail to benefit from the exponential increase in the availability of copyright materials on the Internet. On the demand side, the issue of copyright exceptions and their policy justification has become central to a number of reviews and consultations dealing with digital content. Are exceptions based on user needs or market failure? Do exceptions require financial compensation? Can exceptions be contracted out by licence agreements?This report (i) reviews economic theory of contracts, value chains and transaction costs, (ii) identifies a comprehensive range of regulatory options relating to creator and user contracts, using an international comparative approach, (iii) surveys the empirical evidence on the effects of regulatory intervention, and (iv) where no evidence is available, extrapolates predicted effects from theory.

After the fall of apartheid, one of the new democratically elected government’s priorities was to ensure that blacks and other previously disadvantaged groups were compensated for property that the apartheid and colonial era governments ruthlessly expropriated without just compensation. Section 25 of the South African Constitution requires the state to compensate all those dispossessed of land after 1913 because of racially discriminatory laws or practices. The Restitution of Land Rights Act provides the legal framework for the fulfillment of this constitutional obligation. One central objective of the Act is to promote sustainable socio-economic development. Using data from 80 semi-structured interviews, this study investigates whether the financial compensation that South African has paid to people evicted from urban areas has increased their net assets or if the compensation was consumed and had no sustainable economic impact. Existing quantitative studies done by economists provide a narrow response to this important research question — people are more likely to save larger restitution awards while smaller awards are consumed and have no sustainable economic impact. This qualitative study gives deeper insight into the complex circumstances under which restitution awards have had an enduring economic impact.

This paper proposes a pricing framework that combines the occurrence of supply interruptions with financial compensations. Consumers post ex ante demands for a designated period. These demands are met if ex post supply capacity is sufficient. However, when supply is inadequate, all ex ante demands will be equi-proportionally rationed with compensation being paid for any unserved demand. Consumers posts their demands based on their expectations on the reliability of the supply system. The model is closed by imposing rational expectations. We identify that while a consumer's ex ante power demand will be decreasing in the power price and increasing in the compensation rate, it will be increasing when there is a mean-preserving spread in the riskiness of future supplies, provided the consumer is sufficiently prudent, i.e., when his coefficient of relative prudence exceeds two, and his coefficient of interruption aversion exceeds one. We also derive the welfare maximising price and show that when consumers are sufficiently prudent, pessimistic (equilibrium) expectations on the supply reliability warrant a higher price compared with a situation of supply adequacy.

Major League Baseball (MLB) rules restrict the movement of any franchise into another’s territory. These territorial rules are designed to protect each team’s potential local revenue sources as well as to provide stability throughout the league. Recently, Major League Baseball approved financial compensation for the Washington Nationals move into the Baltimore Orioles’ territory – primarily because it was in the best interest of MLB even though it hurt the Orioles. However, the Oakland Athletics were unable to even negotiate a potential compensation plan for a move into the San Francisco Giants territory, despite the apparent financial benefit the move could have provided for every other league franchise. The Athletics are already located within 15 miles of the Giants, and their potential 40 mile move to San Jose, California would not add a new team to the San Francisco Bay Area; rather, it would simply be a move of a current team to a different location within the metropolitan area. The refusal of the Giants or MLB to negotiate a potential compromise has kept the Oakland Athletics in a substandard facility and has led to their potential move to Fremont, CA – a less desirable location than San Jose.This paper investigates the legal, policy, and financial considerations concerning Major League Baseball’s territorial rules. Specifically, it addresses antitrust law as it pertains to American professional sport, relative sport franchise relocation cases, financial arguments why leagues desire to control relocation, financial components of MLB’s current Collective Bargaining Agreement, and the legal and financial impact of a challenge to MLB’s territorial rules – an option the Oakland Athletic initially investigated prior to their decision to pursue a potential move to Fremont.

Under the Kyoto Protocol, industrialized countries committed to emission reductions may fullfil part of their obligations by implementing emission reduction projects in developing countries. In doing so, they make use of the so-called Clean Development Mechansim (CDM). Two important issues surround the implementation of the CDM. First, if the cheapest abatment measures are implemented for CDM projects, developing countries may be left with only more expensive measures when they have to meet their own commitments in the future (the so-called low-hanging fruits issue). Second, a choice must be made on the type of baseline against which emission reductions are measured : an absolute baseline or a relative (to output) one (the baseline issue). The purpose of this paper is to study the interactions between these two issues from the point of view of the developing country. Two major results are obtained. First, when possible future commitments for developing countries and irreversibility of abatement measures are taken into account, we show that the industry where CDM projects are implemented enjoys large profits under an absolute baseline than under a relative one. Second, concerning the low-hanging fruits problem, the financial compensation required by the developing country for implementing ‘too many’ CDM projects is larger under the relative baseline.

Spanish Abstract: La compensacion economica es una figura nueva en el sistema juridico chileno regulada por la Nueva Ley de Matrimonio Civil que introduce el divorcio vincular. En este articulo se revisa esta nueva figura en su concepcion general dentro del Derecho Matrimonial por constituir un limite a la libertad individual que supone el divorcio. Ademas, se desarrollan aquellos aspectos caracteristicos de la compensacion economica, tales como, los principios que la inspiran, la naturaleza juridica de la prestacion compensatoria, el fundamento y contenido de la misma, casos en que procede, vias de fijacion y regimen de pago. Finalmente, se analiza criticamente si la introduccion de esta nueva figura mejora efectivamente la situacion del conyuge mas debil y las recomendaciones que al respecto proceden. English Abstract: The financial compensation it is a new figure in Chilean legal system regulated by New Civil Marriage Law that introduces the vincular divorce. This article reviews this new figure in a general conception inside Matrimonial Law because represent a limit to the individual liberty that divorce assumed. In addition, the paper develops those characteristic aspects of financial compensation, such as, the principles behind, the legal status of financial compensation, the base and content of it, appropriate cases, fastening ways and payment system. Finally, it is analyze critically if the introduction of this new figure effectively improve the weaker spouse’s situation and the recommendations thereon.

Spanish Abstract: En este trabajo se analizan las consecuencias economicas que implica la ruptura matrimonial, especificamente conforme al divorcio vincular introducido por la Nueva Ley de Matrimonio Civil. En primer lugar, se revisa en detalle el convenio regulador que tiene por objetivo normar las relaciones entre los conyuges y tambien respecto de sus hijos, por lo que se analizan los casos en que procede, su contenido, exigencias, formalidades y limitaciones. En segundo lugar, se desarrolla el estatuto juridico de la compensacion economica cuyo objetivo principal es otorgar una prestacion al conyuge mas debil que durante los anos del matrimonio se dedico a las labores del hogar y al cuidado de los hijos, y que producto de la ruptura sufre la extincion de todos sus derechos provenientes de la relacion conyugal - en especial el deber de socorro - se analizan los principios que la inspiran, el fundamento y contenido de la misma, casos en que procede, vias de fijacion y regimen de pago. Finalmente se analiza criticamente a estas figuras por la inseguridad juridica de su regulacion que en la practica deberan ser mejoradas por los tribunales.English Abstract: This paper analyze the economic consequences that marital breakdown involves, specifically according to vincular divorce introduced by the New Civil Marriage Law. First of all, the article reviews in detail the regulating agreement that has the aim of adjust relationships between spouses and, also with their sons, so it analyze the appropriate cases, content of it, requirements, formalities and limitations. Secondly, the article develops the legal status of financial compensation whose main objective it is give a benefit to the weaker spouse who during years of marriage dedicated himself to household tasks and child care, and because of marital breakdown suffer the extinction of all his marital rights - in especial the provide assistance - it analyze the principles behind, the basis and content of it, appropriate cases, fastening ways and payment system. Finally, it analyze critically these figures because of the legal uncertainty that in the practice must be improved by the courts.

Thousands die each year in the United States alone due to a severe shortage of organs available for transplantation. In this article, I propose that we encourage people to register to donate organs upon death by offering them some priority to receive an organ should they need one during life. Such an incentive would save lives by encouraging many more people to donate, yet would not violate federal laws that prohibit organ donors from receiving financial compensation. In addition, I describe how priority incentives could, in theory, be structured to guarantee a distribution of organs that is pareto superior to our current one. I respond to critics who say that priority incentives would weaken the altruistic nature of our current donation scheme and would unacceptably commodify the human body. A fuller conception of our property interests in cadaver organs, I argue, reveals the error of elevating such organs to a special place of honor reserved for property that should be inalienable through market-style exchange.