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Much of the discourse around climate change and the situation of diverse human societies and cultures in the Anthropocene focuses on responding to scientific understanding of the dynamics of the biosphere by adjusting existing institutional and organizational structures. Our emerging scientific understanding of human behaviour and the mechanisms that enable groups to achieve large-scale coordination and cooperation suggests that incrementally adjusting existing institutions and organizations will not be sufficient to confront current global-scale challenges. Specifically, the transaction costs of operating institutions to induce selfish rational actors to consider social welfare in their decision-making are too high. Rather, we highlight the importance of networks of shared stories that become real—imagined orders—that create context, meaning and shared purpose for framing decisions and guiding action. We explore imagined orders that have contributed to bringing global societies to where they are and propose elements of a science-informed imagined order essential to enabling societies to flourish in the Anthropocene biosphere. This article is part of the theme issue 'Bringing nature into decision-making'. [ABSTRACT FROM AUTHOR]

This paper adopts the multi-criterion decision-making model of fuzzy-TODIM and genetic algorithm (GA) for optimal portfolio allocation. We applied Markowitz's portfolio parameters as inputs for the fuzzy TODIM model to rank stocks that are constituents of each index from three different markets. Portfolios are then generated dynamically using three weighting techniques and subject to multi-objective criteria and additional constraints. The results indicate a significant variation in performance metrics between the model-generated portfolios and the market indices. Replication of the procedure produces a similar outcome. Moreover, the out-of-sample tests conducted over 3 years validate the results' robustness, indicating that fuzzy TODIM, combined with GA, can achieve superior performance in dynamic portfolio allocation. [ABSTRACT FROM AUTHOR]

Intermunicipal cooperation is often seen as a means to increase capacity and reap economic benefits of scale. Prior research, however, shows that the effects of shared service delivery diverge, leaving scholars and practitioners to question whether, under what conditions and at what expense effects of cooperation manifest. Using a panel dataset on child protection services, we analyze how cooperation affects the cost-capacity relation. The results show that cooperation increases cost. This increase is only partly explained by investments in service capacity, indicating that there are significant transaction costs linked to cooperation as a mode of production. [ABSTRACT FROM AUTHOR]

For local governments, inter-municipal cooperation (IMC) has become an increasingly common solution to tackle fiscal constraints and demographic challenges. However, in many policy areas, it is still not clear whether IMC fulfills its promises of cost savings or increased service quality. This study aims to contribute new knowledge on the effects of IMC in one of these understudied policy areas – education – and does so by employing recent developments in difference-in-differences methods. The results show that being part of IMC significantly reduces expenditures on upper secondary education. However, there are indications that decreased costs come at a price, since joining a local federation also correlates with lower grades in the cooperating municipalities. [ABSTRACT FROM AUTHOR]

• Present the employment effects of global value chain (GVC) sticky relationships. • Distinguish link-structure and circle-structure relationship between enterprises. • Make a distinction between domestic GVC employment and cross-border GVC employment. • GVC linkages are more stickier than interactions between domestic-owned enterprises. • Provide a Chinese story of whether GVC sticky relationships help stabilize employment. Global production beyond borders is becoming an invisible force for stabilizing employment, and the behaviour of firms featuring transnational corporations has become critical to the development of production. In this paper, we construct a systematic quantitative analytical framework of measuring global value chain (GVC) sticky relationships and analyze the steady growth of employment from the perspective of inter-firm interactions firstly, furthermore, provide the latest evidence from China. Our findings show that: multiple interactions between firms for that participate GVC contribute to the development of the GVC sticky relationships and promotion of employment growth, the GVC sticky relationship accounts for approximately 17.32 % of the total employment in China, and domestic GVC sticky relationship activities have become an important force in stabilizing and promoting employment growth in China, it surpasses cross-border GVC employment since 2008. Furthermore, we characterize the shape of GVC sticky relationships and find that the circle-structure relationship effect has greater potential to stabilize employment in China, particularly in the sectors of ICT, wholesale and retailor. Therefore, mitigating the transaction costs of participating in GVC by reducing institutional barriers in the process of firms' interactions is significant for maintaining the employment stability. [ABSTRACT FROM AUTHOR]

Increasing agricultural productivity in low‐ and middle‐income countries (LMICs) is an important channel for reducing poverty and food insecurity. Information and communication technologies (ICT) have the potential to boost agricultural productivity by lowering transaction costs and enhancing access to information. Even though there are several micro‐level studies analysing the effects of ICT on agricultural productivity, there is scant research addressing the role of ICT in agricultural productivity at the global and regional levels. Using data from 86 countries for the period 2000 to 2019 and utilising a fixed effect panel regression with a feasible generalised least square approach, we find that globally there is a positive and significant association between ICT uptake and both land and labour productivity in agriculture. In each case, however, the magnitude of the effect is much smaller than other important determinants, such as human capital, access to inputs or environmental factors. At the regional level, the relationship between ICT uptake and land productivity is not significant in Africa and Asia, while we find a significant effect on labour productivity. This finding indicates that while ICT can provide valuable information and tools for land management, the effect on land productivity might be less immediate in these regions. Finally, we revisit the question of whether ICT expansion increases agricultural productivity gaps between high‐income nations and LMICs. In contrast to previous research, this study does not find significant differences in the effects of ICT on land and labour productivity between higher‐income and lower‐income countries. [ABSTRACT FROM AUTHOR]

A considerable body of literature suggests that immigration undermines voluntary contributions to public goods because it leads to ethnic diversity, which erodes social trust. This article posits that the effect of immigration outweighs that of ethnic diversity, so that immigration may explain why ethnic diversity is negatively associated with social trust and public goods provisioning. I also highlight a need to emphasize the moderating influence of transaction costs when analyzing provisioning problems associated with immigration and ethnic diversity. To examine my hypotheses, I use a mixed-method research design to study public goods management in randomly selected communities in rural Uganda whose rates of immigration and levels of ethnic diversity vary. I analyze community-level attempts at collective action that involve substantially different costs; that is, contributing to toilet construction and participating in litter pickup programs. The findings suggest that socio-political barriers to collective action for public goods provisioning may have less to do with the stock of demographic diversity than the flow rate of demographic change. The same findings suggest a more micro-level explanation that transcends the erosive effects (of immigration and ethnic diversity) on social trust to emphasize the moderating influence of transaction costs. [ABSTRACT FROM AUTHOR]

Purpose: Digital technologies (DTs) are key and essential in firms and communities. Countries in low-income areas, such as Bottom of the Pyramid (BOP) contexts, struggle with digital development. To understand how firms in BOP countries access DTs, a qualitative study was conducted to provide insight into how firms in these contexts access DTs and the challenges they face while accessing these technologies. Design/methodology/approach: An in-depth qualitative study was done, which included semi-structured interviews with digital enterprises. In total, 12 chief executive officers (CEOs) and owners of small and medium-sized businesses (SMEs) from Ghana and Nigeria were interviewed. NVivo 12 Pro was used for thematic analysis. Findings: Four main findings were identified as follows: (1) how firms in BOP contexts access DTs, (2) the challenges in accessing DTs, (3) factors considered when selecting a technological provider in BOP contexts and (4) solutions and recommendations to the challenges identified. From the results, cost, low technological infrastructure, high transaction costs, regulatory issues, lack of trust, poor digital skills and lack of support were among the barriers to accessing DTs in BOP contexts. Research limitations/implications: Governments and stakeholders of firms in BOP contexts need to be intentional with their digitalization development to ensure digital inclusion. Originality/value: The study developed a synopsis of the factors involved in accessing DTs in BOP contexts and is the first to conceptualize firm digital access in BOP contexts. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-05-2023-0213 [ABSTRACT FROM AUTHOR]

Purpose: Cluster management organizations (CMOs) have emerged over the past few decades as intermediaries that support the competitiveness of place-based clusters of economic activity. Despite their economic origins, policymakers are now starting to experiment with a broader use for cluster policies that seeks to leverage CMOs to tackle societal challenges in approaches aligned with the concept of creating shared value (CSV). However, there remains a void in conceptual understanding around the specific roles that CMOs might play in overcoming the barriers faced by their members for CSV, which this paper aims to address. Bridging this gap presents an opportunity for cluster practitioners and policymakers in a context in which environmental and social sustainability are at the top of policy agendas. Design/methodology/approach: Based on analysis of literature around collaborative approaches to CSV for mitigating transaction costs, the authors define the contours of a new conceptual framework for the roles that CMOs can play in fostering collective CSV. The authors illustrate how the different components of the framework are reflected in emerging cluster practice in the context of a new wave of European cluster-based projects tackling CSV elements. Findings: The resulting framework reconciles the concepts of clusters and CSV by explicitly positioning CMOs as intermediaries for facilitating the CSV strategies of their members. CMOs embrace emergent strategy making that targets (tangible and intangible) collective CSV capabilities and addresses collective CSV challenges. Collective CSV can provide a theoretical anchor guiding future cluster policies to fully leverage the transformative potential of CMOs. This conceptual framework opens a promising empirical research agenda, particularly around evaluating the plurality of impacts of CMOs. Originality/value: By stressing the social impact of CMOs alongside their well-understood economic impacts, and by enabling a categorization of functions that can support the monitoring of CMO activities toward collective CSV strategies, the framework provides a novel basis for inspiring further empirical research into the evidencing of these roles. [ABSTRACT FROM AUTHOR]

This article discusses the resilience of clusters and cluster policies in the face of external shocks, such as the Great Recession and the COVID-19 pandemic. It explores the concept of resilience in clusters and the factors that contribute to their ability to withstand and recover from crises. The article presents empirical studies that examine the response of clusters to external shocks and highlights the importance of factors such as sectoral diversification, innovation, workforce qualifications, and social networks in enhancing cluster resilience. It also discusses the potential of ambidexterity and digital transformation in cluster policies, as well as the role of cluster management organizations in promoting collective shared value. The article concludes by suggesting the need for further research to understand the drivers and outcomes of resilience in clusters and to develop effective policies that balance economic and societal objectives. [Extracted from the article]

We consider the general problem of a set of agents trading a portfolio of assets in the presence of transient price impact and additional quadratic transaction costs and we study, with analytical and numerical methods, the resulting Nash equilibria. Extending significantly the framework of Schied and Zhang (2019) and Luo and Schied (2020), who considered the single asset case, we prove the existence and uniqueness of the corresponding Nash equilibria for the related mean-variance optimization problem. We then focus our attention on the conditions on the model parameters making the trading profile of the agents at equilibrium, and as a consequence the price trajectory, wildly oscillating and the market unstable. While Schied and Zhang (2019) and Luo and Schied (2020) highlighted the importance of the value of transaction cost in determining the transition between a stable and an unstable phase, we show that also the scaling of market impact with the number of agents J and the number of assets M determines the asymptotic stability (in J and M) of markets. [ABSTRACT FROM AUTHOR]

We analyze the problem of constructing multiple buy-and-hold mean-variance portfolios over increasing investment horizons in continuous-time arbitrage-free stochastic interest rate markets. The orthogonal approach to the one-period mean-variance optimization of Hansen and Richard (Econometrica 55(3):587–613, 1987) requires the replication of a risky payoff for each investment horizon. When many maturities are considered, a large number of payoffs must be replicated, with an impact on transaction costs. In this paper, we orthogonally decompose the whole processes defined by asset returns to obtain a mean-variance frontier generated by the same two securities across a multiplicity of horizons. Our risk-adjusted mean-variance frontier rests on the martingale property of the returns discounted by the log-optimal portfolio and features a horizon consistency property. The outcome is that the replication of a single risky payoff is required to implement such frontier at any investment horizon. As a result, when transaction costs are taken into account, our risk-adjusted mean-variance frontier may outperform the traditional mean-variance optimal strategies in terms of Sharpe ratio. Realistic numerical examples show the improvements of our approach in medium- or long-term cashflow management, when a sequence of target returns at increasing investment horizons is considered. [ABSTRACT FROM AUTHOR]

Hager and Beckett assert that a 'characteristic feature of ... assorted co-present groups is that their processes and outputs are marked by the full gamut of human experiences involved in their functioning'. My paper endorses and further develops this claim. I begin by expanding on their emphasis upon the priority of relations in terms of Dewey and Bentley's transactionalism and Buddhist dependent co-origination and emptiness. Next, I emphasize the importance of embodied perspectives in acquiring meaning and transforming the world. Here, too, we will find surprising Buddhist connections. Finally, I examine the primacy of practice: how we acquire our minds and selves by participating in shared social practices. This stance is shared by philosophers as diverse as Heidegger, Wittgenstein, and Dewey. [ABSTRACT FROM AUTHOR]

Transaction costs, related to either investigating improved land management practices (ILMP), engaging in adoption support programs for these practices and/or implementing changes on-ground, create barriers to ILMP adoption. Perceived and actual transaction costs have long been hypothesised as a potential barrier to grazier adoption of ILMPs in catchments to the Great Barrier Reef. Applying a framework derived from transaction cost theory, we assess this hypothesis. Through semi-structured interviews of a sample of participants in two ILMP programs, we find that ILMP adoption support program characteristics have a large influence on perceived and actual transaction costs of landholders seeking to engage in ILMP programs or adopt ILMPs. The importance of establishing and nurturing relationships between landholders and extension officers was also highlighted as critical to reducing landholder transaction costs. The degree to which relationships reduce transaction costs demonstrates the importance of fostering landholder leadership in ILMP program design as well as targeted extension in supporting adoption. [ABSTRACT FROM AUTHOR]

AbstractThis paper focuses on a new model of land readjustment integrated with shareholding in Zhaoqing, China. It determines whether this innovation reduces transaction costs throughout the land development process. To cope with the uncertainty during rapid urbanization in peripheral areas, shareholding land readjustment provides opportunities for the original landowners to share the long-term sustainable land value increment. This is accomplished through a shareholding platform built by local government and a closely associated state-owned enterprise, with a guarantee of short-term fixed compensation. Shareholding land readjustment holds great promise in connecting plan implementation with land property exchange issues in the Global South. [ABSTRACT FROM AUTHOR]

Protecting human, animal, and plant life or health from additives, toxins, and contaminants in agri-products and promoting green free trade are the main components of Sanitary and Phytosanitary (SPS) measures. However, the SPS measures are heterogeneous. This study examines the impact of SPS measures on the measured export quality and discusses their influence on the environmental protection of the exporting country. International heterogeneous measures do not necessarily promote quality upgrading but greatly increase transaction costs. By contrast, China's agri-product' quality upgrading and environmental pollution are in sharp contrast. Based on a heterogeneous firm-trade model, this study obtains three hypothetical propositions and conducts empirical regressions using the Tobit method. This study finds that heterogeneous SPS measures hinder quality upgrading because firms present a different quality upgrading trend, which in turn impedes the environmental protection of the exporting country; the quality upgrading made by diversified SOEs is higher than that of foreign firms and private firms; the quality upgrading made by general firms is higher than that of processing firms; and protective SPS measures have a stronger negative effect on quality upgrading and environmental protection. [ABSTRACT FROM AUTHOR]

Behavioral scientists have begun to research 'sludge,' excessive frictions that make it harder for people to do what they want to do. Friction is also an important concept in transaction-cost economics. Nevertheless, sludge has been discussed without explicit referral to transaction costs. Several questions arise from this observation. Is the analogy to friction used differently in both literatures? If so, what are the key differences? If not, should we develop the concept of sludge when the well-established literature on transaction costs already exists? This conceptual article shows that sludge and transaction costs are related, but distinct, concepts, and that the literature on sludge can benefit from incorporating elements from transaction-cost research. For example, we suggest defining sludge as aspects of the choice architecture that lead to the experience of costs, organize sludges using a typology inspired by the transaction-cost literature, highlight specificity, uncertainty, and frequency as important determinants of the 'sludginess' of choice architecture, and show that sludge audits can be conducted using methods developed in the transaction-cost literature. [ABSTRACT FROM AUTHOR]

Multichannel marketing has become the norm for distributing goods and services, and manufacturers and distributors operate in various channel organization forms. Drawing on transaction cost theory and governance value analysis, this study introduces channel organization forms as focal design elements of multichannel settings and aims to align governance mechanisms with these forms. Survey data are gathered from four sub-samples of 295 Chinese manufacturers. Ordinary least squares regression analysis is used to test the hypotheses. Depending on the multichannel design of manufacturers, the performance effects of contractual, normative, and authoritative mechanisms vary in the four channel organization forms: corporate, franchised, managerial, and relational. Moreover, in each organization form, there is a specific governance mechanism that positively affects cooperation performance, indicating alignment. This study advances governance literature by demonstrating the alignment between channel organization forms and governance mechanisms, while the channel organization form serves as a contextual factor that explains the inconsistency of performance effects of governance mechanisms. In addition, extending prior research comparing differences between multichannel and nonmultichannel settings, this study explores variation within a multichannel context from a channel-organization-form perspective. It is critically enlightening and instructive for manufacturers to choose governance mechanisms based on their channel organization forms and thus improve cooperation performance within multichannel settings. This study's findings address the gap in governance literature concerning whether the performance effects of governance mechanisms are contingent on different channel organization forms. [ABSTRACT FROM AUTHOR]

Using a mixed methods approach, this study investigates upstream supply chain and logistics issues in the logging industry through the findings of (1) a systematic literature review and (2) an inductive and interpretive case study of Mississippi, a top timber‐producing state in the United States. First, we analyze 45 peer‐reviewed studies examining logistical challenges in the logging industry via a systematic literature review to identify existing cumulative knowledge. Then, we conduct 11 qualitative semistructured interviews with logging business owners/managers to understand better complex and interdependent logistics issues that negatively impact productivity and profitability in the upstream timber supply chain. Performing a comparative analysis of the systematic literature review results and interview findings, we propose a general conceptual framework that classifies 25 logistical challenges in three main areas. They are (1) supply chain issues, (2) company‐, and (3) industry‐specific issues. Finally, using an abductive reasoning approach, we generalize our findings by linking our conceptual framework to resource dependence theory, transaction cost economics theory, and carrier selection literature to develop propositions to guide future quantitative research efforts. [ABSTRACT FROM AUTHOR]

Accepted by: Giorgio Consigli The passive management approach offers conservative investors a way to reduce risk concerning the market. This investment strategy aims at replicating a specific index, such as the NASDAQ Composite or the FTSE100 index. The problem is that buying all the index's assets incurs high rebalancing costs, and this harms future returns. The index tracking problem concerns building a portfolio that follows a specific benchmark with fewer transaction costs. Since a subset of assets is required to solve the index problem this class of problems is NP-hard, and in the past years, researchers have been studying solution approaches to obtain more practical tracking portfolios. This work brings an analysis, spanning the last three decades, of the advances in mathematical approaches for index tracking. The systematic literature review covered important issues, such as the most relevant research areas, solution methods and model structures. Special attention was given to the exploration and analysis of metaheuristics applied to the index tracking problem. [ABSTRACT FROM AUTHOR]

Housing First (HF) is a service model that addresses chronic homelessness with permanent supportive housing. Previous studies have analysed market constraints on housing searches, strategies caseworkers use to navigate these barriers, and clinical interventions that help clients transition to unsupported housing. Little research has examined the nuanced ways caseworkers mediate landlord-tenant conflicts once a lease has been formed. I advance those studies by answering the question: How do HF caseworkers mediate landlord-tenant conflicts? Using interview and focus group data collected in a large U.S. County, I provide evidence that HF caseworkers mediate landlord-tenant conflicts by managing "enforcement costs" throughout the lease. Enforcement costs are (non-)financial expenditures beyond the price of a commodity to ensure co-signers honour their contractual obligations. HF caseworkers manage enforcement costs by absorbing them for landlords and/or tenants throughout the lease. When caseworkers cannot or will not absorb enforcement costs, they are keen to delegate this responsibility to other parties. Absorption and delegation can help rebalance power inequities and/or undermine the reputation of HF programmes. [ABSTRACT FROM AUTHOR]

In multiparty governments, policymaking is a collaborative effort among the different incumbent parties. Often hidden by public debates about broader government policy, the necessary coordination routinely happens at the ministerial level, where ministries of different parties jointly devise viable and equitable policy solutions. However, since coordination involves substantial transaction costs, governments must carefully gauge the potential benefits. We study the political rationales that motivate governments to make this investment. We argue that coordination during the process of ministerial policy design hinges on both a conducive ministerial structure and sufficient authority. Once these conditions are met, cross‐party coordination is more likely in policy areas where the implementation of government policy cannot be taken for granted. We investigate these claims, drawing on two new datasets. The first contains information about ministerial collaborations on all legislative projects sponsored by German governments, while the second maps the distribution of policy responsibilities among German ministries from 1976 until 2013, based on data about the policy briefs of all individual working units within the top‐level federal executive. Given that ministries imprint their own perspective on legislation, our results are beyond administrative pedantries, but have substantial implications for the type and content of policies coalition governments formulate. [ABSTRACT FROM AUTHOR]

In this paper, we study mean–variance–Conditional Value-at-Risk (CVaR) portfolio optimization problem with short selling, cardinality constraint and transaction costs. To tackle its mixed-integer quadratic optimization model for large number of scenarios, we take advantage of the penalty decomposition method (PDM). It needs solving a quadratic optimization problem and a mixed-integer linear program at each iteration, where the later one has explicit optimal solution. The convergence of PDM to a partial minimum of original problem is proved. Finally, numerical experiments using the S&P index for 2020 are conducted to evaluate efficiency of the proposed algorithm in terms of return, variance and CVaR gaps and CPU times. [ABSTRACT FROM AUTHOR]

The implementation of renewable portfolio standards inevitably affects the strategic behavior and performance of tradable green certificate (TGC) market participants and brings policy risks and market risks. Contract is considered an effective governance tool to avoid the risks of TGC trading and helps TGC market participants to make scientific decisions. The article built a TGC contract model while considering the uncertainty of TGC supply and demand and provided a scientific analysis for designing TGC contracts. Finally, a numerical example was given to verify the optimal solution of the TGC contract model. The main results of this study are as follows: (1) higher electricity retail price could contribute to increasing the optimal trading volume and price of the TGC contract; (2) an increase in the wholesale price of electricity could decrease the optimal trading price of the TGC contract, but its impact on the optimal trading volume depends on the quota ratio designed by the government; (3) the impact of unit fines on the TGC contract is completely different from that of a lower price limit, where a low unit penalty and a high lower price limit for the TGC trading system could improve the trading volume of the TGC contract while reducing its price; and (4) transaction costs inhibit the trading volume of TGC contracts, but the impact on the optimal price depends on the size of transaction costs shared by different market participants; the transaction costs should be equally borne between the different market participants in order to eliminate the impact of transaction costs on the trading price of the TGC contract. [ABSTRACT FROM AUTHOR]

Currently, scientific big data management is generally faced with the problems of scattered data resources, inconsistent data standards, and the inability to share and circulate data safely. Research personnel attaches great importance to whether sharing the first-hand property is secure under clear ownership and whether it can contribute to the large society. The isolation of the data management system is the obvious obstacle to collecting and managing across-disciplinary data. To a large extent, sharing and trading scientific big data is the primary purpose to realize the clarity of property rights, secure data sharing, and the value of the data assets step by step. We propose to construct a public platform for scientific big data management. The system is managed to unify and authorize the on-chain data, on which data sharing and trading is tracked throughout the process. Smart contracts are executed with vital functions and guarantee price matching in data transactions. We design the incentive mechanism which measures the incentive yield of data cost quality based on Evolutionary Game Theory and Data Quality Control Theory (EGQCY), considering how the cost of data quality performs in controlling and impacting the rational release of the incentive yields in the sharing and trading process. The experiments found that the design of incentive yield and incentive coefficients only significantly affected the transition from low-quality data to medium-quality data. Both parameters converged to fixed values as the cost of data quality increased. [ABSTRACT FROM AUTHOR]

With the global climate problem becoming increasingly severe, governments have adopted policies to encourage enterprises to invest in low-carbon technologies. However, the opacity of the carbon emission reduction process leads to incomplete consumer trust in low-carbon products as well as higher supply chain transaction costs. Based on this, this paper constructs Stackelberg game models with and without blockchain under different power structures and compares the impact of these models on low-carbon emission reduction decisions. The results show that: (1) blockchain does not necessarily improve enterprise profits and can only help enterprises maintain optimal profits within a certain range when the carbon emission cost is low; (2) when consumers' environmental awareness is high, the blockchain can incentivize manufacturers to enhance carbon emission reduction, and it has an obvious promotional effect on retailers' profits; and (3) the profit gap between enterprises in the supply chain is larger under different power structures, and the implementation of blockchain can coordinate profit distribution and narrow the gap between enterprises. Compared with the manufacturer-dominated model, the emission reduction in products is maximized under the retailer-dominated model. Our study provides theoretical support for the government to regulate greenhouse gas emissions as well as for the optimization of enterprises' decision-making supported by blockchain. [ABSTRACT FROM AUTHOR]

In a unifying framework generalizing established theories we characterize under which conditions Joint Ownership of assets creates the best cooperation incentives in a partnership. We endogenise renegotiation costs and assume that they weakly increase with additional assets. A salient sufficient condition for optimal cooperation incentives among patient partners is if Joint Ownership is a Strict Coasian Institution for which transaction costs impede an efficient asset reallocation after a breakdown. In contrast to Halonen (2002) the logic behind our results is that Joint Ownership maximizes the value of the relationship and the costs of renegotiating ownership after a broken relationship. [ABSTRACT FROM AUTHOR]

This paper examines how overconfidence in financial literacy, as measured by MiFID test scores, impacts investors' trading behavior. Our theoretical model suggests that overconfident investors exhibit a higher demand for risky assets, potentially underperform compared to rational investors, and face higher transaction costs, thereby benefiting brokers. Furthermore, the impact of overconfidence intensifies with its level. We then test these propositions empirically using a unique brokerage dataset. Our findings reveal that overconfident investors engage in more frequent trading and incur higher transaction costs, with both effects increasing as overconfidence levels rise. However, we do not find evidence supporting the notion that they perform worse than rational investors. In fact, their performance tends to improve with higher levels of overconfidence. Additionally, we explore whether stress resulting from a mismatch between MiFID test scores and subjective financial literacy can mitigate the impact of overconfidence. Our data lends some support to this hypothesis. [ABSTRACT FROM AUTHOR]

Recent scholarship contends that ancient Mediterranean economies grew intensively. An explanation is that Smithian growth was spurred by reductions in transaction costs and increased trade flows. This paper argues that an ancient Greek institution, proxenia , was among the key innovations that allowed such growth in the period 500–0 BCE. Proxenia entailed a Greek city-state declaring a foreigner to be its "public friend," a status that conferred both duties and privileges. The functions performed by "public friends" could facilitate economic transactions between communities. Accordingly, network and regression analyses establish a strong relationship between proxenia grants and trade intensity. [ABSTRACT FROM AUTHOR]

Generalized trust positively affects innovation at the regional level by reducing transaction costs and supporting collaboration. We develop theoretical reasons for why the trust–innovation relationship is heterogeneous across geographic space and identify two main mechanisms that drive this result: first, only regions in the lower half of the trust distribution benefit from an increase in trust; and second, as smaller firms lack internal capabilities such as research and development and therefore resort to informal collaboration, the trust–innovation relationship is stronger in regions with a large share of small firms. We argue that regional innovation work differently across regions and different mechanisms of cooperation can be leveraged to achieve innovation success. Our results highlight the role of trust during a certain stage in the process of regional economic development, since both low trust and a larger share of small business constitute characteristics of less developed regions. [ABSTRACT FROM AUTHOR]

Companies have strengthened their long-term inter-organizational partnerships throughout the supply chain to neutralize competitive pressures and risks in uncertain environments. On this basis, this research aims to propose and test a model of partners' behavior aimed at the maintenance of long-term collaboration. By using confirmatory factor analysis, structural equation modeling, and rival model testing, the theoretical model proposed attempts to identify, from a seller's perspective, the critical variables of partners' behavior. It also seeks to understand the effect of satisfaction between trust and commitment (as antecedents associated with relationship quality) and sales formalization, sales opportunism, and sales-specific assets (as postcendents linked to relationship efficiency). Our findings verify the nomological framework and demonstrate that the partnership quality variables affect relationship efficiency, through sales satisfaction. However, the results of our research cannot confirm the relationship between satisfaction and specific assets. This research is relevant as it deals with inter-organizational partnerships from a seller-oriented approach, and it is based on a combination of Relationship Marketing Theory and Transaction Cost Theory to demonstrate that the inter-organizational partnership quality variables exert a direct effect on the partnership efficiency variables. [ABSTRACT FROM AUTHOR]

Mismatches between natural systems and political boundaries often hamper environmental management and conservation efforts. As the number of transboundary environmental cooperation (TEC) initiatives increases, it becomes imperative to establish a systematic scale for analyzing such initiatives. In this article, we advance a TEC typology and apply it to the Israeli–Jordanian case. The typology includes categories of TEC initiatives and their placement on a transaction cost ladder. This typology allows for analyses of the organizational scale, societal influence, and duration of TEC initiatives. A total of sixty TEC initiatives were analyzed in an iterative process. TEC initiatives between Israel and Jordan were found largely to bear low transaction costs. The suggested typology provides an assessment tool to a large number of initiatives and a baseline for further in-depth investigation of the causal relations between environmental cooperation, peace, and conflict and may be applied to conflictual contexts at various stages. [ABSTRACT FROM AUTHOR]

AbstractThe housing market in England is in crisis, in terms of both availability and costs of housing. Although it is not a solution for everyone, many advocates of the tiny house movement promote developing small houses that are financially affordable and environmentally sustainable. There is limited research on tiny houses, and the hidden costs of developing this type of housing have not been investigated. This paper addresses this gap through exploring the perceived transaction costs associated with developing tiny houses in England, and how these costs can be reduced. It was found that there are considerable transaction costs in different stages of the development process, including searching for information, finding suitable land, obtaining planning permission, and constructing the house. The paper concludes that tiny houses require enabling legislation in planning policy so that planning permission is easier to obtain. Also, awareness of tiny houses needs to be raised so that local planning authorities and the public understand the concept better. [ABSTRACT FROM AUTHOR]

Digital transformation, based on digital technologies, has triggered economic growth in many industries and brought about production and service transformation in the manufacturing sector. As an important source of innovation output and a driving force for national economic development, it is of great significance to study the impact of digital transformation on innovation output in manufacturing companies. This study analyzes the effects of digital transformation on the quality, quantity, and overall innovation output of manufacturing companies from both the macro provincial-level digital transformation and micro enterprise-level digital transformation perspectives. Additionally, using data from manufacturing companies listed on the Shanghai and Shenzhen stock exchanges from 2012 to 2022, this study empirically tests the mechanism through which digital transformation affects innovation output from the perspectives of internal transaction costs and external transaction costs. The results show that digital transformation promotes overall improvement in innovation output of manufacturing companies and leads to improvements in both the quality and quantity of innovation output. Furthermore, the study finds that the effect of digital transformation on innovation output has a nonlinear characteristic under different levels of market competitiveness and market freedom. The mediation analysis reveals that the influence of digital transformation on innovation output can be attributed to the reduction of internal transaction costs and the enhancement of external transaction efficiency. In terms of digital policy formulation, it is necessary to coordinate the development of diverse and innovative digital infrastructure at the macro level with the micro-level ecosystems of enterprises, in order to reduce transaction costs within and outside innovative entities. Ultimately, it is essential for the government to foster a conducive free market environment that enhances transaction efficiency and timely regulates the excessive competition resulting from oligopolistic monopolies, thus maximizing the potential of digital transformation in promoting innovation output. [ABSTRACT FROM AUTHOR]

In recent times, a new wave of scientific and technological advancements has significantly reshaped the global economic structure. This shift has redefined the role of regional innovation, particularly in its contribution to developing the Guangdong–Hong Kong–Macao Greater Bay area (GBA) into a renowned center for science, technology, and innovation. This study constructs a comprehensive evaluation system for the Regional Innovation Ecosystem (RIE). By applying the coupling coordination degree model and social network analysis, we have extensively analyzed the spatial structure and network attributes of the coupled and coordinated innovation ecosystem in the GBA from 2010 to 2019. Our findings reveal several key developments: (1) There has been a noticeable rightward shift in the kernel density curve, indicating an ongoing optimization of the overall coupling coordination level. Notably, the center of gravity for coupling coordination has progressively moved southeast. This shift has led to a reduction in the elliptical area each year, while the trend surface consistently shows a convex orientation toward the center. The most significant development is observed along the 'Guangdong–Shenzhen–Hong Kong–Macao Science and Technology Innovation Corridor', where the level of coupling coordination has become increasingly pronounced. (2) The spatial linkages within the GBA have been strengthening. There are significant spatial transaction costs in the regional innovation ecological network. In the context of the 2019 US-China trade war, the cities of Jiangmen and Zhaoqing experienced a notable decrease in connectivity with other cities, raising concerns about their potential marginalization. (3) Guangzhou, Shenzhen, and Hong Kong have emerged as core nodes within the network. The network exhibits a distinctive "core–edge" spatial structure, characterized by both robustness and vulnerability in various aspects. [ABSTRACT FROM AUTHOR]

The dwindling international funding for HIV&AIDS, limited domestic resources and the growing need for HIV&AIDS services in low-income countries make the cost-minimization of HIV&AIDS services essential to address the shortage of funds. Previous HIV/AIDS studies have addressed the budget constraints using quantitative methods in economic evaluation. Transaction cost analysis in HIV&AIDS service implementation--guided by the Transaction cost economics (TCE) theory sources of costs--asset specificity, service measurability, and opportunism--have not been sufficiently analyzed in the literature, nor have qualitative approaches been applied. Guided by TCE theory, this study (1) characterized transaction complexity levels needed in HIV&AIDS prevention services to safeguard asset specificity and services measurability and avoid opportunism in Uganda, (2) compared the relative transaction costs across three modes of HIV&AIDS prevention services, and (3) assessed whether the HIV&AIDS prevention services mode with the least transactions costs matched the proposition of the transaction (TCE) theory to guide HIV&AIDS transactions design. Data was collected from October to December 2020 from three dominant HIV&AIDS prevention services modes in Rakai, Lira and Mukono in Uganda. These modes were: (1) "Public sector provision" mode, (2) Community-led HIV&AIDS Initiative--CHAI mode, and (3) Determined, Resilient, Empowered, AIDS-free, Mentored and Safe--DREAMS mode. These modes corresponded to respective TCE theory provision mode constructs: "Internal integration," "Partnership," and "Contracting out." In each HIV& AIDS prevention services mode, the study conducted key informant interviews, a review of documents, and a focus group discussion. Transaction cost data were analyzed across the three modes based on TCE theory's sources of transaction costs (aspect specify, service measurability and opportunism). Safeguarding asset specificity and services measurability in Uganda required transactions characterized by mixed-level complexity whilst avoiding opportunism required transactions characterized by high-level complexity. Based on these transaction characteristics requirements, the "partnership" (CHAI) was HIV&AIDS prevention service mode most matching the TCE theory for cost minimization in Uganda. The evidence further suggested that CHAI had the least complex transactions to safeguard asset specificity, deal with HIV&AIDS service measurability, avoid opportunism, and hence the lowest transaction cost levels. The "partnership" (CHAI) was the least costly in dealing with asset specificity, service measurability and opportunism in Uganda and was the most aligned with the proposition of the TCE theory. The findings imply that the TCE theory can be used to guide HIV&AIDS prevention services provision in Uganda. [ABSTRACT FROM AUTHOR]

The author discusses the shift to a generalized economic interaction concept transposed by auxiliary theories of transaction costs and the link to externality. Topics covered include the expansion of general equilibrium theory to a broadly conceived neoclassical political economy, and the argument that transaction costs and related conceptual framings are best understood as the epicycles of general equilibrium theory. Also noted is the view of wealth as representative of the market's value.

It is widely held that smart contracts on a blockchain possess several unique properties, including immutability, disintermediation, and enhanced security, that can be advantageous to organizations. In particular, having these properties can enable smart contracts to benefit human resources departments in a number of ways, including applicant verification, tracking employee skills and tasks, and facilitating compensation. However, it is also reported that effectively implementing smart contracts involves a number of challenges to HR managers. To address these challenges, it would be valuable to establish criteria to help HR managers employ smart contracts successfully. The purpose of this paper is to develop a set of such criteria. The paper first provides an overview of the nature of blockchain and smart contracts and then, based on a review of relevant literature, describes how implementation of blockchain-enabled smart contracts in an HR department may benefit an organization by producing transaction cost savings through expediting processes, enhancing security, and reducing intermediaries. The paper then focuses on various challenges that have been identified in the literature to the successful use of smart contracts. These include issues regarding smart contract integrity, immutability, and security, as well as potential problems associated with a variety of legal issues. Synthesizing this information, the paper develops a set of best practice guidelines to help HR managers determine whether and how to employ smart contracts successfully for HR-related processes. The guidelines emphasize the importance of initial understanding and testing of planned smart contracts, protecting security by ensuring that only permissioned people can access smart contract data, and guaranteeing the integrity of smart contracts by paying very close attention to the translation of natural to programming language and establishing robust reviews of programmed contracts. Policy implications of the guidelines include the importance of HR departments ensuring that all employees who are involved in implementing the technology have a good understanding of the nature and capabilities of smart contracts, that robust methods be implemented to guarantee that the contracts are correctly programmed, and that HR managers keep abreast of legislative environment related to legal issues that may affect their department’s use of smart contracts. [ABSTRACT FROM AUTHOR]

The paper uses an ongoing business-to-business (B2B) relationship perspective to establish the interrelationships between trust, commitment, and relationship satisfaction (as relational constructs) and specific assets, formalization, and opportunism (as transaction cost variables) from a buyer's perspective, framed within micro-enterprises in the business banking industry in South Africa. Data were collected via self-administered online questionnaires from 381 micro-enterprise customers of one of South Africa's major banks. We first used confirmatory factor analysis (CFA) to assess the measurement model before structural equation modeling (SEM) was used to estimate the hypothesized relationships between the study constructs. The measurement and structural models fitted the data well. The research was approached using the dual theoretical lenses of relationship marketing and transaction cost theory to investigate relationship satisfaction from a buyer's perspective. The results support the notion that, in a B2B context, relationship satisfaction is an outcome of trust and commitment, with commitment being the stronger predictor. Relationship satisfaction, in turn, was positively related to both specific assets and formalization (the relationship with formalization being the strongest), and a negative relationship between relationship satisfaction and opportunism. Since our results found commitment to be a stronger predictor of relationship satisfaction than trust (contrary to much previous research that found the opposite to be true), the paper concludes with several commitment-related suggestions for banks. Although much research exists on trust, commitment, and satisfaction, to our knowledge this study is the first using dual theoretical lenses (relationship marketing and transaction cost theory) to investigate relationship satisfaction from a buyer's perspective among micro-enterprise customers in a banking context. The insights gained from our study therefore not only address this under-researched area (micro-enterprises), but also contribute toward expanding our understanding of forming (and maintaining) banking relationships with the customers of the smallest-sized businesses. [ABSTRACT FROM AUTHOR]

Online portfolio selection is attracting increasing attention in both artificial intelligence and finance communities due to its efficiency and practicability in deriving optimal investment strategies in real investment activities where the market information is constantly renewed every second. The key issues in online portfolio selection include predicting the future returns of risky assets accurately given historical data and providing optimal investment strategies for investors in a short time. In the existing online portfolio selection studies, the historical return data of one risky asset is used to estimate its future return. In this paper, we incorporate the peer impact into the return prediction where the predicted return of one risky asset not only depends on its past return data but also the other risky assets in the financial market, which gives a more accurate prediction. An adaptive moving average method with peer impact (AOLPI) is proposed, in which the decaying factors can be adjusted automatically in the investment process. In addition, the adaptive mean-variance (AMV) model is firstly applied in online portfolio selection where the variance is employed to measure the investment risk and the covariance matrix can be linearly updated in the investment process. The adaptive online moving average mean-variance (AOLPIMV) algorithm is designed to provide flexible investment strategies for investors with different risk preferences. Finally, numerical experiments are presented to validate the effectiveness and advantages of AOLPIMV. [ABSTRACT FROM AUTHOR]

In this paper, we introduce a new differential form of an asset price. This form is proposed by considering various factors such as demand and supply on the asset, stochastic volatility, transaction costs and jumps. The new differential form extends an original logistic geometric Brownian motion by adding transaction cost and jump terms. Moreover, we find a solution for the asset price related to the proposed form. Furthermore, we derive Black-Scholes partial differential equations based on the proposed price process. [ABSTRACT FROM AUTHOR]

This paper reviews 17 studies addressing dynamic option hedging in frictional markets through Deep Reinforcement Learning (DRL). Specifically, this work analyzes the DRL models, state and action spaces, reward formulations, data generation processes and results for each study. It is found that policy methods such as DDPG are more commonly employed due to their suitability for continuous action spaces. Despite diverse state space definitions, a lack of consensus exists on variable inclusion, prompting a call for thorough sensitivity analyses. Mean-variance metrics prevail in reward formulations, with episodic return, VaR and CvaR also yielding comparable results. Geometric Brownian motion is the primary data generation process, supplemented by stochastic volatility models like SABR (stochastic alpha, beta, rho) and the Heston model. RL agents, particularly those monitoring transaction costs, consistently outperform the Black–Scholes Delta method in frictional environments. Although consistent results emerge under constant and stochastic volatility scenarios, variations arise when employing real data. The lack of a standardized testing dataset or universal benchmark in the RL hedging space makes it difficult to compare results across different studies. A recommended future direction for this work is an implementation of DRL for hedging American options and an investigation of how DRL performs compared to other numerical American option hedging methods. [ABSTRACT FROM AUTHOR]

The quality traceability system for agricultural product plays an important role in tracing the production history or flow of agricultural products in China. At present, the quality traceability system is facing the problem of limited coverage and promotion. Understanding the continuous usage behavior of users can help solve this problem. This study constructed a model integrating TAM-ECM to analyze the mechanisms affecting the continuous usage intention and behavior of users of the quality traceability system, using PLS analysis method and survey data from 197 users of the GanNan navel orange quality traceability system with a usage time of up to two years. The results show that both satisfaction and usage habits directly promote the continuous usage of the quality traceability system. Lowering transaction costs significantly improves perceived value and satisfaction, and has a greater direct impact on satisfaction. Expectation confirmation level has a positive effect on perceived value, and lowering transaction costs also enhances perceived value. Perceived value、transaction cost, and satisfaction are important factors driving the continuous usage of the quality traceability system by users. The research findings provide a reference basis for the government to develop policies to attract users to use the quality traceability system for agricultural product. [ABSTRACT FROM AUTHOR]

We study the group structure of the Guéant–Pu equation of the fractional order with respect to the price of the underlying asset variable. It is one of the models of the dynamics of options pricing, taking into account transaction costs. The search for continuous groups of linearly autonomous equivalence transformations is carried out. The equivalence transformations found are used in constructing a group classification (within the framework of linearly autonomous transformations) of the equation under consideration with a nonlinear function in the right side of the equation as a free element. In the case of a nonzero risk-free rate, it is shown that two cases of Lie algebras of the equation under study are possible: two-dimensional in the case of a special type of free element and one-dimensional in the remaining cases. If the risk-free rate is zero, there are four variants of the Lie algebra, which can be two-, three-, or four-dimensional. In the future, we assume to use the obtained group classification in calculating invariant solutions and conservation laws of the model under study. [ABSTRACT FROM AUTHOR]

Simple Summary: Aerosol insecticides are widely used in food processing and warehouse facilities to help control insect contamination of grain and packaged products. These tests were conducted in the experimental flour mill at a regional university. One insecticide, Turbocide®, was applied from a high-pressure cylinder. The nozzle pressure was ~800 psi, and the spray plumes were very fine (VMD ~18 µm). The other insecticide, Pyrocide®, was applied using a hand-held fogging system, which delivered a larger distribution of droplets (VMD ~50 µm). These insecticides were dispensed from varied locations on the milling floor. The spray applications were monitored with droplet counting instruments and bioassay dishes with either adult or larvae flour beetles. Droplet data were summarized into two measurements: mass concentration index (MCI) and deposition index (Dep.Idx). Contour plots of Dep.Idx values were developed and were useful to show and compute the amount of floor area that was poorly treated. For Turbocide, adult insect efficacy increased with increasing MCI and Dep.Idx values, but larval insect efficacy was high at all MCI and Dep.Idx values. In contrast, with Pyrocide, there was no apparent relationship between aerosol MCI or Dep.Idx and adult insect efficacy. However, with Pyrocide, there was a positive relationship between the larval efficacy and the Dep.Idx. These results are useful in developing more effective application strategies for optimum insect control. Aerosol insecticides are widely used in stored product insect management programs in food facilities. Previous research has shown spatial variation in aerosol efficacy within facilities, but information on how spatial patterns of aerosol droplet concentration, size distribution, dispersal, and deposition contribute to this variation in efficacy is limited. This study involved two aerosol application systems: a high-pressure cylinder containing TurboCide Py-75® with pyriproxyfen IGR (ChemTech Ltd., Des Moines, IA, USA) and a hand-held fogger containing Pyrocide 100® (MGK, Minneapolis, MN, USA) with Diacon II which contains methoprene IGR (Wellmark, Schaumburg, IL, USA). These systems were used at single or multiple application locations. The spray trials were conducted in a small-scale flour mill, Hall Ross Flour Mill (Kansas State University, Manhattan, KS, USA). The droplet size distributions were monitored at multiple positions within the room using nine aerodynamic particle sizing (APS, TSI Incorp, Shoreview, MN, USA) instruments. The APS data collected over the treatment period were summarized into a mass concentration index (MCI), which ranged from 155 to 2549 mg/m3 for Turbocide and 235–5658 mg/m3 for Pyrocide. A second parameter called the Deposition Index (Dep.Idx) was derived to estimate potential insecticide depositions on the floor and has units of g/m2. The Dep.Idx was below 5.3 g/m2 for most Turbocide applications, while the Dep.Idx was below 8.4 g/m2 for most Pyrocide applications. The MCI and Dep.Idx values varied with APS position and spray application location, with proximity to the aerosol application location and degree of obstruction between the release point and APS position contributing to this variation. We assessed the relationship between aerosol droplet parameters and insect efficacy using Tribolium confusum Jacqueline DuVal, the confused flour beetle. The adults were treated directly, while the larvae were treated two weeks later during the residual test (previously published). For Turbocide, efficacy against adults increased with MCI and Dep.Idx values, but for residual efficacy of the IGR, efficacy was high at all aerosol droplet values, so no relationship was apparent. In contrast, the relationship between Pyrocide deposition and adult insect efficacy was highly variable. But with larval insect efficacy, residual larvae control was directly related to increases in Pyrocide MCI and Dep.Idx. Contour plots of Dep.Idx values were developed, which could be used to predict areas of the mill that are not receiving an adequate application rate, and this could be used to develop more effective application strategies for aerosol insecticides in food facilities. [ABSTRACT FROM AUTHOR]

Background. Hemoglobinopathies, among which thalassemic syndromes (transfusion-dependent and non-transfusion dependent thalassemias) and sickle cell disease (SCD), are the most widespread monogenic diseases worldwide. Hemoglobinopathies are endemic and spread-out all-over Italy, as result of internal and external migration flows. Nowadays, the increase therapeutic options associated to the general aging of patients with hemoglobinopathies related to the improvement in clinical management, contribute to the abnormalities in kidney function going from blood and urine test alterations to chronic kidney disease and end stage renal disease. Methods. Here, we carried out a revision of the literature as panel of recognized experts in hemoglobinopathies with the consultancy and the revision of two nephrologists on kidney alteration and kidney disease in patients with TDT, NTDT and SCD. This is part of the action of the Italian society for the study of thalassemia and hemoglobinopties (SITE). The purpose of this "good practice (GP)" is to provide recommendations for follow-up and therapy for the management of kidney alterations in patients with TDT, NTDT and SCD. The literature review covers the period 1.1.2016 to 31.12.2022. In consideration of the rarity of these diseases, the analysis was extended from 5 to 7 years. Moreover, in the absence of relevant scientific papers in the identified time frame, we referred to pivotal or population studies, when available. Finally, in the absence of evidence-based data from prospective and randomized trials, the authors had to refer to expert opinion (expert consensus) for many topics. Results. We generated question and answer boxes to offer a friendly consultation, using color code strategy and focused answers. Conclusions. The present GP will help in improving the clinical management, and the quality of care of patients with hemoglobinopathies. [ABSTRACT FROM AUTHOR]

Industries with more complex input-output relationships are comparatively larger in U.S. states with higher levels of trust. This specialization pattern is not driven by differences in the states' and industries' other observable characteristics. Given the importance of complexity in economic growth and development, our results underscore the need to focus more on the role of social norms, particularly trust, in shaping patterns of economic specialization. • Trust shapes economic specialization patterns. • We show formally that trust may alleviate high verification costs of complex transactions. • We construct a new complexity measure based on I-O relationships. • We find that complex industries thrive in higher-trust U.S. states. [ABSTRACT FROM AUTHOR]

Foreign aid to regional international organizations (RIOs) has increased tremendously in recent decades. The vast differences between RIOs give rise to the question of why some RIOs attract considerable amounts of aid while others attract much less, or even nothing at all. To address that question, this article sets out and examines a set of hypotheses that focus on various characteristics of RIOs that allow donors to reduce transaction costs. Empirically, the analysis proceeds via two steps: the hypotheses are first subjected to an empirical plausibility probe based on quantitative methods and then illustrated based on case study of the Southern African Development Community. The findings reveal that RIOs are most attractive when they operate in a range of policy fields, involve many member-states and are engaged in long-lasting collaborations with donors. By contrast, there is little support for conventional explanations as to why RIOs attract funding – for instance, claims that being democratic, being most in need or providing donors with market access will lead to greater funding. The rather disturbing policy implication is that a small number of RIOs are likely to continue to attract the bulk of funding, whereas poorly funded RIOs are unlikely to attract significant amounts of aid. [ABSTRACT FROM AUTHOR]