Monthly Archives: June 2025

Personalised AI Pricing May Undermine Consumer Interests

The autonomous operation and adaptability of artificial intelligence (AI)-driven pricing algorithms have made them an increasingly valuable tool for firms seeking to optimise pricing strategies in fluid and competitive markets. These systems can dynamically adjust prices in response to real-time market signals, including demand fluctuations, consumer behaviour, and rivals’ pricing strategies. Their promise lies in enhancing efficiency and revenue optimisation. However, their growing prevalence has raised concerns among scholars and regulators alike. A central issue is that specific pricing algorithms have demonstrated the capacity to learn tacitly collusive behaviours—coordinating pricing in ways that suppress competition without explicit agreement. This can result in inflated prices that ultimately harm consumer welfare, prompting calls for stricter oversight and more thoughtful algorithmic design to ensure competitive outcomes.

A recent study published in Marketing Science by researchers at Carnegie Mellon University investigates how the structure of product ranking systems on e-commerce platforms influences the pricing behaviours of AI algorithms. While using personalised product rankings—those tailored to individual consumer profiles—is generally perceived as enhancing the shopping experience by reducing search time and improving product relevance, the researchers raise a compelling question: could such personalisation inadvertently enable firms to charge higher prices, thereby reducing consumer welfare? Notably, the study focuses not on traditional price discrimination but on whether personalisation in the ranking can distort market dynamics, even when identical prices are shown to all.

Param Vir Singh, Carnegie Bosch Professor of Business Technologies and Marketing at the Tepper School of Business, explains that the team compared two extreme scenarios in product ranking design. The first involved personalised rankings, where algorithms use detailed consumer data to predict and prioritise products according to expected utility for each individual. The second employed unpersonalised rankings, where products are ordered based on aggregate preferences without tailoring to any specific user. These systems are standard in digital marketplaces such as Amazon and Expedia, which serve as search intermediaries, helping consumers navigate a growing sea of third-party listings. By focusing on these two ranking types, the researchers could isolate the effects of personalisation on pricing outcomes.

Central to the study was a consumer search model in which users examine product listings sequentially, incurring a small cost with each viewed item. Consumers are assumed to behave optimally—searching until the expected utility gain no longer outweighs the cost of continuing. The ranking system, therefore, plays a pivotal role in determining the order in which products are considered. In this framework, the researchers explored how reinforcement learning (RL) algorithms, often employed for pricing decisions, adapt to these ranking conditions. The assumption is that if a ranking system consistently pushes high-utility (and potentially high-priced) products to the top, pricing algorithms will learn they can raise prices without significantly dampening demand.

Indeed, the study found that personalised ranking systems tended to diminish the price sensitivity of consumer demand. When products most aligned with an individual’s preferences appear at the top of a list, the consumer is likelier to purchase them without continuing the search. This reduces the pressure on firms to maintain competitive pricing. As a result, AI pricing algorithms operating in such an environment learn that they can charge higher prices while still achieving strong sales performance. The reduced price elasticity leads to a general upward shift in pricing, even though no explicit collusion or discriminatory pricing occurs. Conversely, unpersonalised ranking systems, which do not cater specifically to individual preferences, maintain higher search incentives and encourage broader price comparison, leading to lower overall prices and greater consumer welfare.

Their consistency across multiple experimental conditions strengthens the credibility of these findings. The researchers tested various reinforcement learning algorithm types, adjusted learning parameters, included different valuations of outside options, and simulated scenarios involving several competing firms. Across all configurations, the core outcome remained the same: personalised rankings enabled higher prices and reduced consumer welfare, while unpersonalised rankings resulted in more competitive pricing. Liying Qiu, a doctoral student who led the study, highlighted the challenge of modelling these interactions due to the complexity of dynamic learning behaviours. Nevertheless, by constructing a controlled and replicable simulation environment, the team could empirically observe how AI pricing algorithms evolve in response to different ranking inputs.

These findings have significant implications for policymakers, platform designers, and regulators. The study underscores that ranking systems, which may appear neutral or beneficial at first glance, play an active role in shaping market outcomes. Personalisation, while helpful in reducing consumer search costs, can be weaponised by algorithms optimising for profit rather than consumer welfare. Focusing solely on price transparency or algorithmic fairness in isolation is not enough. Regulators must also consider how platform design choices—particularly product visibility and ranking—interact with pricing algorithms to affect competitive dynamics. The study suggests that limiting personalisation, or at least making its influence more transparent, may be necessary to safeguard consumer interests.

Finally, the research prompts a re-examination of the widespread belief that greater data sharing by consumers leads to improved market efficiency. While more data can improve product matching, it allows firms to tailor experiences in ways that ultimately erode consumer surplus subtly. Even without overt price discrimination, the information asymmetry introduced by personalisation can empower algorithms to manipulate demand patterns. As Professor Kannan Srinivasan, another co-author of the study, points out, the value of personalisation must be weighed carefully against its broader systemic effects. This study provides a cautionary roadmap for aligning technological advancement with public interest and competitive fairness for digital marketplaces increasingly reliant on AI and personal data.

More information: Liying Qiu et al, Personalization, Consumer Search, and Algorithmic Pricing, Marketing Science. DOI: 10.1287/mksc.2023.0455

Journal information: Marketing Science Provided by Carnegie Mellon University

Study reveals 1 in 12 workers in the UK face threats or violence on the job

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A newly released study has uncovered that 1 in 12 workers in the United Kingdom experienced threats, insults, or physical attacks in their workplace within the past year. The research by Dr Vanessa Gash of City St George’s, University of London, and Dr Niels Blom of the University of Manchester challenges prevailing assumptions about workplace safety, revealing that violence and intimidation at work are not isolated incidents but part of a widespread and systemic issue. Drawing on data from the United Kingdom Household Panel Study (UKHLS)—a national longitudinal survey involving around 40,000 households—the study examines how violence at work intersects with mental health and job security. The findings are sobering: abuse is present in all sectors, including those not typically associated with physical risk, such as finance, the arts, and administrative roles.

Public-facing roles, particularly in public administration and facilities—such as police officers, civil servants, legal clerks, fire service personnel, and immigration officers—showed the highest risk for violence. Yet the study also found that no sector is immune, and this universality challenges assumptions that workplace violence is a marginal or niche issue. Furthermore, 1 in 13 employees reported feeling unsafe in their work environment, suggesting that fear is not only widespread but often predictive of actual violence. Dr Gash commented that employers frequently minimise fear of violence, yet the data show a close correlation between workers’ fears and their exposure to harm. The fear is often not speculative—it is grounded in reality.

Beyond physical danger, the psychological aftermath of workplace violence was a central focus of the study. The research found strong links between exposure to threats or aggression and the onset of mental health conditions such as anxiety, depression, and post-traumatic stress disorder. In several cases, symptoms endured for over a year following the incident, showing the long-term impact of workplace trauma. Many workers interviewed for the study described lasting emotional effects that influenced their work performance and their home lives. What’s more, some noted that the persistent fear of returning to a hostile environment compounded their suffering and made recovery more difficult.

A striking aspect of the findings is the inadequacy of institutional support following violent incidents. Several participants reported that when they brought concerns to management, their experiences were either dismissed or met with annoyance. In workplaces where violence is downplayed or where no formal support mechanisms exist, affected employees can feel silenced or even punished for speaking up. This dynamic and the financial necessity of remaining employed left many feeling trapped in hostile workplaces. The difficulty in proving incidents of bullying or verbal abuse—compared to physical violence—further discouraged workers from reporting or pursuing redress. The research suggests that the current reporting structures and workplace cultures do not sufficiently protect vulnerable employees.

The authors of the study argue that to address the issue effectively, UK employers must adopt trauma-informed workplace policies that recognise and accommodate the psychological toll of violence. Rather than encouraging workers to leave their jobs, the focus should be on retention and support, ensuring that employees are not forced to choose between their mental health and livelihood. Implementing such policies could also benefit the broader economy. As Dr Gash pointed out, workplace violence not only undermines individual wellbeing but also leads to the loss of skilled workers. Supporting workers through difficult experiences could strengthen workforce stability and productivity in a period marked by labour shortages and economic stagnation.

Dr Blom added that fear of violence, like violence itself, should be recognised as a serious workplace health concern. Given the strong associations between feeling unsafe and deteriorating mental health, employers and policymakers must address the full spectrum of harm—from overt attacks to pervasive intimidation. Ultimately, the study urges a shift in national understanding: workplace violence is not rare or irrelevant but a significant problem with real human and economic costs. Until the issue is acknowledged and addressed in policy and practice, workers across the UK will continue to suffer in silence—exposed to harm that society has failed to confront fully.

More information: Vanessa Gash et al, Workplace violence and fear of violence: an assessment of prevalence across industrial sectors and its mental health effects, Scandinavian Journal of Work, Environment & Health. DOI: 10.5271/sjweh.4230

Journal information: Scandinavian Journal of Work, Environment & Health Provided by City St George’s, University of London

Paid Sick Leave Falls Short for Uninsured Workers

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Earned sick leave, defined as short-term, paid time off granted to employees who are ill, injured, or responsible for caring for a sick or injured family member, has been shown to reduce the transmission of infectious diseases within workplaces and increase access to preventive healthcare services. Since 2019, seven more US states have enacted laws requiring employers to offer earned sick leave, raising the total number to 18 states, in addition to Washington, D.C. Despite this positive policy trend, until recently, relatively little was known about how these laws affect worker health and safety across various sectors. The general assumption has been that paid sick leave is uniformly beneficial, but new research reveals a more nuanced reality, particularly when considering differences across industries and among vulnerable populations.

Dr Hannah I. Rochford, a health policy expert at the Texas A&M University School of Public Health, highlighted the significance of examining earned sick leave through an industry-specific lens. “This is important because both the short- and long-term benefits of earned sick leave might vary by industry,” she noted. For example, in sectors like construction, where injury rates are high, paid leave might encourage workers to take time off for recovery, potentially preventing more serious musculoskeletal injuries from developing. Conversely, in lower-risk industries, such policies may have different implications, possibly improving access to preventive care or reducing presenteeism—when workers come in sick and risk infecting others.

To investigate this, Rochford collaborated with Dr Aurora B. Le, a fellow occupational health and safety researcher. Their study, recently published in Safety and Health at Work, applied quasi-experimental methods. It used natural policy variation and nationally representative datasets to examine how earned sick leave laws influenced reportable, nonfatal illness and injury rates across major industry sectors. They relied on data from the Bureau of Labor Statistics, organised by the North American Industry Classification System, and legal policy data from Temple University’s Law Atlas. Notably, they excluded states implementing these laws after 2020 to avoid confounding effects from the COVID-19 pandemic, significantly disrupting work environments and health reporting patterns.

Their findings were revealing. States that had implemented earned sick leave laws before 2019 experienced a marginal but statistically meaningful increase in reporting workplace illnesses and injuries following policy adoption. According to Dr Le, this increase is not necessarily a sign of worsening workplace conditions. Still, it reflects a greater willingness among employees to report health issues once they feel secure. “We found that employees were more likely to report being ill or injured when they knew they wouldn’t face punishment or risk losing their jobs,” she explained. In other words, earned sick leave laws may foster a safer reporting environment in which workers feel empowered to disclose health problems without fear of retaliation.

However, the study also revealed that these benefits were not shared equally across the workforce. Workers without health insurance or those facing financial, legal, or social barriers to care—including undocumented immigrants—were found to be less likely to utilise earned sick leave. In high-risk industries such as agriculture, construction, and transportation, male workers especially may be desensitised to frequent injuries or illnesses and feel less inclined to seek time off. Moreover, undocumented workers might avoid taking leave altogether to prevent drawing attention to their employment status or to avoid breaching workplace norms. These findings point to structural inequalities that prevent some groups from fully accessing the protections such policies are intended to provide.

The study further found that union membership played a significant role in determining access to earned sick leave. Unionised employees were 10 per cent more likely to have access to such leave than their non-union counterparts. This disparity highlights the broader consequences of declining union influence in the US, a trend exacerbated by corporate resistance to organised labour and the spread of right-to-work legislation. As union power wanes, so does the collective bargaining strength needed to secure essential worker protections. Dr Rochford concluded that earned sick leave policies are vital but insufficient in isolation. Expanding insurance access and providing culturally and linguistically appropriate education on worker rights—particularly for undocumented and marginalised workers—is essential to ensuring that earned sick leave achieves its intended outcomes across the workforce.

More information: Hannah I. Rochford et al, Impact of Earned Sick Leave Policy on Worker Wellbeing Across Industries, Safety and Health at Work. DOI: 10.1016/j.shaw.2025.01.007

Journal information: Safety and Health at Work Provided by Texas A&M University

What’s Fueling the Surge in NLM Wines?

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New research from the Adelaide Business School at the University of Adelaide offers fresh insights into the growing consumer interest in no, low, and mid-strength (NLM) alcohol wines. Dr Hannah Ford’s study provides a comprehensive behavioural framework that illuminates the diverse factors behind the rising appeal of these alternative wine products while examining the wine industry’s influential role—particularly retailers and marketers—in shaping consumer engagement and acceptance.

Published in the Journal of Marketing Management, Dr Ford’s scoping review synthesises findings from 38 peer-reviewed studies, uncovering the complex interplay between psychological drivers and market dynamics in the NLM wine space. She proposes that consumer interest in NLM wines is not merely a matter of health preference but a multifaceted response to broader behavioural and social cues. The study introduces the concept of a ‘SHIFT’ behavioural framework—where Social context, Habits, Identity, Feelings, and Tangibility all contribute to consumers’ decisions regarding alcohol moderation. According to Dr Ford, these behavioural pillars offer a lens through which future research can delve deeper into how targeted marketing and messaging might enhance the appeal of NLM wine products.

The review also highlights the strategic importance of wine producers and retailers in building and sustaining demand for these products. Dr Ford shows how industry stakeholders can effectively guide consumer behaviour through subtle yet powerful cues by drawing on the “MAPED” framework—Motivation, Action, Prompt, Environment, and Design. This includes strategies such as offering positive reinforcement through advertising, enhancing the sensory experience of NLM wines, and promoting the lifestyle benefits of moderate drinking. Notably, she underscores that market acceptance hinges on a combination of product innovation and consumer education, supported by credible, values-driven marketing.

A particularly striking aspect of Dr Ford’s findings is the recent academic focus on NLM wines. While the first known study on no- and low-alcohol wines appeared in 1994, it wasn’t until 2012 that researchers seriously began to investigate consumer perceptions specific to no-alcohol wine. Since then, the field has grown exponentially, with the number of publications more than doubling in the past ten years. This surge reflects a shift in societal norms—such as the rise of the ‘sober curious’ movement—and increasing consumer awareness around health and wellness.

However, despite this growth, Dr Ford points out significant gaps in the literature. For instance, many studies have concentrated on red or white table wines, with less attention given to sparkling, rosé, or other styles. There is also a tendency to group ‘no’ and ‘low’ alcohol wines together, even though consumer attitudes towards these categories may differ considerably. Additionally, few studies employ immersive or experiential methodologies such as sensory tastings or choice experiments, which are critical for understanding consumers’ purchasing decisions in real-world settings.

Cultural and psychographic diversity is another area where existing research falls short. Dr Ford advocates for more cross-cultural studies to explore how factors such as tradition, identity, and social norms influence wine consumption patterns globally. She also recommends that future research move beyond purely rational decision-making models to include emotional, implicit, and subconscious influences. She suggests that concepts like Cognitive Dissonance and Behavioural Reasoning Theory can offer nuanced insights into why consumers might express interest in NLM wines but ultimately fail to purchase them.

The implications of this research are wide-reaching, especially for wine producers seeking to stay competitive in an evolving market. As younger consumers embrace moderation and seek products aligned with their wellness values, the wine industry must adapt by developing offerings that are lower in alcohol but also authentic, enjoyable, and culturally resonant. Dr Ford sees Adelaide Business School as pivotal in this transformation, particularly through its involvement with the NoLo Wine Research Facility. This institutional commitment signals a broader ambition: to provide research-led guidance for a wine sector responsive to consumer needs and aligned with long-term sustainability goals.

Dr Ford’s scoping review represents a foundational step toward a more sophisticated understanding of NLM wine consumption. By foregrounding behavioural science and industry collaboration, the research charts a path forward for academics and practitioners aiming to support healthier drinking cultures without sacrificing wine’s rich tradition and sensory experience.

More information: Hannah Ford et al, Exploring consumers’ drinking behaviour regarding no-, low- and mid- alcohol wines: a systematic scoping review and guiding framework, Journal of Marketing Management. DOI: 10.1080/0267257X.2025.2499101

Journal information: Journal of Marketing Management Provided by University of Adelaide

Financial Skills Decline in Older Adults Following Dementia Onset

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Older adults are often thought to possess a heightened understanding of their financial abilities—an intuitive grasp that, perhaps surprisingly, tends to sharpen with age, so long as their cognitive faculties remain intact. New research from Binghamton University, part of the State University of New York system, confirms this intuition: financial self-awareness in older adults improves over time, bolstered by decades of hands-on experience navigating pensions, insurance plans, healthcare costs, and other fiscal responsibilities associated with later life. However, this gradual refinement of self-knowledge fails to manifest in individuals diagnosed with Alzheimer’s disease, who frequently lose the capacity to assess their decision-making abilities accurately.

The study, conducted under the direction of psychologist Dr Ian McDonough, drew on a decade’s worth of data from a longitudinal cohort of 2,800 older participants. These individuals were asked to rate their perceived competence in executing everyday financial tasks—such as balancing a chequebook, calculating change, or managing monthly bills—before undergoing practical tests designed to measure their performance. One illustrative task involved reviewing a brochure for gym memberships and determining the total cost over ten years, offering a real-world scenario that blended numeracy with financial reasoning. By comparing each participant’s self-evaluation with their performance outcomes, the researchers assessed the degree of alignment between confidence and capability—a measure of metacognitive insight.

The findings revealed a promising trend: many cognitively healthy adults in their 60s and 70s demonstrated an improving ability to gauge their financial proficiency. This growing metacognitive accuracy results from life experience, particularly post-retirement, when navigating systems such as Social Security and healthcare subsidies, which have become a regular part of daily life. As McDonough observed, “It does seem people get better with time. By the time you get to your 70s, as long as you maintain your cognition decently well, you can predict your financial ability slightly better.” These results offer reassurance that financial wisdom tends to accrue with age—provided that cognitive health remains stable.

However, this sharpening of insight begins to deteriorate rapidly when dementia enters the picture. For individuals with Alzheimer’s disease and related forms of cognitive impairment, the study uncovered a pronounced gap between perceived and actual financial ability. Some participants in this group continued to express high confidence in their decision-making skills despite clear evidence of decline. In contrast, others became unduly doubtful of their abilities, erring on caution and potentially limiting their independence. This misalignment is associated with anosognosia, a neurological condition wherein individuals lose awareness of their deficits. Although anosognosia has been well-documented regarding memory and orientation, this study represents one of the earliest efforts to explore its influence on financial self-assessment specifically.

The implications of this research are far-reaching, particularly in light of the growing number of older adults living with cognitive impairment. Financial vulnerability becomes critical when individuals cannot accurately judge their abilities. As McDonough explains, early intervention is key. Support mechanisms should be introduced while cognitive awareness remains intact, such as designating a trusted family member to co-manage financial affairs or implementing safeguards like alerts for unusual account activity. These strategies can help maintain a sense of autonomy while reducing the risk of economic exploitation, missed payments, or unwise spending. “Because of the personal importance of one’s autonomy in managing finances,” McDonough notes, “working with an older adult with cognitive decline rather than taking away this autonomy is an important but tricky balance to strike.”

Looking ahead, McDonough and his team aim to delve deeper into the neurological basis of financial judgement by examining brain activity during mathematical and decision-making tasks. Another area of focus is digital financial literacy among seniors, a pressing topic as banking increasingly relies on online platforms. Understanding how older adults interact with these digital tools will be essential in developing effective educational programmes and support structures that can adapt to their needs. With the digital landscape evolving rapidly, ensuring that older individuals are not left behind becomes a matter of financial security and broader social inclusion.

Ultimately, this research offers a nuanced view of ageing and cognitive change—highlighting the strengths many older adults retain while also pointing to the vulnerabilities that can emerge with dementia. It underscores the importance of timely planning, respectful collaboration, and targeted education in protecting financial well-being in later life. Rather than portraying ageing as an inevitable decline, the findings invite a more balanced narrative that recognises the wisdom that can come with experience, alongside the challenges that cognitive impairment may bring. By supporting older adults in retaining both their independence and their security, we honour their financial autonomy and dignity.

More information: Ian McDonough et al, Relationship Between Perceived and Objective Financial Abilities Among Older Adults: Results From the Advanced Cognitive Training for Independent and Vital Elderly Cohort, The Gerontologist. DOI: 10.1093/geront/gnaf125

Journal information: The Gerontologist Provided by Binghamton University

Research Shows Revenge Politics Backfire—Even Among Party Loyalists

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A newly released study from Northwestern University challenges prevailing assumptions about the unwavering nature of partisan loyalty in contemporary American politics. The research investigates whether voters approve of politicians who retaliate against companies that criticise their actions—a particularly timely question given the increasing frequency with which political leaders engage in public confrontations with private entities. Specifically, the study tests whether such retaliatory actions are seen as an abuse of power and whether voters’ reactions depend on whether they share the same political affiliation as the politician. In an era often defined by fierce political tribalism, the findings offer a nuanced perspective on voters’ tolerance for vindictive governance.

To explore this dynamic, the research team surveyed 1,000 American adults during two waves of data collection in February and April of 2024. Participants were presented with a mock news article describing a hypothetical situation where a state governor responds to public criticism from a large, in-state business. Each participant was randomly assigned to one of three scenarios: one in which the governor does nothing in response to the criticism (“no attack”), another in which the governor issues a verbal rebuke but takes no concrete steps (“verbal rebuke”), and a third in which the governor engages in retributive action, including stripping the business of tax incentives and calling for a statewide boycott. This design allowed researchers to test whether escalating retaliation would alter public support.

The results were both surprising and revealing. In the first two scenarios—non-response and verbal criticism—partisanship strongly shaped voter opinions. Participants were inclined to support the governor if they shared the same political party, regardless of whether the governor had ignored or lightly criticised the company. However, partisan support significantly declined when the scenario escalated to include active retaliation. Even among voters aligned with the governor’s party, support fell sharply enough to shift the majority from expressing a positive vote intention to a negative one. This drop suggests that voters draw a distinct line between political posturing and the abuse of official power.

The open-ended responses provided by participants reinforced this trend. Many expressed discomfort or outright disapproval of the retaliatory measures described in the most severe scenario. Comments included phrases such as “this is more like what a tyrant would do” and “the governor shouldn’t be acting like a dictator,” indicating a profound unease with elected officials using state power to punish dissent. Notably, these criticisms did not appear to be driven by ideological opponents alone; members of the same party also voiced concerns, signalling a potential cross-partisan consensus on the limits of acceptable political conduct.

Mary McGrath, the study’s principal investigator and an assistant professor of political science at Northwestern, acknowledged that the findings upended the research team’s initial expectations. “We anticipated that voters’ responses would mirror partisan alignment almost entirely,” she said. “But what we saw instead was a more principled reaction—voters weren’t willing to condone retribution simply because it came from someone in their own party.” This observation suggests that while partisan loyalty remains a strong force in American political behaviour, it is not entirely impervious to moral or procedural boundaries.

Evan Myers, the lead author and undergraduate honours student who spearheaded the project, echoed this cautious optimism. “I assumed that given the climate we’re in, voters would overlook almost anything if it were their side doing it,” he explained. “But they didn’t. That gives me some hope that people can still distinguish between party loyalty and democratic norms.” Myers noted that although the findings were drawn from a controlled experiment, they hint at an enduring public expectation that leaders act within the bounds of fairness—even when engaging in conflict with private industry.

Ultimately, while the researchers caution against extrapolating too broadly without further fieldwork, the study underscores a critical insight: partisan voters are not uniformly permissive of retributive political behaviour. Even in a deeply polarised landscape, there appears to be a line voters are unwilling to let their elected officials cross. This has significant implications for democratic accountability in the United States. If leaders believe they can freely punish dissent without electoral consequences, this study suggests otherwise—voters, regardless of party, may push back when power is wielded vindictively.

More information: Mary McGrath et al, Electoral costs of political retaliation: bipartisan rejection of attacks on corporate speech, Business and Politics. DOI: 10.1017/bap.2025.10

Journal information: Business and Politics Provided by Northwestern University

Reconsidering the Roots and Realities of Poverty: A New Perspective

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Despite a general improvement in living standards worldwide over the past thirty years, significant and entrenched inequalities have endured, manifesting between countries and within them. Urban and rural divides are particularly stark, highlighting the need for intensified efforts to eradicate poverty and ensure that everyone enjoys the means for a decent life. Even as economies have grown and technology has advanced, the promise of a decent standard of living remains unfulfilled for millions, suggesting that growth alone does not automatically translate to equitable well-being. Instead, these persistent gaps point to poverty’s complex and multifaceted nature—an issue that requires a far more nuanced approach than simply raising incomes.

A recent study published in Nature Communications underscores this complexity through an innovative lens. Drawing on data from households across 75 low- and middle-income countries, the study reveals that 94.9% of households fall short on at least one of ten fundamental living standards, with nearly two-thirds lacking in at least a third of these basic needs. Such numbers are much higher than those typically reported by conventional poverty measures, which rely on income thresholds alone. This discrepancy arises because the study employs the Decent Living Standards (DLS) framework developed by the International Institute for Applied Systems Analysis (IIASA). Rather than measuring poverty solely by income, the DLS framework considers whether individuals can meet their essential physical and social needs—a broader and arguably more human-centred definition of poverty.

Roman Hoffmann, the lead author and head of the IIASA Migration and Sustainable Development Research Group, stresses the importance of this approach. “Income doesn’t tell us enough,” he asserts. “It’s about whether people can meet their basic needs. Deep and persistent inequalities become apparent when we look at who has access to essential services, resources, and infrastructure.” Unlike traditional poverty metrics, which typically condense deprivation into a single score, the DLS framework dissects it into ten dimensions of wellbeing. Seven are tied to physical needs—housing, nutrition, and sanitation—while the remaining three cover social participation, including access to education, mobility, and communication. This comprehensive framework recognises that lacking in these areas constitutes a fundamental shortfall in living a decent life.

The study’s findings reveal the areas in which deprivation is most acute. For example, 72.2% of households in the sample lack modern means of food preparation, a clear indicator of energy poverty. Access to healthcare is another critical area, with 68.0% of households unable to obtain basic medical services. Additionally, 54.8% of households live in inadequate housing, and 47.9% have no access to proper sanitation. These statistics are not simply abstract figures—they reflect the daily struggles millions face. Omkar Patange, a study’s co-author, likens poverty to a “web of constraints” that forces families into impossible choices, such as whether to pay for food, healthcare, or education. These trade-offs shape lives in profoundly negative ways, perpetuating cycles of disadvantage that are difficult to escape.

The regional differences are equally striking and speak to the global scale of these issues. In Sub-Saharan Africa, only 12% of households meet two-thirds of the DLS thresholds, compared to 37% in South Asia, 44% in Latin America and the Caribbean, and over 70% in Eastern Europe and Central Asia. Despite some progress in certain countries, rural areas remain particularly disadvantaged, with the study finding that the rural-urban gap in living standards has barely shifted in three decades. Another study co-author, Caroline Zimm, says, “We were surprised that the rural-urban divide has not narrowed. We often assume that development automatically reaches everyone, but our data shows that’s far from the case.” The data also reveal how factors such as education, occupation, and household size intersect to shape patterns of deprivation, further emphasising the need for policies that tackle these inequalities at their roots.

The implications of this research extend far beyond academic discourse. The authors argue persuasively for a shift towards multidimensional poverty reduction strategies that prioritise income growth and sustainable and equitable access to essential goods and services. Furthermore, robust, household-level data collection cannot be overstated. Roman Hoffmann warns that cuts to survey funding could blind policymakers to the lived realities of poverty, ultimately hindering efforts to close these persistent gaps. Encouragingly, the study’s findings suggest that meeting decent living standards for all would require only a fraction of today’s global energy and material use, proving that the goal of eliminating poverty is compatible with the imperative of sustainability. Nonetheless, achieving this vision demands determined, well-resourced policy interventions that target the most marginalised communities—those whose right to a decent life has too often been overlooked or ignored.

More information: Roman Hoffmann et al, Subnational survey data reveal persistent gaps in living standards across 75 low and middle-income countries, Nature Communications. DOI: 10.1038/s41467-025-60195-5

Journal information: Nature Communications Provided by International Institute for Applied Systems Analysis

Empowered Women on Corporate Boards Foster Safer Work Environments

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The role of a board director has long been considered one of the most prestigious and influential positions in corporate America. Yet, it has also been a domain historically marred by the exclusion of women and other underrepresented groups. For decades, critics have highlighted the persistent gender disparity on corporate boards, arguing that this imbalance stifles fresh perspectives and impedes progress towards equitable decision-making. However, there has been a noticeable shift in recent years, driven by state legislation and mounting pressure from investors who now recognise the tangible benefits of diverse leadership. These external forces have compelled many firms to actively seek out female directors, gradually transforming boardroom dynamics in motion.

A wealth of prior research has already demonstrated that female directors on corporate boards can lead to notable improvements across a company’s operations and social responsibilities. For instance, studies have found that female representation correlates with stronger financial performance, enhanced social responsibility initiatives, and better product recalls and operational efficiency decisions. Building on these established findings, a recent study from the University of Notre Dame has cast new light on a vital aspect of corporate performance: workplace safety. This investigation reveals that companies with more female directors see fewer workplace accidents and injuries, underscoring the broader organisational value of gender diversity at the top.

Yet, as Professor Kaitlin Wowak of Notre Dame’s Mendoza College of Business points out, simply appointing women to board positions is not, in itself, sufficient to bring about significant improvements in safety outcomes. The real key lies in positioning these female directors within the most influential committees of the board, such as those responsible for risk management or operations. According to Wowak, women serving on these influential committees tend to feel more comfortable expressing their views and can better champion safety initiatives that might be overlooked. This, in turn, empowers them to make a tangible difference in the daily lives of employees, fostering an environment where safety becomes a central concern rather than an afterthought.

The study, conducted by Wowak along with Yoonseock Son and Corinne Post, relied on an extensive dataset spanning 1,442 firm-year observations across 266 companies between 2002 and 2011. Published in the Journal of Operations Management under the title “From the Boardroom to the Jobsite: Female Board Representation and Workplace Safety,” the research integrates data from OSHA workplace safety records, Institutional Shareholder Services, and Violation Tracker. This comprehensive approach allowed the team to draw robust conclusions about the relationship between board composition and employee well-being, lending significant weight to their findings.

Their analysis reveals that female directors are more likely to consider the needs of a broad range of stakeholders, exhibit a greater degree of risk aversion, and prioritise regulatory compliance. These attributes collectively contribute to a stronger safety culture within organisations. When women occupy positions of influence on corporate boards, they are more likely to push for management to monitor and report on safety measures and ensure robust protocols are in place. This proactive oversight helps cultivate a workplace environment where safety rules are not merely guidelines but critical practices that are rigorously followed.

Beyond the gender dimension, the researchers extended their inquiry to explore whether racial and ethnic minority directors similarly influence workplace safety. Indeed, they discovered that minority directors also bring unique, safety-relevant perspectives to boardroom discussions, paralleling the impact of female directors. Perhaps even more striking, the study found that when women and minority directors serve in positions of power, their combined influence creates a synergistic effect, further amplifying improvements in workplace safety. This suggests that diversity in all its forms has the potential to foster a more conscientious and secure working environment.

In the broader context of corporate governance, these findings carry significant implications. Workplace accidents cost American employers more than $170 billion each year, so the business case for cultivating a diverse and empowered board is compelling. Boards that include women and minority directors in key leadership roles are not merely checking a box for diversity — they are actively reshaping the priorities and practices of their organisations in ways that can save lives, reduce costs, and protect reputations. As Son aptly concluded, empowering these underrepresented directors curtails their inhibitions, shields them from undue interference, and allows their voices to shape the crucial conversations that govern workplace safety. Ultimately, this research makes a powerful argument for diversity as a catalyst for not just equity, but also for operational excellence and employee well-being.

More information: Yoonseock Son et al, From the Boardroom to the Jobsite: Female Board Representation and Workplace Safety, Journal of Operations Management. DOI: 10.1002/joom.1370

Journal information: Journal of Operations Management Provided by University of Notre Dame

Financial Executives’ Overconfidence Fuels Environmental Compliance Breaches

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New research has revealed a striking connection between the personalities of senior finance executives and firms’ environmental practices. Specifically, the study found that companies are more likely to breach environmental regulations when their Chief Financial Officers (CFOs) display a marked overconfidence in their decision-making abilities. This overconfidence can lead to short-sighted and risky decisions, with harmful consequences for the environment and the company’s long-term financial health.

The consequences of these environmental rule violations extend beyond regulatory fines. The study, which analysed data from nearly 600 US-based companies over 17 years, highlights that firms engaging in such misconduct suffer substantial long-term damage, particularly in declining credit ratings. Poor creditworthiness, in turn, can impact a company’s ability to secure favourable financing, hindering growth and stability. Such findings underscore how environmentally negligent behaviour driven by executive overconfidence can ripple through a firm’s broader economic standing.

Intriguingly, the researchers observed that state-level laws mandating consideration of all stakeholders – not merely shareholders – significantly mitigated these risks. Overconfident CFOs appeared less likely to propel their firms into environmentally risky behaviour in states with these stakeholder-focused legal frameworks. These laws effectively safeguard, compelling decision-makers to weigh broader social and environmental implications alongside financial performance, thereby protecting the interests of employees, customers, and local communities.

This novel research was a collaborative effort by scholars from the University of East Anglia (UEA) and Heriot-Watt University and colleagues from Coventry University, Bangor University, and the University of Aberdeen. While much prior research has focused on the role of Chief Executive Officers (CEOs), this study shifts the spotlight to CFOs – the financial stewards whose decisions shape a company’s fiscal strategy and, as it turns out, its environmental footprint. The findings have been published in the European Management Review, an academic journal dedicated to advanced studies in business and management.

Dr Yurtsev Uymaz from UEA’s Norwich Business School pointed out the novelty of the findings. He remarked that while overconfidence in executives has been linked to risk-taking in financial decisions, this is among the first studies to establish a direct link between CFOs’ psychological traits and environmental harm. Dr Uymaz also emphasised that stakeholder laws can play an essential role in curbing such overconfidence, acting as a form of external oversight to promote more balanced and responsible decision-making.

Professor Patrycja Klusak of Heriot-Watt University underscored the broader significance of the findings. She noted that by connecting the psychological tendencies of senior executives to tangible outcomes like pollution and financial decline, the study provides a compelling case for closer scrutiny of the personality traits of financial decision-makers. It also bolsters the argument for strengthening stakeholder-oriented legal frameworks, which can be a powerful brake on potentially harmful managerial behaviour.

The authors advocate for a more robust system of internal controls and governance mechanisms to address the risks overconfident executives pose. By doing so, firms can enhance investor confidence and contribute to broader social and environmental sustainability. Dr Uymaz concluded that firms with overconfident CFOs might find themselves particularly susceptible to penalties and reputational damage if they operate in regions lacking these stakeholder-oriented safeguards. Conversely, in states where such laws are in place, the firms appear better equipped to manage the potentially damaging impulses of overconfident decision-makers.

This research highlights the complex interplay between executive personality traits, regulatory environments, and corporate environmental performance. The evidence suggests that while overconfident CFOs may help drive growth through bold decision-making, unchecked confidence fosters a dangerous disregard for environmental compliance. This disregard, in turn, carries significant financial and social costs. Addressing the cognitive biases of senior managers and embedding stakeholder-focused legal frameworks into corporate governance are crucial steps in aligning financial success with environmental stewardship.

More information: Yurtsev Uymaz et al, CFO overconfidence, environmental violations, and firm performance. The moderating role of constituency statutes, European Management Review. DOI: 10.1111/emre.70016

Journal information: European Management Review Provided by University of East Anglia

Non-Western Nations Are Eroding the Effectiveness of Western Sanctions on Russia

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The European Union has recently announced yet another sanctions against Russia—its seventeenth so far. These measures build upon the extensive economic sanctions and wide-ranging export bans already imposed by the United States and the EU in the wake of Russia’s invasion of Ukraine in February 2022. Central to these initiatives is the strategic aim of denying Russia access to advanced technologies critical for producing and maintaining military hardware. Yet the stark reality remains that Western technology continues to be detected in the Russian drones and missiles deployed in Ukraine, starkly highlighting the limitations of these sanctions in achieving their intended effect.

To unravel this troubling dynamic, economists from the universities of Würzburg, Munich, and Princeton—Lisa Scheckenhofer, Feodora A. Teti, and Joschka Wanner—have carried out a thorough investigation into how military goods, despite being subject to sanctions, still manage to reach Russia. Their findings are published in the latest edition of AEA Papers & Proceedings, shedding light on a complex and persistent challenge: the circumvention of sanctions via third countries sympathetic to Moscow.

Joschka Wanner, Assistant Professor of Quantitative International and Environmental Economics at Julius-Maximilians-Universität Würzburg, explains that the study offers concrete evidence that military equipment sanctioned by the West has been reaching the Russian market indirectly, routed through countries considered friendly to Russia. In terms of complex data, the probability of these Russia-friendly nations exporting a sanctioned military product category to Russia jumped by an astonishing 20 percentage points relative to neutral countries after the conflict erupted. This dramatic increase highlights the porous nature of international sanctions when confronted with the realities of global trade and shifting alliances.

The team’s research relied on a rigorous analysis of publicly available trade data from UN Comtrade, one of the largest global trade databases managed by the United Nations, covering 2021 to 2023. They examined trade flows from 122 countries, categorising them into allies of the sanctioning coalitions, Russia-friendly states, and neutral parties. This detailed data provided a window into how trade patterns have adapted in response to the sanctions, revealing the pivotal role of third countries in circumventing the restrictions.

Of course, tracing these patterns was far from straightforward. Lisa Scheckenhofer notes that sanctions evasion is inherently clandestine, making detection an uphill task. Nonetheless, the data indicated that logistics firms in Russia-friendly countries significantly ramped up their transportation of Western goods to Russia following the outbreak of hostilities. This was accompanied by a discernible increase in exports from Western allies to these intermediary countries, setting the stage for onward export to Russia. Following these intertwined trade flows, the researchers could identify clear evidence of how sanctions were being bypassed.

Another layer of complexity emerged in distinguishing between deliberate sanction-busting and the more benign shifting of trade flows driven by increased costs. Feodora A. Teti explains that to untangle these factors, the team compared the exports of Russia-friendly and neutral countries, which maintained consistent trade costs with Russia. The discovery of a disproportionate increase in exports from Russia-friendly countries to Russia, alongside higher imports from Western allies to these intermediary nations, strongly suggested that these flows were not simply a reflection of higher costs but pointed to active circumvention of sanctions.

The study’s conclusions offer a sobering reminder of the limits of sanctions in a globalised economy where third countries can act as convenient intermediaries. Even more disconcerting is the revelation that some Western nations, despite their sanctions commitments, were four percentage points more likely to export these sensitive goods to Russia-friendly countries than neutral states. Although the study did find some evidence of declining violations by 2023, this modest improvement does not diminish the pressing need for more robust and proactive measures to close these loopholes. The authors argue that policies such as secondary sanctions, which would penalise third countries enabling such trade, ensure that sanctions fulfil their intended role in constraining Russia’s military capabilities.

More information: Joschka Wanner et al, Dodging Trade Sanctions? Evidence from Military Goods, AEA Papers and Proceedings. DOI: 10.1257/pandp.20251084

Journal information: AEA Papers and Proceedings Provided by University of Würzburg

Will you trust me this time?

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Consumers’ natural reluctance to trust what they do not understand has profound implications in the digital age, especially when it comes to the ubiquitous yet impenetrable terms of use contracts that underpin so many online services. These dense legal documents, often exceeding thousands of words, are drafted in a manner that alienates most users, who typically scroll past them without reading. Consequently, tech companies that depend on these arcane agreements — social media giants and digital service providers — have found themselves among the least trusted corporate entities in the public eye. This pervasive mistrust highlights a pressing question: might a more transparent approach to these contracts improve consumer confidence in these businesses?

This question has been at the forefront of research conducted by Tari Dagogo-Jack, an assistant professor of marketing at the University of Georgia’s Terry College of Business, in collaboration with Tim Samples, an associate professor of legal studies at the same institution. Their work, recently published in the Journal of the Association for Consumer Research, delves into whether simplifying legal language and making user terms more accessible can enhance consumer trust in tech companies. Dagogo-Jack noted the inherent opacity of these contracts: “These contracts are incredibly long and written in a language that most people simply cannot understand.” His suggestion is straightforward — rewriting these documents in plain language might offer a pathway to building greater trust, though he warns that this solution is far from uncomplicated.

The researchers’ findings reveal that while transparency can foster trust, it is not a panacea. Indeed, their studies found that plain language summaries did boost confidence in the companies that offered them. Yet this effect was limited, suggesting that transparency alone cannot repair all the damage wrought by years of complex and often one-sided contracts. For Dagogo-Jack, who studies consumer psychology and brand perception, and Samples, who focuses on the intersections of digital agreements and international investment law, this outcome sheds light on how deeply entrenched mistrust can be in these digital relationships.

The underlying reason is simple: people naturally feel more confident when they can comprehend what is being asked of them. However, most social media contracts remain daunting, with an average of over 6,700 words of dense, intimidating legal jargon. A few pioneering platforms have begun to break this mould by incorporating plain language summaries and helpful explanatory tools. Samples observed, “We noticed that some platforms included these plain English explanations alongside the legal contract language. It made us wonder how the public would interpret such efforts and whether they would impact consumer trust.”

To test this, Dagogo-Jack and Samples designed five studies that exposed participants to different versions of terms of use agreements — some with plain language summaries, some without. They assessed how well participants understood the terms, how much trust they felt towards the company behind them, and how comfortable they would share their personal information. Participants who encountered plain language summaries reported higher levels of understanding and, subsequently, greater trust in the companies. The researchers saw a symbolic dimension at play — by making their terms of use more digestible, these companies signalled that they were acting in good faith, which fostered a sense of loyalty among users.

Yet this symbolic act also exposed a fundamental tension. Dagogo-Jack said, “The fact that you’re making it easy for me to understand is a positive sign — you’re showing that you’re on my side. But once I can read and understand what these contracts say, I might realise that you’re still taking a lot of liberties with my data.” Thus, the very clarity that engenders trust can simultaneously unearth unsettling truths about how these companies operate. This discrepancy between perception and reality offers a cautionary tale for marketers and policymakers alike. While a promising tool for improving relationships with consumers, transparency risks pulling back the curtain on practices that many users would prefer to avoid.

Indeed, some companies have already embraced this shift towards plain language, including Pinterest and Kickstarter, while others are using more creative strategies like video explainers and interactive graphics to make their policies more approachable. These innovations can potentially change how users select which companies to do business with — and, in turn, pressure companies into offering genuinely more user-friendly policies. However, the spectre of “privacy washing,” as Dagogo-Jack and Samples warn, remains the risk that companies will exploit these transparent gestures as mere marketing tactics without fundamentally changing their underlying data practices. “You’re not going to be able to summarise and animate your way to consumer trust if your entire business depends on selling people’s data,” Dagogo-Jack cautioned.

As this research suggests, the future of trust in digital services may well hinge on how companies balance this newfound emphasis on clarity and openness with the real demands of their data-driven business models. In the coming years, Dagogo-Jack and Samples plan to continue exploring how multimedia presentations and aesthetic choices in these terms of use contracts influence perceptions of trust. Ultimately, their findings highlight both an opportunity and a warning. While transparent language can open the door to more trusting relationships, it must be backed by a genuine change in how companies treat users’ data if that trust is to be more than skin deep.

More information: Tari Dagogo-Jack et al, Plain English in User Terms: Spillover Effects of Enhanced Readability on Consumer Trust, Journal of the Association for Consumer Research. DOI: 10.1086/735026

Journal information: Journal of the Association for Consumer Research Provided by University of Georgia

USF Study Reveals Why Consumers Are Still Deceived by Fake Online Reviews

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Despite the growing awareness surrounding the issue of fake online reviews, a new study conducted by the University of South Florida (USF) has uncovered a concerning trend: consumers continue to be significantly swayed by what they read online, even when there are ample reasons for scepticism. This work, published in the prestigious journal Information Systems Research under the title “The Illusion of Authenticity in Online Reviews: Truth Bias and the Role of Valence,” delves deep into why people remain so susceptible to falsehoods on the internet. It addresses a pivotal question at the heart of the modern digital marketplace: do consumers naturally adopt a suspicious stance when evaluating online reviews, or do they have an ingrained tendency to trust these narratives?

At the heart of the study lies the “truth bias,” a term from psychology that encapsulates the human tendency to accept information as truthful unless there is a compelling reason to doubt it. According to the study’s co-author, Dezhi Yin, an associate professor at the USF Muma College of Business, this tendency plays a critical role in how online reviews influence consumer choices. “Our research is among the first to examine how consumers make real or fake judgments of online reviews,” Yin explained. “Understanding the consumer mindset is crucial, as it is ultimately consumers who are the primary targets of review manipulation.”

The study, carried out in collaboration with Samuel D. Bond of the Georgia Institute of Technology and Han Zhang, affiliated with Georgia Tech and Hong Kong Baptist University, involved five experimental investigations conducted between 2018 and 2023. In these experiments, participants were presented with reviews and asked to determine whether each was genuine or fake. Intriguingly, even when participants were informed ahead of time that half of the reviews they would encounter were fabricated, they consistently judged most reviews to be authentic, illustrating the stubborn power of the truth bias.

One striking example from the research involved participants being shown twenty restaurant reviews while knowing only ten were real. All reviews were displayed together, enabling participants to navigate back and forth to re-evaluate and refine their judgments. Despite this, on average, participants identified 11.38 reviews as real, suggesting that cross-checking did little to overcome the instinctive assumption of honesty. Yin observed, “This illustrates the power of truth bias in this context,” underscoring how deeply ingrained the tendency to trust reviews can be, even in the face of explicit warnings.

Another dimension explored by the researchers was the role of a review’s tone or “valence” — whether a review was positive or negative — in shaping perceptions of authenticity. Real-world data across multiple platforms have consistently shown that negative reviews are more likely to be fake than positive ones. However, contrary to this reality, the study participants were found to be more inclined to believe negative reviews over positive ones. Yin remarked, “Our findings suggest a striking contrast between reality and perception,” highlighting a troubling gap that can leave consumers vulnerable to manipulation by those who exploit this imbalance.

The broader implications of these findings for online marketplaces and consumer platforms are significant. The researchers argue that relying on users to identify and report suspicious reviews is not a reliable method to weed out deceptive content. Instead, they advocate for more robust interventions, such as prioritising identifying and suppressing fake negative reviews and implementing interface changes that help consumers better evaluate the credibility of what they read. Yin and his colleagues hope this study will inspire further research at the intersection of deception, psychology, and consumer behaviour — and ultimately lead to a digital environment in which consumers can make better-informed choices without being misled by the ever-present spectre of fake reviews.

More information: Dezhi Yin et al, The Illusion of Authenticity in Online Reviews: Truth Bias and the Role of Valence, Information Systems Research. DOI: 10.1287/isre.2023.0339

Journal information: Information Systems Research Provided by University of South Florida