Monthly Archives: November 2025

Administrative teams play a vital role in smooth university functioning, but their influence is largely confined to teaching-led environments

An international team of researchers, including specialists from HSE University, has investigated how the size of a university’s non-academic workforce shapes its overall performance. Their study shows that the effect is far from uniform: in research-focused universities, increasing the share of administrative and support staff appears to have no meaningful impact on efficiency, whereas in teaching-oriented institutions, a larger administrative presence is associated with better results. These findings, published in Applied Economics, add nuance to ongoing debates about staffing structures in higher education.

Across the global university sector, administrative and support personnel now constitute a steadily growing share of the workforce, with academic staff making up less than half on average. International trends illustrate the scale of this shift. Australia saw a 53% rise in non-academic employees between 1997 and 2017, and Denmark experienced a 93% increase over a comparable period. To determine whether similar developments in Russia influence institutional performance, researchers from the HSE Institute of Education collaborated with colleagues in Italy, the UK and Germany to analyse extensive national data.

Their work drew on information from 252 public universities between 2012 and 2021—institutions that together educate roughly 67% of all students in Russia. For the study, universities were separated into two categories: research universities and teaching-oriented universities. The dividing line was the share of income derived from R&D; universities earning at least 10% of their revenue from such activity were classified as research-oriented. Efficiency measures included student numbers across all institutions, supplemented by publication output and R&D income for research universities.

The results reveal a marked contrast between institutional types. Among research-intensive universities, there is no identifiable link between the percentage of non-academic staff and overall efficiency. In teaching-oriented universities, however, the correlation is clearly positive. Institutions with a higher proportion of administrative and support personnel tend to function more effectively, and further analysis indicates that administrative roles specifically are the key drivers of this improvement.

According to Pavel Serebrennikov, one of the study’s authors and a Junior Research Fellow at the HSE Laboratory for University Development, these results highlight the risks of applying the same staffing policies across all institutions. Teaching-focused universities may benefit from expanding their non-academic workforce, as greater administrative capacity can ease bureaucratic pressure on academics and strengthen support for the learning environment. By contrast, research universities depend less on staff numbers and more on the expertise, functions and specialisation of their administrative teams.

The researchers used the modern conditional efficiency method, which does not establish cause-and-effect relationships but excels at identifying robust patterns in complex organisational settings. While the authors caution that their conclusions should not be interpreted as strict prescriptions, they believe the insights can help policymakers make more informed decisions about resource allocation and incentive structures. Recognising the diverse missions and operational needs of universities may lead to more effective strategies for enhancing performance across different types of institutions.

The team now plans to examine the distinct roles within non-academic staffing categories to determine how specific administrative and support functions contribute to institutional efficiency. This next phase aims to refine the understanding of the internal dynamics that underpin successful university management.

More information: Tommaso Agasisti et al, Non-academic staff and technical efficiency of Russian universities 2012–2021, Applied Economics. DOI: 10.1080/00036846.2025.2547114

Journal information: Applied Economics Provided by National Research University Higher School of Economics

Surprising study shows top health performers aren’t the richest countries

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Wealth on its own does not guarantee a healthy population, according to new joint research led by the University of Surrey alongside several international collaborators. Their work, which evaluates how 38 OECD (Organisation for Economic Co-operation and Development) nations are progressing towards global health benchmarks, challenges long-held assumptions about the relationship between affluence and national well-being. Published in Annals of Operations Research, the study reveals that some of the world’s wealthiest countries, including the United States and Canada, fall behind smaller and less affluent nations in meeting the United Nations’ Sustainable Development Goal 3 (SDG 3), which aims to secure healthy lives and promote well-being for all. By contrast, countries such as Iceland, Japan and Norway are shown to excel, supported by comprehensive healthcare systems and wide-ranging access to essential services.

Central to the research is a new analytical model developed in collaboration with Surrey academics, designed to measure how effectively each country transforms investment in health into tangible outcomes. These outcomes include life expectancy, disease prevention and the availability of accessible healthcare. The results indicate that nations with cohesive public health systems and those that emphasise preventive care consistently achieve better overall results for every unit of currency invested. This contrasts with countries that depend heavily on private healthcare structures, where high spending does not always translate into strong population health.

Professor Ali Emrouznejad, one of the study’s co-authors and Professor and Chair in Business Analytics at the University of Surrey, emphasised that the findings challenge simplistic assumptions about health spending. He noted that financial resources alone are not enough to secure good health outcomes, and that the strategic use of those resources is far more critical. Countries that prioritise prevention, universal coverage and social fairness, he observed, tend to outperform wealthier nations that allocate substantial sums without a coherent long-term vision.

The researchers employed a sophisticated Joint Variable Selection Directional Distance Function model, a data-driven technique that assesses how efficiently nations convert economic and health-related inputs into well-being. This model also accounted for exposure to climate-related risks, showing that countries with strong environmental health policies consistently rank higher in overall health efficiency. The inclusion of climate considerations further underscores that the pressures on modern health systems extend beyond traditional medical challenges.

The study’s conclusions underscore the need for healthcare systems that are both equitable and efficient, integrating climate resilience into their design and everyday operation. Rather than simply increasing budgets, the evidence suggests that a greater focus on preventive measures, sustainability, and universal access would yield more meaningful improvements in population health. For policymakers, the insights offer guidance on how best to allocate resources and develop strategies that deliver substantial long-term benefits.

Professor Emrouznejad highlighted that the model provides governments with a practical framework for identifying where improvements can be made. By revealing which countries make the most effective use of their resources, it points to examples others can learn from. The overarching message is that thoughtful investment, strategic planning and an emphasis on equity can lead to stronger, more resilient and more sustainable health systems, even in countries with comparatively modest levels of wealth.

More information: Ali Emrouznejad et al, Assessing health and well-being (SDG 3) in OECD countries: a joint variable selection directional distance function approach, Annals of Operations Research. DOI: 10.1007/s10479-025-06837-9

Journal information: Annals of Operations Research Provided by University of Surrey

Research shows that subtle political links quietly steer lucrative corporate deals

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A recent article in the Strategic Management Journal highlights an often overlooked source of political influence in corporate contracting: unelected officials. The study shifts the focus away from the familiar image of prominent politicians endorsing business interests. Instead, it examines the subtle yet powerful role of lower-profile political actors who operate mainly out of public view. These individuals, although not elected, can be instrumental in determining which companies secure public procurement contracts. Yet, their actions frequently escape scrutiny because they are embedded in routine administrative procedures rather than public decision-making stages.

Dr Tony L conducted the research. He is from Rutgers Business School in Newark, New Jersey, who analysed 14,849 government contracts issued across 28 European countries between 2011 and 2017. This extensive dataset allowed him to explore how different types of political connections shape contractual outcomes. Contrary to the assumption that the most influential connections are with senior or prominent elected officials, the study finds that corporations often benefit more from relationships with behind-the-scenes advisers, aides, and administrative staff whose work directly influences decision-making. Dr He explains that although elected figures can offer public legitimacy, especially when corporations seek policy changes, they do not always hold the decisive power in procurement situations where discretion rests elsewhere.

One key insight from the study is that the value of political visibility depends on the stage and type of influence being pursued. Elected politicians, who typically operate under public scrutiny, tend to exert indirect influence by shaping the initial rules and eligibility requirements that determine who can bid for a contract in the first place. These early decisions receive far less attention than contract selections, yet they can effectively narrow the field to favour certain firms. In contrast, unelected officials tend to be involved at multiple points throughout the process, influencing everything from technical specifications to bid evaluation. Their lower visibility becomes an advantage, allowing them to exert influence without attracting the attention that higher-profile actors would face in similar situations.

Dr He’s analysis also emphasises the dual meaning of visibility in political engagement. It matters not only who engages with corporations, but also how transparent the decision-making environment is. When procurement involves open and competitive bidding, elected officials appear to have limited capacity to influence contract choices directly. However, transparency in bidding does little to restrict the quieter influence of unelected insiders, who may still shape outcomes through procedural guidance, selective interpretations of rules, or informal contacts that fall outside the spotlight.

These findings have important implications for public accountability. Current governance systems often focus on regulating elected officeholders and the visible stages of procurement, potentially overlooking informal influence where it is most active. Dr He argues that protecting fairness requires broader oversight, extending beyond the political figures who capture media attention to include the many administrative actors who help decide which firms compete and which ultimately win. His research suggests that understanding these subtle dynamics is essential if governments are to strengthen transparency and ensure that public contracts are awarded on a truly equitable basis.

More information: Tony L. He, Low profile, high impact: How the visibility of political agents shapes corporate political influence, Strategic Management Journal. DOI: 10.1002/smj.3736

Journal information: Strategic Management Journal Provided by Strategic Management Society

What role do SMEs play in shaping a sustainable and inclusive European future?

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Small and medium-sized enterprises have long been underestimated in their ability to drive Europe’s digital, green and social transformations. A new open-access study published in the Journal of Cleaner Production challenges this assumption, showing that SMEs can act as powerful agents of change if they develop more than just basic technological tools. Conducted by Joan Torrent of the Universitat Oberta de Catalunya and Dolores Añón of the Universitat de València, the research draws on data from nearly 12,000 European companies. It identifies the conditions that allow smaller firms to combine artificial intelligence with sustainable business practices.

The key message is that digital maturity alone does not guarantee that SMEs will leap into a low-carbon, socially responsible future. The study argues that simply adopting standard digital tools is not enough to support what it calls the “twin transition” (digital and green), or the broader “triple transition” (digital, green and social). What enables meaningful progress is the presence of strategic and organisational capabilities that allow a company to integrate technology with sustainability goals. These include strong financial health, a culture of innovation, skilled workers and experience in intellectual property or business collaboration. Firms that possess patents, belong to larger business groups or have entrepreneurial expertise are significantly more likely to adopt advanced technologies alongside environmental and social practices.

One of the most striking findings is what the researchers call the “digital block effect”. This occurs when a company relies too heavily on basic digital tools without developing the non-technological assets that support transformation. In such cases, digitalisation becomes a barrier rather than a stepping stone, trapping companies at a basic level and preventing them from using more transformative innovations, such as artificial intelligence or advanced sustainability strategies. According to the study, this block can keep SMEs from contributing meaningfully to the green and social transitions, despite their potential influence.

These conclusions carry significant implications for public policy. The authors argue that governments too often treat digitalisation as an end in itself rather than linking it to skills development, research support, and business collaboration. To enable SMEs to become true agents of change, policy must encourage connections between technology, human capital and business ecosystems. The research also highlights uneven progress across the continent. SMEs in northern and western Europe are advancing more quickly because they operate within stronger support systems. In contrast, many southern and eastern regions lag due to fewer resources and differing political priorities. Although Spain leads in environmental and social sustainability, it is slow to transform digitally, a situation the researchers describe as creating a new internal “social divide” among companies.

For SMEs wishing to move forward, the study recommends starting by identifying where the business creates value and using digitalisation and sustainability as tools to rethink that value, rather than merely improving efficiency. From there, companies should seek external support through partnerships, advisory services and targeted funding that align with long-term goals. The researchers warn that SMEs failing to embrace these transitions risk becoming less competitive and reinforcing low-value business models that harm workers and communities. However, those that successfully integrate digital, green and social strategies can strengthen their competitiveness while contributing to a more inclusive and sustainable European future.

More information: Dolores Añón Higón et al, AI-twin and AI-triple firm’s transition: Unveiling the predictors from European SMEs, Journal of Cleaner Production. DOI: 10.1016/j.jclepro.2025.146134

Journal information: Journal of Cleaner Production Provided by Universitat Oberta de Catalunya (UOC)

How Far Can Teaching Listening Skills Develop More Ethical, Value-Focused Business Leaders

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A new study from the University of Surrey suggests that a slight change in business education may help reshape how future managers lead. By teaching MBA students to listen more effectively, educators could strengthen humility and ethical judgment, producing leaders who create value without relying on ego or dominance. The findings, published in the Journal of Business Ethics, directly challenge the assumption that leaders are born with fixed traits. While business schools have often been accused of fuelling overconfidence and self-promotion, this research finds that character can be deliberately nurtured through specific interpersonal training.

The study followed 260 MBA students over four years in a quasi-experiment that compared two forms of learning. One group attended a course focused entirely on listening as an active skill. Their exercises included paired storytelling, structured feedback interviews, and reflection sessions designed to uncover biases and prompt students to acknowledge others’ perspectives. The control group, meanwhile, took more traditional lecture-based modules typical of many management programmes. Although both groups improved academically, students in the listening course showed far greater improvement in listening skills and consistently scored higher on multiple measures of humility.

Dr Irina Cojuharenco, Associate Professor in Management at Surrey Business School and co-author of the research, highlights that these results disrupt a long-standing belief about leadership development. Humility has often been viewed as an inherited trait—either present in a leader’s personality or absent altogether. Yet the experiment demonstrated that humility can be cultivated through intentional learning. According to Dr Cojuharenco, when future leaders learn to listen deeply, they begin to recognise their own limitations, value the contributions of others, and make more ethically grounded decisions. Listening serves as a behavioural pathway through which humility becomes visible and meaningful in professional practice.

The research also uncovered a striking distinction during the pandemic, when the listening-focused course moved online. Students still improved their listening skills through virtual sessions, yet their humility did not increase. This contrast suggests that humility may depend on the nuanced interactions that happen when people share physical space. Tone, presence, trust, and vulnerability appear to develop more easily in face-to-face settings, where non-verbal cues and shared attention help build genuine interpersonal connections.

These results raise questions for both business schools and organisations shifting toward remote work. Digital communication is efficient at distributing information, but it may not foster the depth of engagement needed to cultivate moral and empathetic leadership. If ethical behaviour relies partly on how leaders understand and respond to others, then relying heavily on online environments could make it more challenging to encourage humility in professional cultures.

Dr Cojuharenco argues that business education must therefore be more deliberate in designing opportunities for real-time interpersonal listening. Rather than treating communication as a secondary soft skill, structured listening training could be integrated into MBA curricula as a foundation for ethical leadership. The study implies that leadership rooted in humility is not only desirable but teachable, provided that students learn through human connection rather than passive instruction. By embedding these practices in business education, institutions can help develop leaders whose success rests not on self-promotion but on integrity, collaboration, and care for the impact of their decisions.

More information: Michal Lehmann et al, Cultivating Humility in Business Education: A Listening-Focused Pedagogy for Future Leaders, Journal of Business Ethics. DOI: 10.1007/s10551-025-06099-2

Journal information: Journal of Business Ethics Provided by University of Surrey

Want Lower Mortgage Fees? Don’t Settle for the First Offer

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A new study has revealed that most home buyers in the United States are paying more in mortgage fees than necessary, creating a market of excess charges worth more than $13 billion a year. While many borrowers focus on securing a reasonable interest rate, researchers found that the real savings often lie in the fees that accompany the loan, which vary widely from one lender to another and are easily overlooked. According to the study, comparing offers can significantly reduce both upfront costs and long-term interest payments, suggesting that most buyers could avoid overpaying with only a small amount of extra effort.

The research was conducted by Cheng “Cathy” Zhang, a postdoctoral associate at the Warrington College of Business at the University of Florida. Zhang examined newly available data from the Consumer Financial Protection Bureau, which in 2018 began requiring lenders to report total mortgage costs, including fees that had previously been difficult to compare. Her analysis found that shopping for a loan typically saves borrowers an average of $32 in fees and more than $1,000 in interest over the life of their mortgage. While that may sound modest for a single household, multiplied across millions of loans each year, it reveals a massive pattern of preventable overspending.

Zhang argues that borrowers often underestimate how much control they actually have over what they pay. She explains that lenders will raise fees when they can, particularly when dealing with consumers who lack experience or knowledge about mortgage pricing. To counter this, buyers can take several steps: obtain quotes from multiple lenders, use a mortgage broker who may negotiate better terms, or consider simplified mortgage products such as zero-fee loans. These loans roll administrative charges into the interest rate, and Zhang’s analysis suggests that they can sometimes save borrowers money overall, contradicting the assumption that avoiding upfront fees always means paying more in the long run.

Despite the availability of online tools that make comparison easy, many prospective buyers remain unaware that charges differ significantly between lenders. This lack of awareness leaves them vulnerable to overpaying. Zhang says many borrowers accept their first offer simply because they do not realise that even a quick search might yield better terms. In her view, the problem is not unwillingness, but unfamiliarity with how flexible mortgage pricing can be.

The study also found that not everyone is equally likely to overpay. More experienced buyers, wealthier households and people with higher levels of education tend to shop around more and therefore secure better deals. By contrast, first-time buyers and lower-income borrowers are far more likely to pay inflated fees, deepening financial inequalities that already affect access to housing. Zhang concludes that although lenders may benefit when consumers lack knowledge, the imbalance can be remedied. A few simple steps — especially comparing offers — remain the most effective defence against unnecessary mortgage costs.

More information: Cathy Cheng Zhang, Do U.S. Borrowers Overpay Mortgage Fees?, The Journal of Real Estate Finance and Economics. DOI: 10.1007/s11146-025-10039-2

Journal information: The Journal of Real Estate Finance and Economics Provided by University of Florida

Unexpected backlash: gifts meant as kindness may lead to hurt feelings and harsh online feedback

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Fresh research from FIU Business reveals that well-meant self-improvement gifts can carry unintended messages that hurt both recipients and brands. Items such as gym memberships, weight-loss teas or books promising personal growth may be offered as thoughtful encouragement, yet they often feel more like criticism than kindness. Instead of being appreciated, they can make the receiver feel they need to change, leaving them stung or judged. That emotional response does not usually confront the giver directly; it is redirected toward the product itself, manifesting as poor ratings and negative online reviews.

The study, published in the Journal of Retailing, was conducted by Linnéa Chapman, assistant professor of marketing and logistics at Florida International University, and Farnoush Reshadi of Worcester Polytechnic Institute. Through five experiments involving 1,340 participants, the researchers compared reactions to self-improvement products and neutral versions of similar items. In one example, people received a weight-loss “Get Lean” tea instead of a Moroccan tea; in another, a calendar promising “Communication Skills” was compared with a neutral trivia-themed calendar. Across all scenarios, recipients consistently viewed the self-improvement gifts more negatively, rated them lower and were more likely to endorse critical reviews.

Chapman explains that the issue is not the intention but the message these presents send. “These gifts can imply that you’re not good enough as you are,” she said, noting that such subtle judgment can trigger hurt feelings that spill over into consumer behaviour. When individuals feel their value is challenged, they seek a harmless outlet, and online review platforms offer a culturally acceptable way to express dissatisfaction. As a result, it is often the brand that pays the price for emotional discomfort that began with a single gift.

Interestingly, the adverse effect disappears when people purchase self-improvement products for themselves. When chosen independently, the same gym membership or yoga mat can represent empowerment and motivation. Chapman illustrates this difference with a seasonal example: a yoga mat bought in January signals “I’m motivated,” whereas the same item given at Christmas may feel like “You need to lose weight.” The meaning shifts depending on whether the purchase is self-directed or received as a judgment from someone else.

This insight carries significant implications for retailers. Self-improvement products form a multibillion-dollar global market expected to grow significantly over the next decade. Yet pushing them during holiday gift-giving periods risks backfiring, as minor emotional missteps can escalate into brand-damaging reviews. Because a single one-star rating can influence hundreds of potential buyers, marketing strategies around these products need careful consideration.

Chapman’s research suggests practical changes. Retailers might promote self-improvement goods more heavily in January, when consumers are focused on their own resolutions, and avoid spotlighting them as ideal gifts in November and December. Stores could also emphasise leisure and neutral items during gifting seasons. When collecting reviews, adding a human touch — such as a brief note from a staff member — can soften responses, while small incentives may encourage more positive feedback.

Ultimately, the research highlights a delicate truth: a gift meant to inspire improvement can instead undermine a person’s sense of being valued as they are. Recognising how easily generosity can be misread may help consumers choose their presents wisely, and help brands avoid the hidden cost of hurt feelings.

More information: Linnéa Chapman et al, Generating insult from injury: Receiving self improvement gifts causes negative word of mouth, Journal of Retailing. DOI: 10.1016/j.jretai.2025.04.005

Journal information: Journal of Retailing Provided by Florida International University

Customers wonder: Lucky break or a sign from above?

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A corporation decides to dump toxic waste into a nearby river because it is cheaper than disposing of it safely. Shortly afterwards, a powerful storm sweeps through the area, damaging its facilities and causing costly disruptions. To some observers, these two events seem like unlucky timing. Others may see them as connected: wrongdoing followed by disaster, as if a higher power had delivered its verdict. Whether people interpret such incidents as coincidence or cosmic punishment is at the heart of new research by Andrew Gershoff, professor of marketing at Texas McCombs. His work suggests that a consumer’s belief in divine intervention may influence how harshly they judge a company that has already suffered misfortune.

Gershoff’s findings show that consumers who believe strongly in a higher power are more inclined to view a company’s losses as a form of justice. If an unethical act is followed by an accident, these individuals are less likely to demand further punishment. Instead of boycotting products or supporting hefty fines in a legal case, they perceive the firm’s suffering as the universe balancing the scales. Gershoff notes that consumers routinely want to retaliate against companies that cross ethical boundaries, yet this instinct weakens when they feel that a higher power has already intervened. For these believers, additional penalties can seem unnecessary: punishment, they assume, has already been delivered.

The effect emerges because moral judgment can shift when wrongdoing appears to have been met with consequences. When losses strike close to the offence — for example, occurring in the exact location or mirroring the amount of illicit gain — firm believers are especially inclined to see these events as meaningful. They interpret them as signs of intervention rather than chance. In this way, their decisions about fairness become tied to their spiritual beliefs. If they perceive that the company has “paid its dues,” they no longer feel responsible for adding punishment themselves.

Gershoff conducted this research with former McCombs doctoral students Jae-Eun Namkoong of the University of Nevada, Reno, and Jerry Han of Sungkyunkwan University Business School in South Korea. Across four studies involving 844 participants, the team presented fictional cases of corporate wrongdoing followed by misfortune. By varying the degree of coincidence between the two events, they examined whether belief in a higher power would influence the level of punishment participants chose. The results were striking: when coincidence seemed high, firm believers imposed significantly lighter penalties, on average $40,000 less in fines that could reach $2 million. Yet when coincidence was low, these same individuals recommended penalties equal to, or even greater than, those suggested by weaker believers.

The researchers warn that such tendencies could be manipulated. A firm caught polluting a river, for instance, might choose to publicise its losses to reduce public anger. Gershoff hopes the research will lead consumers and policymakers to be more aware of their own biases. He encourages people to reflect on their beliefs before deciding whether justice has already been served. The goal, he stresses, is not to help companies escape accountability but to ensure that fairness is determined by reasoned judgement, not by assumptions of cosmic intervention.

More information: Jae-Eun Namkoong et al, A Sign of Divine Intervention: Supernatural Interpretation of Coincidence Lowers Consumer Punishment of Unethical Firms, Journal of Consumer Behaviour. DOI: 10.1002/cb.70019

Journal information: Journal of Consumer Behaviour Provided by University of Texas at Austin

Mandatory office-based work risks widening Europe’s regional inequalities

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Remote working has the potential to reshape how people live and work, offering greater control over daily routines and reducing the pressures associated with commuting. When adequately supported, it can boost job satisfaction, improve wellbeing, and allow individuals to balance their professional responsibilities with personal priorities more effectively. However, a renewed push by some employers to bring staff back into office environments risks reversing these gains. According to a new study by University of Surrey researchers as part of the European R-Map project, such policies could undermine the benefits of flexible work and deepen existing regional inequalities.

The study, published in Nature’s Scientific Data, shows that the success of remote work depends heavily on the conditions in which it takes place. High-speed internet, access to essential amenities, green space and community facilities all shape whether remote working improves quality of life or exacerbates divisions between different areas. Using data from more than 20,000 respondents across Europe, the research explores how flexible work influences wellbeing, productivity, travel habits and the movement of people between cities, suburbs and rural communities.

Participants in both urban and rural locations were asked to describe their experiences of working remotely, their preferences and the practical challenges or benefits they encountered. The survey was delivered in multiple languages to ensure representation across different cultures and contexts. Together, the responses reveal a complex picture, showing that the impact of remote work varies significantly depending on geographical location and local infrastructure.

One of the central findings is that remote and hybrid working arrangements enhance job satisfaction and personal autonomy. Many people value the ability to choose when and where they work, and the reduction in commuting time often leaves more time for family life, hobbies, or rest. This increased flexibility can help create a healthier work–life balance, making work feel less intrusive and allowing individuals to shape routines that suit their lifestyle.

When remote work is discouraged, withdrawn or poorly supported, these benefits quickly diminish. Those who live far from their workplace may be forced back into lengthy commutes, increasing stress, expense and time pressures. At the same time, towns and rural areas that have begun to benefit from remote workers—through increased spending and stronger community ties—may lose these advantages if workers are required to return to urban offices.

Dr Nikolas Thomopoulos from the University of Surrey emphasised the shift in how cities and towns function, suggesting that remote work can strengthen local economies and reconnect people with their communities when implemented well. Without support, however, it risks reinforcing divisions between those who can access flexible work and those who cannot.

Co-author Dr Tracy Xu highlighted that remote workers rely heavily on strong digital access and nearby services. Without them, workers are more likely to feel isolated and struggle to maintain a balanced lifestyle. The study’s findings make clear that remote work can revitalise smaller towns and offer people greater choice about where they live. Still, its benefits depend on fair access to infrastructure and supportive environments.

More information: Katharina Fellnhofer et al, A large-scale dataset for analysing remote working in urban and rural areas across Europe, Scientific Data. DOI: 10.1038/s41597-025-05972-z

Journal information: Scientific Data Provided by University of Surrey

The darker side beneath the mushroom craze of 2025

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A new academic study suggests the commercial future of psychedelic medicine may be far shakier than resurgent investor optimism implies. Despite renewed interest from pharmaceutical companies and growing political momentum, the economics of these drugs may not fit a profit-driven model. In a paper published in Finance and Society, political economist Dr Sandy Brian Hager of City, St George’s, University of London argues that psychedelics are too unpredictable to satisfy the commercial demands of modern drug development, raising the possibility that the industry’s revival could be short-lived.

Psychedelic therapy has been celebrated as a potential breakthrough for depression, PTSD, addiction and other mental health conditions, igniting a flood of investment between 2016 and 2021. Dr Hager traces how hundreds of startups emerged during this period, buoyed by glowing trial results and widespread claims that psychedelics might transform psychiatric care. Investors treated the sector as the next great frontier in biotechnology, driving stock valuations to extraordinary heights. Yet the excitement came to an abrupt halt. Clinical outcomes failed to match the scale of the hype, interest rates rose, and the US Food and Drug Administration delivered a significant blow by rejecting MDMA-assisted therapy for PTSD. Once soaring companies saw their share prices collapse.

Although this downturn was severe, the mood has since shifted again. By 2025, stronger trial data, regulatory reform and new interest from Big Pharma have revived expectations of a second “shroom boom”. This time, the optimism rests more on corporate strategy than countercultural enthusiasm. Major pharmaceutical firms, previously cautious about drugs long associated with underground movements, now appear ready to pursue psychedelic products in earnest. Yet Dr Hager’s research warns that hopes for a profitable market overlook structural problems that have not disappeared.

Chief among these are intellectual property limitations. Drug development typically costs billions, and investors accept these risks only if companies can secure dominant patents. Psychedelics make that problematic. Substances like psilocybin occur naturally and are therefore unpatentable in their basic forms. Others, such as LSD, have long-expired patents, while compounds with Indigenous histories of use cannot easily be claimed as proprietary inventions. Without strong patent protection, companies struggle to guarantee future profits, undermining the commercial logic required to fund research.

Alongside these legal obstacles lies a more fundamental scientific challenge. Traditional psychiatric drugs operate independently of therapy; psychedelic medicines do not. Their effects depend heavily on context, patient expectations and therapeutic support, making outcomes highly variable. Standard clinical trials demand replicability and control, yet psychedelic experiences are, by design, subjective and inconsistent. This interferes with the standardisation required to scale treatment and attract stable investment.

In response, some companies are attempting to change the drugs themselves. One strategy involves developing ultra-short-acting compounds that induce intense experiences lasting only minutes, making therapy quicker and cheaper. Another is the creation of “neuroplastogens”: drugs designed to produce similar brain effects as classic psychedelics without hallucinations. Such innovations aim to make psychedelics more commercially viable.

Dr Hager suggests this transformation reveals a more profound irony. Psychedelics were championed as radical alternatives to conventional psychiatric medicine, promising not merely symptom management but profound psychological change. Yet in bending them to fit the pharmaceutical business model, corporations may eliminate the very qualities that made them revolutionary. Instead of a mental health breakthrough, he warns, the industry could produce nothing more than familiar pills dressed up in new rhetoric.

More information: Sandy Brian Hager, The shifting fortunes of corporate psychedelia, Finance and Society. DOI: 10.1017/fas.2025.10014

Journal information: Finance and Society Provided by City St George’s, University of London

The Strange Logic Behind Cutting Exceptional Talent

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Why do some of the most prestigious employers on the planet—iconic names like McKinsey, Goldman Sachs, and elite corporate law firms—invest so heavily in recruiting brilliant young talent, training them intensively, and then dismissing many of them just a few years later? At first glance, the practice appears illogical and wasteful. But research published in the American Economic Review argues that this cycle of swift hiring and strategic firing is not only rational but central to how high-status professional industries operate. Two economists from the University of Rochester and the University of Wisconsin–Madison show how reputation, information, and exposure to talent interact in fields where individual skill is easily observable, such as law, consulting, investment management, auditing, and architecture. In these environments, firms act as “intermediaries” that both hire talent and lend them credibility in the eyes of clients who cannot judge skill for themselves at the outset.

Early in a worker’s career, the firm possesses valuable private information about the worker’s ability. It can assess how quickly they learn, how well they perform compared to peers, and how much potential they have. Clients, however, know none of this. As a result, the firm can pay its talented recruits less than they are genuinely worth because those individuals have no reliable way to prove their quality to the outside world. Workers accept this underpayment because remaining at a prestigious firm serves as a strong signal of reputation. Simply surviving at a top institution implies that one belongs to an elite group.

Over time, however, this information advantage diminishes. As employees build a track record—winning cases, managing profitable portfolios, delivering strong project results—clients begin forming their own evaluations of the worker’s talent. The gap between what the firm knows and what outsiders can see narrows. At this point, the firm risks losing its leverage: if clients can now identify who is highly skilled, those employees could demand much higher pay.

To avoid this, the firm initiates what the researchers call “churning”: selectively letting go of capable workers who may be slightly less exceptional than others. Crucially, clients cannot distinguish those who are fired from those who remain—they all appear to be talented alumni of a prestigious employer. In fact, those who are dismissed often benefit from this perception, finding lucrative opportunities elsewhere because their previous affiliation signals high ability.

Meanwhile, the firm gains leverage over those it keeps. It can pressure them into accepting lower pay by threatening dismissal, which would label them as the weakest of the remaining group. The retained workers comply because staying at a top firm continues to build their market credibility.

What looks like a ruthless “up-or-out” system is, in reality, a stable equilibrium. It allows firms to maintain profits, workers to build valuable reputations, and clients to ultimately discover high-quality talent they could not assess on their own. Far from being wasteful, this cycle of selective turnover is a strategic mechanism that refines reputations, identifies excellence, and rewards actual skill in the long run.

More information: Ron Kaniel et al, Intermediated Asymmetric Information, Compensation, and Career Prospects, American Economic Review. DOI: 10.1257/aer.20200169

Journal information: American Economic Review Provided by University of Rochester

Studies Reveal How Taste and Colour Boost Premium Prices for Texas Tomatoes

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A recent study by Texas A&M AgriLife Research found that consumers are willing to pay noticeably higher prices for tomatoes with strong flavour and vivid colour, regardless of where they originate. This insight challenges the persistent assumption that a “local” label alone drives premium pricing in fresh produce. Instead, it reveals that sensory appeal—how a tomato looks and tastes—remains the most influential factor guiding shopper choices. In an era when supply chains stretch across borders and consumer interests shift rapidly, these findings emphasise the enduring power of basic sensory satisfaction in determining market value.

The peer-reviewed study, published in Agribusiness, was led by Samuel Zapata, PhD, an associate professor in the Department of Agricultural Economics within the Texas A&M College of Agriculture and Life Sciences. Based at the Higher Education Center in McAllen, Zapata directs research focused on agricultural markets and grower competitiveness. His team’s work demonstrated that taste and colour preferences were the strongest predictors of consumer willingness to pay, providing meaningful guidance for the future of tomato breeding, marketing strategies and overall agricultural development in South Texas. It also serves as a reminder that innovation in horticulture must ultimately answer to consumer expectations.

Texas A&M AgriLife’s wider priorities in sustainable food systems and market-driven crop innovation are reinforced by the findings, which support efforts to elevate the economic prospects of growers across the region. The work offers a replicable model that can be extended to other speciality crops, highlighting how greater emphasis on sensory traits can enhance both consumer satisfaction and producer competitiveness. As global agriculture adapts to environmental pressures and shifting consumer preferences, this type of market-focused research becomes increasingly vital for guiding growers toward varieties with the highest potential for economic returns.

To explore these dynamics, the research team paired blind taste tests with economic modelling, assessing preferences for two Texas A&M-developed tomato varieties—TAMU Red and TAMU Orange—alongside a common commercial variety and imported Mexican tomatoes. More than 180 South Texas consumers evaluated samples according to flavour, colour, texture and appearance, then indicated how much they would pay per pound. Those who valued the colour of TAMU Red were willing to pay roughly 15 cents more, while consumers who preferred the flavour of TAMU Orange were willing to pay about 13 cents more than for imported tomatoes. These differences, though modest, are significant in large-scale markets and illuminate the tangible financial advantages of producing tomatoes that resonate with consumer taste.

Zapata observed that the strength of the flavour’s influence was particularly striking. Because local tomatoes can be harvested later in their ripening than imported ones, they often have the opportunity to develop richer flavour profiles. This natural advantage translates to increased consumer interest and higher potential returns for Texas growers. The current study builds on several years of AgriLife Research examining the viability of tomato production in South Texas. Previous work identified the best planting windows and production systems. At the same time, the latest phase shifts attention to the consumer side of the equation, determining precisely what makes a tomato desirable in the eyes—and taste buds—of buyers.

The research team, which includes Carlos Avila, PhD, of the Department of Horticultural Sciences at the Weslaco AgriLife Research and Extension Centre, and Xavier Villavicencio, PhD, an instructional assistant professor based in McAllen, hopes the results will shape future breeding initiatives. Zapata describes the goal as creating a “consumer-oriented breeding process”, one that unites scientific breeding methods with clear market preferences. By aligning horticultural innovation with consumer expectations, breeders and growers may be better positioned to develop tomatoes that excel both in the field and at the point of sale, offering a pathway towards improved competitiveness and long-term sustainability for South Texas agriculture.

More information: Samuel Zapata et al, Using Sensory Analysis and Stated Preference Valuation to Assess the Willingness to Pay for Fresh Tomato Attributes, Agribusiness. DOI: 10.1002/agr.21977

Journal information: Agribusiness Provided by Texas A&M AgriLife Communications