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

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

Research reveals public willingness to accept higher taxes when the value of shared services is clearly explained

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The research examines how people’s attitudes toward taxation and government size shift once they gain a clearer understanding of the universal benefits of public goods. Led by Associate Professor Tomoko Matsumoto of Tokyo University of Science, together with Associate Professors Daiki Kishishita and Atsushi Yamagishi of Hitotsubashi University, the team set out to explore whether better public awareness of services such as sanitation and transport infrastructure could influence political preferences. Their findings reveal that when individuals are presented with concrete information about the value of these public goods, support for expanding government—particularly through higher taxation—rises significantly, even without altering views on tax progressivity. This discovery offers a potential pathway for reducing inequality by broadening the scale of government investment while preserving a progressive fiscal structure.

To test this idea, the researchers conducted an online experiment in July 2021 involving around 3,000 participants from across the United States. The U.S. served as a fertile testing ground due to its high levels of political polarisation and comparatively small government size among developed countries. Participants were randomly divided into two groups, one of which received detailed information outlining the government’s role in maintaining public goods, including cost, efficiency, and direct personal benefits. The other group served as a control and received no such information. By comparing responses between these groups, the researchers were able to isolate the influence of increased understanding on political and fiscal attitudes.

The results were particularly striking regarding support for a larger government. Participants who received information were 10 percentage points more likely to endorse a hypothetical 1% increase in the tax rate to fund expanded public services. This is a massive effect in an area where tax increases are typically met with resistance. However, attitudes toward tax progressivity, meaning whether higher earners should pay relatively more, remained essentially unchanged, with only a minor and statistically insignificant shift in opinion. Similarly, when asked how additional tax revenue should be used, the information group showed only a slight decrease in support for directing funds exclusively towards aiding people experiencing poverty. Overall support for existing welfare policies remained unaffected.

One of the most consequential findings was the consistency of these effects across social and political lines. Regardless of income, ideology, race, or gender, participants responded in broadly similar ways to information about public goods. This suggests that clearly explained shared benefits bridge entrenched divides and foster a more unified public stance on government investment. In societies where political disagreements often dominate discussions about taxation and redistribution, this outcome raises the possibility that universal public goods can serve as a foundation for broader consensus.

The broader implication of the study is that reducing inequality does not necessarily require focusing solely on traditional strategies such as increasing tax progressivity or highlighting income disparities. Instead, enhancing public awareness of universally shared services may open alternative avenues for redistribution. If citizens recognise the broad value of public goods, they may be more willing to support expansions in government activity that can promote more equitable outcomes. The researchers note that this approach aligns with the Nordic model, which places universal public goods at the core of redistribution. The study’s evidence suggests that such a model could be relevant beyond its usual geographical and cultural context.

While the findings are promising, the researchers acknowledge limitations and future directions. The results stem from a U.S.-based online survey, and further work is needed to determine how well these patterns apply elsewhere. Additional research must also explore how such shifts in opinion translate into real-world political engagement, including voting and support for specific policies. As Dr Matsumoto reflects, the ongoing rise in global inequality underscores the urgency of identifying sustainable approaches to preserving social cohesion and mutual support.

More information: Daiki Kishishita et al, Public goods provision, preferences over public finance, and distributional effects, Japanese Economic Review. DOI: 10.1007/s42973-025-00228-2

Journal information: Japanese Economic Review Provided by Tokyo University of Science

Researchers at Chung-Ang University Pioneer Next-Generation AI for Advanced Non-Destructive Inspection

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Across sectors such as semiconductors, energy, automotive manufacturing, and steel production, the stability of equipment and structures depends on the flawless integrity of their internal components. Even microscopic cracks or defects—often hidden deep within materials—can have serious and sometimes catastrophic consequences. Because these flaws cannot be observed directly, engineers rely on non-destructive testing techniques to examine internal conditions without harming the structure. Although these methods have advanced considerably over the years, accurately detecting and characterising minor or complex internal defects remains difficult, as sensor signals are frequently distorted by geometric features, material irregularities, and the complex environments in which real systems operate.

These physical limitations have led researchers to ask a compelling question: could artificial intelligence reveal what human inspection tools cannot? This question has driven a significant innovation from a research team in South Korea led by Assistant Professor Sooyoung Lee of Chung-Ang University. Professor Lee, who heads the Industrial Artificial Intelligence Laboratory in the School of Mechanical Engineering, and his team have developed a diffusion-based AI system named DiffectNet. This model is designed to produce high-fidelity ultrasonic images that reveal hidden internal defects with far greater clarity than traditional signal interpretation techniques. Their findings were released online in September 2025 and subsequently published in the journal Mechanical Systems and Signal Processing.

DiffectNet represents more than an incremental improvement to existing methods. According to Professor Lee, it marks a fundamental shift in how AI can address engineering challenges. By learning to reason from complex, noisy sensor data, the system can reconstruct the probable shapes and locations of cracks or flaws within structures in real time. This generative ability allows the AI to overcome long-standing physical constraints associated with signal distortion, enabling a more precise and reliable view of internal conditions than was previously thought possible. In Professor Lee’s view, such capabilities have the potential to redefine safety standards across numerous industries.

The practical implications are far-reaching. In high-risk environments such as power plants, where even a tiny crack might lead to devastating accidents, AI-based real-time inspection could provide crucial early warnings. In semiconductor fabrication facilities, where production cannot easily be paused for detailed inspections, DiffectNet could allow virtual assessment of internal defects without interrupting equipment operation. This would support both improved quality control and sustained productivity. Similar benefits apply to the monitoring of critical infrastructure—bridges, tunnels, buildings, and transport networks—where concealed deterioration often goes unnoticed until it becomes severe. AI-driven reconstruction enables continuous, high-resolution evaluation, contributing to safer, more resilient urban environments.

This research illustrates the broader evolution of AI within engineering. No longer confined to data analysis, AI systems are becoming active participants in the discovery and interpretation of physical phenomena. Professor Lee emphasises that his team’s work is part of a larger movement toward AI-driven engineering technologies that can reshape the field’s very foundations. As such systems mature, they may transform how industries predict failures, maintain essential infrastructure, and ensure everyday safety.

Ultimately, DiffectNet offers a promising advance in safeguarding the reliability of the systems upon which modern life depends. Through its ability to reveal what was once hidden, this breakthrough points to a future where engineering decisions are guided by unprecedented insight and precision.

More information: Dongwon Lee et al, DiffectNet: diffusion-enabled conditional target generation of internal defects in ultrasonic non-destructive testing, Mechanical Systems and Signal Processing. DOI: 10.1016/j.ymssp.2025.113454

Journal information: Mechanical Systems and Signal Processing Provided by Chung Ang University

New study suggests that widely used efficiency rankings may give a distorted picture

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For many years, governments, banks, hospitals and schools have depended on data-driven tools to determine which organisations operate efficiently and which fall behind. Yet new research from the University of Surrey suggests that these long-trusted methods may be offering an unreliable picture. The study argues that traditional efficiency rankings consistently overlook how performance shifts over time and the impact of unexpected shocks such as recessions, pandemics, or major supply chain disruptions. By treating efficiency as a fixed snapshot rather than a changing process, these older models risk producing assessments that are both misleading and unfair.

The research, published in Expert Systems With Applications, introduces an alternative approach, Time Envelopment Analysis (TEA). Unlike conventional models, TEA is designed to track how an organisation’s efficiency changes across multiple periods, offering a more fluid and realistic portrayal of performance. Using extensive economic data from 63 countries, the researchers found that widely used methods routinely misrepresent performance. They often fail to capture either the abrupt effects of crises or the gradual improvements that accumulate through steady investment or policy change. TEA, by contrast, highlights fluctuations that static tools cannot accommodate.

A distinctive feature of TEA is its combination of three analytical components. One examines how shocks unfold and influence organisations over time; another ranks organisations in relation to one another; and a third tests how external pressures shape their performance. Together, these tools produce a more comprehensive and resilient efficiency assessment. After running 400,000 tests, the research team showed that TEA offers far greater reliability than the methods currently relied upon by policymakers and industry leaders.

Dr Mehdi Toloo, co-author of the study and Reader in Business Analytics at the University of Surrey, underscored the consequences of relying on outdated evaluation models. He noted that critical decisions—whether involving government budgets, investment choices, or even hospital safety ratings—are often based on tools that freeze organisations at a single point in time. Such an approach fails to recognise that no institution operates in isolation from real-world shocks. By incorporating the effects of crises, whether financial, social or health-related, TEA provides an assessment that mirrors the complexities that organisations actually face. Misjudging efficiency, Dr Toloo warned, leads to flawed policy, misallocated resources and unjust comparisons.

The study also highlights the usefulness of TEA in situations involving minor, recurring disturbances. For example, gradual declines in technical performance or shifts in operational conditions can accumulate in ways that conventional models fail to register. Yet TEA handles these subtleties while remaining robust in the face of major disruptions. This versatility has significant implications. Governments could use TEA to evaluate how health systems recover from crises such as Covid-19, while businesses might rely on it to measure the long-term returns of adopting new technologies.

Dr Toloo added that TEA encourages more accountable decision-making by replacing one-off efficiency scores with dynamic assessments that change alongside real conditions. For those responsible for shaping policy or overseeing investment, TEA offers fairer comparisons, stronger risk evaluation and more unmistakable evidence to guide reform. In a world where shocks are increasingly common, such an approach promises to bring much-needed nuance and accuracy to organisational assessment.

In all, the research calls for modernising efficiency measurement. As institutions confront economic volatility, technological shifts, and unpredictable global events, tools that account for how performance evolves are becoming indispensable. TEA represents a significant step in that direction, offering a methodology better suited to today’s complex and fast-changing environment.

More information: Madjid Tavana et al, Time envelopment analysis: A new method for effectively incorporating time series in data envelopment analysis, Expert Systems with Applications. DOI: 10.1016/j.eswa.2025.127791

Journal information: Expert Systems with Applications Provided by University of Surrey

In gig-economy platforms, incentive bonuses often carry hidden complications

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In today’s rapidly expanding gig economy, companies are increasingly dependent on freelance workers whose availability they cannot reliably manage or predict. To stabilise their labour supply, many platforms turn to bonuses to attract contractors and keep them active. Yet new research led by Cornell University suggests that these incentives may not deliver the advantages firms expect. Instead, bonuses can create unintended drawbacks for both platforms and workers, with their impact varying markedly depending on labour conditions.

The study, “Bonus Competition in the Gig Economy,” published in Production and Operations Management, examines how different types of bonuses affect the delicate balance among platform profits, contractor incentives, and operational efficiency. Its central insight is that not all bonuses function in the same way, and that their success depends heavily on whether workers are plentiful or scarce. By exploring how platforms compete for labour, the research dismantles the assumption that financial incentives offer an uncomplicated means of improving workforce stability.

When the supply of gig workers is abundant, fixed bonuses—sometimes called subsidies—provide clear benefits for companies. These bonuses are embedded directly into contracts, giving platforms a tool for managing pay in a way that minimises unnecessary competition. Because firms do not need to outbid rivals for workers during periods of high labour availability, fixed bonuses help them maintain profits by allowing greater flexibility in structuring compensation. However, this flexibility tends to suppress workers’ earnings. As the researchers note, firms can adjust whether they pay more through bonuses or through commission, opting for whichever form costs them less, leaving contractors with reduced income overall.

The motivation for examining this dynamic arose from trends seen among major ride-sharing platforms such as Uber and Lyft, which began offering increasingly aggressive bonus schemes in recent years. According to Yao Cui, associate professor of operations, technology and information management, companies were “burning through” substantial sums to incentivise drivers, even as they reported significant financial losses. The apparent contradiction between high bonus spending and declining profitability prompted the researchers to investigate the underlying economic forces shaping these strategies.

Platforms like Uber, Lyft, TaskRabbit and freelancer.com operate within a highly uncertain labour environment. Contractors often work across multiple platforms, selecting whichever offers the most appealing job at a given moment. Bonuses, therefore, serve as a means of persuading workers to favour one platform over another. Yet both fixed and contingent bonuses introduce their own complications. While they can temporarily boost worker participation, they also reshape behaviour in ways that may not align with operational efficiency or long-term profitability.

The study uses game-theory modelling to compare bonus strategies, showing that the benefits of fixed bonuses disappear when labour is scarce. In such conditions, contingent bonuses—rewards given only after consistent service over time—prove more effective. These incentives help firms attract workers initially and then retain them long enough to ensure reliability. Yet contingent bonuses also create inefficiencies: workers motivated to maintain their eligibility may accept suboptimal tasks, such as jobs requiring long pickup times, to stay on track for the payout. This behaviour weakens the precision of demand matching, undermining the platform’s operational effectiveness.

Taken together, the findings reveal that bonuses are far from a one-size-fits-all solution. They reshape labour markets, influence worker behaviour, and alter platform competitiveness in complex ways. Rather than offering a guaranteed advantage, bonuses introduce trade-offs that both firms and workers must navigate carefully within the evolving gig economy.

More information: Li Chen et al, Bonus Competition in the Gig Economy, Production and Operations Management. DOI: 10.1177/10591478251389408

Journal information: Production and Operations Management Provided by Cornell University