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The Role of Digital Finance in Promoting Household Carbon Mitigation in China

In the face of accelerating global warming and its threat to sustainable economic development, reducing carbon emissions—particularly those generated by households—has grown increasingly urgent. With its vast population and dynamic economic landscape, China has embraced ambitious climate targets, aiming to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. As digital finance becomes ever more embedded in daily life—through mobile payments, e-commerce, and online financial tools—it raises an important question: could digital finance serve as a meaningful lever in mitigating household-level carbon emissions? A new article published in China Finance Review International, titled “Carbon reduction effect of digital finance in China: based on household micro data and input-output model,” addresses this pressing question by exploring how the evolution of digital financial systems intersects with environmental outcomes at the household level.

The study employs a comprehensive methodology that integrates macroeconomic and microeconomic perspectives to investigate this issue. Drawing on data from the China Household Finance Survey (CHFS) across four waves—2013, 2015, 2017, and 2019—the research is further enriched by national input-output tables and energy statistics. These datasets are linked with the Peking University Digital Financial Inclusion Index (2012 to 2018) and city-level economic indicators. This multi-layered dataset comprises a panel of 7,191 households across 151 cities, creating a robust foundation for empirical analysis. Using this panel, the authors estimate household-level carbon dioxide emissions and apply a fixed effects econometric model to isolate the causal impact of digital finance development on the growth rate of these emissions over time.

The findings reveal that digital finance exerts a significant dampening effect on the growth of household carbon emissions. This effect is especially notable among households in the early stages of financial development, smaller in size, in urban settings, or heavily reliant on digital payment methods. The study uncovers key mechanisms that underlie this relationship: digital transformation encourages more efficient energy use, upgrades consumption habits toward greener alternatives, and fosters improved financial literacy among households. These dynamics combine to enhance the carbon-reducing influence of digital finance, offering a promising pathway for sustainable development.

Moreover, the research delves into the various dimensions of digital finance and identifies which aspects are most closely tied to carbon reduction. The breadth of digital finance coverage—how widely it is adopted—and the depth of usage—how intensively it is utilised—emerge as the most impactful drivers. The authors also subject their findings to a range of robustness tests, including instrumental variable approaches, which confirm the consistency and reliability of their results. A key contribution of this study lies in its nuanced approach. Rather than measuring absolute carbon emissions, it focuses on how digital finance influences the growth rate of household emissions. This distinction allows for a more precise understanding of its marginal environmental benefits.

The implications of this research are both practical and profound. It demonstrates that digital finance is a tool for economic inclusion and modernisation and a potentially transformative instrument in the global fight against climate change. The study supports the strategic expansion of digital infrastructure and financial education by offering empirical evidence of how digital financial systems can steer households toward lower-carbon behaviours. It also emphasises the need for differentiated policy interventions tailored to household characteristics, regional contexts, and urbanisation levels. As countries worldwide seek effective, scalable strategies to achieve decarbonisation, China’s experience leveraging digital finance provides valuable lessons for emerging and advanced economies.

Finally, the study outlines tangible applications for a diverse array of stakeholders. Policymakers are encouraged to prioritise investment in digital finance infrastructure, especially in rural or high-emission areas, while promoting digital financial literacy to guide households toward more sustainable practices. Financial institutions and fintech firms can contribute by designing digital products that incentivise eco-friendly behaviours, such as green loans and sustainable spending platforms. Researchers are invited to build on this work by examining household-level differences across other digital ecosystems and periods. For urban planners and competent city developers, integrating digital finance into sustainability initiatives—such as digital fare systems, paperless billing, and support for green investments—offers a powerful means of shaping a low-carbon urban future.

More information: Yongbin Lv et al, Carbon reduction effect of digital finance in China: based on household micro data and input-output model, China Finance Review International. DOI: 10.1108/CFRI-03-2024-0083

Journal information: China Finance Review International Provided by Shanghai Jiao Tong University Journal Center

Executive Credit Scores May Offer Insight into Corporate Decision-Making

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A recent study from Ohio State University reveals a compelling link between the personal credit scores of top-level corporate executives and their decision-making behaviour in high-stakes business environments. The research suggests that credit scores—traditionally viewed as mere indicators of personal financial responsibility—may also serve as proxies for how executives process risk and respond to external advice. In particular, executives with prime credit ratings (typically defined as FICO scores of 660 or above) were found to make more thoughtful, independent decisions, especially in situations requiring critical evaluation of uncertain outcomes. By contrast, those with subprime credit scores were more likely to act as “yes persons”, deferring to consensus or advice from others even when it contradicted their own experience.

The study, led by Associate Professor Noah Dormady and doctoral researcher Yiseon Choi of Ohio State’s John Glenn College of Public Affairs, was recently published in the International Journal of Production Economics. It involved a controlled behavioural experiment with 303 C-suite executives holding high-ranking roles such as CEO, CFO, or COO at middle-market firms with annual revenues between $10 million and $1 billion. Participants self-reported their FICO credit score and engaged in a decision-making simulation that tested their responses to investment recommendations amid hypothetical disaster scenarios. The simulation required executives to decide whether to stockpile inventory that could be a buffer in a production-halting catastrophe, such as a hurricane.

The experiment consisted of ten decision-making periods for each participant, with two rounds each. After the first round of decisions, executives were given a unanimous recommendation from a simulated advisory group—appointed by their fictional CEO—to either invest in or refrain from stockpiling. Participants then made a second decision and were subsequently told whether a catastrophe had occurred, with a 25% chance of such an event per round. The researchers observed how the executives responded to this information over time, particularly how they balanced prior outcomes with advisory input.

Findings revealed that executives with high credit scores were far more likely to treat external advice as one piece of a broader evidentiary puzzle, integrating it only when it aligned with their own scenario experience. For example, if a catastrophe had occurred in previous rounds, they were more inclined to heed advice to stockpile inventory. However, they did not hesitate to reject advisory input when it seemed ill-suited to the facts. This pattern suggests more substantial autonomy and confidence in decision-making, possibly rooted in a personal history of sound financial judgement.

In contrast, executives with subprime credit scores were nearly twice as likely to accept the advisers’ recommendations wholesale—even when the advice was misleading or ran contrary to what their own experience in the simulation should have indicated. Dormady remarked that such executives appeared to prioritise consensus over critical analysis, a tendency that could impair a company’s ability to adapt swiftly and appropriately to volatile conditions. Choi added that this pattern may reflect deeper behavioural tendencies, whereby poor financial decisions in one’s personal life echo a broader difficulty with risk evaluation in professional contexts. While the study controlled for demographic variables such as gender, income, and veteran status, the FICO score most reliably predicted the nature of the decision-making behaviour.

Despite the strong correlation uncovered, Dormady cautioned against using credit scores as a screening tool for executive recruitment. “There are serious ethical considerations to account for,” he said, noting the potential for discrimination or misuse of personal financial data. The authors advocate for additional replication studies to validate the findings before any practical application is considered. Still, the research opens new avenues for understanding how personal psychology and financial behaviour may inform leadership styles. It challenges conventional thinking about what makes a good executive. It suggests that objective, evidence-based reasoning may, in part, be forecast by the seemingly unrelated credit score metric.

More information: Noah Dormady et al, Can FICO Scores Be Used to Explain Managerial Decision making?:Evidence from a Supply-chain Resilience Experiment, International Journal of Production Economics. DOI: 10.1016/j.ijpe.2025.109675

Journal information: International Journal of Production Economics Provided by Ohio State University

CEOs with Machiavellian Traits Reap Higher Compensation, Study Reveals

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A comprehensive study exploring the nexus between personality traits and executive compensation has revealed that CEOs exhibiting stronger Machiavellian tendencies—defined by a drive to advance personal objectives and dominate social interactions—are statistically more likely to command higher overall remuneration. This includes their standard pay packages and severance agreements and the compensation levels of those in their immediate leadership circle.

The research, led by Dr Aaron Hill, Associate Professor at the Warrington College of Business at the University of Florida, found that CEOs with elevated Machiavellian traits demonstrated superior motivation and effectiveness in negotiating compensation. According to Hill and his co-authors, these executives are especially adept at securing advantageous financial arrangements for themselves and members of their top management teams.

The researchers employed a longitudinal dataset encompassing firms listed in the S&P 500 index to arrive at these findings. They meticulously analysed compensation data in conjunction with personality assessments conducted by expert clinical psychologists, who evaluated publicly available video recordings of the executives in question. This methodological approach allowed the team to link observable behavioural patterns with quantifiable compensation outcomes over time.

“Our broad findings indicate that Machiavellianism in CEOs is positively associated with several key aspects of executive pay,” said Hill. “This includes their own salaries, severance packages, and notably, the compensation of their C-suite peers. What is particularly striking is that the increases in top management team pay often precede subsequent increases in CEO pay, suggesting a strategic use of influence to create favourable precedents for their own compensation.”

The study illuminates a subtle but significant bias in how certain personality traits, particularly those associated with strategic manipulation and self-interest, can shape corporate remuneration decisions. This dynamic raises essential questions about the systems and incentives that govern executive pay. Hill and his colleagues suggest that boards of directors—typically responsible for approving compensation—should be more active in ensuring that reward structures align with the behaviours and values they wish to see in leadership.

“Everyone has personality traits that come with trade-offs—some qualities can be strengths in one context and weaknesses in another,” Hill noted. “The key for boards and decision-makers is to create environments that amplify the constructive dimensions of these traits while minimising their potential for harm. In doing so, they can foster leadership cultures that reward performance without succumbing to manipulative or self-serving behaviour.”

Ultimately, the research offers a nuanced look at how individual psychology intersects with organisational governance. It raises awareness of the potential for personality-driven distortions in executive compensation. It encourages more intentional oversight to ensure leadership reward systems serve organisational goals and stakeholder interests.

More information: Aaron Hill et al, Chief executive officer (CEO) Machiavellianism and executive pay, Journal of Applied Psychology. DOI: 10.1037/apl0001290

Journal information: Journal of Applied Psychology Provided by University of Florida

Prioritising Quality over Quantity in Climate Adaptation Finance for Meaningful Impact

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The volume of climate adaptation finance has long been a politically charged topic and a recurring focal point in international negotiations. For developing nations, it represents a lifeline in the face of escalating climate risks and a matter of equity and justice. At COP29, held in Baku last year, developed countries reiterated their commitment to increasing adaptation finance for emerging markets and developing economies. While this pledge was welcomed, it reignited a more fundamental concern—namely, that such finance’s effectiveness remains unmeasured and poorly understood. Dr. Jonathan Verschuur notes, “It is not only the amount of money that matters. We currently lack evidence to determine whether the adaptation finance disbursed so far has been effective, or even clarity about the outcomes we are trying to achieve in terms of reducing climate risk.”

This disconnect between financing volumes and real-world impact underscores a deeper structural issue. Although well-meaning and staffed by committed professionals, many adaptation projects are hindered by misaligned incentives. A prevailing trend is the superficial expansion of adaptation finance commitments by integrating adaptation-related components into pre-existing development projects. This tactic may help to inflate funding figures on paper, but it does little to address the systemic weaknesses that inhibit genuine climate resilience. In contrast, far less attention—and funding—is given to initiatives that aim to build institutional capacity, enable evidence-based policymaking, and support countries in designing and leading their adaptation agendas. Without such foundational support, adaptation efforts risk being fragmented, unsustainable, and ultimately ineffective.

Unlike mitigation efforts, which are often globally standardised—such as transitioning to renewable energy or phasing out fossil fuels—adaptation strategies are deeply context-dependent. They must consider local agricultural practices, socioeconomic conditions, governance structures, and the specific vulnerabilities of communities and ecosystems. Effective adaptation cannot be imposed from the outside; it must be cultivated from within. One illustrative example is the Netherlands’ Delta Works. Far more than a network of dikes and flood defences, the Delta Works reflect a deeply embedded policy culture of long-term planning, public engagement, and integrated water management. Adaptation efforts could be transformed from reactive coping mechanisms into proactive resilience-building frameworks if such a culture can be nurtured in climate-vulnerable countries.

A paradigm shift is urgently required to realise this vision. According to Verschuur, the path forward involves rethinking how adaptation finance is structured and delivered. His team has put forward five key recommendations to improve adaptation programmes’ design, implementation, and monitoring. These include better identification and understanding of climate risks, strategic planning tailored to local realities, robust monitoring and evaluation frameworks, and the creation of enabling environments that allow finance to translate into meaningful, sustainable change on the ground.

At the heart of all five recommendations lies a single unifying principle: the need for more ambitious and coherent capacity-building efforts. Fragmented or ad hoc training sessions and workshops are not sufficient. Instead, a large-scale, coordinated effort is needed to build institutional and human capacity within governments, across key economic sectors, and at the community level. This will require investment in knowledge and skills and the systems and structures that allow such capacities to be sustained and scaled over time.

Verschuur emphasises that the upcoming United Nations climate conference, COP30, scheduled in Belém this October, could be a pivotal moment to launch a serious international dialogue. Rather than framing success solely regarding pledges and dollar amounts, COP30 should shift the narrative towards how adaptation finance can be made genuinely effective—enabling countries to lead their strategies grounded in local knowledge and long-term vision. If this shift can be achieved, the global adaptation agenda will move significantly closer to delivering the outcomes it promises: protecting lives, livelihoods, and ecosystems in an era of accelerating climate change.

More information: Jasper Verschuur et al, Climate adaptation finance: From paper commitments to climate risk reduction, Science. DOI: 10.1126/science.adx1950

Journal information: Science Provided by Delft University of Technology

Research reveals minimal tax-driven profit shifting by foreign multinationals from the United States

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Although the phenomenon of income shifting by multinational corporations has been the subject of considerable scholarly attention, much of the existing research has concentrated on domestic firms or those headquartered in the United States. Few studies have scrutinised the behaviours of foreign-owned companies operating within the U.S., particularly regarding their tax strategies and decisions to reallocate income abroad. In a new study published in The Review of Financial Studies, Jim Albertus, Assistant Professor of Finance at Carnegie Mellon University’s Tepper School of Business, addresses this gap by examining how foreign multinationals respond to tax incentives and how these responses affect their reported income, employment, and investment patterns within the United States.

Albertus’s findings suggest that while foreign multinational firms do engage in income shifting for tax reasons, the degree to which this occurs is relatively modest. The primary mechanism utilised for this purpose is transfer pricing—where firms adjust the prices of intercompany transactions to allocate profits to jurisdictions with more favourable tax regimes. Notably, the study finds little evidence to suggest that these firms commonly rely on more aggressive tactics, such as earnings stripping, wherein interest deductions on internal loans are used to reduce taxable income. This measured level of tax avoidance challenges some prevailing assumptions about the scale of base erosion associated with foreign direct investment. It offers a more tempered view of the strategic behaviour of foreign-owned U.S. businesses.

Albertus compiled a confidential and comprehensive dataset using information from the Bureau of Economic Analysis to overcome one of the main challenges in studying foreign multinationals—the absence of publicly available, detailed data on their U.S. operations. These data, derived from mandatory surveys, included subsidiary-level financial statements and balance sheets, offering a rare and thorough view into how these firms report income and manage their domestic operations. By leveraging this unique panel dataset, the study can explore the operational footprints of foreign-owned firms in the U.S. with precision not typically possible in previous literature.

A second methodological hurdle lies in the difficulty of isolating the effects of tax incentives on foreign-owned firms since changes in U.S. tax policy tend to apply uniformly to all businesses, thereby eliminating the possibility of a natural control group. To address this, Albertus innovatively uses the staggered adoption of controlled foreign corporation (CFC) rules by foreign governments. These rules, which govern the taxation of foreign subsidiaries’ profits, provide natural variation in the international tax environment. This allowed the study to assess how differences in foreign tax policy affect the incentives and behaviour of multinationals with U.S.-based subsidiaries, offering a rare quasi-experimental setting for analysis.

The empirical results indicate that when foreign countries implemented stricter CFC rules, thereby limiting the benefits of income shifting, foreign-owned subsidiaries in the United States reduced their investment and employment levels. These declines, though modest, reveal that tax-motivated income shifting does not occur in isolation from firms’ real economic activities. Instead, the ability to shift income appears to support a degree of economic activity—capital expenditure and job creation—that may be sensitive to changes in international tax policy. From a U.S. policy perspective, this suggests that foreign tax reforms can have tangible, albeit limited, spillover effects on domestic economic performance through their influence on foreign direct investment.

These findings carry significant implications for current policy debates, particularly in light of the proposed “Revenge Tax” provisions in the U.S. tax bill under congressional consideration in June 2025. Albertus’s work provides critical empirical grounding to assess the potential economic consequences of such measures. While foreign multinationals do shift some income out of the U.S. in response to tax incentives, the extent of this activity appears limited, and its economic impact, though real, is not substantial. As policymakers weigh the risks of tax base erosion against the benefits of attracting and retaining foreign investment, this study contributes a balanced and evidence-based perspective to a debate often dominated by more extreme characterisations of corporate tax avoidance.

More information: James F Albertus, Income Shifting out of the United States by Foreign Multinational Firms, Review of Financial Studies. DOI: 10.1093/rfs/hhaf021

Journal information: Review of Financial Studies Provided by Carnegie Mellon University

Returnless Refunds Strengthen Brand Loyalty

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Recent research has illuminated a significant trend in online retail: nearly one in every five items purchased through digital platforms is returned by consumers. While this pattern is expected in the realm of e-commerce, it creates a complex and costly dilemma for retailers. The expenses incurred in processing, restocking, and sometimes refurbishing returned merchandise frequently outweigh the revenue from reselling these items. As such, the traditional return model has become financially unsustainable for many businesses, particularly as online shopping surges.

In response, a growing number of retailers have begun adopting what are known as “returnless returns” — policies that allow customers to receive refunds without sending the item back. Instead, consumers are often told to “keep it.” What began as an experiment in customer service and logistical efficiency has evolved into a common retail strategy. Data from a 2023 survey of over 500 retail executives revealed a dramatic shift: 59 per cent had implemented returnless returns, up from just 26 per cent the previous year. This change reflects an industry-wide reevaluation of how best to handle post-purchase dissatisfaction without compromising profit margins.

The rationale behind this approach extends beyond mere cost containment. According to new research conducted by John Costello and Christopher Bechler, assistant marketing professors at the University of Notre Dame’s Mendoza College of Business, return policies also have a noteworthy psychological effect on consumers. Their forthcoming article in the Journal of Marketing Research explores how these policies enhance brand perception and strengthen customer loyalty. Drawing on nine empirical studies — spanning laboratory experiments, field tests, and online surveys — the researchers found that customers offered a returnless option were more likely to make repeat purchases and recommend the brand to others. This effect was pronounced when the returnless decision was presented as a personalised, considerate gesture rather than a cost-cutting tactic.

Several key factors amplify the positive impact of returnless returns. When customers are not required to provide proof that an item is defective or unwanted, and when the refund decision is framed as unique to the individual case, the gesture feels generous and authentic. Additionally, perceived brand warmth increases if the brand encourages the recipient to donate the item or explains the returnless decision regarding environmental responsibility or customer care. These human-centric communications are critical in an age where impersonal digital interactions often leave consumers feeling alienated or undervalued.

Contrary to popular belief — and even the researchers’ own pilot study with retail professionals — cost reduction is not the sole or primary driver of success in returnless return policies. The team found that returnless returns could generate more brand support than simply delivering a product that meets expectations and requires no return. This finding challenges traditional assumptions in customer satisfaction research, suggesting that how a company handles problems can be more impactful than whether issues occur in the first place.

Brands are adopting returnless policies in a variety of ways. Some, like Chewy and Bombas, have instituted blanket policies that apply to all customers, regardless of product type or situation. Others, including Amazon and Walmart, assess each case individually. The study, however, indicates that selective implementation — when done correctly — may be more effective. When consumers feel they receive personalised treatment, particularly through human interaction rather than automated responses, their emotional connection with the brand deepens. This perceived “special attention” enhances trust and loyalty more than a universal policy might, which can feel impersonal or even algorithmically indifferent.

Ultimately, the study offers concrete guidance for retail managers looking to leverage returnless returns as a cost-saving measure and a brand-building tool. Communicating a genuine customer-first philosophy, suggesting charitable reuse of items, and emphasising care in personalised messages are all strategies that can make these interactions feel more human and more meaningful. As Bechler summarised in one example, “When managing returns, our primary goal as a company is to make our customers’ lives better… please do whatever you want with these items.” Such messages shift the focus from transaction to relationship and policy to empathy. This reorientation may prove invaluable for retailers navigating a competitive digital landscape and cultivating enduring consumer trust.

More information: John Costello et al, Just Keep It: When and Why Returnless Product Returns Foster Brand Support, Journal of Marketing Research. DOI: 10.1177/00222437251337723

Journal information: Journal of Marketing Research Provided by University of Notre Dame

Personalised AI Pricing May Undermine Consumer Interests

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

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

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

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

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

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

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

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

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

Journal information: Marketing Science Provided by Carnegie Mellon University

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

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

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

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

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

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

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

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

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

Paid Sick Leave Falls Short for Uninsured Workers

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

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

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

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

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

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

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

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

What’s Fueling the Surge in NLM Wines?

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

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

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

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

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

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

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

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

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

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

Financial Skills Decline in Older Adults Following Dementia Onset

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

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

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

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

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

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

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

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

Journal information: The Gerontologist Provided by Binghamton University

Research Shows Revenge Politics Backfire—Even Among Party Loyalists

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

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

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

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

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

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

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

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

Journal information: Business and Politics Provided by Northwestern University