Public bads and private firms: efficiency and sustainability with different allocations of voting rights

A number of authors have proposed that firms can internalize externalities through their shareholders. This paper investigates this proposition, focusing on public bads. Theoretically it is, indeed, possible that shareholders decide that the firm reduces its public bads at the cost of profits, thereby increasing Pareto-efficiency. One of the factors which help determine the size of the reduction is the number of shareholders with a (very) small stake in the firm. The greater this number, the greater the reduction will tend to be. It is shown that the reduction in public bads can be reversed by takeovers, but under special conditions only while takeover defences may also be used. Unfortunately, there are a number of factors which significantly limit the internalization of external effects in practice. The paper also discusses a change in the legal share-voting system whereby the direct owners of the shares (i.e., the shareholders) no longer possess, in their capacity of direct owners, the legal right to vote at the General Meetings of firm owners. Instead, these rights become the property of the beneficial owners of the shares (i.e., the people who ultimately provided the money to buy the shares), but on the condition that they delegate their voting rights to a proxy voting institution. This institutional innovation may significantly increase the internalization of external effects among other things because many beneficial owners have a tiny stake in the firm.     

The London Agreement and the cost of patenting in Europe

This paper analyses the consequences for the European patent system of the recently ratified London Agreement, which aims to reduce the translation requirements for patent validation procedures in 15 out of 34 national patent offices. The simulations suggest that the cost of patenting has been reduced by 20–30% since the enforcement of the LA. With an average translation cost saving of €3,600 per patent, the total savings for the business sector amount to about €220 millions. The fee elasticity of patents being about −0.4, one may expect an increase in patent filings of 8–12%. Despite the translation cost savings, the relative cost of a European patent validated in six (thirteen) countries is still at least five (seven) times higher than in the United States.     

THE MASS MEDIA AND ATTITUDE CHANGE: AN ALTERNATIVE VIEW

SUMMARY

Against the background of her research in Belgium the author discusses the role of the media, and particularly of television, in creating negative racial and ethnic images amongst children. This is done under the following separate headings: (i) setting of the problem, (ii) cognitive processes concerning images of ethnic minorities, (iii) racism and socialisation, (iv) images of ethnic minorities in television programmes for children, (v) the influence of television programmes on the formation of knowledge, attitudes and social behaviour, (vi) the role of education in combating racial and ethnic prejudices and finally (vii) the importance of media literacy training for combating the formation of negative racial and ethnic images/stereotypes.     

The Making of a European Public Sphere: Media Discourse and Political Contention

Territorial autonomy is one aspect of power-sharing in multi-ethnic societies. Nevertheless, the multi-ethnic countries of Central and Eastern Europe are still among the most centralised in the European Union. This article analyses the failure of any attempts to establish (symmetric) federalism or (asymmetric) autonomy, creating self-governed regions by the Hungarian minorities in Romania and Slovakia. The analysis focuses on the positions of the main parties of the ethnic majorities and the Hungarian minority parties in the two countries. In both cases, the parties representing the Hungarian minorities have favoured territorial autonomy along ethnic lines, but this demand has been rejected by the parties of the ethnic majority. Against the historical legacy of unstable borders, the parties of the ethnic majority argue that territorial autonomy or federalisation might be a first step for a revisionist agenda and separatism. Instead, supported by the European integration, the parties have been able to agree on decentralisation as a half-hearted compromise.