The mission and culture of the corporation

The economic crisis has brought a new situation also for the Hungarian economic policy, as neoliberalism as the main trend in economic thought is no longer valid. This phenomenon cannot be reduced to be a mere macroeconomic course shift, as an entire economic philosophy and approach has lost its relevance. One consequence of this is the need for a thorough revision of the theory and practice of business management, along with the re-evaluation of the notion and position of the corporation. Our study aims to contribute to this theoretical reformation, presenting that social values derived from psychological and sociological findings such as human motivational theories or trust are fundamental elements of the 21st century corporate model. To point to this, we use the ideological correspondences, while proving that our national research on corporate theory and even rather its application are far behind the 21st century requirements and lack even the Western view of the 20th century.

Psychic Punishment Costs and Deterrence

In this paper we analyze criminal deterrence in the presence of specific psychic costs of punishments. We consider a dynamic model with three players, analyzing the choices of a representative lawmaker, potential criminal and judge. In our setting the lawmaker decides whether to introduce a fixed punishment enhancement above a chosen threshold of crime level, depending on its popularity among the voters. In reaction, the judge, who is influenced by her own preferences as well as the opinion of her peer group, might change the probability of punishment, through affecting the standard of reasonable doubt. Our results suggest that large discontinuous and mandatory increases in punishment can have unintended effects that are contrary to the stated goal of such punishment enhancements. In equilibrium, when either the judge or her peer group is "anti-punishment" enough, the level of criminal activity might increase in response to the punishment enhancement. This perverse effect is less likely to occur if there is a higher number of peer groups within the "elite", so that a greater extent of self-selection by judges can occur. Our results have relevance for a number of areas outside the traditional criminal justice system as well, such as special courts (such as ecclesiastical or military courts), or the strictness and enforcement of regulations.