Search results for " Economic theory."

Economic Impact of 'Third-Wave' Cognitive Behavioral Therapies:A Systematic Review and Quality Assessment of Economic Evaluations in Randomized Contr…

2018

The term third-wave cognitive behavioral therapy (CBT) encompasses new forms of CBT that both extend and innovate within CBT. Most third-wave therapies have been subject to randomized controlled trials (RCTs) focused on clinical effectiveness; however, the number and quality of economic evaluations in these RCTs has been unknown and may be few. Evidence about efficiency of these therapies may help support decisions on efficient allocation of resources in health policies. The main aim of this study was to systematically review the economic impact of third-wave therapies in the treatment of patients with physical or mental conditions. We conducted a systematic literature search in PubMed, Psy…

Interventions with Sticky Social Norms: A Critique

2021

Abstract We study the consequences of policy interventions when social norms are endogenous but costly to change. In our environment, a group faces a negative externality that it partially mitigates through incentives in the form of punishments. In this setting, policy interventions can have unexpected consequences. The most striking is that when the cost of bargaining is high, introducing a Pigouvian tax can increase output—yet in doing so increase welfare. An observer who saw that an increase in a Pigouvian tax raised output might wrongly conclude that this harmed welfare and that a larger tax increase would also raise output. This counter-intuitive impact on output is demonstrated theore…

Coordination games with asymmetric payoffs: An experimental study with intra-group communication

2020

Abstract Two alternative modes of reasoning in coordination games are prominently discussed in the literature: level-k thinking and team reasoning. In order to differentiate between the two modes of reasoning, we experimentally investigate payoff-asymmetric coordination games using an intra-group communication design that incentivizes subjects to explain the reasoning behind their decisions. We find that the reasoning process is significantly different between games. In payoff-symmetric games, team reasoning plays an important role for coordination. In payoff-asymmetric games, level-k reasoning results in frequent miscoordination. Our study clearly illustrates how small differences between …

Stable sharing rules and participation in pools of essential patents

2019

Abstract For pools of essential patents I study whether a pool's sharing rule is stable against arbitrage, so that the pool's members have no incentive to trade patents. I show that the only stable rule is the numeric proportional rule, which gives each member a share of the pool's profit equal to its share of the pool's patents. I study how the stable rule affects firms' incentives to participate, and I show that firms with few patents tend to remain outside the pool. I look at the trade off between stability and participation, and I show that as trade dilutes their shares, members prefer the stable rule. I consider individual licenses, stand-alone patents, integration, and R&D. The result…

Cumulative innovation, open source, and distance to frontier

2020

We develop a multistage game in which firms do cumulative research and development (R&D) to complete a lengthy process, and we study whether firms patent intermediate results or release them in Open Source. A patent holder obtains a larger reward in the market, but since in equilibrium it forecloses R&D, it remains alone to complete the process and so pays a larger cost than an Open Source firm. We have Open Source equilibria when R&D is highly complementary, R&D costs are large, and firms are sufficiently different and far from the frontier. We identify two market failures, in the forms of free riding and coordination failure, and we discuss public intervention.

The Invariant Distribution of Wealth and Employment Status in a Small Open Economy with Precautionary Savings

2019

Abstract We study optimal savings in continuous time with exogenous transitions between employment and unemployment as the only source of uncertainty in a small open economy. We prove the existence of an optimal consumption path. We exploit that the dynamics of consumption and wealth between jumps can be expressed as a Fuchsian system. We derive conditions under which an invariant joint distribution for the state variables , i.e., wealth and labour market status, exists and is unique. We also provide conditions under which the distribution of these variables converges to the invariant distribution. Our analysis relies on the notion of T-processes and applies results on the stability of Mark…

Unawareness and bankruptcy: A general equilibrium model

1998

International audience; We present a consistent pure-exchange general equilibrium model where agents may not be able to foresee all possible future contingencies. In this context, even with nominal assets and complete asset markets, an equilibrium may not exist without appropriate assumptions. Specific examples are provided. An existence result is proved under the main assumption that there are sufficiently many states that all the agents foresee. An intrinsic feature of the model is bankruptcy, which agents may involuntarily experience in the unforeseen states.

Wealth Creation and Science Research : Science Research, the root of wealth in our Knowledge Society, is endangered

Two vastly dierent historical stages in wealth creation are the traditional one based on agriculture during past millennia, and the one based on science research in our present globalizing knowledge society. The dierences happen to be so considerable, and the emergence of the second stage relatively so recent, that the awareness of the full range of consequences regarding the proper pursuit of science research, which is the root of wealth in our knowledge society, is missing to an extent that may, even in the medium term, seriously endanger the sustainability of modern human society. Here is presented a brief account of some of such dangers, following which a parable, entitled "Is it a mere…

Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers

2010

When workers can capture rents from their influence on corporate decisions, mergers can become a device to generate transfers of wealth. This paper examines the merger incentives from these transfers of wealth. It is found that worker influence increases merger profitability, in line with the owners’ incentive to use mergers to reduce the rents captured by workers. In contrast, the workers’ merger incentives are shown to be decreasing in their own degree of influence on the merger decision, in line with the view according to which workers can be used by incumbent managers as a defensive instrument in acquisitions.

Evolution's cycles of global social systems and the basic mechanisms behind the crisis. The times in which we live. What has changed where are we hea…

2011

Šajā darbā tiek apskatīta viena no 20. gadsimta svarīgākajām paradigmām – pašorganizācija globālu sociāli-ekonomisku sistēmu evolūcijas kontekstā. Tās loma jaunu transdisciplināro metožu izstrādē ir nenovērtējama. Tā ir jauna valoda, kurā, viens otru saprotot, var sarunāties matemātiķi, eksakto un humanitāro zinātņu pārstāvji. Uzsvars darbā likts uz to, lai vienkāršā valodā lasītāju iepazīstinātu ar sarežģītu sistēmu evolūcijas pamatprincipiem, koncentrējoties vairāk uz sociāli-ekonomisko procesu dinamiku un evolūcijas projektēšanas metodoloģiju. Krīžu mehānismu un globālo cilvēces attīstības ciklu dziļāka izpratne ir jo īpaši aktuāla, izstrādājot varbūtīgākos globālās pasaules attīstības s…