Search results for "Economic model"

Limiting Auditor Liability? - Experimental Evidence on Risk and Ambiguity Attitudes under Real Losses

2009

This paper is motivated by the current debate on limiting auditor liability. In a laboratory experiment, the effect of limited versus unlimited liability on behavior under risk and ambiguity is investigated for risks involving small probabilities. The amount of liability is manipulated in such a way that subjects can pay with their show-up fee under limited liability, but they can suffer out-of-pocket losses under unlimited liability. Findings are that both risk aversion and ambiguity aversion are higher under unlimited liability than under limited liability, and these two constructs are correlated under unlimited liability. These findings provide new empirical evidence for the intuition th…

Limiting Liability? — Risk and Ambiguity Attitudes Under Real Losses

2013

Using a laboratory experiment in which the unlimited liability treatment involves real out-of-pocket losses, we investigate and compare the behavioral effects of auditors’ limited and unlimited liability on behavior under risk and ambiguity. We find that aversion to both risk and ambiguity are higher under unlimited liability than under limited liability, and that these two constructs are correlated under unlimited liability. Our findings explain why some auditors might be hindered in performing their duties properly under unlimited liability. Further, our findings emphasize the importance of appropriately modeling risk and ambiguity attitudes in economic models on liability.

STATE OF PRACTICE IN THE C&DW SECTOR WHILE PURSUING CIRCULAR ECONOMY: THE ITALIAN RECYCLED MATERIALS MARKET IN ROAD ENGINEERING

2022

Construction and demolition waste (C&DW) is mainly produced during the construction, demolition, or renovation activities of engineering structures and it accounts for a remarkable amount of the total C&DW generated, as it is estimated to be around 30%. This proportion differs across countries belonging to different types of economies and tends to be greater in countries with developing economies reaching 74% of total annual production. There is a plethora of applications that C&DW can be used for under a circular economic model and in this research study a focus is being given in the utilization of C&DW within the pavement engineering sector, and more specifically, in the u…

Understanding the current state of practice in the construction and demolition waste sector through the lenses of circular economy: The Italian recyc…

Construction and demolition waste (CeDw) is mainly produced during the construction, demolition, or renovation activities of civil engineering structures and it accounts for a remarkable amount of the total C&Dw generated, as it is estimated to be around 30%. This proportion differs between countries belonging to different types of economies and tends to be greater in countries with developing economies reaching 74% of total annual production. There is a plethora of applications that C&Dw can be used for under a circular economic model and in this research a focus is being given in the exploitation of C&Dw within the pavement engineering sector, and more specifically, in the uti…

The Sustainability of Reclaimed Asphalt as a Resource for Road Pavement Management through a Circular Economic Model

2019

The transition of the road engineering industry to a circular way of doing business requires more efficient and sustainable resources, energy, and waste management. The rates in which reclaimed asphalt is being recycled or reused in the asphalt mixture production process constitutes a crucial parameter in this transition. This paper aims at establishing a further step towards the combined circularity and sustainability of asphalt pavements, by introducing a framework for quantifying their Material Circularity Index. The framework is based on the methodology proposed by the Ellen MacArthur Foundation and accordingly tailored for the context of asphalt pavements. This study, thus, attempts to…

Competitive Risks in the Sharing Economy and the European Union Market Regulation

2016

The massive reduction of costs due to efficient platform brokerage has allowed the “collaborative commons” to expand and evolve, and also to create new and very efficient markets: the so-called “sharing economy”. However, bigger and more efficient sharing platforms also have some drawbacks, such as the concern that these powerful digital brokers could harm fair competition. Nevertheless, economic models seem to support the idea that digital platforms have rarely inhibited the emergence of competitors, nor do they seem to be extracting predatory benefits by abusing their position to the detriment of consumers. This relative lack of risk has pushed competition authorities across Europe to pro…

On coincidence of feedback and global Stackelberg equilibria in a class of differential games

2021

This paper shows for a class of differential games that the global Stackelberg equilibrium (GSE) coincides with the feedback Stackelberg equilibrium (FSE), although the GSE assumes that the leader/regulator an- nounces at the initial time the regulatory instrument rule she will follow for the rest of the game, while in the FSE, the regulator at any time chooses the optimal level of the regulatory instrument rate. This coincidence is based on the fact that the FSE is calculated using dynamic programming what implies that although the regulator chooses the regulatory instrument rate level that maximizes social welfare, the first-order condition for the maximization of the right-hand side of t…

The community structure of the global corporate network.

2013

We investigate the community structure of the global ownership network of transnational corporations. We find a pronounced organization in communities that cannot be explained by randomness. Despite the global character of this network, communities reflect first of all the geographical location of firms, while the industrial sector plays only a marginal role. We also analyze the network in which the nodes are the communities and the links are obtained by aggregating the links among firms belonging to pairs of communities. We analyze the network centrality of the top 50 communities and we provide the first quantitative assessment of the financial sector role in connecting the global economy.

ESL ? A New Simulation Language for Economic Models

1990

A new simulation language for modelling economic processes is presented which allows the specification of single decision units and coordinates all their activities. The basic ideas and features of this language will be described and demonstrated through small examples.

To Pay or Not to Pay: Competing Theories to Explain Individuals’ Willingness to Pay for Public Environmental Goods

2010

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich. This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively. Several theories have been proposed in an attempt to explain individuals’ willingness to pay (WTP) for public environmental goods. While most studies only take into account a single theory, this article discusses competing theories. These include, in addition to a basic economic model, the theory of public goods, Ajzen’s theory of planned behavior, and Schwartz’s norm-activation…