Search results for "jel:D0"
showing 9 items of 9 documents
Conflict, Evolution, Hegemony, and the Power of the State
2013
In a model of evolution driven by conflict between societies more powerful states have an advantage. When the influence of outsiders is small we show that this results in a tendency to hegemony. In a simple example in which institutions differ in their “exclusiveness” we find that these hegemonies will be inefficiently “extractive” in the sense of having inefficiently high taxes, high compensation for state officials, and low welfare.
Expectations as Reference Points: Field Evidence from Professional Soccer
2015
We show that professional soccer players and their coaches exhibit reference-dependent behavior during matches. Controlling for the state of the match and for unobserved heterogeneity, we show on a minute-by-minute basis that players breach the rules of the game, measured by the referee’s assignment of cards, significantly more often if their teams are behind the expected match outcome, measured by preplay betting odds of large professional bookmakers. We further show that coaches implement significantly more offensive substitutions if their teams are behind expectations. Both types of behaviors impair the expected ultimate match outcome of the team, which shows that our findings do not si…
Heterogeneous network games: Conflicting preferences
2013
Proceeding at: 2nd Annual UECE Lisbon Meeting: Game Theory and Applications, took place 2010, November, 4-6, in Lisbon (Portugal). The event Web site http://pascal.iseg.utl.pt/~uece/lisbonmeetings2010/ In many economic situations, a player pursues coordination or anti-coordination with her neighbors on a network, but she also has intrinsic preferences among the available options. We here introduce a model which allows to analyze this issue by means of a simple framework in which players endowed with an idiosyncratic identity interact on a social network through strategic complements or substitutes. We classify the possible types of Nash equilibria under complete information, finding two thr…
"Facta non verba" : an experiment on pledging and giving
2015
International audience; We design an experiment to investigate whether asking people to state how much they will donate to a charity (i.e., to pledge) increases their actual donation. Individuals’ endowment is either certain or a random variable. We study different types of pledges, namely, private, public and irrevocable, which differ in terms of the cost to the individual for not keeping the promise. We show that in absence of endowment uncertainty, private and public pledges are associated with lower donations as compared to donations in the no-pledge case: private pledges slightly reduce donations and public pledges reduce them more significantly. Donations increase with uncertainty (in…
Household Optimism and Borrowing
2012
A unique Finnish household-level data from 1994 to 2009 allow us to measure how households’ financial expectations are related to the subsequent outcomes. We use the difference between the two to measure forecast errors and household optimism and link the errors to households’ borrowing behaviour. We find that households making greatest optimistic forecast errors carry greater levels of debt and are most likely to suffer from excessive debt loads (overindebtedness). They also are less attentive to forecast errors than their pessimistic counterparts when forming their expectations for a subsequent period.
Why Do People Dislike Low-Wage Trade Competition with Posted Workers in the Service Sector?
2013
AbstractThe issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, people's attitudes are found to be more negative to such trade than to goods trade. The differences depend on both a preference for favouring social groups to which individuals belong (the domestic population) and altruistic justice concerns for foreign workers. In small-group experiments, we find a tendency for people to adjust their evaluations of various aspects of trade to their general attitude. This tendency is stronger for those opposed to than those in favour of low-wage trade competition. This may indicate that the former group forms its attitu…
Elasticity and revenue: do we need a reappraisal?
2002
The relationship between price-elasticity of demand, price variations and total revenue changes might be considered as one of the most widely accepted results arising from consumer theory. Recently, however, this relationship has been put under suspicion on the basis of a misinterpretation of what economists have in mind when writing about it. In this paper we try to clarify concepts incorporating new elements into discussion with the aim of reaffirming the validity of this relationship.
On the evolution of monopoly pricing in Internet-assisted search markets
2014
This study examines the evolution of prices in markets with Internet price-comparison search engines. The empirical study analyzes laboratory data of prices available to informed consumers, for two industry sizes and two conditions on the sample (complete and incomplete). Distributions are typically bimodal. One of the two modes of distribution, corresponding to monopoly pricing, tends to attract such pricing strategies increasingly over time. The second one, corresponding to interior pricing, follows a decreasing trend. Monopoly pricing can serve as a means of insurance against more competitive (but riskier) behavior. In fact, experimental subjects who initially earn low profits due to int…
The dynamics of the financial capital – intellectual capital binomial relationship regarding the value creation process of a firm in the knowledge-ba…
2009
The idea that the value of the firm is given by its financial capital and its intellectual capital is generally accepted. But, what is changing nowadays is the importance/weight that each one of these two components claims to have regarding the value of the firm – based on the dynamics of the changes and the intensity of the competition within an industry, on one hand, and on the measure of connection/networking to the knowledge-based economy of the given industry, on the other hand. So, we are the witnesses of: (1) a repositioning into the dynamics of the financial capital – intellectual capital binomial relationship regarding the value creation process of a firm and (2) the need to reform…