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Social and Behavioral Sciences Commons™
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Articles 1 - 3 of 3
Full-Text Articles in Social and Behavioral Sciences
Return, Purchase, Or Skip? Outcome, Duration, And Consumer Behavior In The Rent-To-Own Market, Michael H. Anderson, Sanjiv Jaggia
Return, Purchase, Or Skip? Outcome, Duration, And Consumer Behavior In The Rent-To-Own Market, Michael H. Anderson, Sanjiv Jaggia
Economics
Rent-to-own (RTO) is attractive to financially distressed consumers. It allows immediate access to merchandise and an opportunity for eventually acquisition. Yet goods can be returned at any point without penalty or other adverse consequences. We use a competing risk methodology that accounts for unobserved consumer heterogeneity to study how contracts conclude, estimating the probabilities of exit— via return, purchase, or skip—and the associated durations. The estimated outcome probabilities highlight the use of the embedded return option by RTO consumers and the trade-offs and cross-subsidization implicit in the RTO contractual arrangement.We offer rational and behavioral explanations of consumer behavior in the …
Obesity And Hyperbolic Discounting: An Experimental Analysis, Timothy J. Richards, Stephen F. Hamilton
Obesity And Hyperbolic Discounting: An Experimental Analysis, Timothy J. Richards, Stephen F. Hamilton
Economics
Models of rational addiction suggest that obesity is consistent with time-consistent preferences. Behavioral economists maintain that addictions such as alcoholism, smoking and over-eating represent examples of present-bias in decision making that is fundamentally irrational. In this article, conduct an experiment to test whether individual discount schedules are time-consistent and whether discount rates are higher for subjects who exhibit patterns of risky behavior. Our results show that discount functions are quasi-hyperbolic in shape, and that obesity and drinking are positively related to the discount rate. Anti-obesity policy, therefore, would be best directed to informing individuals as to the long-term implications of …
Fragmenting Forests: The Double Edge Of Effective Forest Monitoring, Andrew R. Bell, Rick L. Riolo, Jacqueline M. Doremus, Daniel G. Brown, Thomas P. Lyon, John Vandermeer, Arun Agrawal
Fragmenting Forests: The Double Edge Of Effective Forest Monitoring, Andrew R. Bell, Rick L. Riolo, Jacqueline M. Doremus, Daniel G. Brown, Thomas P. Lyon, John Vandermeer, Arun Agrawal
Economics
The link between ineffective forest monitoring and forest degradation is well known. Under REDD+, monitoring stands to become more important as a means of maintaining incentive. Little attention however has been paid to the possible adverse consequences of forest monitoring. Our research develops a spatially explicit, agent-based model (ABM) of timber extraction in a Congo Basin forest concession to investigate the potential conservation impact of more effective monitoring. We modeled the building of access roads, and logging of legal timber and illegal timber, where illegal timber may be interpreted broadly to include prohibited species, smaller trees, or trees in areas …