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Full-Text Articles in Economics
The Creativity Effect, Christopher Buccafusco, Christopher Jon Sprigman
The Creativity Effect, Christopher Buccafusco, Christopher Jon Sprigman
Faculty Scholarship
This Article reports the first experiment to demonstrate the existence of a valuation anomaly associated with the creation of new works. To date, a wealth of social science research has shown that the least amount of money that owners of goods are willing to accept to part with their possessions is often far greater than the amount that purchasers would be willing to pay to obtain them. This phenomenon, known as the endowment effect, may create substantial inefficiencies in many markets. Our experiment demonstrates the existence of a related "creativity effect." We show that creators of works value their creations …
Markets And Morality, Jagdish N. Bhagwati
Markets And Morality, Jagdish N. Bhagwati
Faculty Scholarship
The paper addresses two issues. First, economics has evolved both as a positive science and, from moral philosophy, also as a normative discipline. Advancing the public good requires that public policy walk on both these legs. Second, the criticism has been forcefully made that markets undermine morality. This contention is refuted in several ways.