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Full-Text Articles in Economics
Cost Share Adjustment Processes For Cooperative Group Decisions About Shared Goods: A Design Approach, Edna T. Loehman, Richard Kiser, Stephen Rassenti
Cost Share Adjustment Processes For Cooperative Group Decisions About Shared Goods: A Design Approach, Edna T. Loehman, Richard Kiser, Stephen Rassenti
Economics Faculty Articles and Research
For group decision about shared goods, the nature of the shared good and how its cost is to be shared among group members must be determined. Complexity arises from heterogeneity in preferences and endowments and nonlinear cost. To facilitate group decision, this paper proposes special type of group decision support system, a cost share adjustment process (CSAP), in which cost shares are adjusted iteratively via algorithmic rules until unanimity is reached, ideally producing a socially optimal, cost feasible, and fair outcome. In contrast to public good literature, our designs apply for situations of nonlinear cost, with economies of scale and …
Fair And Impartial Spectators In Experimental Economic Behavior, Vernon L. Smith, Bart J. Wilson
Fair And Impartial Spectators In Experimental Economic Behavior, Vernon L. Smith, Bart J. Wilson
Economics Faculty Articles and Research
Our primary purpose in this article is to draw upon the literature of classical liberal economy to show how it informs and is informed by the results from experimental economics. Adam Smith's first great book, The Theory of Moral Sentiments, serves as our chief source of insights for understanding and interpreting modern laboratory research in terms of the conventions that govern human conduct in personal exchange.~ At the same time, we wish to demonstrate how today's economic experiments elucidate a reading of Adam Smith.
Accounting Standards And Financial Market Stability: An Experimental Examination, Shengle Lin, Glenn Pfeiffer, David Porter
Accounting Standards And Financial Market Stability: An Experimental Examination, Shengle Lin, Glenn Pfeiffer, David Porter
ESI Working Papers
We examine the effect on asset mispricing of different accounting methods in an experimental asset market characterized by bubbles and crashes. In particular, we study three alternative asset value reporting treatments: (1) Fair Value (also known as Mark-to-Market – M2M), (2) Historical Cost (HC) and (3) Marked to Fundamental Value (M2F). In addition, each of these treatments is replicated in two different financial leverage conditions. In the first condition (No Loan) traders must purchase assets from their available cash balances without the option of borrowing. In the second condition, (Loan), traders are given the option of taking out loans based …