Behavioral Economics Commons^™

Does Green Consumerism Increase The Acceptance Of Wind Power?, Caroline L. Noblet, John Thøgersen

Publications

In this paper, we discuss what might be termed an action-based learning approach to promoting important pro-environmental actions, such as support for or acceptance of environmental policy. Such an approach involves promoting simple and easy behaviours as entry points for more radical steps towards sustainability, referred to as “catalytic” or “wedge” behaviours. Despite the obvious need for innovative approaches to promote important pro-environmental behaviour, and sound theoretical backing for such concepts, there is a lack of research testing the key propositions of this approach. In a survey study based on a random sample of residents of the state of Maine, …

Grandparents As Guards: A Game Theoretic Analysis Of Inheritance And Post Marital Residence In A World Of Uncertain Paternity, Brishti Guha

Research Collection School Of Economics

I unify the following (1) men face paternal uncertainty while women do not face maternal uncertainty, (2) putative fathers and paternal kin care about true paternity, (3) paternity confidence is systematically lower in matrilocal cultures than in patrilocal ones, (4) inheritance tends to be patrilineal in high paternity confidence cultures and matrilineal in low confidence ones, and (5) most societies with patrilineal inheritance were patrilocal while most societies with matrilineal inheritance were matrilocal. I model the co-evolution of inheritance patterns and post-marital residence patterns - and their relationship with paternity uncertainty. Using a game theoretic model, I examine how a …

The Nature Of Risk Preferences: Evidence From Insurance Choices, Levon Barseghyan, Francesca Molinari, Joshua C. Teitelbaum, Ted O'Donoghue

Georgetown Law Faculty Publications and Other Works

The authors use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. They find that probability distortions--characterized by substantial overweighting of small probabilities and only mild insensitivity to probability changes--play an important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for observed and unobserved heterogeneity in preferences. They demonstrate that neither Kőszegi-Rabin loss aversion alone nor Gul disappointment aversion alone can explain our estimated probability distortions, signifying a key role for probability weighting.

Schooling, Political Participation, And The Economy, Filipe R. Campante, Davin Chor

Research Collection School Of Economics

We investigate how the link between individual schooling and political participation is a ected by country characteristics. Using individual survey data, we nd that political participation is more responsive to schooling in land-abundant countries, and less responsive in human capital-abundant countries, even while controlling for country political institutions and cultural attitudes. We propose an explanation that centers on how individuals allocate the use of their human capital. A relative abundance of land (used primarily in the least skill-intensive sector) or a scarcity of aggregate hu- man capital increases both the level of political participation and its responsiveness to schooling, by …

Estimating The Economic Impact Of Garvan Woodland Gardens, Katherin A. Deck, Viktoria Riiman

Publications and Presentations

The study is organized as follows. First, the facilities and programs at Garvan Woodland Gardens are described in detail. Next, information on visitor and member counts, employment and volunteers, and financial information from the Gardens are provided. Finally, the results of the economic impact analysis from the IMPLAN input‐output model are presented for employment, value‐added, and output impacts on the Hot Springs area and the state of Arkansas. The detailed employment and output impacts by industry are available in the Appendix. Estimated employment impacts are compared to the county and state employment data from the Bureau of Labor Statistics to …

University Of Arkansas Athletics Economic Impact, Katherine A. Deck, Mervin Jebaraj

Publications and Presentations

The Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas was approached by the Athletic Department to conduct an economic impact study of its operations and the visitor impacts associated with the athletic events held on the University of Arkansas campus. This study examines the economic impact of the athletic department from three broad categories of activities that produce economic impacts. The first category presented in this study is the direct economic impacts of the operations of the University of Arkansas Athletic Department, using annual expenditures of the department and …

Understanding Child Work And Child Labor In The 21st Century: A Focus On Malawi And Tanzania, Courage Chikomborero Mudzongo

Faculty Publications - Doctor of Psychology (PsyD) Program

Child labor is on the increase and this is exacerbating an already desperate situation in Africa. Past research has focused on which levels of determinants are most effective in influencing the decision on children’s activities. Using the Malawi Integrated Household Survey and the Tanzania National Panel Survey, this research seeks to unearth the factors that influence the number of hours that child workers and laborers work. I can conclude that the greatest degrees of change are at the individual level as child’s enrollment status is significant for child workers from Malawi and Tanzania and laborers from Tanzania. At the community …

An Evolutionary Analysis Of Turnout With Conformist Citizens, Massimiliano Landi, Mauro Sodini

Research Collection School Of Economics

We propose an evolutionary analysis of a voting game where citizens have a preference for conformism that adds to the instrumental preference for the electoral outcome. Multiple equilibria arise, and some generate high turnout. Simulations of best response dynamics show that high turnout is asymptotically stable if conformism matters but its likelihood depends on the reference group for conformism: high turnout is more likely when voters care about their own group's choice, as this better overrides the free rider problem of voting games. Comparative statics on the voting cost distribution, the population's size or the groups' composition are also done.

Gambling On Genes: Ambiguity Aversion Explains Investment In Sisters' Children, Brishti Guha

Research Collection School Of Economics

Many men invest in their sisters’ children instead of their wives’. Existing theories addressing such behavior depend on the level of paternity probability in such men’s societies being implausibly low. I link this anthropologically observed investment behavior with the experimentally observed phenomenon that some individuals are ambiguity averse. Arguing that men’s decisions are made under ambiguity, I show that an increase in ambiguity aversion results in investment in sisters’, rather than wives’, children. I show that this can happen even under risk neutrality. I also consider the special cases of a SEU maximizer and of extreme ambiguity aversion in the …

Central Place Theory And City Size Distribution, Wen-Tai Hsu

Research Collection School Of Economics

This paper proposes a theory of city size distribution via a hierarchy approach rather than the popular random growth process. It does so by formalizing central place theory using an equilibrium entry model and specifying the conditions under which city size distribution follows a power law. Central place theory describes the way in which a hierarchical city system with different layers of cities serving differently sized market areas is formed from a uniformly populated space. The force driving the city size differences in this model is the heterogeneity in economies of scale across goods. The city size distribution under a …

Valuing Improvements To Coastal Waters Using Choice Experiments: An Application To Revisions Of The Eu Bathing Waters Directive, Stephen Hynes, Dugald Tinch, Nick Hanley

Working Papers

Planned changes to the European Union’s Bathing Waters Directive (2006/7 EC) will force member states to produce improvements in a number of parameters of coastal water quality. This study uses the choice experiment method to estimate the economic benefits attached to such improvements, based on a sample of recreationalists on beaches in Ireland. The analysis indicates that improvements in all of the bathing water related attributes studied result in positive willingness to pay, and also show evidence of scope effects. Using random parameters and latent class modelling techniques, potential heterogeneity in preferences is then investigated and shown to be present …

Crime And Moral Hazard: Does More Policing Necessarily Induce Private Negligence?, Brishti Guha, Ashok S. Guha

Research Collection School Of Economics

Even risk-neutral individuals can insure themselves against crimes by combining direct expenditure on security with costly diversification. In such cases — and even when one of these options is infeasible — greater policing often actually encourages private precautions.

Crime And Moral Hazard: Does More Policing Necessarily Induce Private Negligence?, Brishti Guha, Ashok S. Guha

Research Collection School Of Economics

Even risk-neutral individuals can insure themselves against crimes by combining direct expenditure on security with costly diversification. In such cases — and even when one of these options is infeasible — greater policing often actually encourages private precautions.

Revisiting The Economic Impact Of The Natural Gas Activity In The Fayetteville Shale: 2008-2012, Katherine A. Deck, Viktoria Riiman

Publications and Presentations

In 2008, the Center for Business and Economic Research released a study that estimated the economic impact of projected Fayetteville Shale activities from 2008 to 2012. This updated report revisits the assumptions of the initial study, reviews the impact of actual activities in the Fayetteville Shale from 2008 to 2011, and delivers some insights into projected impacts for 2012.

Exploration and production of natural gas in the Fayetteville Shale area generates direct effects from drilling wells and causes the need for supporting activities such as construction, transportation, storage, and distribution. Moreover, investments made by oil and gas companies produce indirect …

Palliative Commitments, Leo Buser

Mahurin Honors College Capstone Experience/Thesis Projects

This project is a speculative fiction novel. The focus of my project is a futuristic palliative care treatment. The intended use if for terminal patients, and it can also be considered an alternative to terminal sedation. The theme of this project mainly came from Biomedical Ethics. This project is also influenced by economics and dreaming supplements. A section explaining the academic influences to the story is provided.

What Is The Optimal Subsidy For Exercise? Informing Health Insurance Companies' Fitness Reimbursement Programs, Molly E. Frean

Economics Honors Projects

Health care costs account for 17% of US GDP and many programs and policies seek to reduce these costs. This paper focuses on exercise as preventive care due to its immense physiological benefits. I model the profit-maximizing choice of health insurance companies to subsidize exercise and the utility-maximizing choice of individuals to engage in exercise using a traditional principal-agent framework. I then use principles from behavioral economics and psychology to critique these models and provide further insight into understanding our underconsumption of such preventive services. I end with an evaluation of current programs and suggestions for improvement using empirical findings.

The Evolution Of The “Southwest Effect”, Daniel Webb

Honors Projects in Finance

The “Southwest effect” - a large decrease in fares paired with an increase in traffic - has been discussed around the airline industry since the term was first coined in a government study in the early 1990s. But the airline industry has drastically changed since then - Southwest has become the largest domestic airline, and many of its competitors have had the chance to restructure through bankruptcy.

This study examines some of Southwest's latest city additions, as well as a few of the airline’s intra-California routes where it is now a dominant player. Using publically-available government data, the change in …

Love And Money By Parental Match-Making: Evidence From Urban Couples In China, Fali Huang, Ginger Jin, Lixin Collin Xu

Research Collection School Of Economics

Parental involvement in marriage matchmaking may distort the optimal spouse choice because parents are willing to substitute love for money. The rationale is that the joint income of married children can be shared among extended family members more easily than mutual attraction felt by the couple themselves, and as a result, the best spouse candidate in the parents' eyes can differ from what is optimal to the individual, even though parents are altruistic and care dearly about their children's welfare. We find supporting evidence for this prediction using a unique sample of urban couples in China in the early 1990s.

Does Information Lead To Household Electricity Conservation?, Devon M. Kristiansen

Economics Honors Projects

This paper estimates the effect of information on residential electricity consumption. Household reading expenditure, education level of the household head, and state “green” electricity pricing program participation rate represent the probability that a household has encountered information relating the carbon emission externalities of energy consumption and human-driven climate change. Reading expenditure has a significant negative effect on household electricity consumption. Initial increases in educational attainment increase electricity consumption, but education beyond high school reduces it. The predicted social norm effect of green pricing participation is insignificant.

Finding Dynamic Treatment Effects Under Anticipation: Spanking Effects On Behavior, Myoung-Jae Lee, Fali Huang

Research Collection School Of Economics

The dynamic treatment effect literature considers multiple treatments administered over time, with some treatments affected by interim outcomes. But the literature overlooks the possibility of individuals acting in anticipation of future treatments. This lack of anticipation aspect may not matter in the drug–response relationships which motivated the literature. But human beings (or animals with some intelligence) do not just respond to current and past treatments, but also ‘reflect and anticipate’ future treatments. For example, a punishment or reward is likely to prompt forward looking. Even if no personal punishment or reward is involved, people may take action in anticipation of …

A Note On Separability And Intra-Household Resource Allocation In A Collective Household Model, Tomoki Fujii, Ryuichiro Ishikawa

Research Collection School Of Economics

We consider a collective model of a household in which each member has a utility function satisfying the weak separability condition. We show that the separability at the individual level carries over to the household level and that the allocation of private goods in any Pareto-efficient allocation can be supported as a Pareto-efficient allocation of private sub-problem. We also provide the necessary and sufficient condition for the Pareto weight for the private sub-problem to move in the same direction as the household Pareto weight.

Is Specialization Desirable In Committee Decision Making?, Ruth Ben-Yashar, Winston T. H. Koh, Shmuel Nitzan

Research Collection School Of Economics

Committee decision making is examined in this study focusing on the role assigned to the committee members. In particular, we are concerned about the comparison between committee performance under specialization and non-specialization of the decision makers. Specialization (in the context of project or public policy selection) means that the decision of each committee member is based on a narrow area, which typically results in the acquirement and use of relatively high expertise in that area. When the committee members’ expertise is already determined, specialization only means that the decision of each committee member is based solely on his/her relatively high …

Economic Impact Of Legalizing Retail Alcohol Sales In Benton County, Katherine A. Deck, Viktoria Riiman

Publications and Presentations

Converting from a dry county to a wet county would have a number of tangible and intangible economic benefits for Benton County. Legal retail alcohol sales are a signal of a contemporary economic development environment. Quantifying the value of that perception is quite difficult, but it is entirely possible to estimate sales effects and tax implications of becoming a wet county for the residents of Benton County. A study was conducted by the Center for Business and Economic Research to assess the magnitude of those economic effects. Data from 2010 were used because of completeness, but the sizes of the …

On The Politics Of Climate Knowledge: Sir Giddens, Sweden And The Paradox Of Climate (In)Justice, Cindy Isenhour

Anthropology Faculty Scholarship

There is a widespread assumption that most people will not effectively respond to climate risk until they personally experience its negative effects. Yet this assumption raises some interesting questions in the Swedish context. The majority of Swedes say they have not experienced the negative effects of climate change, but they are among the world’s citizens most concerned about and active on the issue. These observations raise the question - why do many Swedes act progressively if they do not feel environmental risks “closer to home”? Is there something exceptional about Swedish environmental ethics, political culture or governance structures? This paper …

Law, Environment, And The “Nondismal” Social Sciences, William Boyd, Douglas Kysar, Jeffrey J. Rachlinski

Cornell Law Faculty Publications

Over the past 30 years, the influence of economics over the study of environmental law and policy has expanded considerably, becoming in the process the predominant framework for analyzing regulations that address pollution, natural resource use, and other environmental issues. This review seeks to complement the expansion of economic reasoning and methodology within the field of environmental law and policy by identifying insights to be gleaned from various “nondismal” social sciences. In particular, three areas of inquiry are highlighted as illustrative of interdisciplinary work that might help to complement law and economics and, in some cases, compensate for it: the …

Migrant Remittances In Rural Nepal: A Mixed Methods Household-Level Analysis, Evan Skamarock

Summer Research

This paper aspires to add to the bourgeoning field of interest concerning migration practices in the Gulf States. Based upon first hand ethnographic experience conducted in Bhairawah, southern Nepal, this paper hopes to encourage a deeper, more humanistic exploration of migratory practices that are currently approached from a political and economic lens. This paper begins with a chronological analysis and description of individual and household experience with migration. Moving further, this paper touches on a change over time of traditional gender roles for women.

Peer Transparency In Teams: Does It Help Or Hinder Incentives?, Parimal Bag, Nona Pepito

Research Collection School Of Economics

In a joint project involving two players of a two-round effort investment game with complementary efforts, transparency, by allowing players to observe each other's efforts, achieves at least as much, and sometimes more, collective and individual efforts relative to a nontransparent environment. Without transparency, multiple equilibria can arise, and transparency elimites the inferior equilibria. When full cooperation arises only under transparency, it occurs gradually: No worker sinks in the maximum amount of effort in the first round, preferring instead to smooth out contributions over time. If the players' efforts are substitutes, transparency makes no difference to equilibrium efforts.

Quasi-Option Value Under Strategic Interactions, Tomoki Fujii, Ryuichiro Ishikawa

Research Collection School Of Economics

We consider a simple two-period model of irreversible investment under strategic interactions between two players. In this setup, we show that the quasi-option value may cause some conceptual difficulties. In case of asymmetric information, decentralized investment decisions fail to induce first-best allocations. Therefore a regulator may not be able to exercise the option to delay the decision to develop. We also show that information-induced inefficiency may arise in a game situation and that under certain assumptions inefficiency can be eliminated by sending asymmetric information to the players, even when the regulator faces informational constraints. Our model is potentially applicable to …

Mobile Phones And Crime Deterrence: An Underappreciated Link, Jonathan Klick, John Macdonald, Thomas Stratmann

All Faculty Scholarship

Between 1991 and 2001, crime rates dropped by about a third across all crime categories. We suggest that the introduction and growth of mobile phone technology may have contributed to the crime decline in the 1990s, specifically in the areas of rape and assault. Given that mobile phones increase surveillance and the risks of apprehension when committing crimes against strangers, an expansion of this technology would increase the costs of crime as perceived by forward-looking criminals. We use the available mobile phone data to show that there is a strongly negative association between mobile phones and violent crimes, although data …

Legal Promise And Psychological Contract, Tess Wilkinson-Ryan

All Faculty Scholarship

No abstract provided.