Personality And The Consistency Of Risk Taking Behavior: Experimental Evidence,
2010
Chapman University
Personality And The Consistency Of Risk Taking Behavior: Experimental Evidence, Cary Deck, Jungmin Lee, Javier Reyes
ESI Working Papers
Researchers have found that an individual’s risk attitude is not stable across elicitation methods. Results reported by Deck et al. (2009) suggest that personality may help explain the apparent inconsistency, offering support to Borghans et al.’s (2008) argument that economists should consider a multi‐domain approach to measuring risk attitudes. This paper uses laboratory methods to compare risk attitudes as measured by the Holt and Laury (2002) procedure under two different frames. We find that, as in Deck et al. (2009), one’s willingness to take financial risks (as measured by Weber et al. 2002) significantly affects behavior; however the effect is …
Perfect And Imperfect Real-Time Monitoring In A Minimum-Effort Game,
2010
Chapman University
Perfect And Imperfect Real-Time Monitoring In A Minimum-Effort Game, Cary Deck, Nikos Nikiforakis
ESI Working Papers
This paper presents the results from a minimum-effort game in which individuals can observe the choices of others in real time. We find that under perfect monitoring almost all groups coordinate at the payoff-dominant equilibrium. However, when individuals can only observe the actions of their immediate neighbors in a circle network, monitoring improves neither coordination nor efficiency relative to a baseline treatment without real-time monitoring. We argue that the inefficiency of imperfect monitoring is due to information uncertainty, that is, uncertainty about the interpretation of the information available regarding the actions of others.
Price Increasing Competition? Experimental Evidence,
2010
Chapman University
Price Increasing Competition? Experimental Evidence, Cary Deck, Jingping Gu
ESI Working Papers
Economic intuition suggests that increased competition generates lower prices. However, recent theoretical work shows that a monopolist may charge a lower price than a firm facing a competitor selling a differentiated product. The direction of the price change when competition is introduced is dependent upon the joint distribution of buyer values for the two products. We explore this relationship using controlled laboratory experiments. Our results indicate that the distribution of buyer values does affect prices in a manner consistent with the theoretical predictions, although price increasing competition is rare due in part to overly intense competition regardless of the distribution …
The Attack And Defense Of Weakest-Link Networks,
2010
Chapman University
The Attack And Defense Of Weakest-Link Networks, Dan Kovenock, Brian Roberson, Roman M. Sheremeta
ESI Working Papers
This paper experimentally examines behavior in a two-player game of attack and defense of a weakest-link network of targets, in which the attacker‟s objective is to successfully attack at least one target and the defender‟s objective is diametrically opposed. We apply two benchmark contest success functions (CSFs): the auction CSF and the lottery CSF. Consistent with the theoretical prediction, under the auction CSF, attackers utilize a stochastic “guerilla warfare” strategy — in which a single random target is attacked — more than 80% of the time. Under the lottery CSF, attackers utilize the stochastic guerilla warfare strategy almost 45% of …
Durability, Re-Trading And Market Performance,
2010
Chapman University
Durability, Re-Trading And Market Performance, John Dickhaut, Shengle Lin, David Porter, Vernon Smith
ESI Working Papers
Key differential structural characteristics of environments studied in previous market experiments have documented large divergences in their observed performance, particularly discrepancies in their convergence to expected equilibrium outcomes. We investigate why this should be so.
Economies Of Scope For Microfinance: Differences Across Output Measures,
2009
Auburn University Main Campus
Economies Of Scope For Microfinance: Differences Across Output Measures, Valentina Hartarska, Christopher Parmeter, Denis Nadolynak, Beibei Zhu
Christopher F. Parmeter
In banking, scope economies of mobilizing deposits and lending are often estimated, while consideration of the same measures for microfinance institutions (MFI) is still in its infancy. An open issue remains regarding what characterizes an output of an MFI. Moreover, depending on the output used, do estimated scope economies differ? We use a novel data set for over 800 MFI across more than 70 countries to estimate economies of scope. Our findings suggest that statistical differences arise between estimates of scope economies. However, our qualitative findings indicate that both of these measures provide similar overviews of the landscape of scope …
Market Power, Eu Integration And Privatization: The Case Of Romania,
2009
University of Miami
Market Power, Eu Integration And Privatization: The Case Of Romania, Gabriel Asaftei, Christopher Parmeter
Christopher F. Parmeter
This paper investigates the effects on pricing behavior of firms in a transition economy resulting from integration into the European Union’s Common Market and changes in ownership. We use a semiparametric model with a rich panel of manufacturing firms in Romania from 1995 to 2003 to estimate firm-level markups. We find that markups are higher in more concentrated industries and less exposed to foreign competition. Trade integration appears to generally increase competitive pressure on markups. Industries exposed to more international competition experience a larger change in markups following integration into the European Union’s Common Market. However, as the initial impact …
Which Hedonic Models Can We Trust To Recover The Marginal Willingness To Pay For Environmental Amenities?,
2009
Arizona State University
Which Hedonic Models Can We Trust To Recover The Marginal Willingness To Pay For Environmental Amenities?, Nicolai Kuminoff, Christopher Parmeter, Jaren Pope
Christopher F. Parmeter
The hedonic property value model is among our foremost tools for evaluating the economic consequences of policies that target the supply of local public goods, environmental services, and urban amenities. We design a theoretically consistent and empirically realistic Monte Carlo study of whether omitted variables seriously undermine the method’s ability to accurately identify economic values. Our results suggest that large gains in accuracy can be realized by moving from the standard linear specifications for the price function to a more flexible framework that uses a combination of spatial fixed effects, quasi-experimental identification, and temporal controls for housing market adjustment
The Benefit Transfer Challenges,
2009
Virginia Polytechnic Institute and State University
The Benefit Transfer Challenges, Kevin Boyle, Nicolai Kuminoff, Christopher Parmeter, Jaren Pope
Christopher F. Parmeter
Presidential Executive Order 12,866 requires federal agencies to design “cost-effective” regulations and to assess “costs and benefits” of these regulations on the basis of “the best reasonably obtainable scientific, technical, economic, and other information.” Benefit transfers are one economic approach used to estimate these benefits and costs, and the use of existing economic information to predict the effects of new policies is well established. However, advancing the practice of benefit transfers is crucial if economists are to play a role in developing federal policies. We review contributions to the benefit-transfer literature and present a unified conceptual framework to guide the …
Estimation Of Hedonic Price Functions With Incomplete Information,
2009
University of Miami
Estimation Of Hedonic Price Functions With Incomplete Information, Subal Kumbhakar, Christopher Parmeter
Christopher F. Parmeter
Existence of persistent price dispersion suggests that some buyers find lower prices through search and information acquisition, while some sellers charge higher prices by gathering information on potential buyers. If buyers are not fully informed of the lowest price available in the market they end up paying a price higher than if they had full information. Similarly, if sellers are not fully informed about the highest price they could charge, they too suffer by receiving a price lower than had they had full information. This paper develops a hedonic price model that incorporates the effects of incomplete information on both …
Female Political Leadership And The Prevalence Of Water Borne Diseases: Evidence From A Natural Experiment In India,
2009
University of California- Santa Cruz
Female Political Leadership And The Prevalence Of Water Borne Diseases: Evidence From A Natural Experiment In India, Ambrish Dongre
Ambrish A Dongre
This paper examines the relationship between prevalence of water borne diseases and gender of the head of the village councils by exploiting a natural experiment in local governance in India. A constitutional amendment in early 1990s ensured that only women could contest the elections and be the head in at least one- third of the village councils selected through an exogenous process. Utilizing a unique sample survey, we show that having a woman as the council head seems to have no effect on the prevalence of water borne diseases. But if we look into the sub-categories of the female council …
Trade Bans, Imperfect Competition, And Welfare: Bse And The U.S. Beef Industry,
2009
University of Nebraska-Lincoln
Trade Bans, Imperfect Competition, And Welfare: Bse And The U.S. Beef Industry, Dimitrios Pangiotou, Azzeddine Azzam
Azzeddine Azzam
Between May 2003 and July 2005, the U.S. beef industry faced a total ban on Canadian cattle imports following the discovery of BSE in Canada in May 2003 and restrictions on U.S. beef exports following the discovery of BSE in the United States in December 2003. When the United States reopened its border to Canadian cattle in July 2005, shipments were restricted to cattle less than 30 months of age. The total ban on Canadian cattle imports and restrictions on U.S. beef exports overlapped between January 2004 and July 2005. The restrictions on Canadian cattle imports and U.S. beef exports …
A Direct Monte Carlo Approach For Bayesian Analysis Of The Seemingly Unrelated Regression Model,
2009
Melbourne Business School
A Direct Monte Carlo Approach For Bayesian Analysis Of The Seemingly Unrelated Regression Model, Tomohiro Ando, Arnold Zellner
Tomohiro Ando
No abstract provided.
Has The World Trade Organization Promoted Successful Regional Trade Agreements?,
2009
Virginia Polytechnic Institute and State University
Has The World Trade Organization Promoted Successful Regional Trade Agreements?, Jason Grant, Christopher Parmeter
Christopher F. Parmeter
The WTO’s Committee on Regional Trade Agreements (CRTA) is charged with monitoring, examining, and ensuring the compliance of RTAs. In this paper we ask whether oversight and examination has fostered successful RTAs using bilateral trade flows as our metric. We develop a comprehensive dataset covering 290 regional economic integration agreements that have entered into force since 1960. Remarkably, the data reveal that almost half (43%) of all agreements in existence (up to 2005) are neither notified nor accounted for in the RTA database published by the WTO. We then exploit variation in the notification status of an RTA to determine …
The 1905 Einstein Equation In A General Mathematical Analysis Model Of Quasars,
2009
DePaul University and Columbia College Chicago
The 1905 Einstein Equation In A General Mathematical Analysis Model Of Quasars, Byron E. Bell
Byron E. Bell
No abstract provided.
Technical Appendix To Supranational Agency: A Solution For Conflict In International Mergers?,
2009
NITIE
Technical Appendix To Supranational Agency: A Solution For Conflict In International Mergers?, Poonam Mehra
Poonam Singh Mehra
This note includes the general model and technical proofs of the paper titled “Supranational Agency: A Solution for Conflicts in International Mergers”. This paper develops a two Country three Firm model to compare the possibilities of conflict between competition authorities of different countries over the review of a merger under different welfare standards: national, consumer, and global. Use of transfer payment under the global welfare standard to ensure a conflict free efficient outcome is also explored.
Simulation And Inference For Stochastic Differential Equations: With R Examples, By Stefano M. Iacus,
2009
La Trobe University
Simulation And Inference For Stochastic Differential Equations: With R Examples, By Stefano M. Iacus, Suren Basov
Suren Basov
No abstract provided.
Demutualization Of Stock Exchanges,
2009
NITIE
Demutualization Of Stock Exchanges, Poonam Mehra
Poonam Singh Mehra
No abstract provided.
Measuring Poverty And Human Capital Development In Sudan,
2009
Department of Economics. Al Neelain University, Khartoum, Sudan
Measuring Poverty And Human Capital Development In Sudan, Professor Issam A.W. Mohamed
Professor Issam A.W. Mohamed
Catastrophes in Sudan are of many dimensions. Food security is a chronic and intrinsic problem in Sub Saharan Africa which is a fact recognized by the international society. Political instability, civil wars and finally recent secession of its Southern part is another fact which may be taken as a vivid example for other regions of that previously largest African country to be followed. The present paper introduces an analysis and assessment of measurements for human development indices in Sudan. It is empirically concluded that human welfare is invisible. The parameters are very low. Strategies are needed to provide for basic …
The Journey To Safety: Conflict-Driven Migration Flows In Colombia,
2009
Regional Research Institute, West Virginia University
The Journey To Safety: Conflict-Driven Migration Flows In Colombia, Gianfranco Piras, Nancy Lozano-Gracia, Geoffrey Hewings, Ana Maria Ibanez
Gianfranco Piras
No abstract provided.
