A Case Study In Tipping: An Economic Anomaly, 2017 University of Kansas
A Case Study In Tipping: An Economic Anomaly, Megan Nelson
Crossing Borders: A Multidisciplinary Journal of Undergraduate Scholarship
When dining in a restaurant or having a drink at a bar, do you tip? If yes, what do you base the tip amount on? Is it who you are with? Do men tip more than women? Do you tip less when your actions are masked by a larger group? The answers to these questions are something that economists have struggled to explain. The most difficult question being: Why do people pay an additional amount when they have absolutely no legal obligation to do so? This case study explores the variables that lead to higher or lower tip amounts ...
1 Artificial And Natural Risk, 2017 University of Chicago
1 Artificial And Natural Risk, Lester G. Telser
Lester G Telser
17-01 Bubbles In Experimental Asset Markets, 2017 Chapman University
17-01 Bubbles In Experimental Asset Markets, Praveen Kujal, Owen Powell
ESI Working Papers
"One can define a bubble as a persistent increase in the price of an asset over and above its fundamental value with an abrupt fall in prices when no buyers are available to make purchases. The occurrence of market bubbles has a long history, starting with the Dutch Tulip Mania (1624-1637) to the South Sea and Mississippi Bubble (1716-1720), the British Railway Mania (1840´s) to the crash of 1929. Recent events have been the crash of 1987, the dot-com bubble (1990s) to the most recent housing crisis in early 2000. Even though bubbles, and a subsequent crash, may reallocate ...
Fair Division With Uncertain Needs, 2017 Singapore Management University
Fair Division With Uncertain Needs, Jingyi Xue
Research Collection School Of Economics
Imagine that agents have uncertain needs and a resource must be divided before uncertainty resolves. In this situation, waste typically occurs when the assignment to an agent turns out to exceed his realized need. How should the resource be divided in the face of possible waste? This is a question out of the scope of the existing rationing literature. Our main axiom to address the issue is no domination. It requires that no agent receive more of the resource than another while producing a larger expected waste, unless the other agent has been fully compensated. Together with conditional strict endowment ...
De Jure And De Facto Institutions – Disentangling The Interrelationships, 2016 University of Warsaw
De Jure And De Facto Institutions – Disentangling The Interrelationships, Jacek Lewkowicz, Katarzyna Metelska-Szaniawska
The Latin American and Iberian Journal of Law and Economics
In this paper we contribute to the debate on the nature of institutions and their economic effects by extending the focus to the de jure – de facto institutional distinction. Firstly, we define and conceptualize de facto institutions, as well as elaborate on their place in the broad institutional system and identification. Then we investigate the possible interrelationships between de facto and de jure institutions. Finally, we make a link between these interrelationships and economic outcomes. In this way the paper fills an underexploited niche in institutional research, which is a major background for law and economics.
En este trabajo ...
Endogenous Differential Information, 2016 University of Paris 1 Panthéon-Sorbonne
Endogenous Differential Information, Sebastián Cea-Echenique, Carlos Hervés-Beloso, Juan Pablo Torres-Martínez
Juan Pablo Torres-Martínez
An Informal Review Of The Crisis Of Global Capitalism: A Letter To George Soros, 2016 Portland State University
An Informal Review Of The Crisis Of Global Capitalism: A Letter To George Soros, Martin Zwick
The author presents a review and critique of George Soros' The Crisis in Global Capiltalism, published by Public Affairs press in 1998, and attempts to draw attention to systems-theoretic ideas that pertain to the arguments proposed by Soros.
16-31 All-Pay Auctions With Ties, 2016 Institute for Defense Analyses
16-31 All-Pay Auctions With Ties, Alan Gelder, Dan Kovenock, Brian Roberson
ESI Working Papers
We study the two-player, complete information all-pay auction in which a tie ensues if neither player outbids the other by more than a given amount. In the event of a tie, each player receives an identical fraction of the winning prize. Thus players engage in two margins of competition: losing versus tying, and tying versus winning. Two pertinent parameters are the margin required for victory and the value of tying relative to winning. We fully characterize the set of Nash equilibria for the entire parameter space. For much of the parameter space, there is a unique Nash equilibrium which is ...
16-32 A Perspective On Electronic Alternatives To Traditional Currencies, 2016 Chapman University
16-32 A Perspective On Electronic Alternatives To Traditional Currencies, Gabriele Camera
ESI Working Papers
The institution of money is rapidly evolving thanks to developments in computer-based cryptography. Technological advances have made possible the creation of cost-effective electronic alternatives to banknotes and coins, which are the traditional physical currencies. This document aims to describe — based on scientific literature — the use and characteristics of money, some of the problems associated with issuing a new currency or a new payment instrument, and the possible comparative advantages of a central bank in leading the way relative to private issuers.
Welfare Maximization, Pricing, And Allocation With A Product Performance Or Environmental Quality Standard: Illustration For The Gasoline And Additives Market, Paul W. Gallagher, Hosein Shapouri, Jeffrey Price
Programming models approximate market prices and quantities when regulations constrain firm choices, because market outcomes result when welfare is appropriately defined and includes performance and environmental constraints. This study discusses market operation in quality-constrained sectors, like gasoline and additives; processors expand output until marginal processing cost equals the processing margin between product revenues and raw material costs; retailers who buy gasoline and additives from processors and sell blended retail gasoline price sales at a marginal cost that includes the blended input value plus adjustments for values of constrained attributes; and market supplies and demands of measurable attributes like octane are ...
Scale, Organization, And Profitability Of Ethanol Processing, 2016 Iowa State University
Scale, Organization, And Profitability Of Ethanol Processing, Paul Gallagher, Hosein Shapouri, Heather Brubaker
We analyze the appropriate size and implied profitability of a representative ethanol processing firm. An analysis based on current processing technology and costs with typical conditions in Iowa product and input markets is useful; because unit production costs have declined 30% in current dollars over the last 15 years; and because discovering a suitable size for processing facilities has been an important part of the cost-reducing process. We apply theoretical plant size rules for a conventional processing business, an integrated producer/processor enterprise, and a processing cooperative. We also introduce a spatial dimension for the corn input market, because ethanol ...
Growing Biomass Fuel Industry, Declining Local Forage Demands, And Changing Greenhouse Gas Emissions From Us Agriculture: A Case Study, Paul W. Gallagher, Jeremiah Richey
This paper investigates the effect of a biomass crop introduction in a local market where field crops; cattle forage and biomass crops compete for the agricultural resources and determine land use. A simulation study for a State in the US (Minnesota) with extensive and diverse agricultural resources that could also support a biomass industry is reported. Local market impact on prices and land use is summarized. A local biofuel industry with 1.0 billion gallon capacity can transform declining local land values to stable or moderately increasing land values; partly because secular declines in cattle forage can be replaced with ...
An Economic Analysis Of Expenditures On State Experiment Station Research, 2016 Iowa State University
An Economic Analysis Of Expenditures On State Experiment Station Research, Wallace E. Huffman, John A. Miranowski
The last decade can be characterized by a growing skepticism of the agricultural research establishment. Some have argued that agricultural researchers have been captured by the interests of large farmers or by large private farm input supply firms. Others have argued that the agricultural research establishment has been unresponsive to human resource, environmental, and income distributional issues. Some of these concerns have been expressed in recent changes made in the type of federal support for agricultural research.
Comparable Worth And The Structure Of Earnings: The Iowa Case, 2016 Iowa State University
Comparable Worth And The Structure Of Earnings: The Iowa Case, Peter F. Orazem, J. Peter Mattila
Comparable worth pay plans have been implemented in several states since the early 1980s. To our knowledge, however, no study exists of the actual impact of such plans on the pay structure of state government. We examine the case of comparable worth in Iowa, both as proposed in 1984 and as actually implemented (in compromise form) in 1985. In particular, we identify the relative winners and losers from comparable worth by analyzing the impact on earnings for men, women, minorities, unionized employees, and particular occupational groups, such as supervisors and professionals. In addition, we are able to determine whether the ...
The Gold Standard And The Transmission Of Business Cycles, 1833-1932, 2016 Iowa State University
The Gold Standard And The Transmission Of Business Cycles, 1833-1932, Wallace E. Huffman, James R. Lothian
Descriptions of the gold standard have stressed two very different aspects of that monetary system. Modern observers, concerned with high and rising rates of inflation, have written enthusiastically and often nostalgically of the longer-term price stability that existed during the gold standard era. Many other economists during the past century and a half, however, have rendered a less kindly judgment, emphasizing instead the frequent and sometimes severe business contractions that characterized the period as well as the substantial shorter- and intermediate-term swings in the price level.
16-30 Asymmetric Social Norms, 2016 Chapman University
16-30 Asymmetric Social Norms, Gabriele Camera, Alessandro Gioffré
ESI Working Papers
Studies of cooperation in infinitely repeated matching games focus on homogeneous economies, where full cooperation is efficient and any defection is collectively sanctioned. Here we study heterogeneous economies where occasional defections are part of efficient play, and show how to support those outcomes through contagious punishments.
Sharing Sequential Values In A Network, 2016 Singapore Management University
Sharing Sequential Values In A Network, Ruben Juarez, Chiu Yu Ko, Jingyi Xue
Research Collection School Of Economics
Consider a sequential process where agents have individual values at every possible step. A planner is in charge of selecting steps and distributing the accumulated aggregate values among agents. We model this process by a directed network where each edge is associated with a vector of individual values. This model applies to several new and existing problems, e.g., developing a connected public facility and distributing total values received by surrounding districts; selecting a long-term production plan and sharing final profits among partners of a firm; choosing a machine schedule to serve different tasks and distributing total outputs among task ...
Information, Competition, And The Quality Of Charities, 2016 Texas A & M University - College Station
Information, Competition, And The Quality Of Charities, Silvana Krasteva, Huseyin Yildirim
Unequal Exchange In International Trade: A General Model, 2016 Università degli Studi di Urbino
Unequal Exchange In International Trade: A General Model, Andrea Ricci
16-29 Using Experiments To Compare The Predictive Power Of Models Of Multilateral Negotiations, 2016 Chapman University
16-29 Using Experiments To Compare The Predictive Power Of Models Of Multilateral Negotiations, Cary Deck, Charles J. Thomas
ESI Working Papers
We conduct unstructured negotiations in a laboratory experiment designed to empirically assess the predictive power of three approaches to modeling the multilateral negotiations observed in diverse strategic settings. For concreteness we consider two sellers negotiating with a buyer who wants to make only one trade, with the modeling approaches distinguished by whether the buyer negotiates with the sellers sequentially, simultaneously, or in a “take-it-or-leave-it” fashion. Our experiment features two scenarios within which the three approaches have observationally distinct predictions: a differentiated scenario with one high-surplus and one low-surplus seller, and a homogeneous scenario with identical high-surplus sellers. In both scenarios ...