Open Access. Powered by Scholars. Published by Universities.®

Economic Theory Commons

Open Access. Powered by Scholars. Published by Universities.®

2334 Full-Text Articles 1556 Authors 348587 Downloads 107 Institutions

All Articles in Economic Theory

Faceted Search

2334 full-text articles. Page 1 of 62.

A Case Study In Tipping: An Economic Anomaly, Megan Nelson 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, Lester G. Telser 2017 University of Chicago

1 Artificial And Natural Risk, Lester G. Telser

Lester G Telser

Only a lottery can produce artificial risk because it can set the probability of winning. Coin tosses, spinning a roulette wheel, rolling dice cannot determine the exact probability of the random events they generate. Insurance offers payment for the loss due to natural risk that no one can control. Natural risk comes from adverse random events such as death, illness, fire, theft, auto accidents and so on. Insurance companies estimate the probability of these adverse random events from data. They do not set the probability that these events will occur in contrast to the manager of lottery who can set ...


17-01 Bubbles In Experimental Asset Markets, Praveen Kujal, Owen Powell 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, Jingyi XUE 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, Jacek Lewkowicz, Katarzyna Metelska-Szaniawska 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.

Resumen

En este trabajo ...


Endogenous Differential Information, Sebastián Cea-Echenique, Carlos Hervés-Beloso, Juan Pablo Torres-Martínez 2016 University of Paris 1 Panthéon-Sorbonne

Endogenous Differential Information, Sebastián Cea-Echenique, Carlos Hervés-Beloso, Juan Pablo Torres-Martínez

Juan Pablo Torres-Martínez

We include endogenous differential information in a model with sequential trade and incomplete financial participation. Agents update information through market signals given by commodity prices and asset deliveries. Information acts over admissible strategies and consumption tastes, allowing discontinuities in preferences and choice sets. Therefore, equilibrium may cease to exist. However, internalizing the compatibility between information and consumption through preferences, and without requiring either financial survival assumptions or fully revealing prices, equilibrium existence can be ensured.


An Informal Review Of The Crisis Of Global Capitalism: A Letter To George Soros, Martin Zwick 2016 Portland State University

An Informal Review Of The Crisis Of Global Capitalism: A Letter To George Soros, Martin Zwick

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, Alan Gelder, Dan Kovenock, Brian Roberson 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, Gabriele Camera 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 2016 Iowa State University

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

Paul Gallagher

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, Paul Gallagher, Hosein Shapouri, Heather Brubaker 2016 Iowa State University

Scale, Organization, And Profitability Of Ethanol Processing, Paul Gallagher, Hosein Shapouri, Heather Brubaker

Paul Gallagher

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 2016 Iowa State University

Growing Biomass Fuel Industry, Declining Local Forage Demands, And Changing Greenhouse Gas Emissions From Us Agriculture: A Case Study, Paul W. Gallagher, Jeremiah Richey

Paul Gallagher

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, Wallace E. Huffman, John A. Miranowski 2016 Iowa State University

An Economic Analysis Of Expenditures On State Experiment Station Research, Wallace E. Huffman, John A. Miranowski

John 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, Peter F. Orazem, J. Peter Mattila 2016 Iowa State University

Comparable Worth And The Structure Of Earnings: The Iowa Case, Peter F. Orazem, J. Peter Mattila

Peter Orazem

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, Wallace E. Huffman, James R. Lothian 2016 Iowa State University

The Gold Standard And The Transmission Of Business Cycles, 1833-1932, Wallace E. Huffman, James R. Lothian

Wallace Huffman

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, Gabriele Camera, Alessandro Gioffré 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, Ruben JUAREZ, Chiu Yu KO, Jingyi XUE 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, Silvana Krasteva, Huseyin Yildirim 2016 Texas A & M University - College Station

Information, Competition, And The Quality Of Charities, Silvana Krasteva, Huseyin Yildirim

Huseyin Yildirim

Drawing upon the all-pay auction literature, we propose a model of charity competition in which informed giving alone can account for the significant quality heterogeneity across similar charities. Our analysis identifies a negative effect of competition and a positive effect of informed giving on the equilibrium quality of charity. In particular, we show that as the number of charities grows, so does the percentage of charity scams, approaching one in the limit. In light of this and other results, we discuss the need for regulating nonprofit entry and conduct as well as promoting informed giving.


Unequal Exchange In International Trade: A General Model, Andrea Ricci 2016 Università degli Studi di Urbino

Unequal Exchange In International Trade: A General Model, Andrea Ricci

Andrea Ricci

Increasing world inequality and mass migration make the topic of unequal exchange ever more important. Unequal exchange arises when spatial production of value is disjointed from its geographical distribution. The lack of a coherent theoretical framework has limited empirical research on value transfers in trade. This paper aims to overcome this gap. A disaggregated monetary model of world economy with heterogeneous labour, non-specific commodities, and different national production techniques is presented on the grounds of Marx’s labour theory of value. All the different forms of unequal exchange in international trade are explained without incurring the traditional impasses. Estimates of ...


16-29 Using Experiments To Compare The Predictive Power Of Models Of Multilateral Negotiations, Cary Deck, Charles J. Thomas 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 ...


Digital Commons powered by bepress