Economic Theory Commons^™

The Bandwagon Model, Dean A. Williams

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Professional sports teams are in the entertainment market where owners of teams invest in players with the hopes of converting their talents into wins, and in turn, added revenues for their team. To gain an understanding of the incentives that shape these team talent investment decisions, prior economists have created theoretical models of professional sports leagues that give predictions regarding the cost to acquire talent, and the winning percentage of teams from different market sizes. These models are then used to show how team talent investment decisions change once professional sports leagues implement policies such as first-year player drafts, salary …

Criminal Behavior Responses To Changing Penalties: Estimating The Impact Of Felony Theft Threshold Changes, Ezra R. Simmons

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This study estimates how criminal behavior changes in response to shifts in felony theft thresholds, contributing to broader evidence on the deterrent effects of criminal penalties. Using detailed incident-level crime reports, this study applies econometric techniques to evaluate how offenders responded to reduced penalties. Analyzed within is California’s Proposition 47, which raised the felony threshold for theft-related offenses from $450 to $950. The results show a significant increase in low-level shoplifting (approximately 21%) and more substantial rises (approximately 24% to 30%) in crimes within the threshold overlap ($450 to $950). Additionally, the value stolen in crimes below the $450 threshold …

Three Essays In The Economics Of Disagreements: Incentives, Measurement And Persistence, Mustafa W. Alam

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This dissertation presents three chapters that contribute to the study of economic forces shaping disagreements in society.

In Chapter 1, I demonstrate that political polarization can intensify due to innovations in the information market even if a population's ideological distribution is fixed. Viewership-maximizing news firms cater to a diverse audience who assess source accuracy using noisy private signals that vary in precision and ideological bias. If better-informed consumers disproportionately migrate to newer platforms for news (e.g., the Internet), traditional media firms increase news slant to appeal more to less-informed partisans on both sides of the ideological spectrum. This leads to …

Striking A Balance: Market Shock & Responses In Automotive Components Manufacturing, Emma Lane Mcgahey

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This thesis examines the effects of extreme market shocks on supply chain dynamics within the automotive industry. Through an analysis of demand data from an automotive manufacturer to its component suppliers (January 2018 to May 2024), the study investigates the relationship between market shocks and supply chain responses, providing insights into how auto components inventory management handles downstream responses to market shocks. With supporting public data—from FRED, BLS, and the U.S. Census Bureau resources—we explore two primary relationships: the impact of market shocks on the Average Standard Deviation of Demand (SDO) and the effect of demand variability on expedited pricing …

Essays On The Economics Of Sports Wagering Markets, Jacob Lamb

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Economists have long been enamored with using wagering markets and sports data to answer various economic questions. Wagering market data are readily available to answer any number of questions relating to sports and economics. However, most studies surrounding wagering markets have focused on searching for inefficiencies and, consequently, profitable betting strategies against the house. This dissertation takes a different approach, focusing on the information that can be extracted from efficient wagering markets and using that information to answer economic questions. Rather than hunting for inefficiencies, this dissertation confirms the efficiency of wagering markets and uses wagering markets to answer questions …

Essays On Delegation And Voter Preferences, Cory Simpkins

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Chapter 1 examines delegation and communication as strategies in coordination games with uncertainty and social preferences. I construct a model where other-regarding partners attempt to coordinate over a binary choice with privately known utilities. Players can choose to either communicate by signaling their preferences or delegate the choice entirely to their partner. I characterize equilibrium behavior under various assumptions on information transmission and coordination risk. If coordination is risky, there is a type of "first mover advantage" where the first player to communicate her own-preference guarantees her ideal outcome when communication is honest revelation. When preference signals are cheap talk, …

Have Sentence Enhancements Had A Deterrent Effect On Crime And What Are The Social Welfare Implications Of These Laws?, David May

All Theses

In the early 1990s many states adopted some form of sentence enhancement law for repeat offenders. A three-strike law in many states, most notably California's, was a common form of these laws. Using a difference-in-difference methodology, this thesis demonstrates that sentence enhancement laws reduce property crime rates by 10 percent or more. A basic cost-benefit analysis, however, leaves open the question of whether social welfare is enhanced by sentence enhancements.

Revisiting The Impact Of The Designated Hitter On Major League Baseball, Andrew Cooley

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In 1973, team owners in Major League Baseball's American League voted in favor of introducing the designated hitter into their offensive lineups. The National League owners voted against such a rule change that year and since on several different occurrences. Baseball fans, sportswriters, players, owners, economists and others have weighed in on the impact of the designated hitter rule change on Major League Baseball. Chapter One of this paper reviews recent published writings by economists on the impact of the designated hitter. Team owners gave several reasons for advocating the dramatic designated rule change in the American League. Chapter Two …