Economic Theory Commons^™

Multidimensional Arbitration, Cary Deck, Paul Pecorino, Brian R. Powers

ESI Working Papers

Most analyses of arbitration consider disputes over a single dimensional issue; however, in many situations more than one issue can be in dispute. In a labor context, the parties may disagree on the hourly wage, number of paid holidays, and fringe benefits as well as other conditions of employment. In addition to conventional arbitration (CA), two variants of multidimensional final-offer arbitration (FOA) are employed in practice. Under one version of FOA, the arbitrator must pick the entire package submitted by one of the disputants. Under the other version of FOA, the arbitrator can select elements from each disputant’s final offer …

Analisis Dampak Kebijakan Insentif Fiskal Terhadap Tingkat Komponen Dalam Negeri (Tkdn) Industri Manufaktur Di Indonesia, Muhammad Muhammad, Riyanto Riyanto

Jurnal Kebijakan Ekonomi

Over the last decade, the manufacturing sector's contribution to Indonesia's economy has declined. In 2010, it was 29.10% of GDP, but by 2022, it had dropped to 19.14%. Employment in the sector also fell, from 14.91% of the workforce in 2010 to 13.80% in 2022. To reverse this trend, the government introduced a policy to boost the Domestic Component Level (DCL) in manufacturing. By offering fiscal incentives to industries meeting certain DCL targets, the government aims to drive economic growth and job creation. A study using BPS data from 2008-2019 shows that this policy raised DCL by 23.5%.

Dampak Jumlah Kredit Yang Dimiliki Rumah Tangga Terhadap Kekerasan Dalam Rumah Tangga (Kdrt) Pada Anak Di Indonesia, Anjar Maulitfiani, Dwini Handayani

Jurnal Kebijakan Ekonomi

This study examines the impact of intensity of household debt on domestic violence (DV) towards children in Indonesia. There is a positive relationship between the amount of household debt and the likelihood of domestic violence towards children based on literature review. This research uses a quantitative method with multinomial logistic regression analysis. The results of this study indicate that households with more than one household debt are correlated with an increased likelihood of both psychological and physical domestic violence towards children compared to the likelihood of no domestic violence, both before and after controlling variables added.

Revisiting Kin And Ethnic Favoritism In The Bribery Experiment, Mahsa Akbari, Duman Bahrami-Rad, Erik O. Kimbrough

Economics Faculty Articles and Research

We report a conceptual replication of Akbari et al. (2020), who study the impact of co-ethnicity and kinship on behavior in an experimental “bribery game”. In the game, player A can offer a bribe to B, who can help A by inefficiently transferring resources from passive third-party C. We replicate the finding that by varying the relatedness of A, B and C, we can substantially modulate the willingness of A to offer the bribe and the willingness of B to reciprocate the bribe by harming C. The findings are consistent with theories of kin altruism and ethnic favoritism.

The Discouraging Effect Of Overconfidence, Cary Deck, Klajdi Bregu

ESI Publications

Overconfidence is often viewed as encouraging entrepreneurs and CEOs to follow risky strategies such as entering new markets, engaging in innovation, or pursuing mergers and acquisitions. While such undertakings can generate excess returns and profits, overconfidence is frequently offered as an explanation for why so many business ventures fail. However, we show that in a setting where the decision maker does not know whether success is possible, theoretically, overconfidence can also have a discouraging effect, causing one to give up too soon. This counterintuitive result is driven by effectively misattributing one's own failure to an elevated assessment of the chance …

Ectopic Adipose Tissue In Subsistence Populations With Minimal Coronary Disease, Large Left Atria, And Very Low Rates Of Atrial Fibrillation, Randall C. Thompson, Benjamin C. Trumble, Daniel K. Cummings, Angela D. Neunuebel, Paul L. Hooper, Samuel Wann, Adel H. Allam, Frances Neunuebel, Benjamin D. Gans, Samantha I. King, Edmond Seabright, Caleb E. Finch, Margaret Gatz, Kenneth Buetow, Michael I. Miyamoto, Guido P. Lombardi, M. Linda Sutherland, James D. Sutherland, Christopher J. Ward, Madeleine J. Lee, Ashna Mahadev, Daniel Eid Rodriguez, David E. Michalik, Chris J. Rowan, Tianyu Cao, Jonathan Stieglitz, Cameron M. Quick, Gregory S. Thomas, Jagat Narula, Damini Dey, Michael Gurven, Hillard Kaplan

ESI Publications

Background

Methods

Do The Theoretical Frameworks Surrounding Union Wage Negotiations Align With Empirical Data?, Sajid Bin Hasnat

All Graduate Reports and Creative Projects, Fall 2023 to Present

This paper investigates whether the strategic bargaining models developed in game theory align with outcomes observed in laboratory and field settings. We aim to synthesize theoretical literature with experimental and field data to assess the predictive power of game-theoretic models in labor-union wage negotiation contexts. We analyze Rubinstein's bargaining model and its extensions, focusing on how relaxed assumptions affect equilibrium behavior, gains from trade, and dispute occurrence. The theoretical analysis reveals that many bargaining failures stem from asymmetric information between both parties, where delay, transaction costs, deadlines, and reputational effects lead to distinct equilibrium predictions. To test these theoretical predictions, …

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

All Theses

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

All Dissertations

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 …

My Performance Over Yours: Earned Entitlement, Performance, Luck, And Deservingness In Giving, Andrej Angelovski, Praveen Kujal, Jose M. Ortiz

ESI Working Papers

We study how three widely discussed cues—source of income (merit vs luck), own performance, and information about others’ work status and performance—shape redistribution. Prior to the dictator game, all 306 dictators and most of the 306 recipients complete the same real-effort matrix task in an online experiment that would yield either $4 or $1 for the dictators. In the Performance treatment the dictator’s payoff is based on their performance; in Luck, it is assigned by a 50-50 draw. We find that: (i) Earned entitlement is prevalent for high-performing dictators: they keep more for themselves; (ii) Earned entitlement is conditional …

Indirect Genetic Effects Among Neighbors Promote Cooperation And Accelerate Adaptation In A Small-Scale Human Society, Jordan S. Martin, Bret Beheim, Michael Gurven, Hillard Kaplan, Jonathan Stieglitz, Benjamin C. Trumble, Paul Hooper, Daniel K. Cummings, Daniel Eid Rodriguez, Adrian V. Jaeggi

ESI Publications

Explaining the rapid evolution of human cooperation and its role in our species’ biodemographic success remains a major evolutionary puzzle. To address this challenge, we tested a social drive hypothesis, which predicts that social plasticity and social selection in human groups cause indirect genetic effects that accelerate the adaptation of fitness, promoting population growth via feedback between the environmental causes and evolutionary consequences of cooperation. Using Bayesian multilevel models to analyze fertility data from a small-scale society, we demonstrate that density- and frequency-dependent indirect genetic effects on fitness promote the evolution of cooperation among neighboring women, increasing the rate of …

Web-Based Data Collection Application Development At Pt Hidup Selalu Sejahtera Using Fuzzy Algorithm, Yulius Eka Agung Seputra

Jurnal Administrasi Bisnis Terapan

This study focuses on designing and developing a web-based data collection application at PT Hidup Selalu Sejahtera utilizing fuzzy algorithms. The research method involves analyzing sales data to identify consumer behavior patterns and enhance marketing strategies. The application is developed using the Software Development Life Cycle to ensure efficiency and effectiveness. Findings show that the application improves decision-making accuracy based on sales data and offers deeper insights into consumer preferences. Furthermore, it enhances data management, leading to increased productivity within the organization. However, the study acknowledges limitations related to the volume of data analyzed, which may impact the generalizability of …

The Evolution Of Schooling: From Industrial Obedience To Techno-Autonomy, Seb Taylor, Ron Roberts Ii

Digital Laboratory: Publisher of Internet Journal

This paper examines the enduring architecture of the American education system as a mechanism designed for compliance, not creativity. Rooted in 19th-century industrial logic, the structure of schooling, its physical design, time constraints, and assessment methods, has remained largely static despite seismic cultural and technological shifts. Through historical analysis and contemporary critique, this work interrogates the persistence of standardized methods, institutional prestige, and top-down instruction as barriers to meaningful learning and value creation. Drawing from interdisciplinary research and live case studies, including Alpha School’s AI-powered, mastery-based model, the paper advances the concept of techno-education: a student-centered paradigm informed by feedback …

Analisis Kualitas Pelayanan Customer Service Pada Rumah Sakit Di Provinsi Dki Jakarta, Badra Al Aufa

Jurnal Administrasi Bisnis Terapan

Improving the quality of hospital services could be increase profit, market share and cost savings. Staff in front desk plays an important role in affect satisfaction patients, possibility for someone to recommend service and grades create a for patients. This study attempts to analyze the quality of customer service unit at hospital in Jakarta, Indonesia. This research used observation method. Data collection technique was using ghost shopping method. Research has been conducted on 19 hospitals in Jakarta. The selection of hospital was using purposive sampling method. Check list has been used for data collection. Observation has been conducted to see …

Crisis Communication And Governance Response: A Case Study Of Pt Antam’S 2025 Misinformation Scandal, Rizky Kertanegara, Arius Krypton

Jurnal Administrasi Bisnis Terapan

This study analyzes the crisis communication strategy employed by PT ANTAM Tbk in response to the spread of misinformation concerning allegations of gold-related corruption in 2025. The crisis was sparked by a social media post suggesting that ANTAM's gold products were counterfeit, although the actual issue involved unauthorized use of the brand by former employees. Using a qualitative case study and the Situational Crisis Communication Theory (SCCT) framework, this paper evaluates the company’s strategic communication in mitigating reputational damage and maintaining stakeholder trust. Findings indicate that PT ANTAM deployed fact-based clarification, emphasized operational integrity, and reiterated strong corporate governance—aligned with …

Physical Activity Mediates Age Differences In Cognition Among Tsimane Forager-Horticulturalists, Phoebe E. Imms, Nikhil N. Chaudhari, Daniel Cummings, Daniel Eid Rodriguez, Giuseppe Barisano, Paul L. Hooper, M. Katherine Sayre, Edmond Seabright, Randall C. Thompson, M. Linda Sutherland, James D. Sutherland, Benjamin C. Trumble, Michael Gurven, Jonathan Stieglitz, Caleb E. Finch, Hillard S. Kaplan, Wendy J. Mack, Margaret Gatz, Andrei Irimia

ESI Publications

Background: The Tsimane and Moseten of the Bolivian Amazon are highly physically active and exhibit low rates of cognitive impairment and brain atrophy.

Methods: We use structural equation modelling to examine how their physical activity levels mediate the relationship between (1) age and cognition, and (2) age and cognition via brain volume (BV).

Results: Tsimane males (n = 305, mean ± SD age = 59.94 ± 9.68) and Tsimane females (n = 265, mean ± SD age = 59.28 ± 9.79) exhibit significantly higher levels of physical activity than Moseten males (n = 106, mean ± SD …

Triple Shock On External Sustainability In Indonesia, Aloysius Deno Hervino, Insukindro Insukindro, Sekar Utami Setiastuti, Amirullah Setya Hardi

Bulletin of Monetary Economics and Banking

This study evaluates Indonesia’s external sustainability by analyzing exports, imports, and net unilateral transfer payments. The study utilizes Indonesia’s data from the third quarter of 2005 to the fourth quarter of 2019, applying both a long-run dynamic model and a short-run forward-looking model incorporating triple shocks. This research excludes the period from 2020 onwards due to the economic upheaval in Indonesia resulting from the COVID-19 outbreak. This study concludes that Indonesia’s current account is unsustainable, as neither export nor import variables exhibit a long-term link, hence failing to meet intertemporal budget constraints. Furthermore, imports substantially influence long-term exports, which increase …

Analisis Dampak Pelaksanaan Event Dalam Mewujudkan Ekonomi Berkelanjutan Pelaku Umkm Di Kota Bandung (Studi Kasus Event Bazar 101 Project), Jihan Ros Yoewawinata, Anisatul Auliya

Jurnal Administrasi Bisnis Terapan

MSMEs play a crucial role in the Indonesian economy, and events such as bazaars can be a strategic means to increase their competitiveness, sales, and business sustainability. This study aims to analyze the impact of event implementation on the sustainable economy of MSME actors in Bandung City with a case study of the Event Bazar 101 Project. This study uses a qualitative descriptive method. Data were collected through observation and interviews of MSME actors who participated in the event and the event organizer's expert team. Findings show the Event Bazar 101 Project generated impacts on increased sales, networking, and MSME …

Higher Blood Lipid Levels After The Transition To Menopause In Two Forager-Horticulturalist Populations, M. J. Getz, J. E. Aronoff, C. L. Jenkins, S. Ghafoor, J. Vazquez, N. T. Appel, M. Gatz, Daniel K. Cummings, Paul L. Hooper, B. Beheim, K. H. Buetow, C. E. Finch, G. S. Thomas, J. Stieglitz, M. Gurven, Hillard Kaplan, B. C. Trumble

ESI Publications

Background: Reproduction affects health and longevity among females across the life course. While significant focus has been devoted to the role of menarche, menopause remains understudied. Most menopause research is conducted in industrialized populations, where the risk of cardiovascular diseases increases progressively during the menopausal transition.

Methodology: Weworked with the Tsimane, Indigenous Bolivian forager-farmers with physically active lifestyles, and the Moseten, genetically and culturally related horticulturalists experiencing greater market integration. We assessed relationships between menopause status and lipid biomarkers (HDL, LDL, non-HDL, total cholesterol, triglycerides, and apolipoprotein-B). Using linear mixed-effects models, in an all-age sample of n = …

Money And Social Exclusion In Networks, Maria Bigoni, Gabriele Camera, Edoardo Gallo

ESI Working Papers

Globalization offers unparalleled opportunities to expand welfare through cooperation across large networks of unrelated individuals. Social exclusion – permanent or temporary – and monetary exchange are institutions that in theory can incentivize cooperation. In an experiment, we evaluate their relative performance and interaction in anonymous networks of different sizes. Permanent social exclusion (ostracism) reduces long-run economic potential by leading to sparse networks. Monetary exchange and temporary social exclusion perform similarly well in small networks. In large networks, however, monetary exchange is the only institution that promotes full cooperation by crowding out ostracism and keeping the network complete. An insight is …

Childhood Skeletal Lesions Common In Prehistory Are Present In Living Forager-Farmers And Predict Adult Markers Of Immune Function, Amy S. Anderson, Aaron Blackwell, M. Linda Sutherland, Thomas Kraft, James Sutherland, Bret Beheim, Daniel K. Cummings, Suhail Ghafoor, Paul L. Hooper, Daniel Eid Rodriguez, Andrei Irimia, Margaret Gatz, Wendy Mack, Chris Rowan, Michael Miyamoto, Kenneth Buetow, Caleb Finch, L. Samuel Wann, Adel Allam, Randall C. Thompson, Gregory Thomas, Hillard Kaplan, Jonathan Stieglitz, Benjamin Trumble, Michael D. Gurven

ESI Publications

Porous cranial lesions (cribra cranii and cribra orbitalia) are widely used by archaeologists as skeletal markers of poor child health. However, their use has not been validated with systematic data from contemporary populations, where there has been little evidence of these lesions or their health relevance. Using 375 in vivo computed tomography scans from a cohort-representative sample of adults aged 40+ years from the Bolivian Amazon, among food-limited, high-mortality forager-farmers, we identified cribra cranii on 46 (12.3%) and cribra orbitalia on 23 (6%). Cribra orbitalia was associated with several hallmarks of compromised immune function, including fewer B cells, fewer naïve …

Arterial Stiffness In Heart-Healthy Indigenous Tsimane Forager-Horticulturalists, Tianyu Cao, Edhitt Cortez Linares, Raul Quispe Gutierrez, Daniel Eid Rodriguez, Jesus Bani Cuata, Michael I. Miyamoto, Christopher Von Rueden, Daniel K. Cummings, Paul L. Hooper, Benjamin C. Trumble, Jonathan Stieglitz, Randall C. Thompson, Gregory S. Thomas, Hillard S. Kaplan, Daniel A. Duprez, David R. Jacobs Jr., Michael Gurven

ESI Publications

Background

Methods

Energy Expenditure And Obesity Across The Economic Spectrum, Amanda Mcgrosky, Amy Luke, Leonore Arab, Kweku Bedu-Addo, Alberto G. Bonomi, Pascal Bovet, Soren Brage, Maciej S. Buchowski, Nancy Butte, Stefan G. Camps, Regina Casper, Daniel K. Cummings, Sai Krupa Das, Sanjoy Deb, Lara R. Dugas, Ulf Ekelund, Terrence Forrester, Barry W. Fudge, Melanie Gillingham, Annelies H. Goris, Michael Gurven, Catherine Hambly, Annemiek Joosen, Peter T. Katzmarzyk, Kitty P. Kempen, William E. Kraus, Wantanee Kriengsinyos, Rebecca Kuriyan, Robert F. Kushner, Estelle V. Lambert, Christel L. Larsson, William R. Leonard, Nader Lessan, Marie Löf, Corby K. Martin, Anine C. Medin, Marian L. Neuhouser, Kirsi H. Pietilainen, Guy Plasqui, Ross L. Prentice, Susan B. Racette, David A. Raichlen, Eric Ravussin, Leanne Redman, Rebecca M. Reynolds, Eric B. Rimm, Susan Roberts, Asher Y. Rosinger, Mary H. Samuels, Srishti Sinha, J. Josh Snodgrass, Eric Stice, Ricardo Uauy, Samuel S. Urlacher, Jeanine A. Verbunt, Bruce Wolfe, Brian Wood, Xueying Zhang, Alexia J. Murphy-Alford, Cornelia J. Loechl, Jennifer Rood, Hiroyuki Sagayama, Dale A. Schoeller, Klaas R. Westerterp, William W. Wong, Yosuke Yamada, John R. Speakman, Herman Pontzer, The Iaea Dlw Database Consortium

ESI Publications

Global economic development has been associated with an increased prevalence of obesity and related health problems. Increased caloric intake and reduced energy expenditure are both cited as development-related contributors to the obesity crisis, but their relative importance remains unresolved. Here, we examine energy expenditure and two measures of obesity (body fat percentage and body mass index, BMI) for 4,213 adults from 34 populations across six continents and a wide range of lifestyles and economies, including hunter-gatherer, pastoralist, farming, and industrialized populations. Economic development was positively associated with greater body mass, BMI, and body fat, but also with greater total, basal, …

The Impact Of Insufficient Sleep On Dietary Choices And Physical Activity Behaviors: Evidence From A Randomized Cross-Over Trial, David L. Dickinson, Naomi Kakoschke, Sean P. A. Drummond

ESI Publications

The current study aimed to identify how manipulated sleep restriction affects dietary choices and physical activity (PA). Young adults were administered one week of well-rested sleep levels (WR: 8–9 h/night) and sleep-restriction (SR: 5–6 h/night) in their (naturalistic) at-home setting, using a randomized cross-over design. Participants made consequential bids for snacks/beverages following SR and WR in an auction task. Other primary outcome measures included daily self-reported dietary intake and actigraphy-measured PA. Multivariate regression analyses examined main and moderator impacts of SR on primary outcome measures. In total, 118 treatment participants completed the study (M = 20 years old, n = …

Effects Of Fair Workweek Laws On Labor Market Outcomes, Joseph Pickens, Aaron Sojourner

Upjohn Institute Working Papers

This paper models fair workweek regulations that require employers to provide employees with (1) schedule predictability via advance notice of their work schedule and premium payments for short-notice changes, and (2) access to hours meaning they must offer open hours to existing employees before hiring new workers. We develop a theoretical model of employers’ responses to these provisions and their implications for employment. Guided by the model, we estimate the effects of recently-adopted fair workweek regulation in New York City’s fast-food sector using a synthetic difference-in-differences design. We find a null employment effect.

Undominated Mechanisms, Tilman Borgers, Jiangtao Li, Kexin Wang

Research Collection School Of Economics

We study the design of mechanisms when the designer faces multiple plausible scenarios and is uncertain about the true scenario. A mechanism is dominated by another if the latter performs at least as well in all plausible scenarios and strictly better in at least one. A mechanism is undominated if no other feasible mechanism dominates it. We show how analyzing undominated mechanisms could be useful and illustrate the tractability of characterizing such mechanisms. This approach provides an alternative criterion for mechanism design under non-Bayesian uncertainty, complementing existing methods.

The History Of Protectionism And Free Trade In The World: How Does It Impact Indonesia?, Dorothea Bening Larasati

Jurnal Vokasi Indonesia

International trade plays an important role in Indonesia's economy, with protectionism and free trade being the two main approaches in the country's trade policy. Protectionism, which aims to protect domestic industries by restricting imports, is often challenged in the face of the need to integrate global markets. In contrast, free trade seeks to open markets without barriers, which can accelerate economic growth and improve international relations. This research aims to explore the impact of protectionism and free trade policies on the Indonesian economy and provide recommendations for the government. The research uses a qualitative approach through a literature study that …

The Medical Check Up Result Data Collection System Function To Determine The Health Condition Of Workers At Pt. Pertamina Region Iii, Shonia Fitriananda, Mohammad Ridha

Jurnal Administrasi Bisnis Terapan

Activities carried out at PT. Pertamina (Persero) is very diverse. One of the activities is Medical Check Up under the auspices of Pertamedika, which is a health facility in PT. Pertamina (Persero) which is intended for workers to be checked for health every year with physical examination in the form of heart examination, blood tests, eye tests, and ultrasonography (USG). With the activities, it is inseparable from direct communication between the administration and workers to confirm each other about the needs and desires of workers who can be helped by the medical administration. The preparation of this academic paper task …

General Equilibrium Markets As Distributed Computational Systems, Steven Gjerstad

ESI Working Papers

One principal capability of markets is the coordination of information distributed among market participants who typically have competing incentives. Despite distributed information and conflicting incentives, competition among market participants often leads to socially desirable resource allocation. In this sense a market is a distributed multi-agent mechanism that, in effect, finds an optimal solution to a computational problem that is not known to any individual market participant. The purpose of this paper is to demonstrate that capacity of markets by defining automated agents that interact with one another in a distributed system that implements a socially desirable resource allocation. In this …

New Institutional Economics : A Few Extensions, Murali Patibandla

Markets, Globalization & Development Review

This article traces out the development of the New Institutional Economics (NIE). It delineates the literature into two interrelated themes of institutional environment and institutions of governance. The rules of the game of institutional environment determine governance choices. Inefficient institutional environment results in inefficient governance mechanisms which causes misutilization of scarce resources. Institutional environment evolves over time. This article demonstrates the evolution of institutions in response to shocks with analysis of historical examples. The prevailing literature over glorifies the colonial rule of the West for the emergence of capitalist institutions. It fails to explain success stories of Japan, Mainland China …