Reconsidering Rational Expectations And The Aggregation Of Diverse Information In Laboratory Security Markets,
2019
Emlyon Business School
Reconsidering Rational Expectations And The Aggregation Of Diverse Information In Laboratory Security Markets, Brice Corgnet, Cary Deck, Mark Desantis, Kyle Hampton, Erik O. Kimbrough
ESI Working Papers
The ability of markets to aggregate diverse information is a cornerstone of economics and finance, and empirical evidence for such aggregation has been demonstrated in previous laboratory experiments. Most notably Plott and Sunder (1988) find clear support for the rational expectations hypothesis in their Series B and C markets. However, recent studies have called into question the robustness of these findings. In this paper, we report the result of a direct replication of the key information aggregation results presented in Plott and Sunder. We do not find the same strong evidence in support of rational expectations that Plott and Sunder …
Dynamic Pricing With Fairness Concerns And A Capacity Constraint,
2019
Chapman University
Dynamic Pricing With Fairness Concerns And A Capacity Constraint, Matthew Selove
Business Faculty Articles and Research
Although some firms use dynamic pricing to respond to demand fluctuations, other firms claim that fairness concerns prevent them from raising prices during periods when demand exceeds capacity. This paper explores conditions in which fairness concerns can or cannot cause shortages. In our model, a firm announces a price policy that states its prices during high and low demand, and customers must travel to a venue to learn the current price. We show that the interaction of fairness concerns with travel costs can cause the firm to set stable prices, which leads to shortages during high demand. However, if the …
The Political Economy Of Foreign Aid And Growth: Theory And Evidence,
2019
University of Paris
The Political Economy Of Foreign Aid And Growth: Theory And Evidence, Sultan Mehmood, Avner Seror
ESI Working Papers
In this paper, we demonstrate that even when foreign aid is used to fund patronage, it may still have a positive - and significant - effect on economic growth in developing countries. First, we present a theory that formalizes the effect of aid on economic growth and patronage. Next, we provide evidence from Pakistan consistent with the predictions of the model that foreign aid increases economic growth, despite being used for patronage. The identification strategy we propose allows us to provide causal evidence for the predictions of the model.
Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?,
2019
Chapman University
Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?, Cary Deck, Maroš Servátka, Steven Tucker
ESI Working Papers
The bubble and burst pattern in asset market experiments is among the most replicable results in experimental economics. Numerous studies have searched for means to reduce this mispricing. Using controlled laboratory experiments, we compare mispricing in standard double auction markets to prices in two clock auctions. The double Dutch auction, shown to be more efficient than the double auction in commodity market experiments, does not eliminate bubbles. However, the English Dutch auction does yield prices reflective of underlying fundamentals and succeeds in taming bubbles even with inexperienced traders in the common declining fundamental value environment.
Working Paper No. 14, Gramsci, Dugger And Hegemony,
2019
Portland State University
Working Paper No. 14, Gramsci, Dugger And Hegemony, Devin Bales
Working Papers in Economics
This inquiry seeks to establish connections between William Dugger’s understanding of subreption leading to corporate hegemony with Antonio Gramsci’s understanding of power and the hegemon. Specifically, this inquiry examines the similarities between both authors’ descriptions and understandings of power in a civil society. Going further, I draw parallels between Gramsci’s description of ‘passive revolution’ as a key process for achieving hegemony and Dugger’s explanation of the role ‘subreption’ plays in the rise of corporate hegemony in the United States. Finally, this inquiry explores connections between Gramsci’s writings on ‘Americanism’ and Dugger’s research into ‘corporate hegemony’. While Dugger does not cite …
Methodological Differences Cannot Explain Associations Between Health, Anthropometrics, And Excess Resting Metabolic Rate,
2019
University of California, Santa Barbara
Methodological Differences Cannot Explain Associations Between Health, Anthropometrics, And Excess Resting Metabolic Rate, Michael Gurven, Benjamin Trumble, Jonathan Stieglitz, Dan Cummings, Hillard Kaplan, Aaron D. Blackwell, Gandhi Yetish, Herman Pontzer
ESI Publications
"We appreciate Ocobock's interest in methodological rigor. We largely agree with her commentary, which suggests that departures from standard protocols might have contributed to the high resting metabolic rate (RMR) measured for Tsimane. Indeed, our paper acknowledges many of the key departures from gold-standard indirect calorimetry methods of RMR assessment and attempts to adjust for several of these (Gurven et al., 2016). Bringing standard clinical methods into remote field settings often involves certain compromises, especially in our case, where RMR measurement was just one component of a large-scale health and aging project (Gurven et al., 2017). RMR data collection was …
Working Paper No. 19, Werner Sombart And National Socialism,
2019
Portland State University
Working Paper No. 19, Werner Sombart And National Socialism, Jenica M. Kramer
Working Papers in Economics
This inquiry seeks to establish that Werner Sombart serves as an example of an exponent of the German Historical School of Economic Thought who joined the National Socialists. This thesis is explored in three sections. The first examines the historical context in which Sombart was reared, considering aspects of his family life, economic class, education, and early academic career. In addition, this section explores Sombart’s relations to the Historical School and his mentor Gustav Schmoller, as well as Sombart’s relation to Marxism and socialism. The second section of this inquiry seeks to trace the changes in Sombart’s ideology that eventually …
Working Paper No. 03, Thorstein Veblen And The Vested Interests,
2019
Portland State University
Working Paper No. 03, Thorstein Veblen And The Vested Interests, Lauren Sweger-Hollingsworth
Working Papers in Economics
This inquiry seeks to establish the importance of "vested interests" as introduced and relied upon within Thorstein Veblen’s system of reasoning. Veblen considers vested interests from two different perspectives in his 1919 book The Vested Interests and the Common Man. First, Veblen considers the relationships between vested interests and what he terms “the business enterprise”. Veblen takes a historical view, relating vested interests to lingering laws and customs of an old era that continue to be applied in modern times. In addition, Veblen considers vested interests and "the divine right of nations", which he connects to the historical institution of …
Working Paper No. 11, The 'Green' New Deal In Light Of Roosevelt's New Deal,
2019
Portland State University
Working Paper No. 11, The 'Green' New Deal In Light Of Roosevelt's New Deal, Gabriel Duvidovich
Working Papers in Economics
This inquiry seeks to establish that the current proposal for a Green New Deal shares similarities and dissimilarities with Roosevelt´s New Deal. The House Resolution submitted to Congress at the beginning of 2019 proposes public policies that aim to address global warming, inspired by how Franklin Roosevelt´s New Deal addressed the Great Depression. The first part of this essay will analyze the origin and the main policies of Roosevelt´s New Deal. Moreover, the article will examine the policy foundations proposed on the Green New Deal House Resolution. Finally, the inquiry will try to understand the connections between the original New …
Celtic Tiger Ireland As A Case Study In The Practical Application Of Neoliberal Economic Policy,
2019
University of Nebraska - Lincoln
Celtic Tiger Ireland As A Case Study In The Practical Application Of Neoliberal Economic Policy, Natalie Sneed
Honors Program: Senior Projects (Public)
The Celtic Tiger economic boom, which occurred in Ireland from approximately 1987 to 2009 has generally been considered one of the most remarkable economic turnarounds in any country in the modern era. My purpose in this project was to identify the primary causes and effects of such rapid and dramatic economic growth and development to determine whether it is sensible for other countries emerging from colonial rule to seek to emulate the Irish economic model. Through a review of the economic literature on the Irish economy in the last three decades, I identify Ireland’s implementation of a neoliberal economic policy …
Salience And Social Choice,
2019
Chapman University
Salience And Social Choice, Mark Schneider, Jonathan W. Leland
ESI Working Papers
The axioms of expected utility and discounted utility theory have been tested extensively. In contrast, the axioms of social welfare functions have only been tested in a few questionnaire studies involving choices between hypothetical income distributions. In this note, we conduct a controlled experiment with 100 subjects in the role of social planners that tests five fundamental properties of social welfare functions to provide a basic test of cardinal social choice theory. We find that four properties of the standard social welfare functions tested are systematically violated, producing an Allais paradox, a common ratio effect, a framing effect, and a …
Producer Services: A Hub For Stem And An Engine For Job Growth,
2019
University of Nebraska-Lincoln
Producer Services: A Hub For Stem And An Engine For Job Growth, Eric Thompson, Uyen Tran
Business in Nebraska
The producer services sector, which includes professional and technical services such as accounting, engineering, computer programming, advertising and consulting, is the fastest growing, high-wage segment of the U.S. economy. Producer services employment grew by 15 percent nationwide from 2008 through 2017 but only by 5 percent in Nebraska. Nebraska growth lagged the nation in part because the state has smaller metropolitan areas. Producer service businesses tend to congregate in larger cities. To grasp more opportunities in this growing, high wage sector, Nebraska needs to train more workers in STEM occupations, encourage the development of small businesses in the sector, and …
Maximum Likelihood Estimation For The Fractional Vasicek Model,
2019
Singapore Management University
Maximum Likelihood Estimation For The Fractional Vasicek Model, Katsuto Tanaka, Weilin Xiao, Jun Yu
Research Collection School Of Economics
This paper is concerned about the problem of estimating the drift parameters in the fractional Vasicek model from a continuous record of observations. Based on the Girsanov theorem for the fractional Brownian motion, the maximum likelihood (ML) method is used. The asymptotic theory for the ML estimates (MLE) is established in the stationary case, the explosive case, and the null recurrent case for the entire range of the Hurst parameter, providing a complete treatment of asymptotic analysis. It is shown that changing the sign of the persistence parameter will change the asymptotic theory for the MLE, including the rate of …
A Time To Print, A Time To Reform,
2019
Martin-Luther University of Halle-Wittenberg
A Time To Print, A Time To Reform, Lars Boerner, Jared Rubin, Battista Severgnini
ESI Working Papers
The public mechanical clock and movable type printing press were arguably the most important and complex technologies of the late medieval period. We posit that towns with clocks became upper-tail human capital hubs--clocks required extensive technical know-how and fine mechanical skill. This meant that clock towns were in position to adopt the printing press soon after its invention in 1450, as presses required a similar set of mechanical and technical skills to operate and repair. A two-stage analysis confirms this conjecture: we find that clock towns were 34-40 percentage points more likely to also have a press by 1500. The …
Given Today's New Wave Of Protectionsim, Is Antitrust Law The Last Hope For Preserving A Free Global Economy Or Another Nail In Free Trade's Coffin?,
2019
Loyola Marymount University and Loyola Law School
Given Today's New Wave Of Protectionsim, Is Antitrust Law The Last Hope For Preserving A Free Global Economy Or Another Nail In Free Trade's Coffin?, Allison Murray
Loyola of Los Angeles International and Comparative Law Review
No abstract provided.
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse,
2019
University of Colorado, Boulder
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse, Asaf Bernstein, Eric Hughson, Marc Weidenmier
Business Faculty Articles and Research
We examine the effect of the establishment of the New York Stock Exchange (NYSE) clearinghouse in 1892 on counterparty risk using a novel historical experiment. During this period, the NYSE stocks were dual-listed on the Consolidated Stock Exchange (CSE), which already had a clearinghouse. Using identical securities on the CSE as a control, we find that the introduction of multilateral net settlement through a clearinghouse substantially reduced volatility of NYSE returns caused by settlement risk and increased asset values. Our results indicate that a clearinghouse can improve market stability and value through a reduction in network contagion and counterparty risk.
Endogenous Market Formation And Monetary Trade: An Experiment,
2019
Chapman University
Endogenous Market Formation And Monetary Trade: An Experiment, Gabriele Camera, Dror Goldberg, Avi Weiss
ESI Working Papers
The theory of money assumes decentralized bilateral exchange and excludes centralized multilateral exchange. However, endogenizing the exchange process is critical for understanding the conditions that support the use of money. We develop a “travelling game” to study the emergence of decentralized and centralized exchange, theoretically and experimentally. Players located on separate islands can either trade locally, or pay a cost to trade elsewhere, so decentralized and centralized markets can both emerge in equilibrium. The former minimize trade costs through monetary exchange; the latter maximizes overall surplus through non-monetary exchange. Monetary trade emerges when coordination is problematic, while centralized trade emerges …
The Attack And Defense Games,
2019
Chapman University
The Attack And Defense Games, Roman Sheremeta
ESI Working Papers
The attack and defense game is a game in which an attacker (a group of attackers) has an incentive to revise the status quo and a defender (a group of defenders) wants to protect it. The asymmetry in objectives creates incompatible interests and results in a mixed-strategy Nash equilibrium. However, this equilibrium could be heavily impacted by behavioral considerations.
Slogans Appropriate To The Legacy Of Martin Luther King Jr.,
2019
Southern Methodist University
Slogans Appropriate To The Legacy Of Martin Luther King Jr., Theodore Walker
Perkins Faculty Research and Special Events
For printing signs, banners, posters, tee shirts, and bumper stickers (and for preaching sermons) that are appropriate to the legacy of Rev. Dr. Martin Luther King Jr., please consider the following slogans: ABOLISH WAR, ABOLISH POVERTY, AMEND THE CONSTITUTION, SUPPORT AN ECONOMIC BILL OF RIGHTS, JOBS FOR ALL, GUARANTEED INCOME FOR ALL, SUPPORT UNIVERSAL BASIC INCOME, and GOOD NEWS TO THE POOR - Luke 4:14-19.
On The Merit Of Equal Pay: Performance Manipulation And Incentive Setting,
2019
Chapman University
On The Merit Of Equal Pay: Performance Manipulation And Incentive Setting, Brice Corgnet, Ludivine Martin, Peguy Ndodjang, Angela Sutan
ESI Publications
Work performance is often difficult to assess thus leaving room for manipulation of commonly-used metrics. We created a laboratory workplace in which we can precisely assess both work performance along with manipulation activities. Using two independent experiments we show that, whenever pay for performance is used, manipulation is pervasive leading to both a waste of organizational resources and a weakening of incentives. By contrast, paying organizational members equally effectively deters manipulation attempts leading to higher organizational production.
