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Behavioral Economics Commons

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Full-Text Articles in Behavioral Economics

Modeling The Demand For Food Safety And The Implications For Regulation, E. Kwan Choi, Helen H. Jensen Sep 1990

Modeling The Demand For Food Safety And The Implications For Regulation, E. Kwan Choi, Helen H. Jensen

CARD Working Papers

The modern theory of demand which underlies much of economic analysis of consumer behavior is based on the premise that consumption goods are pure and do not involve risks. However, that is clearly not the case where concerns about food safety are involved. The awareness of linkages between consumption of foods and adverse health effects indicates the need for a new framework for investigating demand for food and food safety, and for guiding the appropriate government response to achieve optimal regulation of food safety levels. We develop such a framework and show that when safety is endogenous to the consumer ...


Alternative Explanations For Changes In Similarity Judgments And Mds Structure, Michael D. Johnson, Donald R. Lehmann, David A. Horne Aug 1990

Alternative Explanations For Changes In Similarity Judgments And Mds Structure, Michael D. Johnson, Donald R. Lehmann, David A. Horne

Articles and Chapters

[Excerpt] The basic purpose of our paper (Johnson et al., 1990) was to see if the repetitive task of providing similarity judgments affects the cognitive structure evidenced by those judgments. The data clearly indicate that the structure changed through the course of the task. Moreover, this change is consistent with a categorization-based response to task fatigue. Three primary criticisms have been raised in response to our paper (Malhotra, 1990): (1) fatigue is not directly measured, (2) our hypotheses do not follow from our categorization framework, and (3) our hypotheses and findings are more consistent with a learning framework.


An Experiment On Coasian Bargaining Over Ex Ante Lotteries And Ex Post Rewards, Jason F. Shogren Jul 1990

An Experiment On Coasian Bargaining Over Ex Ante Lotteries And Ex Post Rewards, Jason F. Shogren

CARD Working Papers

We examine Coasian bargaining under uncertain payoff streams. subjects bargained over both an ex ante lottery and the ex post reward. The results indicate nearly 87 percent of all agreements were Pareto efficient. However, only 7.3 percent were mutually advantageous, while nearly 85 percent of all agreements split the reward equally.

Consequently, we remain cautious about policy recommendations based on the Coase theorem where uncertain payoffs exist. Finally we find no evidence supporting the proposition that a fundamental difference exists between bargaining behavior over the ex ante lottery and the ex post rewards of an uncertain event.


Local Labor Market Conditions: Effects On Labor Demand And Wage Labor Supply Decisions Of Farm And Rural Nonfarm Couples, 1978-82, Wallace E. Huffman Jun 1990

Local Labor Market Conditions: Effects On Labor Demand And Wage Labor Supply Decisions Of Farm And Rural Nonfarm Couples, 1978-82, Wallace E. Huffman

Economic Staff Paper Series

The objective of ,this .paper is to examine the effects of geographical differences in local economic conditions—[both anticipated (permanent) and unanticipated (-transitory).—on wage labor demand and labor force participation decisions of-U.S. farm and rural nonfarm couples. Farm and rural nonfarm households in some regions of the U.S., e.g., the upper midwest, were adversely affected by changes in local economic conditions that occurred during 1978-.tp 1982, (U.S.v, Dept. Agr. 1987). Households in the southwest faired better. Part of.-these effects seems to be driven by changes in local labor market conditions.


Risk, Self-Protection, And Ex Ante Economic Value, Jason F. Shogren, Thomas D. Crocker May 1990

Risk, Self-Protection, And Ex Ante Economic Value, Jason F. Shogren, Thomas D. Crocker

CARD Working Papers

We develop three propositions about the ex ante value of reduced risk. If there is a continuous outcome distribution and if self-protection influences outcome probability and severity, then: (1) unobservable utility terms cannot be eliminated from the ex ante value expressions; (2) knowledge of the convexity or the nonconvexity of dose-response functions is insufficient to sign changes in these expressions; and (3) self-protection expenditures need not be a lower bound measure of these expressions. Therefore, many restrictions applied in recent empirical work on the economic value of risk changes are not immediately transferable to settings where endogenous risks prevail.


The Impact Of Self-Protection And Self-Insurance On Individual Response To Risk, Jason F. Shogren Mar 1990

The Impact Of Self-Protection And Self-Insurance On Individual Response To Risk, Jason F. Shogren

CARD Working Papers

We develop four experimental markets to examine how individuals respond to risk: self-protection and self-insurance in both private and collective auctions. First, we find evidence that the mechanism used to reduce risk is important. Results indicate that the upper and lower bounds on value were elicited by the private self-protection and the collective self-insurance markets. Second, the robustness of these results declined with low probability lotteries. We find further evidence that individuals overestimate the impact of low probability events. Overestimation decreased, however, with repeated market exposure. Third, the four markets induced rapid value formation. Usually only one or two additional ...


On The Differences Between The Commercial And Economic Profitability Of A Project, H. Ike Van De Wetering Feb 1990

On The Differences Between The Commercial And Economic Profitability Of A Project, H. Ike Van De Wetering

Economic Staff Paper Series

The economic profitability of a project is derived from it's commercial profitability by making two adjustments. First, an adjustment needs to be made for the change in.the sum of consumers' surplus arid factor rents. Second, an adjustment has to be made for the change in tax revenues and subsidies. Conventional practice ignores the former adjustment and mistakenly asstimes that the taxes or subsidies paid by the project


Cartel Enforcement With Uncertainty About Costs, Peter Cramton, Thomas R. Palfrey Jan 1990

Cartel Enforcement With Uncertainty About Costs, Peter Cramton, Thomas R. Palfrey

Peter Cramton

What cartel agreements are possible when firms have private information about production costs? For private cost uncertainty we characterize the set of cartel agreements that can be supported, recognizing incentive and participation constraints. If defection results in either Cournot or Bertrand competition, the incentive problem in large cartels is severe enough to prevent the cartel from achieving the monopoly outcome. However, if the cartel agreement requires less than unanimous ratification by the member firms, then the incentive problem can be overcome in large cartels. With common cost uncertainty, perfect collusion is possible in large cartels, regardless of the ratification rule.


Traditional And Nontraditional Data As Indicators Of Economic Activity In Rural Communities, Richard Mchugh, Ronald Cooper, Sheila Martin, Daniel Otto, Stanley R. Johnson Jan 1990

Traditional And Nontraditional Data As Indicators Of Economic Activity In Rural Communities, Richard Mchugh, Ronald Cooper, Sheila Martin, Daniel Otto, Stanley R. Johnson

CARD Staff Reports

The objective of this study was twofold: (1) to identify nontraditional sources of data that can be used to monitor economic activity in rural areas, and (2) to test the relationship between such data and trends in traditional measures, such as income and employment.


A Cluster Analysis On Roger Barker's Behavior Mechanisms And Action Patterns, Qiming Zhu Jan 1990

A Cluster Analysis On Roger Barker's Behavior Mechanisms And Action Patterns, Qiming Zhu

Retrospective Theses and Dissertations

No abstract provided.