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Full-Text Articles in Other Economics

Spillover Effects Of The Uninsured, Stacey Mcmorrow Dec 2009

Spillover Effects Of The Uninsured, Stacey Mcmorrow

Publicly Accessible Penn Dissertations

This study seeks to determine the effects of the local uninsurance rate on the quality of care delivered to Medicare beneficiaries. While a great deal of research exists on the negative consequences of uninsurance for the uninsured, few studies have attempted to address the spillover effects of this population to the health care system in a local market. Theory suggests that a high local uninsurance rate in a market has the potential to cause a decrease in the shared quality of care provided to Medicare beneficiaries. It also suggests however that a higher uninsurance rate may result in increases in ...


Peer-Induced Fairness In Games, Teck-Hua Ho, Xuanming Su Dec 2009

Peer-Induced Fairness In Games, Teck-Hua Ho, Xuanming Su

Operations, Information and Decisions Papers

People exhibit peer-induced fairness concerns when they look to their peers as a reference to evaluate their endowments. We analyze two independent ultimatum games played sequentially by a leader and two followers. With peer-induced fairness, the second follower is averse to receiving less than the first follower. Using laboratory experimental data, we estimate that peer-induced fairness between followers is two times stronger than distributional fairness between leader and follower. Allowing for heterogeneity, we find that 50 percent of subjects are fairness-minded. We discuss how peer-induced fairness might limit price discrimination, account for low variability in CEO compensation, and explain pattern ...


Group Cooperation Under Uncertainty, Min Gong, Joanne Baron, Howard Kunreuther Dec 2009

Group Cooperation Under Uncertainty, Min Gong, Joanne Baron, Howard Kunreuther

Operations, Information and Decisions Papers

Previous research has shown an ‘interindividual-intergroup discontinuity effect’: intergroup interactions generally lead to less cooperative outcomes than interindividual interactions. We replicate the discontinuity effect in the deterministic prisoner’s dilemma, but find that groups are more cooperative than individuals in a stochastic version of the game. Three major factors that underlie the usual discontinuity effect are reduced in the stochastic environment: greed, fear, and persuasion power. Two group mechanisms are proposed to explain the reversed discontinuity effect: the motivation to avoid guilt and blame when making decisions that affect others’ welfare, and the social pressure to conform to certain norms ...


Dynamic Pricing Without Knowing The Demand Function: Risk Bounds And Near-Optimal Algorithms, Omar Besbes, Assaf Zeevi Nov 2009

Dynamic Pricing Without Knowing The Demand Function: Risk Bounds And Near-Optimal Algorithms, Omar Besbes, Assaf Zeevi

Operations, Information and Decisions Papers

We consider a single-product revenue management problem where, given an initial inventory, the objective is to dynamically adjust prices over a finite sales horizon to maximize expected revenues. Realized demand is observed over time, but the underlying functional relationship between price and mean demand rate that governs these observations (otherwise known as the demand function or demand curve) is not known. We consider two instances of this problem: (i) a setting where the demand function is assumed to belong to a known parametric family with unknown parameter values; and (ii) a setting where the demand function is assumed to belong ...


Economic Analysis Of Simulation Selection Problems, Stephen. E. Chick, Noah Gans Mar 2009

Economic Analysis Of Simulation Selection Problems, Stephen. E. Chick, Noah Gans

Operations, Information and Decisions Papers

Ranking and selection procedures are standard methods for selecting the best of a finite number of simulated design alternatives based on a desired level of statistical evidence for correct selection. But the link between statistical significance and financial significance is indirect, and there has been little or no research into it. This paper presents a new approach to the simulation selection problem, one that maximizes the expected net present value of decisions made when using stochastic simulation. We provide a framework for answering these managerial questions: When does a proposed system design, whose performance is unknown, merit the time and ...


Joining Longer Queues: Information Externalities In Queue Choice, Senthil K. Veeraraghavan, Laurens Debo Jan 2009

Joining Longer Queues: Information Externalities In Queue Choice, Senthil K. Veeraraghavan, Laurens Debo

Operations, Information and Decisions Papers

A classic example that illustrates how observed customer behavior impacts other customers' decisions is the selection of a restaurant whose quality is uncertain. Customers often choose the busier restaurant, inferring that other customers in that restaurant know something that they do not. In an environment with random arrival and service times, customer behavior is reflected in the lengths of the queues that form at the individual servers. Therefore, queue lengths could signal two factors—potentially higher arrivals to the server or potentially slower service at the server. In this paper, we focus on both factors when customers' waiting costs are ...