Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106873
Botir B. Okhunjanov , Jill J. McCluskey , Ron C. Mittelhammer
We analyze why firms might set their prices below the market equilibrium levels and thereby create persistent excess demand. In a dynamic setting, if the excess demand results in a perception of scarcity, which is a demand shifter, cumulative discounted profits can be higher over time. Our empirical application is based on data from the market for “cult wines.” We find that the larger the difference between the secondary market price and the winemaker's release price, the higher the secondary market price will be for the same wine in the following year, which consistent with a scarcity-pricing strategy.
{"title":"Underpricing and perceived scarcity","authors":"Botir B. Okhunjanov , Jill J. McCluskey , Ron C. Mittelhammer","doi":"10.1016/j.jebo.2024.106873","DOIUrl":"10.1016/j.jebo.2024.106873","url":null,"abstract":"<div><div>We analyze why firms might set their prices below the market equilibrium levels and thereby create persistent excess demand. In a dynamic setting, if the excess demand results in a perception of scarcity, which is a demand shifter, cumulative discounted profits can be higher over time. Our empirical application is based on data from the market for “cult wines.” We find that the larger the difference between the secondary market price and the winemaker's release price, the higher the secondary market price will be for the same wine in the following year, which consistent with a scarcity-pricing strategy.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106873"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142703","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106844
Joseph Y. Halpern , Yuval Heller , Eyal Winter
We study the strategic benefits of coarsening one’s utility by clustering payoffs together. Our solution concept, coarse-utility equilibrium (CUE) requires that (1) each player maximizes her coarse utility, given the opponent’s strategy, and (2) the classifications form best replies to one another. We characterize CUEs in various games. In particular, we show that there is a qualitative difference between CUEs in which only one of the players clusters payoffs and those in which all players cluster their payoffs, and that, in the latter type of CUE, players treat other players better than they do in Nash equilibria in games with monotone externalities.
{"title":"The benefits of coarse preferences","authors":"Joseph Y. Halpern , Yuval Heller , Eyal Winter","doi":"10.1016/j.jebo.2024.106844","DOIUrl":"10.1016/j.jebo.2024.106844","url":null,"abstract":"<div><div>We study the strategic benefits of coarsening one’s utility by clustering payoffs together. Our solution concept, <em>coarse-utility equilibrium (CUE)</em> requires that (1) each player maximizes her coarse utility, given the opponent’s strategy, and (2) the classifications form best replies to one another. We characterize CUEs in various games. In particular, we show that there is a qualitative difference between CUEs in which only one of the players clusters payoffs and those in which all players cluster their payoffs, and that, in the latter type of CUE, players treat other players better than they do in Nash equilibria in games with monotone externalities.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106844"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143222","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106866
Yajie Sun , Xiao Liu , Jinjing Liu , Yi Duan
This study examines the impact of preschool TV exposure on adolescents’ mental health in China. Using data from the 2010 China Family Panel Studies, we exploit geographical variation in the timing of TV introduction across communities to identify the causal effect of preschool TV exposure on mental health and depression of children aged 10 to 15. Our results show that an additional year of preschool TV exposure leads to a 5.94% standard deviation exacerbation in mental illness and a 5.76% standard deviation increase in depression symptoms. The impacts are more pronounced on children with less educated mothers, and with those residing in less developed areas. Further analysis suggests that preschool TV exposure may negatively affect mental health through deteriorating physical health and diminishing cognitive and non-cognitive abilities. This research provides evidence that early childhood experiences, such as exposure to TV at a young age, can have persistent impacts on mental health. Findings also shed light on the origins of mental health inequalities and highlight the importance of early interventions.
{"title":"Does preschool TV exposure affect mental health? Evidence from China","authors":"Yajie Sun , Xiao Liu , Jinjing Liu , Yi Duan","doi":"10.1016/j.jebo.2024.106866","DOIUrl":"10.1016/j.jebo.2024.106866","url":null,"abstract":"<div><div>This study examines the impact of preschool TV exposure on adolescents’ mental health in China. Using data from the 2010 China Family Panel Studies, we exploit geographical variation in the timing of TV introduction across communities to identify the causal effect of preschool TV exposure on mental health and depression of children aged 10 to 15. Our results show that an additional year of preschool TV exposure leads to a 5.94% standard deviation exacerbation in mental illness and a 5.76% standard deviation increase in depression symptoms. The impacts are more pronounced on children with less educated mothers, and with those residing in less developed areas. Further analysis suggests that preschool TV exposure may negatively affect mental health through deteriorating physical health and diminishing cognitive and non-cognitive abilities. This research provides evidence that early childhood experiences, such as exposure to TV at a young age, can have persistent impacts on mental health. Findings also shed light on the origins of mental health inequalities and highlight the importance of early interventions.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106866"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106849
Jakob B. Madsen
The aging population is expected by many to put an end to the high growth rates experienced in the past century. This paper shows that the aging population and the associated educational and innovative expansion induced by the demographic transition will expand the technology frontier in the 21st century and significantly override the adverse income effects of the aging population. To achieve this, the total income-effects through the channels of innovations, investment, education, and labor force participation are estimated using data over two centuries for 21 OECD countries.
{"title":"The aging society: Is growth reverting to pre-industrial levels in the 21st century?","authors":"Jakob B. Madsen","doi":"10.1016/j.jebo.2024.106849","DOIUrl":"10.1016/j.jebo.2024.106849","url":null,"abstract":"<div><div>The aging population is expected by many to put an end to the high growth rates experienced in the past century. This paper shows that the aging population and the associated educational and innovative expansion induced by the demographic transition will expand the technology frontier in the 21<sup>st</sup> century and significantly override the adverse income effects of the aging population. To achieve this, the total income-effects through the channels of innovations, investment, education, and labor force participation are estimated using data over two centuries for 21 OECD countries.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106849"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143056","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106838
Zhen Sun , Lei Cheng
The second-tier patent system, characterized by relatively low protectability standards, has been adopted by many countries, yet empirical analyses of its utilization are scarce. Utilizing Chinese patent data, this study explores “parallel filings” where a second-tier patent is filed simultaneously with an invention patent, to shed light on its practical use. The findings suggest that while parallel filings generally cover inventions with a narrower scope, they receive more citations and are more frequently licensed or transferred in their early years compared to standard patents. This study posits that parallel filing is a strategic choice for technologies with short life cycles that rapidly gain but quickly lose value. The swift issuance of second-tier patents aids in the diffusion of knowledge and technology transfer, enabling patentees to capitalize on fast-evolving technologies. This study contributes valuable empirical insights into how the second-tier patent system supports short life-cycle technologies.
{"title":"Strategic use of the second-tier patent system for short life-cycle technologies — Evidence from parallel filings in China","authors":"Zhen Sun , Lei Cheng","doi":"10.1016/j.jebo.2024.106838","DOIUrl":"10.1016/j.jebo.2024.106838","url":null,"abstract":"<div><div>The second-tier patent system, characterized by relatively low protectability standards, has been adopted by many countries, yet empirical analyses of its utilization are scarce. Utilizing Chinese patent data, this study explores “parallel filings” where a second-tier patent is filed simultaneously with an invention patent, to shed light on its practical use. The findings suggest that while parallel filings generally cover inventions with a narrower scope, they receive more citations and are more frequently licensed or transferred in their early years compared to standard patents. This study posits that parallel filing is a strategic choice for technologies with short life cycles that rapidly gain but quickly lose value. The swift issuance of second-tier patents aids in the diffusion of knowledge and technology transfer, enabling patentees to capitalize on fast-evolving technologies. This study contributes valuable empirical insights into how the second-tier patent system supports short life-cycle technologies.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106838"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106871
Haichao Fan , Xingcun Hu , Faqin Lin , Mengxun Liu
Employing merged Chinese listed firm data, Chinese custom data, and the prefecture-level clan culture data, we find a clear pattern that chairpersons who originate from a prefecture-level city with a stronger clan culture lead firms to engage in less international trade. This finding is robust to a variety of checks including using the shortest distance from the chairperson's prefecture of origin to the nearest historical Neo-Confucian Academy and the number of southward-migrating clans during the Jianyan Reign (1127–1130) in the origin prefecture as instruments. The patterns in the data highlight the importance of cultural origin in shaping individuals’ attitudes towards international trade.
{"title":"Cultural origin and international trade","authors":"Haichao Fan , Xingcun Hu , Faqin Lin , Mengxun Liu","doi":"10.1016/j.jebo.2024.106871","DOIUrl":"10.1016/j.jebo.2024.106871","url":null,"abstract":"<div><div>Employing merged Chinese listed firm data, Chinese custom data, and the prefecture-level clan culture data, we find a clear pattern that chairpersons who originate from a prefecture-level city with a stronger clan culture lead firms to engage in less international trade. This finding is robust to a variety of checks including using the shortest distance from the chairperson's prefecture of origin to the nearest historical Neo-Confucian Academy and the number of southward-migrating clans during the Jianyan Reign (1127–1130) in the origin prefecture as instruments. The patterns in the data highlight the importance of cultural origin in shaping individuals’ attitudes towards international trade.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106871"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106865
Haoyuan Ding , Wenjuan Dong , Cong Qin
With an informative dataset describing Chinese rural households from 2003 to 2015, this paper examines the impact of internal rural-to-urban migration for work on the entrepreneurial decisions of returnees. Return migrants are found to be more likely to become transformational rather than subsistence entrepreneurs. To finance their entrepreneurial activities, returnees are more inclined to borrow money in formal credit markets and use their own saving deposits than are those without migrant working experience. Evidence is also presented showing that family connections with a formal civil servant reduce the probability of a returnee's undertaking transformational entrepreneurship, though the connections with a grassroots cadre in the village committee play a positive role. Moreover, the exposure to the New Cooperative Medical Scheme has few effects on households’ entrepreneurship, while the involvement in the New Rural Pension Scheme encourages transformational entrepreneurship.
{"title":"Does migrant working experience stimulate returnees’ entrepreneurship: Evidence from rural China","authors":"Haoyuan Ding , Wenjuan Dong , Cong Qin","doi":"10.1016/j.jebo.2024.106865","DOIUrl":"10.1016/j.jebo.2024.106865","url":null,"abstract":"<div><div>With an informative dataset describing Chinese rural households from 2003 to 2015, this paper examines the impact of internal rural-to-urban migration for work on the entrepreneurial decisions of returnees. Return migrants are found to be more likely to become transformational rather than subsistence entrepreneurs. To finance their entrepreneurial activities, returnees are more inclined to borrow money in formal credit markets and use their own saving deposits than are those without migrant working experience. Evidence is also presented showing that family connections with a formal civil servant reduce the probability of a returnee's undertaking transformational entrepreneurship, though the connections with a grassroots cadre in the village committee play a positive role. Moreover, the exposure to the New Cooperative Medical Scheme has few effects on households’ entrepreneurship, while the involvement in the New Rural Pension Scheme encourages transformational entrepreneurship.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106865"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106808
Philip Brookins , Alexander Matros , Foteini Tzachrista
We investigate behavior in two-player sequential-move contests with complete and incomplete information about the value of the prize. First, we describe a Bayesian equilibrium in which both players have private prize values. Then, we test our predictions in the experimental laboratory. We analyze three settings: symmetric prize valuations with complete information, asymmetric prize valuations with complete information, and asymmetric prize valuations with incomplete information. We find that subjects’ behavior is less consistent with theory and more in line with simple mental shortcuts. Our data supports a simple investment heuristic for each player type. On average, first-movers invest half of their own valuation and second-movers, regardless of their prize valuation, invest frequently in one of the following ways: drop out of the contest or invest at or just above the first-movers’ investment. We add to the growing literature by showing that experimental contest data can be better explained by simple heuristics.
{"title":"Sequential contests with incomplete information: Theory and experimental evidence","authors":"Philip Brookins , Alexander Matros , Foteini Tzachrista","doi":"10.1016/j.jebo.2024.106808","DOIUrl":"10.1016/j.jebo.2024.106808","url":null,"abstract":"<div><div>We investigate behavior in two-player sequential-move contests with complete and incomplete information about the value of the prize. First, we describe a Bayesian equilibrium in which both players have private prize values. Then, we test our predictions in the experimental laboratory. We analyze three settings: symmetric prize valuations with complete information, asymmetric prize valuations with complete information, and asymmetric prize valuations with incomplete information. We find that subjects’ behavior is less consistent with theory and more in line with simple mental shortcuts. Our data supports a simple investment heuristic for each player type. On average, first-movers invest half of their own valuation and second-movers, regardless of their prize valuation, invest frequently in one of the following ways: drop out of the contest or invest at or just above the first-movers’ investment. We add to the growing literature by showing that experimental contest data can be better explained by simple heuristics.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106808"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143051","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106853
Per Hjertstrand
It is important for policymakers and researchers to know how the marginal utility of a population changes with income. This effect is measured by the elasticity of marginal utility of income and is a key parameter in, for examples, cost–benefit analysis, optimal taxation, and measurement of inequality. This paper proposes and applies a demand systems approach to estimate the elasticity of marginal utility of income. Using the PSID survey data for representative samples of households in the United States, I estimate the elasticity of marginal utility of income over households to approximately 0.58.
{"title":"The marginal utility of income and homogeneous demand systems","authors":"Per Hjertstrand","doi":"10.1016/j.jebo.2024.106853","DOIUrl":"10.1016/j.jebo.2024.106853","url":null,"abstract":"<div><div>It is important for policymakers and researchers to know how the marginal utility of a population changes with income. This effect is measured by the elasticity of marginal utility of income and is a key parameter in, for examples, cost–benefit analysis, optimal taxation, and measurement of inequality. This paper proposes and applies a demand systems approach to estimate the elasticity of marginal utility of income. Using the PSID survey data for representative samples of households in the United States, I estimate the elasticity of marginal utility of income over households to approximately 0.58.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106853"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-01DOI: 10.1016/j.jebo.2024.106867
Giacomo De Giorgi , Maurício Prado , Battista Severgnini
This paper examines income trajectories among migrants from various countries across three generations in Denmark, comparing them to native Danes. Exploiting comprehensive administrative datasets, we investigate economic mobility and evaluate whether Denmark provides economic opportunities for non-natives and their descendants. Our findings indicate that second and third generation immigrants gradually assimilate with Danes but maintain a significant and persistent income gap, contrasting with findings in the United States. We find suggestive evidence that ethnic capital plays a persistent and significant role in explaining these disparities.
{"title":"The life-cycle and opportunities of migrants and natives in the Danish experience","authors":"Giacomo De Giorgi , Maurício Prado , Battista Severgnini","doi":"10.1016/j.jebo.2024.106867","DOIUrl":"10.1016/j.jebo.2024.106867","url":null,"abstract":"<div><div>This paper examines income trajectories among migrants from various countries across three generations in Denmark, comparing them to native Danes. Exploiting comprehensive administrative datasets, we investigate economic mobility and evaluate whether Denmark provides economic opportunities for non-natives and their descendants. Our findings indicate that second and third generation immigrants gradually assimilate with Danes but maintain a significant and persistent income gap, contrasting with findings in the United States. We find suggestive evidence that ethnic capital plays a persistent and significant role in explaining these disparities.</div></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"229 ","pages":"Article 106867"},"PeriodicalIF":2.3,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号