Auctions with Resale Markets: An Application to U.S. Forest Service Timber Sales

2001 ◽  
Vol 91 (3) ◽  
pp. 399-427 ◽  
Author(s):  
Philip A Haile

When bidders anticipate an opportunity for resale trade, the value of winning an auction is determined in part by the option values of buying and selling in the secondary market. One implication is that a bidder's willingness to pay at an auction increases with the expected level of competition between resale buyers. Empirical evidence from auctions of timber contracts supports this prediction and rejects standard models that ignore resale. The estimated effect is smaller after policy changes expected to diminish the prevalence of resale. Additional evidence supports the predicted presence of a common value element introduced by the resale opportunity. (JEL D44, D82, C52, L73)

Asian Survey ◽  
2021 ◽  
Vol 61 (2) ◽  
pp. 217-240
Author(s):  
Sung Deuk Hahm ◽  
Sooho Song

Ever since the concept of soft power was introduced, there has been debate about what it is and how it works. We join the debate by studying how the success of Korean cultural products in Taiwan has improved the relationship between South Korea and Taiwan. The two countries normalized their relationship in 1948 and maintained cooperation until the severance of formal ties in 1992 because of South Korea’s rapprochement with China. Beginning in early 2000, however, South Korea’s cultural products have enjoyed great success in Taiwan. Since that time, the relationship between the two countries has significantly improved, including trade and tourism expansion, increased Taiwanese direct investment in South Korea, and policy changes by Taiwan’s government. These changes provide empirical evidence of soft power.


2021 ◽  
Author(s):  
Douglas G. Lee ◽  
Giovanni Pezzulo

Assessing one's confidence in one's choices is of paramount importance to making adaptive decisions, and it is thus no surprise that humans excel in this ability. However, standard models of decision-making, such as the drift-diffusion model (DDM), treat confidence assessment as a post-hoc or parallel process that does not directly influence the choice -- the latter depends only on accumulated evidence. Here, we pursue the alternative hypothesis that what is accumulated during a decision is confidence (that the to-be selected option is the best) rather than raw evidence. Accumulating confidence has the appealing consequence that the decision threshold corresponds to a desired level of confidence for the choice, and that confidence improvements can be traded off against the resources required to secure them. We show that most previous findings on perceptual and value-based decisions traditionally interpreted from an evidence-accumulation perspective can be explained more parsimoniously from our novel confidence-driven perspective. Furthermore, we show that our novel confidence-driven DDM (cDDM) naturally generalizes to any number of decisions -- which is notoriously extemporaneous using traditional DDM or related models. Finally, we discuss future empirical evidence that could be useful in adjudicating between these alternatives.


2002 ◽  
Vol 4 (2) ◽  
pp. 89-115 ◽  
Author(s):  
Jochen Clasen ◽  
Wim Van Oorschot

The provision of social security benefits rests on normative principles of social justice. Most strongly manifest in earnings-related social insurance, the principle of reciprocity has been increasingly questioned on grounds of equity, adequacy and fiscal viability, in the wake of socio-economic changes (e.g. post-industralisation, globalisation) and political developments (e.g. Europeanisation). Universalist programmes seem extraordinarily expensive under tight public budgets, and could be criticised as inequitable at a time when middle classes increasingly rely on individual and occupational forms of income security. The principle of need appears to have become more prominent within modern European social security systems keen on targeting resources. Is there empirical evidence which would reflect these alleged trends? Concentrating on three principles inherent in social security transfers (need, universalism and reciprocity) the major concerns of this article are conceptual and empirical. First, it addresses the problem of operationalising social security principles and delineating indicators of change over time. Second, it applies two of these indicators in order to identify and compare the extent to which the three principles have gained or lost prominence since the early 1980s, with empirical evidence taken from the Netherlands, United Kingdom, Germany and Scandinavia. The article argues first that, applying either indicator, there is no cross-national trend towards squeezing reciprocity-based social insurance, but that a convergence between erstwhile strong (Bismarckian) and weak (Beveridgean) principled programmes can be identified. Second, a clear trend towards needs-based social security can be identified within the ‘legal’ but not within the ‘volume’ perspective, at least in some programmes and some claimant groups. This is due to both policy changes and favourable labour market conditions. Third, two countries indicate very diverse trends. British social security is distinctive in terms of the erosion of Beveridgean reciprocity, as well as the growing strength of the needs principle. In the Netherlands, there have been considerable shifts in principles underlying certain programmes, but no general trend in either direction can be observed. On the whole, Dutch social security continues to exhibit a strong mix of principles.


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