On the Distribution of the Welfare Losses of Large Recessions

This paper explores the role of the essential facilities doctrine in circumscribing the scope of network sharing obligations in telecommunications. Among other things it argues that a proper application of the doctrine of essential facilities should recognize the prominence of dynamic over static efficiency in promoting consumer welfare. Regulators may be averse to recognizing these tradeoffs because unlike the behavior of prices the welfare losses from foregone innovation may be unobservable to the regulators' constituency. Moreover, an emphasis on dynamic efficiency requires the short-term regulator to take the "long view" fostering the competitive process rather than emulating the competitive outcome.

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Welfare losses under Cournot competition

International Journal of Industrial Organization ◽

10.1016/j.ijindorg.2007.10.003 ◽

2008 ◽

Vol 26 (5) ◽

pp. 1120-1131 ◽

Cited By ~ 22

Author(s):

Luis C. Corchón

Keyword(s):

Cournot Competition ◽

Welfare Losses

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Infodemics: Do healthcare professionals detect corona-related false news stories better than students?

10.31235/osf.io/86j5v ◽

2020 ◽

Author(s):

Sven Gruener ◽

Felix Krüger

Keyword(s):

Healthcare Professionals ◽

Economic Consequences ◽

West Germany ◽

Minor Role ◽

Health Consequences ◽

News Stories ◽

Analytical Thinking ◽

Welfare Losses ◽

False News ◽

A Minor

False news stories cause welfare losses and fatal health consequences. To limit its dissemination, it is essential to know what determines the ability to distinguish between true and false news stories. In our experimental study, we present the subjects corona-related stories taken from the media from various categories (e.g. social isolation, economic consequences, direct health consequences, and “bullshit”). The task is to evaluate the stories as true or false. Besides students with and without healthcare background, we recruit healthcare professionals to increase the external validity of our study. Our main findings are: (i) Healthcare professionals perform similar to students in correctly distinguishing between true and false news stories. (ii) The propensity to engage in analytical thinking and actively open-minded thinking is positively associated with the ability to distinguish between true and false. (iii) We find that the residence of the subjects (East- or West-Germany) plays only a minor role. (iv) If narratives contradict the content of a story, subjects tend to think that the stories are wrong.

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Household Customers’ Cost of Interruption: Survey Study on Summer Electricity Peak of Xi’an City

Frontiers in Energy Research ◽

10.3389/fenrg.2021.802018 ◽

2022 ◽

Vol 9 ◽

Author(s):

Yuan Zhao ◽

Weihua Yu ◽

Dingwei Guo ◽

Xiaoping He

Keyword(s):

Electricity Market ◽

Contingent Valuation Method ◽

Participation Rate ◽

Survey Study ◽

Household Level ◽

Carbon Neutrality ◽

Valuation Method ◽

Welfare Losses ◽

New Energy ◽

Interruption Management

In light of China’s Carbon Neutrality Target and facing the fluctuating pressure of power supply brought on by new energy intermittent power generation, it is urgent to mobilize a large number of residential flexible loads that can respond instantaneously to mitigate peak–valley difference. Under a framework of demand-side management (DSM) and utility analysis, we empirically investigate customers’ costs from interrupting typical electrical terminals at the household level. Specifically, by using the contingent valuation method (CVM), we explore the factors that affect households’ Willingness to Accept (WTA) of voluntarily participating in the interruption management during the summer electricity peak and estimate the distribution of households’ WTA values. We find that given the value of WTA, households’ participation rate in the interruption management significantly decreases with the increase in interruption duration and varies with the type of terminal appliance that is on direct interruption management. Moreover, the majority of households are willing to participate in the interruption management even if the compensation amount is low. The factors that determine households’ WTA and the size of their influences vary with the type of electrical terminal. The results imply that differentiating the terminal electricity market and accurately locking on the target terminals by considering the household heterogeneity can reduce the household welfare losses arising from DSM.

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Present-biased Government, Creative Accounting and a Pitfall in Balanced Budget Rules

10.32468/be.1183 ◽

2021 ◽

Author(s):

Marcela De Castro-Valderrama

Keyword(s):

General Equilibrium ◽

Interest Rates ◽

Equilibrium Model ◽

Hyperbolic Discounting ◽

Goods And Services ◽

Creative Accounting ◽

Welfare Losses ◽

Fiscal Rule ◽

Balanced Budget Rule ◽

Balanced Budget

I propose a general equilibrium model with a quasi-hyperbolic discounting government that optimally decides upon using creative accounting in order to evaluate a balanced budget rule and a debt rule. In that context, I find that a binding balanced budget rule could fail to properly constrain public overindebtedness when government uses creative accounting while a debt rule is effective, since targets are set on total public liabilities. Results suggest that a balanced budget fiscal rule can also deteriorate welfare due to the higher interest rates derived from doing operations under the line, implying future expenditure cuts that are harmful for households, who value public goods and services. A debt rule is also preferred for its capacity to reverse some welfare losses generated by the present-biased government.

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