scholarly journals Bargaining, Search, and Price Dispersion: Evidence from the Live Hogs Market

2010 ◽  
Vol 39 (3) ◽  
pp. 534-546 ◽  
Author(s):  
Tomislav Vukina ◽  
Xiaoyong Zheng
Keyword(s):  
Panel Data ◽  
Price Dispersion ◽  
Strong Support ◽  
Large Degree ◽  
Spot Market ◽  
Search Theory ◽  
Search Cost ◽  
Price Variation ◽  
Theoretical Predictions

Using unique panel data on individual transactions between buyers and sellers in the spot market for live hogs, we found a large degree of intra-day price dispersion. Motivated by this empirical puzzle, we offer an explanation which is rooted in the bargaining with search theory. We formulate three hypotheses involving the role of farmers’ search cost, bargaining parties’ patience, and asymmetric information that we believe can explain the observed phenomenon. Empirical analysis shows strong support for all three of the stated theoretical predictions, indicating that the bargaining with search theory explains at least 31 percent of the observed intra-day price variation in this market.

scholarly journals Why do consumers not switch? An experimental investigation of a search and switch model

2021 ◽  
Author(s):  
Irene Maria Buso ◽  
John Hey
Keyword(s):  
Experimental Investigation ◽  
Search Strategy ◽  
Switching Costs ◽  
Optimal Choice ◽  
Search Cost ◽  
Individual Behaviour ◽  
Wilson Model ◽  
Field Evidence ◽  
Theoretical Predictions

AbstractSearch and switching costs are two market frictions that are well known in the literature for preventing people from switching to a new and cheaper provider. Previous experimental literature has studied these two frictions in isolation. However, field evidence shows that these two frictions frequently occur together. Recently, a theoretical framework has been developed (Wilson in Eur Econ Rev 56(6):1070–1086) which studies the interplay between these two costs. We report on an experiment testing this theory to see if individual behaviour with search and switching costs is in line with the theoretical predictions derived from the optimal choice rule of Wilson. The results show the crucial role of the search strategy: not only, according to Wilson model, the search cost has a greater deterrent impact on search than the switching costs, but also the sub-optimality of the search strategy is the major source of sub-optimality in the switching behaviour.

An Experimental Investigation of Auditors' Liability: Implications for Social Welfare and Exploration of Deviations from Theoretical Predictions

2000 ◽  
Vol 75 (4) ◽  
pp. 429-451 ◽  
Author(s):  
Ronald R. King ◽  
Rachel Schwartz
Keyword(s):  
Experimental Investigation ◽  
Social Welfare ◽  
Strict Liability ◽  
Liability Rule ◽  
Optimal Response ◽  
Legal Regimes ◽  
Theoretical Predictions ◽  
Best Responses

This paper reports the results of an experiment designed to investigate how legal regimes affect social welfare. We investigate four legal regimes, each consisting of a liability rule (strict or negligence) and a damage measure (out-of-pocket or independent-of-investment). The results of the experiment are for the most part consistent with the qualitative predictions of Schwartz's (1997) model; however, subjects' actual choices deviate from the point predictions of the model. We explore whether these deviations arise because: (1) subjects form faulty anticipations of their counterparts' actions and/or (2) subjects do not choose the optimal responses given their anticipations. We find that subjects behave differently under the four regimes in terms of anticipation errors and departures from best responses. For example, subjects playing the role of auditors anticipate investments most accurately under the regime with strict liability combined with out-of-pocket damages, but are least likely to choose the optimal response given their anticipations. This finding implies that noneconomic factors likely play a role in determining subjects' choices.

scholarly journals Up to No Good? Gender, Social Impact Work, and Employee Promotions

2021 ◽  
pp. 000183922110206
Author(s):  
Christiane Bode ◽  
Michelle Rogan ◽  
Jasjit Singh
Keyword(s):  
Panel Data ◽  
Social Impact ◽  
Male Gender ◽  
Decision Makers ◽  
Gender Beliefs ◽  
Negative Effect ◽  
Male Gender Role ◽  
Promotion Rates ◽  
Vignette Experiment

Firms increasingly offer employees the opportunity to participate in firm-sponsored social impact initiatives expected to benefit the firm and employees. We argue that participation in such initiatives hinders employees’ advancement in their firms by reducing others’ perceptions of their fit and commitment. Because social impact work is more congruent with female than male gender role stereotypes, promotion rates will be lower for participating men, and male evaluators will be less likely than female evaluators to recommend promotion for male participants. Using panel data on 1,379 employees of a consulting firm, we find significantly lower promotion rates for male participants relative to female participants, female non-participants, and male non-participants. A vignette experiment involving 893 managers shows that lower promotion rates are due to lower perceptions of fit, but not commitment, and greater bias against male participants by male evaluators. Taken together, the results of the two studies suggest that the negative effect of participation on promotion is conditional upon participant and evaluator gender, underscoring the role of gender in evaluation of social impact work. In settings in which decision makers are predominately male, gender beliefs may limit male employees’ latitude to contribute to the firm’s social impact agenda.

scholarly journals A Stochastic Kinetic Type Reactions Model for COVID-19

Mathematics ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 1221
Author(s):  
Giorgio Sonnino ◽  
Fernando Mora ◽  
Pasquale Nardone
Keyword(s):  
Real Data ◽  
Stochastic Noise ◽  
Mathematical Basis ◽  
Sis Model ◽  
Theoretical Predictions ◽  
Coronavirus Infection ◽  
Massive Distribution ◽  
Second Wave ◽  
Stochastic Sis Model

We propose two stochastic models for the Coronavirus pandemic. The statistical properties of the models, in particular the correlation functions and the probability density functions, were duly computed. Our models take into account the adoption of lockdown measures as well as the crucial role of hospitals and health care institutes. To accomplish this work we adopt a kinetic-type reaction approach where the modelling of the lockdown measures is obtained by introducing a new mathematical basis and the intensity of the stochastic noise is derived by statistical mechanics. We analysed two scenarios: the stochastic SIS-model (Susceptible ⇒ Infectious ⇒ Susceptible) and the stochastic SIS-model integrated with the action of the hospitals; both models take into account the lockdown measures. We show that, for the case of the stochastic SIS-model, once the lockdown measures are removed, the Coronavirus infection will start growing again. However, the combined contributions of lockdown measures with the action of hospitals and health institutes is able to contain and even to dampen the spread of the SARS-CoV-2 epidemic. This result may be used during a period of time when the massive distribution of vaccines in a given population is not yet feasible. We analysed data for USA and France. In the case of USA, we analysed the following situations: USA is subjected to the first wave of infection by Coronavirus and USA is in the second wave of SARS-CoV-2 infection. The agreement between theoretical predictions and real data confirms the validity of our approach.

The Effect of Rural Poverty on Access to Land in Ethiopia

2021 ◽  
pp. 097300522097106
Author(s):  
Kassie Dessie Nigussie ◽  
Assefa Admassie ◽  
M. K. Jayamohan
Keyword(s):  
Panel Data ◽  
Rural Poverty ◽  
Land Ownership ◽  
Ordered Probit ◽  
Rural Poor ◽  
Rental Market ◽  
Tobit Models ◽  
Significance Levels ◽  
Poverty Status

Land ownership and its persistent gap between rich and poor is one of the pressing development challenges in Africa. Access to land has fundamental implications for a poor and agrarian African economy like Ethiopia, where most people depend on agriculture for their livelihood. Empirical literatures suggest that access to land is a cause and effect of poverty—at the same time, the role of poverty status of the household in gaining or limiting access to land has received only a passing attention from researchers. This study investigates the effect of ‘being poor’ on access to land using ordered probit and censored tobit models. Three wave panel data of Ethiopian Rural Socioeconomic Survey (ERSS) collected between 2011–12 and 2015–16 are used for the analysis. The study result confirms that poverty does have significant effect on household’s participation and intensity of participation on both sides of the rental market. It is found that being poor, as compared to non-poor counterpart, leads to an increase in the likelihood of rent-in land by 0.068 hectare and reduce the likelihood of rent-out land by 0.046 hectare at 1% and 5% significance levels, respectively. The tenants are not characterised as economically disadvantaged reflecting the existence of reverse tenancy among rural poor in Ethiopia.

scholarly journals Panel data unit roots tests: The role of serial correlation and the time dimension

2007 ◽  
Vol 137 (1) ◽  
pp. 230-244 ◽  
Author(s):  
Stefan De Wachter ◽  
Richard D.F. Harris ◽  
Elias Tzavalis
Keyword(s):  
Panel Data ◽  
Serial Correlation ◽  
Unit Roots ◽  
Time Dimension

Investment decisions and the role of debt, liquid assets and cash flow: evidence from Italian panel data

1994 ◽  
Vol 4 (2) ◽  
pp. 121-132 ◽  
Author(s):  
Marzio Galeotti ◽  
Fabio Schiantarelli ◽  
Fidel Jaramillo
Keyword(s):  
Panel Data ◽  
Cash Flow ◽  
Investment Decisions

scholarly journals Role of Methylation in the Induced and Spontaneous Expression of the Avian Endogenous Virusev-1: DNA Structure and Gene Products

1982 ◽  
Vol 2 (6) ◽  
pp. 638-652 ◽  
Author(s):  
Kathleen F. Conklin ◽  
John M. Coffin ◽  
Harriet L. Robinson ◽  
Mark Groudine ◽  
Robert Eisenman
Keyword(s):  
Dna Methylation ◽  
Strong Support ◽  
Reverse Transcriptase Activity ◽  
Structural Defects ◽  
Long Terminal Repeats ◽  
Control Of Gene Expression ◽  
Rna Molecules ◽  
Hypersensitive Sites ◽  
High Level

The endogenous avian provirusev-1 is widespread in white leghorn chickens. Although it has no major structural defects,ev-1 has not been associated with any phenotype and is ordinarily expressed at a very low level. In this report, we describe a chicken embryo (Number 1836) cell culture containing bothev-1 andev-6 which spontaneously expressed theev-1 provirus. This culture released a high level of noninfectious virions containing a full complement of virion structural (gag) proteins but devoid of reverse transcriptase activity or antigen. These virions contained 70S RNA closely related to the genome of Rous-associated virus type 0, but identifiable as theev-1 genome by oligonucleotide mapping. A fraction of the RNA molecules in the 70S complex were unusual in that they were polyadenylated 100 to 200 nucleotides downstream of the usual polyadenylation site. Eight sibling embryo cultures did not share this unusual phenotype with 1836, indicating that it was not inherited. However, an identical phenotype was inducible in the sibling cultures by treatment with 5-azacytidine, an inhibitor of DNA methylation, and the induced expression was stable for more than 10 generations. Analysis of chromatin structure and DNA methylation of theev-1 provirus in 1836 cells revealed the presence (in a fraction of the proviruses) of both DNase I hypersensitive sites in the long terminal repeats and ingagand a pattern of cleavage sites for methyl-sensitive restriction endonuclease not found in a nonexpressing sibling. These results lend strong support to the role of DNA methylation in the control of gene expression. Additionally, they explain the lack of phenotype associated withev-1 as due to a combination of its low expression and defectiveness inpolandenv.

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