Competition and Price Transparency in the Market for Lemons: Experimental Evidence

2021 ◽  
Vol 13 (2) ◽  
pp. 113-140
Author(s):  
Olivier Bochet ◽  
Simon Siegenthaler
Keyword(s):  
Asymmetric Information ◽  
Experimental Evidence ◽  
Detrimental Effect ◽  
Conditional Reasoning ◽  
Strategy Method ◽  
Price Transparency ◽  
Enhancing Effect ◽  
Market For Lemons ◽  
Theoretical Predictions ◽  
The Impact

In markets with asymmetric information, where equilibria are often inefficient, bargaining can help promote welfare. We design an experiment to examine the impact of competition and price transparency in such settings. Consistent with the theoretical predictions, we find that competition promotes efficiency if bargainers cannot observe each other’s price offers. Contrary to the predictions, however, the efficiency-enhancing effect of competition persists even when offers are observable. We explore different behavioral explanations for the absence of a detrimental effect of price transparency. Remarkably, implementing the strategy method improves subjects’ conditional reasoning, delivering the predicted loss in efficiency when offers are observable. (JEL C78, D82, L15)

Instability and Collapse in Discrete Wave Equations

2005 ◽  
Vol 5 (3) ◽  
pp. 223-241
Author(s):  
A. Carpio ◽  
G. Duro
Keyword(s):  
Continuum Limit ◽  
Wave Equations ◽  
Numerical Solutions ◽  
Blow Up ◽  
Theoretical Predictions ◽  
Initial States ◽  
The Impact ◽  
The Continuum

AbstractUnstable growth phenomena in spatially discrete wave equations are studied. We characterize sets of initial states leading to instability and collapse and obtain analytical predictions for the blow-up time. The theoretical predictions are con- trasted with the numerical solutions computed by a variety of schemes. The behavior of the systems in the continuum limit and the impact of discreteness and friction are discussed.

Pupil with Obsessive-Compulsive Disorder

2017 ◽  
Vol 7 (2) ◽  
pp. 7-25
Author(s):  
Karolina Diallo
Keyword(s):  
Obsessive Compulsive Disorder ◽  
School Performance ◽  
School Environment ◽  
Detrimental Effect ◽  
Obsessive Compulsive ◽  
Compulsive Disorder ◽  
The Past ◽  
And Performance ◽  
The Impact

Pupil with Obsessive-Compulsive Disorder. Over the past twenty years childhood OCD has received more attention than any other anxiety disorder that occurs in the childhood. The increasing interest and research in this area have led to increasing number of diagnoses of OCD in children and adolescents, which affects both specialists and teachers. Depending on the severity of symptoms OCD has a detrimental effect upon child's school performance, which can lead almost to the impossibility to concentrate on school and associated duties. This article is devoted to the obsessive-compulsive disorder and its specifics in children, focusing on the impact of this disorder on behaviour, experience and performance of the child in the school environment. It mentions how important is the role of the teacher in whose class the pupil with this diagnosis is and it points out that it is necessary to increase teachers' competence to identify children with OCD symptoms, to take the disease into the account, to adapt the course of teaching and to introduce such measures that could help children reduce the anxiety and maintain (or increase) the school performance within and in accordance with the school regulations and curriculum.

scholarly journals Three doors anomaly, “should I stay, or should I go”: an artefactual field experiment

2021 ◽  
Author(s):  
Andrea Morone ◽  
Rocco Caferra ◽  
Alessia Casamassima ◽  
Alessandro Cascavilla ◽  
Paola Tiranzoni
Keyword(s):  
Field Experiment ◽  
Experimental Evidence ◽  
Bayesian Updating ◽  
Anomalous Behavior ◽  
Status Quo ◽  
Experimental Results ◽  
Illusion Of Control ◽  
Optimal Decision ◽  
Status Quo Bias ◽  
The Impact

AbstractThis work aims to identify and quantify the biases behind the anomalous behavior of people when they deal with the Three Doors dilemma, which is a really simple but counterintuitive game. Carrying out an artefactual field experiment and proposing eight different treatments to isolate the anomalies, we provide new interesting experimental evidence on the reasons why subjects fail to take the optimal decision. According to the experimental results, we are able to quantify the size and the impact of three main biases that explain the anomalous behavior of participants: Bayesian updating, illusion of control and status quo bias.

scholarly journals Spatiotemporal Correlations in the Power Output of Wind Farms: On the Impact of Atmospheric Stability

Energies ◽  
2019 ◽  
Vol 12 (8) ◽  
pp. 1486 ◽  
Author(s):  
Nicolas Tobin ◽  
Adam Lavely ◽  
Sven Schmitz ◽  
Leonardo P. Chamorro
Keyword(s):  
Power Output ◽  
Wind Farm ◽  
Statistical Significance ◽  
Atmospheric Stability ◽  
Wind Farms ◽  
Temporal Correlations ◽  
Theoretical Predictions ◽  
Power Variance ◽  
Ambient Turbulence ◽  
The Impact

The dependence of temporal correlations in the power output of wind-turbine pairs on atmospheric stability is explored using theoretical arguments and wind-farm large-eddy simulations. For this purpose, a range of five distinct stability regimes, ranging from weakly stable to moderately convective, were investigated with the same aligned wind-farm layout used among simulations. The coherence spectrum between turbine pairs in each simulation was compared to theoretical predictions. We found with high statistical significance (p < 0.01) that higher levels of atmospheric instability lead to higher coherence between turbines, with wake motions reducing correlations up to 40%. This is attributed to higher dominance of atmospheric motions over wakes in strongly unstable flows. Good agreement resulted with the use of an empirical model for wake-added turbulence to predict the variation of turbine power coherence with ambient turbulence intensity (R 2 = 0.82), though other empirical relations may be applicable. It was shown that improperly accounting for turbine–turbine correlations can substantially impact power variance estimates on the order of a factor of 4.

scholarly journals Alteration of Genomic Imprinting after Assisted Reproductive Technologies and Long-Term Health

Life ◽  
2021 ◽  
Vol 11 (8) ◽  
pp. 728
Author(s):  
Eguzkine Ochoa
Keyword(s):  
Embryonic Development ◽  
Experimental Evidence ◽  
Genomic Imprinting ◽  
Animal Studies ◽  
Assisted Reproductive Technologies ◽  
Reproductive Technologies ◽  
Early Embryonic Development ◽  
Global Methylation ◽  
The Impact

Assisted reproductive technologies (ART) are the treatment of choice for some infertile couples and even though these procedures are generally considered safe, children conceived by ART have shown higher reported risks of some perinatal and postnatal complications such as low birth weight, preterm birth, and childhood cancer. In addition, the frequency of some congenital imprinting disorders, like Beckwith–Wiedemann Syndrome and Silver–Russell Syndrome, is higher than expected in the general population after ART. Experimental evidence from animal studies suggests that ART can induce stress in the embryo and influence gene expression and DNA methylation. Human epigenome studies have generally revealed an enrichment of alterations in imprinted regions in children conceived by ART, but no global methylation alterations. ART procedures occur simultaneously with the establishment and maintenance of imprinting during embryonic development, so this may underlie the apparent sensitivity of imprinted regions to ART. The impact in adulthood of imprinting alterations that occurred during early embryonic development is still unclear, but some experimental evidence in mice showed higher risk to obesity and cardiovascular disease after the restriction of some imprinted genes in early embryonic development. This supports the hypothesis that imprinting alterations in early development might induce epigenetic programming of metabolism and affect long-term health. Given the growing use of ART, it is important to determine the impact of ART in genomic imprinting and long-term health.

Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia

2021 ◽  
Author(s):  
Banawe Plambou Anissa ◽  
Gashaw Abate ◽  
Tanguy Bernard ◽  
Erwin Bulte
Keyword(s):  
Asymmetric Information ◽  
Willingness To Pay ◽  
Wheat Quality ◽  
High Quality ◽  
Auction Design ◽  
Market For Lemons ◽  
Wheat Market ◽  
Ex Ante

Abstract Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification of the opportunity of certification improves wheat quality. These findings suggest that local wheat markets resemble a ‘market for lemons’, crippled by asymmetric information. However, aggregate WTP for grading and certification services does not re-coup the sum of fixed, flow and variable costs associated with running a single certification shop.

scholarly journals Loss Aversion and Consumption Choice: Theory and Experimental Evidence

2015 ◽  
Vol 7 (2) ◽  
pp. 101-120 ◽  
Author(s):  
Heiko Karle ◽  
Georg Kirchsteiger ◽  
Martin Peitz
Keyword(s):  
Experimental Evidence ◽  
Loss Aversion ◽  
Consumer Choice ◽  
Rational Expectations ◽  
Choice Theory ◽  
Choice Model ◽  
Reference Points ◽  
Price Uncertainty ◽  
Theoretical Predictions

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Participants differ in their reported taste for the two sandwiches and in their degree of loss aversion, which we measure separately. We find that more-loss-averse participants are more likely to opt for the cheaper sandwich, in line with theoretical predictions. The estimates in the model with rational expectations are slightly more significant than those with naïve expectations. (JEL D11, D12, D84, M31)

scholarly journals Magnetic and defect probes of the SmB6 surface state

2018 ◽  
Vol 4 (11) ◽  
pp. eaau4886 ◽  
Author(s):  
Lin Jiao ◽  
Sahana Rößler ◽  
Deepa Kasinathan ◽  
Priscila F. S. Rosa ◽  
Chunyu Guo ◽  
...  
Keyword(s):  
Surface States ◽  
Scanning Tunneling Spectroscopy ◽  
Tunneling Spectroscopy ◽  
Scanning Tunneling ◽  
Magnetic Impurities ◽  
Fundamental Physics ◽  
Length Scales ◽  
Kondo Insulator ◽  
Theoretical Predictions ◽  
The Impact

The impact of nonmagnetic and magnetic impurities on topological insulators is a central focus concerning their fundamental physics and possible spintronics and quantum computing applications. Combining scanning tunneling spectroscopy with transport measurements, we investigate, both locally and globally, the effect of nonmagnetic and magnetic substituents in SmB6, a predicted topological Kondo insulator. Around the so-introduced substitutents and in accord with theoretical predictions, the surface states are locally suppressed with different length scales depending on the substituent’s magnetic properties. For sufficiently high substituent concentrations, these states are globally destroyed. Similarly, using a magnetic tip in tunneling spectroscopy also resulted in largely suppressed surface states. Hence, a destruction of the surface states is always observed close to atoms with substantial magnetic moment. This points to the topological nature of the surface states in SmB6 and illustrates how magnetic impurities destroy the surface states from microscopic to macroscopic length scales.

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