The Welfare Implications of Rent Control: A Rent-Seeking Contest Approach

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Yang-Ming Chang ◽  
Shane D. Sanders
Keyword(s):  
Nash Equilibrium ◽  
Willingness To Pay ◽  
Social Cost ◽  
Rent Seeking ◽  
Control Model ◽  
Random Allocation ◽  
Rent Control ◽  
Welfare Implications ◽  
The Relationship ◽  
High Willingness

Abstract This paper uses a contest approach to characterize a probabilistic, non-price contest between potential consumers of rent-controlled apartments. The model extends upon the rent control model of Glaeser and Luttmer (2003) as well as the rent-seeking contributions of Hurley (1998), Dixit (1987), and Hirshleifer (1989) to consider the roles of chance and endogenously-chosen efforts in the allocation of rent-controlled apartments. Nash equilibrium effort levels for each consumer-type imply that the effort-inducing cost of rent control is greater than the misallocative cost. Further, misallocative costs are lower under the effort contest interpretation than under random allocation, as high willingness to pay consumers allocates more effort. The relationship between effort contest and misallocation influences the policy’s overall social cost.

scholarly journals Consumer Behaviour of Purchasing Biofortified Food Products

2020 ◽  
Vol 12 (16) ◽  
pp. 6297 ◽  
Author(s):  
Giuseppe Timpanaro ◽  
Claudio Bellia ◽  
Vera Teresa Foti ◽  
Alessandro Scuderi
Keyword(s):  
Willingness To Pay ◽  
Consumer Choice ◽  
Consumer Behaviour ◽  
Food Products ◽  
Potential Consumer ◽  
Consumption Choices ◽  
Definition Of ◽  
The Relationship ◽  
Concise Definition ◽  
High Willingness

In light of increasing attention on biofortified products from the institutional, scientific and industrial worlds, we investigate consumer knowledge, consumer choice, the relationship between consumer choice and lifestyles, willingness to pay, and factors influencing consumer groups regarding biofortified foods. Complicating the matter is the lack of a clear definition of biofortified foods in the last proposal of the Codex Alimentarius Commission dated 26 November 2018. Research has shown the importance of market information and variables related to lifestyle, socio-demographic characteristics, knowledge of nutritional principles, and diet, to understanding consumers’ purchase and consumption choices regarding biofortified products. Our research shows that at present the potential consumer of biofortified food products is generally confused and uninformed, conditions that, even when there is a high willingness to pay, limit purchases of biofortified products. Even in the absence of a concise definition and clear labelling at a globally recognized level, in Italy biofortified products are increasingly widespread (products biofortified with selenium, iodine, etc.), confirming consumer demand for this category of product.

RELATIONSHIPS BETWEEN LMX AND SUBORDINATES' FEEDBACK-SEEKING BEHAVIORS

2007 ◽  
Vol 35 (5) ◽  
pp. 659-674 ◽  
Author(s):  
Hye Eun Lee ◽  
Hee Sun Park ◽  
Tai Sik Lee ◽  
Dong Wook Lee
Keyword(s):  
South Korea ◽  
Social Cost ◽  
Civil Engineering ◽  
Source Credibility ◽  
Third Party ◽  
Leader Member Exchange ◽  
Feedback Seeking ◽  
Party Strategies ◽  
Member Exchange ◽  
The Relationship

Relationships among subordinates' feedback-seeking strategy preferences, Leader-Member Exchange (LMX), social cost, and source credibility were examined. Employees (N = 134) of civil engineering companies in South Korea completed a questionnaire. Findings showed that LMX quality, social cost, and source credibility either independently or jointly influenced subordinates' feedback-seeking strategy preferences. LMX was positively related to preference for using direct strategies, but not significantly related to preferences for using indirect strategies and for using third-party strategies. As moderators, increases in social cost and source credibility were associated with changes in the relationship between LMX and preference for third-party strategies. More detailed explanations and implications of these findings are discussed.

scholarly journals Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior

2019 ◽  
Vol 8 (6S3) ◽  
pp. 479-488 ◽  
Keyword(s):  
Supply Chain ◽  
Theory Of Planned Behavior ◽  
Willingness To Pay ◽  
Planned Behavior ◽  
Behavioral Control ◽  
Transportation Cost ◽  
Subjective Norm ◽  
Moderating Effect ◽  
Perceived Behavioral Control ◽  
The Relationship

Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.

scholarly journals Wanneer bevordert en wanneer hindert werkdruk het werkplekleren?

2012 ◽  
Vol 25 (1) ◽  
Author(s):  
Joris Van Ruysseveldt ◽  
Marius van Dijke
Keyword(s):  
Workplace Learning ◽  
Learning Opportunities ◽  
Control Model ◽  
Theoretical Frameworks ◽  
Working Adults ◽  
Positive Effects ◽  
Learning Hypothesis ◽  
High Workload ◽  
Low Levels ◽  
The Relationship

When does workload promote workplace learning opportunities, and when does workload hinder workplace learning opportunities? When does workload promote workplace learning opportunities, and when does workload hinder workplace learning opportunities? Building on theoretical frameworks like the Job Demands Control model we tested whether the relationship between workload and employees’ experiences of opportunities for workplace learning is of an inverted u-shaped nature. Furthermore we researched whether autonomy moderates this relationship. We predicted that at moderate levels of autonomy rising workload was associated with increasing learning opportunities at low levels of workload, but with decreasing learning opportunities at high levels of workload. Also, we predicted that low autonomy prevents positive effects of moderate workload from materializing whereas high autonomy makes high workload less destructive to the learning process. We found support for these ideas in a large and heterogeneous sample of Flemish working adults (FWM, 2010). These results integrate conflicting prior findings and extend Karasek’s (1979) active learning hypothesis. They also have clear implications for job redesign practices aiming to promote workplace learning opportunities.

scholarly journals Operant Matching as a Nash Equilibrium of an Intertemporal Game

2009 ◽  
Vol 21 (10) ◽  
pp. 2755-2773 ◽  
Author(s):  
Yonatan Loewenstein ◽  
Drazen Prelec ◽  
H. Sebastian Seung
Keyword(s):  
Nash Equilibrium ◽  
Matching Law ◽  
Single Subject ◽  
Multiple Selves ◽  
The Past ◽  
Aggregate Behavior ◽  
The Subject ◽  
Individual Choices ◽  
The Relationship ◽  
Mutual Defection

Over the past several decades, economists, psychologists, and neuroscientists have conducted experiments in which a subject, human or animal, repeatedly chooses between alternative actions and is rewarded based on choice history. While individual choices are unpredictable, aggregate behavior typically follows Herrnstein's matching law: the average reward per choice is equal for all chosen alternatives. In general, matching behavior does not maximize the overall reward delivered to the subject, and therefore matching appears inconsistent with the principle of utility maximization. Here we show that matching can be made consistent with maximization by regarding the choices of a single subject as being made by a sequence of multiple selves—one for each instant of time. If each self is blind to the state of the world and discounts future rewards completely, then the resulting game has at least one Nash equilibrium that satisfies both Herrnstein's matching law and the unpredictability of individual choices. This equilibrium is, in general, Pareto suboptimal, and can be understood as a mutual defection of the multiple selves in an intertemporal prisoner's dilemma. The mathematical assumptions about the multiple selves should not be interpreted literally as psychological assumptions. Human and animals do remember past choices and care about future rewards. However, they may be unable to comprehend or take into account the relationship between past and future. This can be made more explicit when a mechanism that converges on the equilibrium, such as reinforcement learning, is considered. Using specific examples, we show that there exist behaviors that satisfy the matching law but are not Nash equilibria. We expect that these behaviors will not be observed experimentally in animals and humans. If this is the case, the Nash equilibrium formulation can be regarded as a refinement of Herrnstein's matching law.

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