Revising preferences and choices

Preferences and choices are subject to be modified when new information is brought to the knowledge of an agent, such strategy may suddenly appear more reliable than such other, such restaurant has to be retrieved from the list of the ten best tables of the town. We propose here an easy way to perform this revision through a simple modification of the chain of subsets attached to the agent’s behavior: it can be shown indeed that, in the rational case, these chains offer an adequate representation of preferences and of choice functions. Thus the revision problem boils down to adding, retracting or modifying some of the links of the original chain, a perspective that enables an effective treatment of the problem of iterated revision.     

Menu-dependent self-control

The literature on self-control problems has typically put forth models that imply behavior that is consistent with the weak axiom of revealed preference (WARP). We argue that when choice is the outcome of some underlying internal conflict, the resulting choices may not be perfectly consistent across choice problems: an agent’s ability to resist temptation may well depend on what alternatives are available to him. We generalize Gul and Pesendorfer (2001) so that self-control weakens in the presence of temptation. To model choices from menus explicitly, we consider a choice correspondence as well as a preference over menus and relax both the Independence axiom for the preference and the WARP condition for the choice correspondence. The model is shown to unify a range of well-known findings in the experimental literature on choice under risk and over time within a single specification.     

公共餐厨废弃物资源化的实现有赖于政府监管与激励机制的建立＊--公共餐厨废弃物回收企业与政府间的博弈分析

餐厨废弃物以及餐厨废弃物的不合理处理已经给人们的日常生活带来不利影响,加上回收企业的利己性行为和选择,都使得餐厨废弃物的回收和资源化处理成为了一个重要课题。文中认为在回收企业与企业之间和企业与政府之间都存在着博弈,并对其进行了博弈分析。企业与企业之间的博弈分析的结论表明政府对餐厨废弃物资源化的干预是必要的,因为企业只会做出利己选择;政府作为参与一方,与企业之间也形成了博弈关系,其博弈结果显示,政府提高监管力度、惩罚力度、补贴额度和降低资源化处理成本,都有利于刺激企业提高资源化处理的积极性和主动性。     

企业惰性区域:“非理性”与“理性”的论争与现实意义

企业的惰性区域是其群体成员的惰性区域的交集。X效率理论认为,人类的行为具有选择理性,因为选择理性中包含有"非理性"因素,所以个体的惰性区域是客观存在的且不可消除的。但是,新制度经济学认为,人类的选择行为都是理性的,企业的这种无效率状态——"惰性区域"主要是由于企业制度的缺陷导致的。二者对于企业"惰性区域"的不同见解实质上是由于二者所要观察和解决的侧重点不同,他们所侧重的两个方面对提高企业群体努力水平都有重要的现实意义。     

Choosing union representation: the role of attitudes and emotions

In the United States, most unions are recognised by a majority vote of employees through union representation elections administered by the government. Most empirical studies of individual voting behaviour during union representation elections use a rational choice model. Recently, however, some have posited that voting is often influenced by emotions. We evaluate competing hypotheses about the determinants of union voting behaviour by using data collected from a 2010 representation election at Delta Air Lines, a US‐based company. In addition to the older rational choice framework, multiple regression results provide support for an emotional choice model. Positive feelings toward the employer are statistically significantly related to voting ‘no’ in a representation election, while positive feelings toward the union are related to a ‘yes’ vote. Effect sizes for the emotion variables were generally larger than those for the rational choice variables, suggesting that emotions may play a key role in representation election outcomes.     

Does direct experience matter? Examining the consequences of current entrepreneurial behavior on entrepreneurial intention

Entrepreneurial behavior research has used intention models to explain how an individual’s beliefs shape the attitudes and motivations that influence entrepreneurial intention. Nevertheless, as entrepreneurship promotion initiatives become global, it becomes relevant to explore the consequences of being engaged in entrepreneurial behavior on entrepreneurial intention. We aim to shed light on whether the direct experience reinforces an individual’s entrepreneurial intention or reduces it. Building on an extended version of the planned behavior theory, we use the behavioral reasoning theory to propose a research design to study the influence of being currently engaged in entrepreneurial behavior on entrepreneurial intention. We introduce individual’s age as an additional moderator of the effects of directly experiencing entrepreneurial behavior. We use PLS-MGA to complete a multi-group SEM analysis for different groups of individuals (from a sample of 430), comparing groups based on their entrepreneurial activity and age group. Results of this research work evidence that current engagement in entrepreneurship activities produces significant differences in the intention to start a new venture between older and younger participants. The results suggest that engagement in entrepreneurial activity modifies entrepreneurial intention and that these effects are contingent to the individual’s age. This research work contributes to the extant call to explore reverse causality between actual behavior and an individual’s intention by introducing behavioral reasoning theory. These results provide support to initiatives to adapt entrepreneurship promotion efforts to the specific characteristics of the participants.     

Revealed preferences of individual players in sequential games

This paper studies rational choice behavior of a player in sequential games of perfect and complete information without an assumption that the other players who join the same games are rational. The model of individually rational choice is defined through a decomposition of the behavioral norm assumed in the subgame perfect equilibria, and we propose a set of axioms on collective choice behavior that characterize the individual rationality obtained as such. As the choice of subgame perfect equilibrium paths is a special case where all players involved in the choice environment are each individually rational, the paper offers testable characterizations of both individual rationality and collective rationality in sequential games.     

Uncertain information structures and backward induction

In everyday economic interactions, it is not clear whether each agent’s sequential choices are visible to other participants or not: agents might be deluded about others’ ability to acquire, interpret or keep track of data. Following this idea, this paper introduces uncertainty about players’ ability to observe each others’ past choices in extensive-form games. In this context, we show that monitoring opponents’ choices does not affect the outcome of the interaction when every player expects their opponents indeed to be monitoring. Specifically, we prove that if players are rational and there is common strong belief in opponents being rational, having perfect information and believing in their own perfect information, then, the backward induction outcome is obtained regardless of which of her opponents’ choices each player observes. The paper examines the constraints on the rationalization process under which reasoning according to Battigalli’s (1996) best rationalization principle yields the same outcome irrespective of whether players observe their opponents’ choices or not. To this respect we find that the obtention of the backward induction outcome crucially depends on tight higher-order restrictions on beliefs about opponents’ perfect information. The analysis provides a new framework for the study of uncertainty about information structures and generalizes the work by Battigalli and Siniscalchi (2002) in this direction.     

The testable implications of zero-sum games

We study collective choices from the revealed preference theory viewpoint. For every product set of individual actions, joint choices are called Nash-rationalizable if there exists a preference relation for each player such that the selected joint actions are Nash equilibria of the corresponding game. We characterize Nash-rationalizable joint choice behavior by zero-sum games, or games of conflicting interests. If the joint choice behavior forms a product subset, the behavior is called interchangeable. We prove that interchangeability is the only additional empirical condition which distinguishes zero-sum games from general non-cooperative games.     

Healthy lifestyle and safety: An expected net benefit approach to seat belt use

This paper examines the relationship between motorist safety belt use and three lifestyle behaviors affecting health. A healthy lifestyle affects benefits of seat belt use because it indicates a greater value on safety. If individuals are rational in their behavior, we expect consistency across health and safety choices. Using a nationwide survey sample and logit analysis we find lifestyle has expected effects on belt use holding constant individual and vehicle characteristics. Illustrations for two different lifestyles are considered: (1) smoking 1 pack per day, 2 years between dental visits, and no regular exercise and (2) no smoking, 1 year between dental visits and regular exercise. Healtiher lifestyle increases the probability of seat belt use by more than 50% for typical individuals     

Similarity-based mistakes in choice

We characterize the following choice procedure. The decision maker is endowed with two binary relations over alternatives, a preference and a similarity. In every choice problem she includes in her choice set all alternatives which are similar to the best feasible alternative. Hence she can, by mistake, choose an inferior option because it is similar to the best. We characterize this boundedly rational behavior by suitably weakening the rationalizability axiom of Arrow (1959). We also characterize a variation where the decision maker chooses alternatives on the basis of their similarities to attractive yet infeasible options. We show that similarity-based mistakes of either kind lead to cyclical behavior. Finally, we reinterpret our procedure as a method for choosing a bundle given a set of individual items, in which the decision maker combines the best feasible item with those that complement it.     

Entrepreneurship and Firm Boundaries: The Theory of A Firm

abstract In this paper, we consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed. We start from the premise that while entrepreneurs believe themselves to have superior ideas in one or multiple parts of the value chain, they are characteristically short of cash, and of the ability to convince others to provide it. This premise motivates a simple model in which the entrepreneur has a value‐adding set of ideas for ‘upstream’ and ‘downstream’ parts of a value chain, as well as for the ways to make these two parts of the value chain work better when joined under unitary control. Assuming that the entrepreneur's objective is to maximize her wealth, we observe that even in the presence of transactional risks or other factors that might make integration preferable to specialization, initial scope depends also on relatively unexplored factors such as (a) how severe the entrepreneur's cash constraint is, and (b) how much value the entrepreneur's ideas add at each part of the value chain. Entrepreneurs will focus on the areas that provide the maximum profit yield per available cash – a criterion which implies that scope choices depend on cash availability and the depth of the demand for the new idea along the value chain. We also note that entrepreneurs make money not only from the operating profits of their firms, but also from the appreciation of the assets the firm has accumulated. This consideration can change the optimal choice of the firms’ boundaries, as entrepreneurs must be sensitive to choosing the segment that will enable them to benefit not only in terms of profit, but also in terms of asset appreciation. We propose that, in the entrepreneurial context especially, it is helpful to focus on the multiple considerations affecting the choice of boundaries for ‘a’ firm – the context faced by an individual entrepreneur – rather than on generic considerations affecting ‘the’ (representative) firm. Scope choices reflect the entrepreneur's own theory of ‘how to make money’.     

我国现行政府价格机制制定的问题及建议

政府制定价格机制行为与百姓生活息息相关,从这个意义上讲政府价格机制制定问题就是民生问题。由于市场经济自身存在着无法克服的缺陷,政府规制便成为对经济进行宏观调控的必然选择,政府制定价格机制就是政府规制的方式之一。我国目前正处于经济转型的战略选择期,政府如何更好地制定价格机制,使之真正实现服务发展、稳定经济、造福民众的规制目标,是摆在我们面前的一道现实问题。本文尝试通过对我国医疗服务价格规制的分析,探讨我国现行价格机制制定的问题以及谈谈本人建议。     

论低碳经济建设中的低碳装饰理念

能源的透支、环境的污染和生态的破坏等严重威胁着当今经济社会的可持续发展,减少经济发展对资源的依赖和对环境的破坏成为当务之急。在装饰设计中,低碳环保材料的选择,低碳能源的开发,设计过程中材料的合理利用、回收和循环再利用,低碳设计思维的产生,是低碳装饰理念的核心内容。低碳装饰设计理念是当今经济社会发展的必然选择,低碳经济促进低碳装饰设计理念的形成,在低碳经济建设过程中体现出其必要性和可行性,值得在全民联动中加以推广。     

Firm Productivity and the Foreign‐Market Entry Decision

We use Japanese firm‐level data to examine how a firm’s productivity affects its foreign‐market entry strategy. The firm faces a choice between exporting and foreign direct investment (FDI). In the case of FDI, the firm has two options: greenfield investment or acquisition of an existing plant (M&A). If it selects greenfield investment, it has two ownership choices: whole ownership or a joint venture with a local company. Controlling for industry‐ and country‐specific characteristics, we find that the more productive a firm is, the more likely it is to choose FDI rather than exporting and greenfield investment rather than M&A.     

Explaining influences on career ‘choice’: the case of MBA students in comparative perspective

This study explores the micro-individual, meso-institutional and relational and macro-structural level influences on career choices of MBA students from three countries, questioning the apparent dominance of ‘free choice’ in the context of persistent forms of structural constraints in career markets. The paper takes a critical perspective on career ‘choice’, acknowledging the contested nature of ‘choice’ and identifying career as a socially and historically situated phenomenon. The central hypothesis of the study is that ‘it is more likely for the MBA students to report micro-agentic or meso-instutional and relational rather than macro-structural conditions as key influences on their career choices’. The study draws on the findings of a cross-national survey on careers involving Britain, Israel and Turkey. Findings show that MBA students consider the impact of structural conditions as less significant on their career choices than their own human capital and capacity to make free choices. The study provides an understanding of the main cross-national similarities and differences in reporting of influences on career ‘choice’, and brings to bare interesting theoretical and methodological insights.     

Breadth-of-impact frontier: How firm-level decisions and selection environment dynamics generate boundary-spanning inventions

In this paper, we provide an ex-ante explanation for why some technologies such as James Watt’s steam engine move successfully across broad technological fields, while other technologies do not. Using a sample of VC-backed biotechnology firms, we examine firm knowledge exploration choices along three dimensions—the decision to build from technologies across broad fields, the decision to explore application domains that are new to the firm, and the decision to mix these two options at the same time. We argue that firm-level invention decisions find differing responses when received by the selection environment. We find evidence of a “breadth-of-impact frontier” for technologies, wherein the choice of whether a firm should enter into a new application domain than those of the past should be informed by the degree to which the technology is citing prior work narrowly or broadly. The findings suggest that the belief that broad sourcing diversity will always result in greater citation diversity requires some caveats. The results contribute to the understanding of not only how entrepreneurial firms evolve but also how individual firms contribute to collective progress.     

Econom(etr)ics of crime and litigation

Economists approach the behaviour of potential criminals, litigants and law enforcement agencies in terms of rational choice: the actors choose the best alternatives in terms of costs and benefits within the choices open to them. The prime focus of economists is on the general factors in society affecting the crime and litigation level and on the interaction between the crime and litigation level and the legal system. In doing so they have to study the interaction between the micro level of individual decision making and the macro level of the law enforcement system reacting on these decisions. Data are often only available at aggregate (macro) level. Econometric studies at the macro level, especially time series, have the problem that many effects have to be estimated from a limited number of data. Various types of studies and some empirical results regarding crime, litigation and the workload of judicial services are discussed.     

Intransitive social indifference and the Arrow dilemma

This paper deals with a proposal by Frederic Schick for resolving Arrow’s dilemma of social choice. Schick challenges Arrow’s assumption that rational social indifference is transitive. It turns out, however, that even if we drop this assumption, we still face a dilemma as embarrassing as Arrow’s. Any constitution which satisfies the remaining conditions is a liberum veto oligarchy. This means a unique set of individuals carries any issue on which it is unanimous, and engenders social indifference on any issue which divides it. A formal statement and proof of this theorem follows an informal presentation of the result.