Technology adoption in markets with network effects: Theory and experimental evidence

We examine a technology-adoption game with network effects in which coordination on either technology A or technology B constitutes a Nash equilibrium. Coordination on technology B is assumed to be payoff dominant. We define a technology’s critical mass as the minimal share of users, which is necessary to make the choice of this technology the best response for any remaining user. We show that the technology with the lower critical mass implies risk dominance and selection by the maximin criterion. We present experimental evidence that both payoff dominance and risk dominance explain participants’ choices in the technology-adoption game. The relative riskiness of a technology can be proxied using either technologies’ critical masses or stand-alone values absent any network effects.     

Stuck at a workplace: What’s work control,demands and learning got to do with it? A longitudinal multilevel study on Swedish permanent employees in situations of ‘workplace locked-in’

Abstract

Whilst health consequences of being locked-in at the workplace have been documented in several research studies, it is largely unknown how work characteristics and their changes over time relate to risks for becoming locked-in at a certain workplace. Accordingly, this paper studied how perceived control, learning opportunities and quantitative demands at work associate with workplace-locked-in (WPLI). The study included permanent employees who participated in the Swedish Longitudinal Occupational Survey of Health (SLOSH) study in wave 3 through 5 (n = 2918 individuals; n = 7460 observations). Results from multi-level analysis show that there was significant individual variation in WPLI changes over time, even though on average, WPLI decreased slightly. Differences in work characteristics between individuals (L2) and across time (L1) associated significantly with WPLI: higher levels of job control and learning opportunities related to lower odds ratios for WPLI, whereas higher quantitative job demands associated with higher odds ratios of WPLI. Moreover, differences in quantitative job demands, number of job changes and educational achievements explained the individual variations of WPLI developments over time. The result shows that WPLI can – to some extent – be prevented or reduced through good work design, and implications for HR managers and organizations are discussed.     

Business Cycle Volatility in Germany

Abstract. Stylized facts suggest that output volatility in OECD countries has declined in recent years. The causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural changes in output volatility in Germany can be detected. We report evidence that output volatility has declined in Germany. It is difficult to answer the question whether this decline in output volatility reflects good economic and monetary policy or merely ‘good luck’.     

Voluntary contributions to a public good when partial contribution is a dominant strategy

We present an experiment on voluntary contributions to a public good. The game has a dominant strategy solution in the interior of the strategy space. We observe significant over-contribution. Our result is similar to those of typical corner-solution experiments.     

Games of Climate Change with International Trade

We analyse games of greenhouse gas emission reduction in which the emissions and the emission reduction costs of one country depend on other countries' emission abatement. In an analytically tractable model, we show that international trade effects on costs and emissions can either increase or decrease incentives to reduce emissions and to cooperate on emission abatement; in some specifications, optimal emission reduction is unaffected by trade. We therefore specify the model further, calibrating it to larger models that estimate the costs of emission reduction, trade effects, and impacts of climate change. If trade effects are driven by total emission reduction costs of other countries cooperation is slightly more difficult than in the case without trade effects. If trade effects are determined by relative emission reduction efforts in other countries, cooperation becomes easier. Carbon leakage does not affect our qualitative insights, although it does change the numbers.     

MEASUREMENT ERROR IN THE BANK OF ITALY'S SURVEY OF HOUSEHOLD INCOME AND WEALTH

This paper is aimed at evaluating the incidence of measurement error in the Bank of Italy's Survey of Household Income and Wealth (SHIW). In the case of time-invariant variables, we assess the degree of inconsistency of answers given by panel households in subsequent survey waves. For quantities that vary with time, we estimate the incidence of measurement error by decomposing observed variability into true dynamics and error-induced noise. We apply the Heise model or the latent Markov model, depending on whether the data are continuous or categorical. We also present regression models that explain the error-generating process. Our results are relevant to researchers who use SHIW data for economic analysis, but also to data producers involved in similar income and wealth surveys. The methods we describe and test can be employed in a number of contexts to gain better understanding of data-related problems and plans for survey improvement.     

Scope and patterns of tourist injuries in the European Union

European Union (EU) countries are among the leading tourist destinations in the world. Despite growing consumer demands on the safety of travelling, injuries amongst tourists remain an essentially invisible problem. Unique national and regional data sources are the only means by which the important negative impact of injuries on the health of non-domestic tourists in the EU-15 is underlined. With an estimated number of 3800 tourists dying each year, injuries account for up to 30% of fatalities during vacation. This toll reflects an increased risk of mortality in tourists compared to the domestic population. Amendments to national and EU health and injury monitoring are suggested in order to enable authorities to examine personal risks to travellers in more detail.