Nash-implementation of competitive equilibria via a bounded mechanism

We deal with the problem of providing incentives for the implementation of competitive outcomes in a pure-exchange economy with finitely many households. We construct a feasible price-quantity mechanism, which fully implements Walras equilibria via Nash equilibria in fairly general environments. Traders’ preferences need neither to be ordered nor continuous. In addition, the mechanism is such that no pure strategy is weakly dominated, hence is bounded (in the sense of Jackson 1992). In particular it makes no use of any integer game.     

A quantitative turn in the historiography of economics?

ABSTRACT

Quantitative approaches are not yet common among historians and methodologists of economics, although they are in the study of science by librarians, information scientists, sociologists, historians, and even economists. The main purpose of this essay is to reflect methodologically on the historiography of economics: is it witnessing a quantitative turn? Is such a turn desirable? We answer the first question by pointing out a ‘methodological moment’, in general, and a noticeable rise of quantitative studies among historians of economics during the past few years. To the second question, all contributors to this special issue bring relatively optimistic answers by highlighting the benefits of using quantitative methodologies as complements to the more traditional meta-analyses of both historians and methodologists of economics.     

An investigation of consumers' self-control mechanisms when confronted with repeated purchase temptations: Evidence from online private sales

This article explores the control mechanisms that consumers use when confronted with repeated temptations in an online private sales context. Do consumers feel the need to control themselves when they are aware of the risk of being exposed to purchase temptations? Are they able to do so? Using qualitative research methods, this study differentiates four segments of consumers, according to their reactions to repeated purchase temptations: myopic, self-regulated, hyperopic, and dispassionate. It also isolates the mechanism that consumers use to resist temptations. Previous literature has focused on control mechanisms implemented in isolated temptation situations; this article extends that approach by examining online private sales, in which setting consumers receive frequent solicitations. Thus, it addresses in detail how control evolves when consumers confront repeated temptations.     

Consistent collusion-proofness and correlation in exchange economies

We present a feasible strategic market mechanism with finitely many agents whose Nash, semi-strong Nash and coalition-proof Nash equilibria fully implement the Walrasian equilibria. We define a strategic equilibrium concept, called correlated semi-strong equilibrium, and show that the Walrasian equilibria can be implemented by these equilibria, and also by the coalition-proof correlated equilibria of our mechanism. We show that these two concepts, suitably modified with transfers, fully implement the Pareto optimal allocations.     

Joint Private Safety Standards and Vertical Relationships in Food Retailing

In recent years, it has become common for downstream firms to impose Joint Private Standards (JPSs) on upstream producers. In this paper, we present an original model of a vertical relationship, explaining the incentives for and the effects of such JPSs with an example concerning food safety. The risk of a food crisis is endogenously determined. Using the concept of cartel stability ( d’Aspremont et al., 1983 ), it is shown that liability rules are crucial for JPSs to emerge, that a JPS can become a minimum quality standard, and that a more stringent JPS does not necessarily reduce the market risk.     

Value‐based labels for fresh beef: an overview of French consumer behaviour in a BSE crises context

In the last decade, the French beef industry has been through two major health scares related to bovine spongiform encephalopathy. This paper describes and discusses changes in beef supply in France from the consumer's perspective. The authors review the initiatives implemented in each crisis and show that the immediate effects (slump in consumption), however spectacular, were not the most lasting effects. By contrast, responses from the industry and the authorities brought about a far‐reaching change in practices by requiring new instruments to be used (traceability). Yet the information conveyed by this innovation cannot readily be appropriated by consumers who are not conversant with the characteristics of beef production systems.     

A Comparison of Willingness to Pay Estimation Techniques From Referendum Questions

Referendum style willingness to pay questions have been used to estimatepassive use values. This referendum question format method may beproblematic for many reasons, including the statistical techniques used toestimate willingness to pay from discrete responses. This paper comparesa number of parametric, semi-nonparametric and nonparametric estimationtechniques using data collected from US households regarding Federalprotection of endangered fish species.The advantages and disadvantagesof the various statistical models used are explored. A hypothesis test forstatistical equality among estimation techniques is performed using ajackknife bootstrapping method. When the equality test is applied, themodeling techniques do show significant differences in some possiblecomparisons, but only those that are nonparamentric. This can lead toconflicting interpretations of what the data show. Resource managers andpolicy analysts need to use caution when interpreting results until anindustry standard can be developed for estimating willingness to pay fromclosed ended questions.     

Effect of Experiential vs. Cognitive Involvement on Consumer Preferences: Application to Region of Origin Labeled Food Products

Region of origin labeled food products consumption is influenced both by cognitive motives related to the individuals' health and safety concerns and by affective motives in relation within the pleasure, the emotional states and the social values. The objective of our study is to examine the effect of involvement and its nature (cognitive vs. experiential) on consumer preferences toward region of origin labeled food products. Discriminant analysis shows that both the cognitive and experiential dimensions of involvement discriminate between the two groups: those who prefer regional food products and those who prefer either national or foreign products. By targeting each profile by an adequate communication strategy, food labels could meet consumer expectations. Thus, their acceptance becomes higher.     

Money matters: an axiomatic theory of the endowment effect

We develop a framework that allows us to state precisely the relationship between leading concepts of the theoretical and empirical research on reference-dependent preferences, namely the status quo bias, the endowment effect and the willingness to accept (WTA)/willingness to pay (WTP) gap. We show that a monetary version of the status quo bias is a necessary condition for the WTA/WTP gap, and show how to factor out the part of the gap due to income effects from the part of the gap due to the endowment effect. As a byproduct, we show that reference-dependent phenomena are generated by reference-independent factors, i.e., an underlying reference-independent preference relation the properties of which are discussed at length.