Cognitive ability and human behavior in experimental ultimatum games

Recent researches have shed light on the effect of cognitive ability on economic decision-making. By measuring cognitive ability applying Raven's progressive matrix test, we obtain two significant results that this effect affects decision-making in two types of experimental ultimatum games. First, the higher the cognitive ability, the larger the amount a sender offers when the offer is smaller than or equal to the half split. Second, the higher the responders’ cognitive ability, the smaller the offer they accept, when they accept it or not with the strategy method. This study not only finds new factors that affect decision-making in experimental ultimatum games, but also provides more evidences that cognitive ability influences economic decision-making.     

Optimal investment and pricing in the presence of defaults

We consider the optimal investment problem with random endowment in the presence of defaults. For an investor with constant absolute risk aversion, we identify the certainty equivalent, and compute prices for defaultable bonds and dynamic protection against default. This latter price is interpreted as the premium for a contingent credit default swap, and connects our work with earlier articles, where the investor is protected upon default. We consider a multiple risky asset model with a single default time, at which point each of the assets may jump in price. Investment opportunities are driven by a diffusion X taking values in an arbitrary region . We allow for stochastic volatility, correlation, and recovery; unbounded random endowments; and postdefault trading. We identify the certainty equivalent with a semilinear parabolic partial differential equation with quadratic growth in both function and gradient. Under minimal integrability assumptions, we show that the certainty equivalent is a classical solution. Numerical examples highlight the relationship between the factor process, market dynamics, utility‐based prices, and default insurance premium. In particular, we show that the holder of a defaultable bond has a strong incentive to short the underlying stock, even for very low default intensities.     

Experimental Multimarket Contact Inhibits Cooperation

We experimentally examine the effect of multimarket contact utilizing 2 × 2 Prisoner's Dilemma games and a strict discount factor control. We find that cooperation rates when participants play both games simultaneously are lower than or equal to when they play each game separately. This finding suggests that experimental multimarket contact may inhibit cooperation.     

Environmental Product Standards in North–South Trade

Consumption is one channel through which the environment is damaged. To protect the environment, various product standards have been introduced across the world. This paper uses a new economic geography framework to explore the effects of environmental product standards on environment in a North–South trade model. It examines the situation in which the North unilaterally introduces an environmental product standard. Specifically, those products that do not meet the standard are not allowed to be sold in the North's market. It is found that such a standard may worsen the North's environment but improve the South's environment as a result of firm relocation.     

Discovery,invention and serendipity

This paper attempts to relate serendipity, the natural ability to make interesting or valuable discoveries by accident （Longman Discovery of Contemporary English） with notable discoveries and inventions. It connotes the profound ability of finding out valuable things different from those who have been exploring by spending a lot of time or for years. The author will illustrate as many cases as possible within a given time constraint, so that surrounding environments and situations may be clarified, and such discoveries and inventions may be plausibly accomplished by accident or with rich reasons. These illustrations include historical as well as more recent cases. One of the cases is beyond the scope of our environment on the earth with preconceived notion, while other cases have given great impacts to our politics and also military intelligence. It should be noted that business and technological intelligence are deeply connected with discoveries, inventions and serendipity. In concluding remarks, the essence of serendipity will be summarized and how to side with the serendipity at the most important moment will be examined by viewing time series endeavors of the inventors and those who have devoted much time to discoveries.     

Migration Turnarounds and Schedule Changes in Japan, Sweden and Canada

Little progress has been made in convincingly identifying the common determinants of the simultaneous migration turnarounds observed in almost all advanced countries. It is likely, however, that the turnarounds occurred in close relation to changes in the age patterns of the migration rates (or migration schedules). This paper examines the main causes of migration schedule changes by applying a model migration schedule to inter-regional migration data from Japan, Sweden and Canada. The general decline of overall mobility defined by the gross migraproduction rate is common to the three countries. It was clarified that young adults' peak migration rate played a prominent role in changing migration schedules during the decades of the migration turnarounds.     

Using DEA to evaluate the state of society as measured by multiple social indicators

This paper presents an approach for discussing the state of society, which is measured by multiple social indicators, using data envelopment analysis (DEA). Replacing inputs and outputs in DEA with negative and positive social indicators respectively, we analyze the desirability of living in the 47 prefectures of Japan. This is also a proposal for the potential use of DEA in multi-dimensional evaluation analysis other than the standard DEA efficiency analysis. The results using eight social indicators identify 26 DEA desirable prefectures out of the 47 and present other useful knowledge and information. It is concluded that DEA, which can avoid uniform evaluation by an a priori weighting system, provides availability as a comprehensive evaluation tool different from traditional ones.     

An application of the extended cross impact method to generating scenarios of social change in Japan

Scenarios of Japanese society in 2000 are obtained by applying an extended correlational cross impact analysis. Since the scope of the scenarios is extensive, a procedure is developed to generate the scenarios that consists of a preprocessing of the events of interest and a step-by-step application of a cross impact method. Three scenarios are described, based on a workshop where the procedure was applied.     

Dual labor market hypothesis and long-run income distribution

We construct a dynamic model of dual labor market, incorporating firm investment behavior and household investment behavior on education. Education enhances the trainability of individuals and thus provides qualifications for entry into the primary market. Two specifications of the model, differing in the nature of the new entrants' market, are presented; one admitting competitive adjustment in the scarcity premium of qualified entrants, while the other, a generalization of Thurow's job competition model, allocates employment through rationing. We obtain sharply different long-run determinants of income distribution between these alternative models. The result extends and qualifies existing interpretations on the schooling paradox observed in the U.S.