INCOME INEQUALITY, RECIPROCITY AND PUBLIC GOOD PROVISION: AN EXPERIMENTAL ANALYSIS

This paper analyses the impact of income inequality on public good provision in an experimental setting. A sample of secondary school students were recruited to participate in a simple linear public goods game where income heterogeneity was introduced by providing participants with unequal token endowments. The results show that endowment heterogeneity does not have any significant impact on contributions to the public good, and that consistent with models of reciprocity, low and high endowment players contribute the same fraction of their endowment to the public pool. Moreover, individuals appear to adjust their contributions in order to maintain a fair share rule.     

8D方法在汽车零部件供应商质量改进中的实践

本文就8D在汽车零部件供应商质量管理中的实践加以阐述.     

How Large Looms the Ghost of the Past? State Dependence versus Heterogeneity in Coordination Games

In games with multiple, Pareto‐rankable equilibria and repeated play, does a history of playing an inefficient equilibrium make it harder for players to reach the efficient equilibrium? In other words, can people “get stuck” in bad equilibria? Previous studies have found support for this, but they have relied on naturally occurring variation in precedent. I implement randomized control to establish that precedent effects are important, but that naturally occurring variation exaggerates the importance of precedent. I present evidence that some of the endogeneity of naturally occurring precedents is due to variation in risk attitudes. This is because in the coordination games used, the inefficient equilibrium is associated with a safe strategy. Understanding the causal effect of precedent is important since many development problems are viewed as coordination games. Moreover, an appreciation of the way in which potential heterogeneity may interact with the policy is essential when trying to lift groups out of bad precedents.     

Remarks on Virtual World and Virtual Reality Experiments

In recent years there has been increased behavioral research in virtual reality and virtual worlds. While these experiments could offer substantial advantages to researchers, they might also pose risks. We begin by identifying key concepts in virtual experimental research. Then we review the critical virtual reality component of virtual worlds. Finally, we offer guidance in conducting virtual world research.     

ON THE OPTIMAL QUANTITY OF PUBLIC GOODS AND RELATED ISSUES

This paper seeks to reopen a discussion on what the profession has considered settled and closed, namely the issue of the optimal quantity of a pure public good. We argue that determination of the optimal quantity by the intersection of the collective willingness to pay curve and the supply curve is inappropriate because it exaggerates the aggregate demand for the public good, thus giving rise to misleading supply decisions. The reason lies in the basic properties of pure public goods, in particular that of non‐rival consumption (joint supply). The paper submits that the optimal quantity of a public good is the largest quantity demanded by any single consumer (individually or as a collective). The individual demand curves are required in the analysis only for the purposes of determining the optimal benefit taxes and an equitable cost sharing formula. We show that under such a formula, based on benefit shares, the budget will be balanced, and since the tax burden is smaller than the benefits, less resentment to taxation could be anticipated under this framework.     

G-20 and China: A Chinese Perspective

I.China’s Evolving Global ViewIn the1940s-1950s,to alarge extentdue to Truman’s support for Chiang Kai-shek duringChina’scivilwar,andAmerica’shostility to thenewly founded China,MaoZedong decidedthat China should lean towards the Soviet Union.For more than a decade the concept ofconflict between two camps,the socialistcamp and thecapitalist camp,dominated China’sglobalview.It was believed that,despitethe desire for peace by the socialist camp,militaryconflicts between the two camps …     

The Making of Australia's Supermarket Duopoly, 1958–2000

Australian supermarkets had one of the highest levels of concentration among developed economies by 2000. This paper explores the making of a duopoly comprising Coles and Woolworths. We present historical data on market shares in Australia and international comparisons for around 2000. We identify the evolution of their dynamic capabilities through the lens of Teece, Pisano and Shuen's positions, paths and processes (1997). The industrial organisation literature stresses interaction become rivals, notably pre-emptive strategies including sunk costs (Lee and Ng 2007; Sutton 1991). We argue that the development of dynamic capabilities enabled the execution of various pre-emptive strategies.     

Are You Risk Averse over Other People's Money?

Decisions with uncertain outcomes are often made by one party in settings where another party bears the consequences. Whenever an individual is delegated to make decisions that affect others, such as in the typical corporate structure, does the individual make decisions that reflect the risk preferences of the party bearing the consequences? We examine this question in two simple settings, lottery choices and sealed‐bid auctions, using controlled laboratory experiments. We find that when an individual makes a decision for an anonymous stranger, there is a tendency to exhibit less risk aversion. This reduction in risk aversion is relative to his or her own preferences, and it is also relative to his or her belief about the preferences of others. This result has significant implications for the design of contracts between principals and agents.