Trip chaining behavior in multi-destination shopping trips: A field experiment and laboratory replication

Models of consumer store patronage generally employ the economic theory-based assumption that, all else being equal, consumers seek to minimize travel distance. Moreover, consistent with reference-dependent theory, findings from recent experimental research conducted in a controlled lab setting suggest that holding travel distance constant, the configuration of stops along multi-stop routes may also impact store-patronage decisions. However, given the use of simplified map configurations of multi-stop routes, along with the stimulus-based nature of the laboratory exercise, the external validity of these findings are open to question. Thus, the purpose of the three experiments in the present paper is to replicate and test the external validity of the reference-dependent predictions supported in previous research. In experiment one, consumer travel preferences are examined in a memory-based field experiment with results replicating those of earlier research. In experiment two, results are again replicated, but this time in a lab setting using realistic maps. Finally, experiment three provides a test of boundary conditions for the theory-consistent results of experiments one and two.     

MATHEMATICAL MODELLING AND STOCHASTIC SIMULATION OF ACCOUNTING ALTERNATIVES

Computer-based simulation has been widely used to study the effects of alternative accounting procedures. For simple scenarios, mathematical modelling can also reveal the consequences of employing different accounting methods. This paper uses stochastic simulation to build a complex model which cannot be solved analytically, and compares this approach directly with mathematical modelling of a simplified version of the same accounting problem.     

Sales tax exemptions and credits: Time to reevaluate

The state sales tax is an inherently regressive source of revenue. This has given rise to attempts to counter the regressivity through adjustments to the basic sales tax structure through credits and exemptions. Two new alternatives appear to have both theoretical and practical advantages over simple credits and exemptions: the use of a debit card for delivering sales tax credits and a negative credit related to potential tax liability. They have the theoretical advantages of both the credit and the exemption while not having the administrative difficulties of the credit or the revenue loss of the exemption. Empirical analysis using the Consumer Expenditure Survey and the Maryland tax code indicates that the state can reduce regressivity and raise substantial revenue using either alternative. The proposed gains can be made with enhanced revenue stability, little administrative cost, and little impact on horizontal equity or efficiency.     

The Optimal Size of a Religious Congregation: An Economic Theory of Clubs Analysis

The economic theory of clubs model is applied to determine the optimal size of a religious congregation. The optimal size is specified to be where total contributions are maximized. This occurs where the marginal benefits of adding a new member (in terms of contributions gained from that new member) equal the marginal costs of that new member (in terms of contributions lost from existing members). Benefits from adding members include enhanced fellowship opportunities and the spreading of fixed costs across a broader base. Costs include the congestion of facilities and a greater tendency to free ride. The model is empirically tested for four denominations. The average Catholic parish is found to be much larger than its optimal size, while the average Episcopalian, Lutheran, and Methodist congregations are all found to be smaller than their optimal size.     

Comparison of Seasonal Anomalies across Major Equity Markets: A Note

This paper reexamines the existence of seasonal anomalies in daily stock prices by integrating seasonal patterns into a single comprehensive model that captures the joint effects of seasonal variations for each of the three major markets. This model incorporates serial correlation and corrects for non-normality by using robust regression techniques. Serial correlation is found to be important, as is the day of the week and the January variable. Furthermore, the Tuesday after a Monday holiday is significant for two markets using the robust technique (but not ordinary least squares). Finally, the day-preceding-a-holiday effect is strongly significant.     

Technological diffusion: European experience to 1850

This paper considers the diffusion of British technology to the Continent, especially France and Prussia, during the industrial revolution. Particular attention is paid to the various transmission mechanisms and to differences in the speed of diffusion. It is shown that the economic growth of a country and its absorption of foreign technology tends to follow a logistic curve. This suggests that linear and purely economic explanations of technological transmission may be inadequate.     

In Support of Trigger Strategies: Experimental Evidence from Two-Person Noncooperative Games

Cooperative equilibria can be supported in a repeated game when players use trigger strategies. This paper tests how well trigger strategies explain behavior in two-person experimental games. Reducing payoffs for choices larger than the Cournot level induces smaller average outputs, behavior generally consistent with trigger strategy models. Reducing payoffs for choices well above the Cournot level will not affect behavior if actions are consistent with a trigger strategy involving longer-lived, less intense punishment phases (the grim-reaper strategy), but would matter for trigger strategies with short-lived but intense punishment phases. Results show that behavior is most consistent with the former.