Who Is the Loser When I Lose the Game? Does Losing an Advergame Have a Negative Impact on the Perception of the Brand?

Many computer games are based on the principle of competition, making the outcome of the game, namely, the prospect of victory and the threat of defeat, a key element. A lab experiment was conducted to study the effects of a game's outcome on the player's mood, brand attitude, and game attitude as well as the experience of flow (N = 95; between-subject design: game lost versus game won versus no induction of the game outcome). The results show that although winners are not in a better mood after the game, they rate the game as better and assess the brands advertised more positively than before they played the game. They have an increased likelihood of experiencing flow, whereas no significant effects of losing the game could be detected due to the total mediation of the flow experience in the case of the losing condition.     

The Economics of Sustainable Land Management Practices in the Ethiopian Highlands

This article uses data from household‐ and plot‐level surveys conducted in the highlands of the Tigray and Amhara regions of Ethiopia. We examine the contribution of sustainable land management (SLM) practices to net value of agricultural production in areas with low vs. high agricultural potential. A combination of parametric and non‐parametric estimation techniques is used to check result robustness. Both techniques consistently predict that minimum tillage (MT) is superior to commercial fertilisers (CFs), as are farmers’ traditional practices (FTPs) without CFs, in enhancing crop productivity in the low agricultural potential areas. In the high agricultural potential areas, in contrast, use of CFs is superior to both MT and FTPs without CFs. The results are found to be insensitive to hidden bias. Our findings imply a need for careful agro‐ecological targeting when developing, promoting and scaling up SLM practices.     

Estimating returns to soil conservation adoption in the northern Ethiopian highlands

Land degradation in the form of soil erosion and nutrient depletion presents a threat to food security and sustainability of agricultural production in many developing countries. Governments and development agencies have invested substantial resources to promote soil conservation practices as part of an effort to improve environmental conditions and reduce poverty. However, limited rigorous empirical work has been done on the economics of soil conservation technology adoption. This article investigates the impact of stone bunds on value of crop production per hectare in low and high rainfall areas of the Ethiopian highlands using cross-sectional data from more than 900 households, with multiple plots per household. We have used modified random effects models, stochastic dominance analysis (SDA), and matching methods to ensure robustness. The parametric regression and SDA estimates are based on matched observations obtained from the nearest neighbor matching using propensity score estimates. This is important, because conventional regression and SDA estimates are obtained without ensuring that there actually exist comparable conserved and nonconserved plots on the distribution of covariates. We use matching methods, random effects, and Mundlak's approach to control selection and endogeneity bias that may arise due to correlation of unobserved heterogeneity and observed explanatory variables.
We find that the three methods tell a consistent story. Plots with stone bunds are more productive than those without such technologies in semi-arid areas but not in higher rainfall areas, apparently because the moisture conserving benefits of this technology are more beneficial in drier areas. This implies that the performance of stone bunds varies by agro-ecology type, suggesting the need for designing and implementing appropriate site-specific technologies.     

Evaluating the Potential of Index Insurance Schemes to Reduce Crop Yield Risk in an Arid Region

We evaluate yield risk reduction through weather index, area yield index and farm yield insurance contracts for wheat farms in Kazakhstan by employing data from 1980 to 2002. We use the usual mean variance (MV) approach and also a second‐degree stochastic dominance (SSD) criterion. While MV is not necessarily consistent with the expected utility (EU) theory, SSD results only in a minimum but EU‐consistent benefit from insuring. Differences in the estimation results for both approaches underline the advantage of applying both criteria to analyse the risk‐reducing potential of crop insurance. Bootstrapping results show that none of the analysed insurance schemes provides statistically significant risk reduction for every single farm. In addition, weather‐based index insurance is found to provide less risk reduction than area yield insurance based on the rayon (county) yield. Moreover, rayon yield index insurance can reduce yield risk more effectively for Kazakhstan's wheat producers than farm yield insurance with a low strike yield.     

Rationing Can Backfire: The "Day without a Car" in Mexico City

A ban restricting each car from driving on a specified weekdayis found to have increased total driving in Mexico City. Becauseof the ban, cars effectively represent "driving permits," andsome households have bought an additional car and increasedtheir driving. Greater use of old cars, congestion effects,and increased weekend driving may also have contributed to thedisappointing results. The ban has high welfare costs and doesnot deliver the intended benefits of reduced driving—quitethe contrary. The experience provides an interesting lesson in applied welfareeconomics. Theory indicates that this is a costly way of reducingtraffic and pollution. But the finding that the strategy iscounterproductive could be made only with applied quantitativeanalysis.