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.     

Public Monopoly,Mixed Oligopoly and Productive Efficiency

In general, the introduction of competition into the public sector seems to lead to higher cost‐efficiency in service production. However, there are examples of substantial cost increases in some areas. In this paper, using a mixed oligopoly model, we investigate the effects of deregulation on the cost‐reducing incentives of a public firm. Our results show that a firm that is a public monopoly has greater incentive to conduct cost‐reducing investment than a public firm within mixed oligopoly market.     

The knowledge management strategy and the formation of innovative networks in emerging industries

This paper presents an agent-based simulation model with local network externality to analyze strategic interactions over investment on new economic knowledge. R&D knowledge flows and spillovers are the results of non-cooperative games played between neighboring agents in the model. The model demonstrates a situation where no agents have incentives to hide their economic knowledge, a situation that is observed in open source software development projects. The likelihood of obtaining a stable situation where new economic knowledge is openly shared is increased when heterogeneity of agents is introduced.      

Inefficient but Robust Public Leadership

We investigate endogenous timing in a mixed duopoly in a differentiated product market. We find that private leadership is better than public leadership from a social welfare perspective if the private firm is domestic, regardless of the degree of product differentiation. Nevertheless, the public leadership equilibrium is risk-dominant, and it is thus robust if the degree of product differentiation is high. We also find that regardless of the degree of product differentiation, the public leadership equilibrium is risk-dominant if the private firm is foreign. These results may explain the recent revival of public financial institutions in Japan.     

GMO-free regions in Europe: an analysis of diffusion patterns

Genetically modified organisms (GMOs) have been a controversial issue in the European Union (EU). A growing number of member states and regions within the member states oppose the EU’s agro-biotechnology policy, resulting in a complex multi-level structure of policy-making. This study is interested in the regional opposition to GMOs and scrutinises the determinants of membership in the European Network of GMO-free Regions. In terms of theory, this study builds on the literature of policy diffusion. For the analytical purpose, we distinguish among four diffusion mechanisms: learning from earlier adopters, economic competition among proximate regions, imitation of economically powerful regions and deviation from national law. Our research questions are the following: How has membership developed since the foundation of the network? Which mechanisms explain the diffusion patterns observed? The empirical findings show that membership in the network has grown substantially between 2003 and 2014, which supports the general expectation that there is a diffusion of GMO-free regions. Yet, most new member regions are located in the same member states as the regions that founded the network. In other words, what is observed is intra-country diffusion rather than inter-country diffusion. The empirical findings provide support for the importance of learning from earlier adopters for the growing of the European Network of GMO-free Regions.     

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.     

The dilemma of exchange rate arrangements in East Asia

This paper analyzes exchange rate flexibility in East Asia and explores what has changed since the Asian financial crisis. Our focus is not on the choice of an appropriate exchange rate regime in East Asia, but rather on exchange rate flexibility and management in the region. We find that exchange rate management in East Asia differs based on the country and the time period. We identify major concerns about current exchange rate arrangements in East Asia, including asymmetric responses to external shocks, competitive devaluation, and the dilemma of choosing between asset dollarization and liability dollarization. The paper concludes with some policy implications for an exchange rate arrangement in East Asia.