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- Creators: Economics Program in CLAS
- Creators: Arizona State University
The same institutions (rules, norms and strategies) that dominated with the hierarchical infrastructure system of the twentieth century are unlikely to be good fit if a more distributed infrastructure increases in dominance. As information is produced at more distributed points, it is more difficult to coordinate and manage as an interconnected system. This research examines several aspects of these, historically dominant, infrastructure provisioning strategies to understand the implications of managing more distributed information. The first chapter experimentally examines information search and sharing strategies under different information protection rules. The second and third chapters focus on strategies to model and compare distributed energy production effects on shared electricity grid infrastructure. Finally, the fourth chapter dives into the literature of co-production, and explores connections between concepts in co-production and modularity (an engineering approach to information encapsulation) using the distributed energy resource regulations for San Diego, CA. Each of these sections highlights different aspects of how information rules offer a design space to enable a more adaptive, innovative and sustainable energy system that can more easily react to the shocks of the twenty-first century.
The field of behavioral economics explores the ways in which individuals make choices under uncertainty, in part, by examining the role that risk attitudes play in a person’s efforts to maximize their own utility. This thesis aims to contribute to the body of economic literature regarding risk attitudes by first evaluating the traditional economic method for discerning risk coefficients by examining whether students provide reasonable answers to lottery questions. Second, the answers of reasonable respondents are subject to our economic model using the CRRA utility function in which Python code is used to make predictions of the risk coefficients of respondents via a two-step regression procedure. Lastly, the degree to which the economic model provides a good fit for the lottery answers given by reasonable respondents is discerned. The most notable findings of the study are as follows. College students had extreme difficulty in understanding lottery questions of this sort, with Medical and Life Science majors struggling significantly more than both Business and Engineering majors. Additionally, gender was correlated with estimated risk coefficients, with females being more risk-loving relative to males. Lastly, in regards to the model’s goodness of fit when evaluating potential losses, the expected utility model involving choice under uncertainty was consistent with the behavior of progressives and moderates but inconsistent with the behavior of conservatives.