Matching Items (68)

Filtering by

Clear all filters

129329-Thumbnail Image.png

Unraveling in a Repeated Moral Hazard Model With Multiple Agents

Description

This paper studies an infinite-horizon repeated moral hazard problem where a single principal employs several agents. We assume that the principal cannot observe the agents' effort choices; however, agents can observe each other and can be contractually required to make

This paper studies an infinite-horizon repeated moral hazard problem where a single principal employs several agents. We assume that the principal cannot observe the agents' effort choices; however, agents can observe each other and can be contractually required to make observation reports to the principal. Observation reports, if truthful, can serve as a monitoring instrument to discipline the agents. However, reports are cheap talk so that it is also possible for agents to collude, i.e., where they shirk, earn rents, and report otherwise to the principal. The main result of the paper constructs a class of collusion-proof contracts with two properties. First, equilibrium payoffs to both the principal and the agents approach their first-best benchmarks as the discount factor tends to unity. These payoff bounds apply to all subgame perfect equilibria in the game induced by the contract. Second, while equilibria themselves depend on the discount factor, the contract that induces these equilibria is independent of the discount factor.

Contributors

Created

Date Created
2015-01-01

128150-Thumbnail Image.png

The Weight of Trash: Teaching Sustainability and Ecofeminism by Asking Undergraduates to Carry Around Their Own Garbage

Description

This essay outlines a recent assignment I designed for an upper-division cross-listed women and gender studies/social justice and human rights course I teach called, “Trash, Freaks, and SCUM.” In the context of the students reading Edward Humes’ (2012) Garbology, the

This essay outlines a recent assignment I designed for an upper-division cross-listed women and gender studies/social justice and human rights course I teach called, “Trash, Freaks, and SCUM.” In the context of the students reading Edward Humes’ (2012) Garbology, the trash bag assignment asked that students carry around their trash for two 48-hour periods and that they present it to the class. While the first two day period assesses their actual trash output, students are asked to produce as little trash as possible for the second two day period. This assignment aims to make trash visible and to help students learn about climate change, sustainability, conspicuous consumption, and how their individual carbon footprint contributes to the “big picture” of environmental strain. I describe this assignment and its goals in this essay, followed by an assessment of its role in teaching about social justice, in order to underscore the importance of experiential learning with trash and to highlight how this assignment fits the mission of my courses on feminism and social justice.

Contributors

Created

Date Created
2015

128241-Thumbnail Image.png

Knowledge and Passive Adaptation to Climate Change: An Example From Indian Farmers

Description

This study is an attempt to use group information collected on climate change from farmers in eastern Uttar Pradesh, India to address a key question related to climate change policy: How to encourage farmers to adapt to climate change? First,

This study is an attempt to use group information collected on climate change from farmers in eastern Uttar Pradesh, India to address a key question related to climate change policy: How to encourage farmers to adapt to climate change? First, we investigate farmers’ perception of and adaptation to climate change using content analysis and group information. The findings are then compared with climatic and agriculture information collected through secondary sources. Results suggest that though farmers are aware of long-term changes in climatic factors (temperature and rainfall, for example), they are unable to identify these changes as climate change. Farmers are also aware of risks generated by climate variability and extreme climatic events. However, farmers are not taking concrete steps in dealing with perceived climatic changes, although we find out that farmers are changing their agricultural and farming practices. These included changing sowing and harvesting timing, cultivation of crops of short duration varieties, inter-cropping, changing cropping pattern, investment in irrigation, and agroforestry. Note that these changes may be considered as passive response or adaptation strategies to climate change. Perhaps farmers are implicitly taking initiatives to adapt climate change. Finally, the paper suggests some policy interventions to scale up adaptation to climate change in Indian agriculture.

Contributors

Agent

Created

Date Created
2016-11-24

129385-Thumbnail Image.png

Contextualizing Dirty Work: The Neglected Role of Cultural, Historical, and Demographic Context

Description

Although perceptions of physically, socially, and morally stigmatized occupations – ‘dirty work’ – are socially constructed, very little attention has been paid to how the context shapes those constructions. We explore the impact of historical trends (when), macro and micro

Although perceptions of physically, socially, and morally stigmatized occupations – ‘dirty work’ – are socially constructed, very little attention has been paid to how the context shapes those constructions. We explore the impact of historical trends (when), macro and micro cultures (where), and demographic characteristics (who) on the social construction of dirty work. Historically, the rise of hygiene, along with economic and technological development, resulted in greater societal distancing from dirty work, while the rise of liberalism has resulted in greater social acceptance of some morally stigmatized occupations. Culturally, masculinity tends to be preferred over femininity as an ideological discourse for dirty work, unless the occupation is female-dominated; members of collectivist cultures are generally better able than members of individualist cultures to combat the collective-level threat that stigma inherently represents; and members of high power-distance cultures tend to view dirty work more negatively than members of low power-distance cultures. Demographically, marginalized work tends to devolve to marginalized socioeconomic, gender, and racioethnic categories, creating a pernicious and entrapping recursive loop between ‘dirty work’ and being labeled as ‘dirty people.’

Contributors

Agent

Created

Date Created
2014-07-01

129286-Thumbnail Image.png

Short Selling Pressure, Stock Price Behavior, and Management Forecast Precision: Evidence From a Natural Experiment

Description

Using a natural experiment (Regulation SHO), we show that short selling pressure and consequent stock price behavior have a causal effect on managers’ voluntary disclosure choices. Specifically, we find that managers respond to a positive exogenous shock to short selling

Using a natural experiment (Regulation SHO), we show that short selling pressure and consequent stock price behavior have a causal effect on managers’ voluntary disclosure choices. Specifically, we find that managers respond to a positive exogenous shock to short selling pressure and price sensitivity to bad news by reducing the precision of bad news forecasts. This finding on management forecasts appears to be generalizable to other corporate disclosures. In particular, we find that, in response to increased short selling pressure, managers also reduce the readability (or increase the fuzziness) of bad news annual reports. Overall, our results suggest that maintaining the current level of stock prices is an important consideration in managers’ strategic disclosure decisions.

Contributors

Agent

Created

Date Created
2015-03-01

129295-Thumbnail Image.png

How Do Case Law and Statute Differ? Lessons From the Evolution of Mortgage Law

Description

This paper traces the history of mortgage law in the United States. I explore the history of foreclosure procedures, redemption periods, restrictions on deficiency judgments, and foreclosure moratoria. The historical record shows that the most enduring aspects of mortgage law

This paper traces the history of mortgage law in the United States. I explore the history of foreclosure procedures, redemption periods, restrictions on deficiency judgments, and foreclosure moratoria. The historical record shows that the most enduring aspects of mortgage law stem from case law rather than statute. In particular, the ability of creditors to foreclose nonjudicially is determined very early in states’ histories, usually before the Civil War, and usually in case law. In contrast, the aspects of mortgage law developed through statute change more frequently. This finding calls into question whether common law is inherently more flexible than the civil-law system used in some other countries. However, case law tends to be less responsive to populist pressures than statutes. My findings suggest that the reason common law favors financial development is unlikely to be its greater flexibility relative to law made by statute.

Contributors

Agent

Created

Date Created
2014-11-01

Caciques as Placeholders in the Guarani Missions of Eighteenth Century Paraguay

Description

This essay uses census data from the eighteenth century to examine the leadership role of caciques in the Guaraní missions. Cacique succession between 1735 and 1759 confirms that the position of cacique transitioned from the Guaraníes’ flexible interpretation of hereditary

This essay uses census data from the eighteenth century to examine the leadership role of caciques in the Guaraní missions. Cacique succession between 1735 and 1759 confirms that the position of cacique transitioned from the Guaraníes’ flexible interpretation of hereditary succession to the Jesuits’ rigid idea of primogenitor (father to eldest son) succession. This essay argues that scholars overstate the caciques’ leadership role in the Guaraní missions. Adherence to primogenitor succession did not take into account a candidate's leadership qualities, and thus, some caciques functioned as placeholders for organizing the mission population and calculating tribute and not as active leaders. An assortment of other Guaraní leadership positions compensated for this weakness by providing both access to leadership roles for non-caciques who possessed leadership qualities but not the proper bloodline and additional leadership opportunities for more capable caciques. By taking into account leadership qualities and not just descent, these positions provided flexibility and reflected continuity with pre-contact Guaraní ideas about leadership.

Contributors

Created

Date Created
2013-11-30

129469-Thumbnail Image.png

Determinants of Mobile Apps' Success: Evidence From the App Store Market

Description

Mobile applications markets with app stores have introduced a new approach to define and sell software applications with access to a large body of heterogeneous consumer population. This research examines key seller- and app-level characteristics that impact success in an

Mobile applications markets with app stores have introduced a new approach to define and sell software applications with access to a large body of heterogeneous consumer population. This research examines key seller- and app-level characteristics that impact success in an app store market. We tracked individual apps and their presence in the top-grossing 300 chart in Apple's App Store and examined how factors at different levels affect the apps' survival in the top 300 chart. We used a generalized hierarchical modeling approach to measure sales performance, and confirmed the results with the use of a hazard model and a count regression model. We find that broadening app offerings across multiple categories is a key determinant that contributes to a higher probability of survival in the top charts. App-level attributes such as free app offers, high initial ranks, investment in less-popular (less-competitive) categories, continuous quality updates, and high-volume and high-user review scores have positive effects on apps' sustainability. In general, each diversification decision across a category results in an approximately 15 percent increase in the presence of an app in the top charts. Survival rates for free apps are up to two times more than that for paid apps. Quality (feature) updates to apps can contribute up to a threefold improvement in survival rate as well. A key implication of the results of this study is that sellers must utilize the natural segmentation in consumer tastes offered by the different categories to improve sales performance.

Contributors

Agent

Created

Date Created
2013-11-30

129490-Thumbnail Image.png

Price Inferences for Sacred VS. Secular Goods: Changing the Price of Medicine Influences Health Risk

Description

The current research examines how the price of a medication influences consumers’ beliefs about their own disease risk—a critical question with new laws mandating greater price transparency for health care goods and services. Four studies reveal that consumers believe that

The current research examines how the price of a medication influences consumers’ beliefs about their own disease risk—a critical question with new laws mandating greater price transparency for health care goods and services. Four studies reveal that consumers believe that lifesaving health goods are priced according to perceived need (i.e., communal-sharing principles) and that price consequently influences risk perceptions and intentions to consume care. Specifically, consumers believe that lower medication prices signal greater accessibility to anyone in need, and such accessibility thus makes them feel that their own self-risk is elevated, increasing consumption. The reverse is true for higher prices. Importantly, these effects are limited to self-relevant health threats and reveal that consumers make inconsistent assumptions about risk, prevalence, and need with price exposure. These findings suggest that while greater price transparency may indeed reduce consumption of higher-priced goods, it may do so for both necessary and unnecessary care.

Contributors

Agent

Created

Date Created
2012-11-14

129491-Thumbnail Image.png

Doing It the Hard Way: How Low Control Drives Preferences for High-Effort Products and Services

Description

Consumers often face situations in which their feelings of personal control are threatened. In such contexts, what role should products play in helping consumers pursue their goals (e.g., losing weight, maintaining a clean home)? Across five studies, we challenge the

Consumers often face situations in which their feelings of personal control are threatened. In such contexts, what role should products play in helping consumers pursue their goals (e.g., losing weight, maintaining a clean home)? Across five studies, we challenge the traditional view that low control is detrimental to effort and demonstrate that consumers prefer products that require them to engage in hard work when feelings of control are low. Such high-effort products reassure individuals that desired outcomes are possible while also enabling them to feel as if they have driven their own outcomes. We also identify important boundary conditions, finding that both the nature of individuals' thoughts about control and their perceived rate of progress toward goals are important factors in the desire to exert increased effort.

Contributors

Agent

Created

Date Created
2014-10-01