Economic Inquiry

Articles from Vol. 29, No. 2, April

A Bandwagon Effect in Personalized License Plates?
A BANDWAGON EFFECT IN PERSONALIZED LICENSE PLATES? The bandwagon effect is a consumption externality that exists when an individual's demand for a good is increased by his observation of other consumers using that good. This paper models a product...
A Comment on Competition and Bidding Behavior: Some Evidence from the Rice Market
A COMMENT ON COMPETITION AND BIDDING BEHAVIOR: SOME EVIDENCE FROM THE RICE MARKET In testing agents' responses to increased competition in sealed-bid first price-rice auctions, Meyer [1988] makes two erroneous assumptions: (1) that agents know ex...
Bank Panics, Suspensions, and Geography: Some Notes on the "Contagion of Fear" in Banking
BANK PANICS, SUSPENSIONS, AND GEOGRAPHY: SOME NOTES ON THE "CONTAGION OF FEAR" IN BANKING Recent attempts to understand bank panics tend to emphasize informational asymmetries or the possibilities of multiple equilibria. Such approaches stand in contrast...
Certainty vs. Severity of Punishment
CERTAINTY VS. SEVERITY OF PUNISHMENT Recent research has generated conflicting findings regarding the role of employment and earnings versus criminal justice sanctions in reducing crime. Further disagreement exists over the relative effectiveness...
Efficient User Charges in a Rent-Seeking Model
EFFICIENT USER CHARGES IN A RENT-SEEKING MODEL This paper examines efficient user charges on governmentally provided facilities in the presence of rent seeking. We find that the efficient user charge depends upon the relative slopes of the demand...
Impact of the New Zealand Seat Belt Law
IMPACT OF THE NEW ZEALAND SEAT BELT LAW Offsetting consumer behavior may have reduced the effectiveness of a mandatory seat belt law in reducing fatalities in New Zealand. It appears that the favorable effect on automobile occupants may be offset...
Ownership and the Regulation of Wildlife
OWNERSHIP AND THE REGULATION OF WILDLIFE The use of wildlife resources is governed by a combination of private contracts and public regulations. Most often, private landowners control access rights, and government agencies regulate hunting and other...
Teaching Tools: A Public Goods Experiment for the Classroom
TEACHING TOOLS A PUBLIC GOODS EXPERIMENT FOR THE CLASSROOM George Stigler wrote in the American Economic Review twenty-seven years ago, that the typical student in an introductory college economics course would "memorize a few facts, diagrams, and...
The Demand to Regulate Franchise Monopoly: Evidence from CATV Rate Deregulation in California
THE DEMAND TO REGULATE FRANCHISE MONOPOLY: EVIDENCE FROM CATV RATE DEREGULATION IN CALIFORNIA The motivation to price control a franchise monopoly is examined in the context of three distinct economic views of regulatory behavior. These views are...
The Distribution of Wealth and the Efficiency of Institutions
THE DISTRIBUTION OF WEALTH AND THE EFFICIENCY OF INSTITUTIONS This paper explores the effect on economic efficiency of the distribution of wealth and systems for enforcing property rights. We construct a two-person, two-period economy in which each...
The Hayek Hypothesis in Experimental Auctions: Institutional Effects and Market Power
THE HAYEK HYPOTHESIS IN EXPERIMENTAL AUCTIONS: INSTITUTIONAL EFFECTS AND MARKET POWER We report twelve market experiments utilizing a "seller market power" supply and demand structure where two of five sellers can unilaterally increase their profit...
The Impact of R&D Investment on Productivity - New Evidence Using Linked R&D - LRD Data
THE IMPACT OF R&D INVESTMENT ON PRODUCTIVITY--NEW EVIDENCE USING LINKED R&D--LRD DATA This paper uses confidential Census longitudinal microdata to examine the association between R&D and productivity for the period 1972-1985. These data...
The Importance of Sectoral and Aggregate Shocks in Business Cycles
THE IMPORTANCE OF SECTORAL AND AGGREGATE SHOCKS IN BUSINESS CYCLES The theoretical literature on business cycles proposes numerous causes for their occurrence. This paper attempts to measure the relative importance of aggregate, whether real or nominal,...
Voluntary Contribution Games: Efficient Private Provision of Public Goods
VOLUNTARY CONTRIBUTION GAMES: EFFICIENT PRIVATE PROVISION OF PUBLIC GOODS This paper reports on a series of laboratory experiments designed to evaluate a mechanism for the voluntary provision of public good. The public good is provided if the total...