Economic Inquiry

Articles from Vol. 49, No. 2, April

An Experimental Test of the Persistence of Gender-Based Stereotypes
I. INTRODUCTION Whether men and women differ in their attitudes toward risk (and more specifically in their willingness to accept risk, ceteris paribus) is a subject of much debate; no clear answer is provided by the existing data. Although most...
Contest Design: An Experimental Investigation
I. INTRODUCTION Costly competitions between economic agents are often portrayed as contests. Examples range from college admissions and competition for promotions to global relationships in which different countries and political parties expend...
Critical Issues in the Practice of Market Design
I. INTRODUCTION For economic researchers hoping to influence the rules of real markets, 1994 was an auspicious year. It was a year of redesign for the National Resident Matching Program, whose rules were revised based on the recommendations of an...
Does Relative Thinking Exist in Real-World Situations? A Field Experiment with Bagels and Cream Cheese
I. INTRODUCTION In almost every purchase decision, consumers face various alternatives, which usually differ in their characteristics and prices. Even at the same store one could usually find various types of bread, soft drinks, toothpastes, TV...
Do Social Preferences Increase Productivity? Field Experimental Evidence from Fishermen in Toyama Bay
I. INTRODUCTION Laboratory experiments in economics have provided overwhelming evidence that many student participants exhibit social preferences: they care about the outcomes achieved by reference agents in addition to their own outcomes. These...
History Dependence and the Formation of Social Preferences: An Experimental Study
I. INTRODUCTION Over the past three decades experimental economics has identified a number of settings where players in noncooperative games make choices that are inconsistent with maximizing their own monetary payoffs but allow them to help or...
Leading with(out) Sacrifice? A Public-Goods Experiment with a Privileged Player
I. INTRODUCTION Suppose several academics are working together on a research project: providing input to the joint project usually much resembles contributing to a public good, and therefore reciprocity and conditional cooperation may affect the...
Multiproduct Pricing in Major League Baseball: A Principal Components Analysis
I. INTRODUCTION How do firms set their prices? The question is easily answered if the firm sells a single good at a single price: There should be an inverse relationship between the percentage markup and the elasticity of product demand q, as prescribed...
Offshore Outsourcing Decision and Capital Intensity: Firm-Level Relationships
I. INTRODUCTION The world economy in recent years is strongly characterized by new modes of cross-border activities, such as complex integration strategies by multinational corporations and of(shoring of wide varieties of tasks, just to name a few....
Offshoring Production: A Simple Model of Wages, Productivity, and Growth
I. INTRODUCTION The theme of globalization has evolved with the changing emphasis of the debate on the costs and benefits of greater integration of the world economy. In the beginning, the debate focused on free trade. Then during the 1990s significantly...
Optimal Competitive Balance in a Season Ticket League
There is no question the level of play has decreased. Now, do games become more exciting? Are teams more evenly matched? No question. Is that good for the game or not? I don't know. I really don't know. I ask that question all the time. --NFL Hall...
Paying More to Hire the Best? Foreign Firms, Wages, and Worker Mobility
I. INTRODUCTION As globalization evolves, there is greater interest in its labor-market implications. One dimension of this question concerns the role of foreign firms in terms of their remuneration of host-economy workers. While earlier cross-sectional...
Services Outsourcing and Innovation: An Empirical Investigation
I. INTRODUCTION The practice of sourcing services inputs from abroad has increased substantially over the last decades. For example, Amiti and Wei (2006) document that in the U.S. international outsourcing of services by manufacturing firms has...
Sleeping with the Enemy: The Economic Cost of Internal Environmental Conflicts
I. INTRODUCTION In 1996, a conflict emerged between Watauga County, NC, and its county seat, the Town of Boone, over the cost of an environmental cleanup. The problem arose when inspectors found the county landfill was leaking cancer-causing pollutants...
Steroids and Home Runs
I. INTRODUCTION Six bills are before Congress to impose drug testing and penalties on Major League Baseball (MLB) and other professional sports (Kiele 2005). A Senate hearing was held this year in which Jose Canseco, Mark McGwire, and Rafael Palmeiro...
The Combined Effect of Salary Restrictions and Revenue Sharing in Sports Leagues
I. INTRODUCTION Invariance principles are the golden eggs of economics. Franco Modigliani, Merton Miller, and Ronald Coase were awarded Nobel prizes for their formulations of important invariance principles. A predecessor of the famous Coase theorem...
The Effects of Employment Protection on Labor Turnover: Empirical Evidence from Taiwan
I. INTRODUCTION This paper studies the effects of employment protection legislation (EPL) on the rates of hiring, separation, worker flows, job reallocation, and churning flows. EPL refers to restrictions on firing by means of severance pay, mandatory...
The Flexibility of the Workweek in the United States: Evidence from the FIFA World Cup
I. INTRODUCTION At any given time, an American worker should benefit from some flexibility in his workweek schedule. There are events whose timing overlaps with the workday and if these events are valued by the worker, consuming them will increase...
The Impact of Trade Costs on Firm Entry, Exporting, and Survival in Korea
I. INTRODUCTION Declining trade costs is a signature feature of globalization and carries important consequences for the structure and performance of firms in an industry. Firms in most industries vary greatly in size, productivity, and capital...
The Moral Costs of Nastiness
Antisocial behavior is ubiquitous in the real world. People suffer violence from perfect strangers or have their cars scratched and tires punctured. Computer viruses are circulated solely to do harm. Yet behavioral economists have devoted almost all...
The Welfare Impact of Trade Liberalization
I. INTRODUCTION What are the effects of liberalized trade? This is a crucial question in the field of international economics. The wide consensus among economists is that free trade generates aggregate welfare gains through efficient reallocation...