infonet-economy

Different social contexts have been used when measuring distributional preferences. This could be problematic as contextual variance may inadvertently muddle the measurement process. We use a within-subjects design and measure distributional preferences in resource allocation tasks with role certainty, role uncertainty, decomposed games, and matrix games. Results show that, at the…

Conceptual priming has become an increasingly popular tool in economics. Here, we review the literature that uses priming in incentivized experiments to study economic questions. We mainly focus on the role of social identity, culture, and norms in shaping preferences and behavior. We also discuss recently raised objections to priming research and conclude with promising avenues for…

In this essay, we ask whether the distributions of life expectancy and mortality have become generally more unequal, as many seem to believe, and we report some good news. Focusing on groups of counties ranked by their poverty rates, we show that gains in life expectancy at birth have actually been relatively equally distributed between rich and poor areas. Analysts who have…

Self-control is a key skill that has important implications for life success. Parallel research programs in psychology, economics, and most recently neuroeconomics have identified important correlates and outcomes of self-control. Among those are for example educational achievements, financial stability, and health. However, the cognitive mechanisms underlying self-control remain…

Changed reward functions have been proposed as a core feature of stimulant addiction, typically observed as reduced neural responses to non-drug-related rewards. However, it was unclear yet how specific this deficit is for different types of non-drug rewards arising from social and non-social reinforcements. We used functional neuroimaging in cocaine users to investigate explicit…

Optimal rank-order tournaments have traditionally been studied using a first-order approach. The present analysis relies instead on the construction of an "upper envelope" over all incentive compatibility conditions. lt turns out that the first-order approach is not innocuous. For example, in contrast to the traditional understanding, tournaments may be dominated by piece…

We analyze the endogenous formation of R&D networks, where firms are active in different product markets and can benefit from R&D spillovers form collaborating firms within or across different industries. R&D spillovers help firms to introduce process innovations to lower their production costs. Product innovations introduce an escape-competition effect, through which…

What tariffs would countries impose if they did not have to fear any retaliation? What would occur if there was a complete breakdown of trade policy cooperation? What would be the outcome if countries engaged in fully efficient trade negotiations? And what would happen to trade policy cooperation if the world trading system had a different institutional design? While such questions…

We develop a framework for optimal taxation when agents can earn their income both in traditional activities, where private and social products coincide, and in rent-seeking activities, where private returns exceed social returns either because they involve the capture of pre-existing rents or because they reduce the returns to traditional work. We characterize Pareto optimal income…