infonet-economy

Recognizing intentions of strangers from facial cues is crucial in everyday social interactions. Recent studies demonstrated enhanced event-related potential (ERP) responses to untrustworthy compared to trustworthy faces. The aim of the present study was to investigate the electrophysiological correlates of automatic processing of trustworthiness cues in a visual oddball paradigm in...

The market for multi-channel video programming has undergone considerable change in the last 15 years. Direct-Broadcast Satellite service, spurred by 1999 legislation that leveled the playing field with cable television systems, has grown from 3% to 33% of the U.S. MVPD (cable, satellite, and telco video) market. Telephone operators have entered in some parts of the US and online...

Empathy and morality have an important yet very complex relation. This complexity is most likely due to the multifaceted nature of empathy and the uncertainty of knowledge about the nature of morality. This chapter first considers the philosophical debate on the nature of morality. Second, it presents empirical data from social neuroscience and psychology to differentiate empathy...

Little is known about how different bonus schemes affect traders' propensity to trade and which bonus schemes improve traders' performance. We study the effects of linear versus threshold bonus schemes on traders' behavior. Traders buy and sell shares in an experimental stock market on the basis of fundamental and technical information (past share price evolution,...

Reducing tax evasion is a key challenge for governments around the world, particularly in developing countries. This paper presents a methodology to generate information to optimize audit strategies. Randomly selected taxpayers receive a deterrence message. Comparing their subsequent tax payments to a control group allows estimating what types of taxpayers are more likely to respond...

Public attention has focused on how the launch of the national health exchanges could impact the types of risks who initially enroll and thereby affect future premiums and enrollment. We introduce simple dynamics into a standard model of insurance under adverse selection to show that such "initial conditions" can indeed matter. When firms are price-takers, the market can...