Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction

We compare the capability of the Becker–DeGroot–Marschak (BDM) mechanism and the Vickrey auction to reveal willingness-to-pay information for a sample of French consumers. We measure the bias and dispersion of bids relative to valuations. We find that the Vickrey auction, for the particular training procedure we employ, is more effective as a willingness-to-pay elicitation device than the BDM process. We conjecture that differences in the shape of the payoff function account for some of the differences.     

Household Income,Women's Earnings,and Spending on Household Services, 1980–2010

The authors investigated changes in household outsourcing, the practice of spending on services that replace household labor, from 1980 to 2010. During this time, women's labor force participation, increased and economic, household bargaining, and time availability theories predict increased spending during this period. To test these predictions, the authors used data on spending on housekeeping, day care, babysitting and nannies, gardening and lawn services, eating out and pre‐prepared foods from the 1980–2010 Consumer Expenditure Surveys using 327,903 household‐quarters from the interview survey and 86,877 household‐weeks from the diary survey. The results indicate that changes in income predicted increases in housekeeping, child care, and gardening services. Changes in household characteristics predicted little change in food outsourcing, although food outsourcing did increase. Changes in women's earnings predicted little change in most outsourcing. The authors conclude the article with a discussion of the changing context for outsourcing.     

Managing money, managing coupledom: a critical examination of cohabitants' money management practices

This article focuses on the use of independent money management by a small number of cohabitants living in New Zealand. This style of money management seems to be popular with cohabitants and is likely to become increasingly significant as the number of couples who cohabit continues to grow in Western countries such as New Zealand. Yet it has received sparse attention within the literature on domestic monies. This literature has noted that money management practices operate either to diminish or to exacerbate inequalities between women and men, most noticeably in the realm of decision‐making and personal spending money. Independent money management is pursued in order to achieve equality and autonomy, thereby overcoming some of the difficulties identified in other forms of money management. However, it is argued that equality and autonomy exist in tension with each other. In certain relational settings, adherence to the goal of autonomy leads to the emergence of inequalities and the continued exercise of power within heterosexual relationships.     

A tax can nudge: The impact of an environmentally motivated bonus/malus fiscal system on transport preferences

Bonus-malus taxes appear to have been successful in encouraging people to change to less polluting travel options in France (e.g. the tax on large and small engined cars). We hypothesize that they have three possible effects on consumer behaviour. The positive effects are: (1) a price effect (the less polluting option is subsidized and the polluting option is taxed); and (2) a social norm effect (the less polluting option is classified as pro-social and the polluting option as antisocial). The negative effect (3) is that they may decrease intrinsic motivation (crowding out). We provide an initial test of this tripartite model using survey data on students given a choice between taking the plane or the train between Toulouse to Paris. The first study shows that imposing a hypothetical bonus-malus tax has both a price effect (relative to a control condition where only the norm justifying the tax is presented) and a norm effect (relative to a control condition in which only the corresponding price difference is presented without mention of the tax). The second study presents a set of choices where the environmental norms and price differences are held constant, but the size of the contribution of the bonus-malus tax to the final price of each option is varied. This study confirms our prediction that a larger bonus-malus subsidy/tax reduces propensity to choose the less polluting option (i.e. the train). As the positive effects outweigh the negative effects in most of the choices studied, we conclude that bonus-malus taxes constitute a promising policy instrument.     

The social economics of ethical consumption: Theoretical considerations and empirical evidence

Recent years have seen rising discussion of ethical consumption as a means of stemming global warming, challenging unsavory business practices, and promoting other pro-social goals. This paper first lays out a conceptual framework for understanding the spread of ethical consumption, in which heterogeneous preferences and sensitivity to social norms feature centrally. It then presents empirical evidence from a well-known nationally representative survey on factors associated with tendencies to ‘buy ethically’. It is found that, ceteris paribus, people are more likely to buy ethically when others around them do too, consistent with a role of social norms in promoting ethical-consumption behaviors.     

Imagined interactions,family money management patterns and coalitions,and attitudes toward money and credit

This study explores the imagined interactions college students have with their parents about money and credit, their attitudes toward credit and money, the ways they say their parents deal with financial decisions, and the communication coalitions regarding finances they perceive existing within their family. Students’ imagined interaction pleasantness is greatest when parents jointly form a plan for paying off credit card debt and lowest when parents argue. When family coalitions exist, students report more frequent imagined interactions. Imagined interaction frequency and pleasantness are related to credit and money attitudes.

Individual, household and gender preferences for social transfers

This paper reports the results of a nationally representative survey that explored willingness to pay extra taxes for increased levels of social transfers in Ireland. Respondents differ in their interpretation of willingness-to-pay questions with respect to the relevant income constraint being the individual’s budget or the individual’s household budget, with an important explanatory variable in this interpretation being the level of financial management integration within the household. Respondents are also shown to take intra-household bargaining considerations into account when stating preferences for specific redistributive policies; a significant gender difference emerges for a specific fiscal policy (child benefit) which alters the intra-household entitlement to income.     

Household technology: Implications for research and policy

If we are to have a fuller understanding of the social and economic context of the family, it is necessary to explore its technological environment. However, few scholars have examined the relationship between household technology and the functioning of the family. This article looks at which academic disciplines address household technology, what have been their findings, and why there is generally a paucity of research in this area. This article concludes with a discussion of the need for more research in household technology and the implications that this research may have for other family inquiry and for policy formation.Cathleen Zick, University of Utah, Richard Widdows, Purdue University, and Joan Ash, Central Washington University, provided helpful comments on earlier drafts of this article.His research interests include household technology, consumer policy, and consumer protection.     

Service gratuities and tipping: A motivational framework

In many countries around the world, consumers leave voluntary payments of money (called “tips”) to service workers who have served them. Since tips are an expense that consumers are free to avoid, tipping is an anomalous behavior that many economists regard as “irrational” or “mysterious”. In this paper, I present a motivational framework that offers plausible explanations for: (1) why people tip, (2) how tipping norms came into existence and evolve over time, (3) why tipping varies across individuals and situations, (4) why tipping is more common for some occupations than others, and (5) why tipping varies across nations. Many hypotheses generated from this framework are supported by existing research, but many other implications of the framework have yet to be adequately tested. Thus, the framework provides a promising and much needed theoretical guide for future research on a fascinating consumer behavior.     

Problem gambling in poker: money,rationality and control in a skill-based social game

The article explores problem gambling in poker. The distinctions between chance and skill and between bank games and social games are applied to demonstrate how poker is structurally different from most other gambling games. Bank games are organised around a central actor such as the house, the casino or the bookmaker. In social games, players compete against each other on equal statistical footing. Poker is a skill-based social game where players with superior skills may be expected to win even in the long run. Fourteen poker playing problem gamblers were recruited through a treatment program and 15 professional and recreational poker players were recruited through snowball sampling (N = 29). Through qualitative interviews, the paper shows that the particular structural composition of poker has implications for the ways problem gambling arises in poker players. It is argued that poker challenges existing theoretical conceptions about problem gambling relating to money, rationality and control.     

Supply and demand: A study of labour market trends and the employment of new social work graduates in victoria

Abstract

At a time of significant restructuring in the community services labour market, it is particularly pertinent to analyse the current labour market opportunities available to new social work graduates. In 1995, using a small RMIT-funded (Royal Melbourne Institute of Technology) research grant, five schools of social work in Victoria collaborated to pilot a survey of the employment paths of the previous year's social work graduates. The survey was repeated in 1996. A complementary project which analysed the job advertisements for social work and social work-related positions during six months in both 1995 and 1996 provided further insight into the employment opportunities being advertised. Survey results showed a high rate of employment among new graduates with a decreasing number of graduates being employed in designated “social work” positions. This trend was reflected in the requirements for the positions advertised. The implications of this diversity of jobs and the decrease in designated “social work” positions are discussed, particularly in terms of broader changes in the world of work.     

Investigating consumption anxiety thesis: aesthetic choice, narrativisation and social performance

Warde's (1994 ) theoretical analysis of possible anxieties provoked in the act of consumption synthesises a large body of contemporary literature on uncertainty, social change and consumption. In doing so, it offers a predominantly structural model of the anxiety provoking tensions and forces individual consumers may be exposed to. Drawing on the work of contemporary figurehead theorists of social change, and proposing his own application of Durkheim's model of suicide to the problem of consumption anxiety, Warde presents a model of how anxieties and their mitigation are embedded within configurations of contemporary consumer culture. Though Warde's analysis illustrates the structural, theoretical context of potential consumption anxieties for particular social groups, it is unable to specify how such anxieties are manifested and managed – or performed – by individuals within specific social and consumption settings. This paper takes an interpretive approach, conceptualising consumption anxiety as a discursive, narrative phenomenon likely to surface within particular social settings that are conducive to generating expressions of anxiety. The paper also considers the relation between narrativisation and objects, arguing that the cultural capacity of objects must be understood within local settings where objects are afforded a capacity to act through various discourses. The argument is drawn using selections of face-to-face interview data collected from a sample of middle-class householders on the practice of home decoration.     

Modeling collecting behavior: The role of set completion

Collecting is a complex behavior that has been studied from a variety of different perspectives. Art objects, stamps, coins, and other established collectibles markets, have been shown over the years to provide some degree of return to the collector in the economics literature. Wonderment over the success of certain collectibles such as Swatch watches and Beanie Babies has received much attention in the popular press. But how does one rationally explain the collecting of matchbook covers, Cracker Jacks toys, belt buckles, salt cellars, Aunt Jemima, etc.? Collecting in the absence of financial gain has received little attention in the economics literature. In the social psychology literature, many individuals are understood to have a natural desire to collect things for various reasons. Financial gain is only one of those reasons. Set completion is another. The reasons for collecting are not always mutually exclusive. For example, a complete set may be worth more in the secondary market, if one exists, than the sum of the individual pieces. This reflects the value of the rarest pieces and the opportunity costs of obtaining them. The model presented in this study explains how set completion motivates collecting behavior, which sheds light on collecting for both financial and nonfinancial reasons. The model accommodates both collectors and noncollectors and illustrates how consumption behavior may vary accordingly. Insight into how manufacturers of collectibles can use this behavior for commercial exploitation is explored.     

Provider and Care Workforce Influences on Quality of Home-Care Services in England

Abstract

A key trend in home care in recent years in England has been movement away from “in-house” service provision by local government authorities (e.g., counties) towards models of service commissioning from independent providers. A national survey in 2003 identified that there were lower levels of satisfaction and perceptions of quality of care among older users of independent providers compared with in-house providers. This paper reports the results of a study that related service users views of 121 providers with the characteristics of these providers. For the most part, characteristics associated with positive perceptions of quality were more prevalent among in-house providers. Multivariate analyses of independent providers suggested that aspects of the workforce itself, in terms of age and experience, provider perceptions of staff turnover, and allowance of travel time, were the most critical influences on service user experiences of service quality.     

Balancing the balance: Self-control mechanisms and compulsive buying

Previous research has mainly focused on identifying why compulsive buyers engage in excessive buying, while their attempts to control problematic buying behavior have largely been ignored. The present research examines the self-control attempts of compulsive buyers. Study 1 uses qualitative in-depth interviews to provide initial insights into the self-control attempts of compulsive buyers. Study 2 adopts a quantitative survey approach, and examines how prudent and compulsive buyers differ in their self-control attempts. The studies demonstrate that compulsive buyers engage in self-control, but differ from prudent buyers in how they apply self-control measures. These differences have implications for interventions that aim to enhance the success of compulsive buyers’ self-control.     

Social structures and economic conduct: Interpreting variations in household energy consumption

The consumption of natural resources is rapidly emerging as a major social problem, and social efforts to control this consumption are guided in part by research that tries to specify the meaning of resources to consumers. This paper compares a sociological perspective with the more widespread economic model of consumption, using data from study of billing systems, sociocultural status, and household energy use in a California apartment complex. The research suggests that the role of marginal price in ordering consumption can be interpreted as a contingent feature of the socially structured relationship between consumption and social status. It also suggests that the utility of a technology is a secondary and emergent product of its use, a fact obscured by the conventional analytic separation of supply and demand or means and ends.     

Psychopathology,physical complaints and health risk behaviors among youths who were victims of childhood maltreatment: A comparison between home and institutional interventions

Based on investigations of child maltreatment by Child Protective Services (CPS), several children who are identified receive some kind of individual or familial intervention. However, the literature has shown conflicting results in regard to the later functioning of the children who are target of different protective measures in different settings, compared to other youths who receive no intervention. We assessed childhood adversity, psychopathology, physical complaints and health risk behaviors among youths who received one of two different protective interventions during childhood (home vs. institutionalization group), and we compared them with youths who receive no intervention (comparison group). In total, 216 youths participated, with ages ranging from 14 to 23 years (M = 17.05 years, SD = 1.8 years; 105 males, 111 females), including 136 youths that were contacted based on their CPS records completed during their childhood, and 80 youths from the community without CPS identification.     

Urgency and engagement: Empirical evidence from a large-scale intervention on energy use awareness

We study how to foster engagement in the energy sector, where signals about consumption are opaque and infrequent. We evaluate an energy company's large-scale communication campaign for promoting natural gas self-reading. Self-readings allow utilities to bill customers on the basis of real - as opposed to estimated - consumption. Exploiting variation in campaign messages, we test the impact of imposing a sense of urgency on customers through a deadline for submitting a meter reading. We find that messages that induce a sense of urgency are twice as effective than generic messages in encouraging self-readings, consistent with recent research on the urgency effect. The increased sense of urgency moves to action customers with both high and low levels of baseline engagement; the effect is stronger on the former.     

Reference group consumption and the subjective wellbeing of the poor in Peru

This paper studies the relationship between the consumption of the reference group and people’s subjective wellbeing in seven poor Peruvian communities. It presents an empirical analysis of the importance of relative consumption for people’s feelings of adequacy in five consumption domains (food, housing, education, clothes and health care). Against the assumption that relative consumption only matters for the rich and drawing on recent empirical work in Latin America, the study hypothesises that participants are likely to be influenced by the level of consumption of the area where they live when evaluating their situation. The data come from two surveys implemented in 2004 and 2005 in Peru by the Wellbeing in Developing Countries (WeD), ESRC research group at the University of Bath. The results indicate a negative effect of relative consumption on participants’ appraisal of their households’ clothes, housing and children’s education. However, the study also shows that in domains linked to the need for physical health such as health care and food, appraisals are made based on households’ objective situations and that the average consumption in the community does not play a significant role.