Myopic risk-seeking: The impact of narrow decision bracketing on lottery play

In two experiments conducted with low-income participants, we find that individuals are more likely to buy state lottery tickets when they make several purchase decisions one-at-a-time, i.e. myopically, than when they make one decision about how many tickets to purchase. These results extend earlier findings showing that “broad bracketing” of decisions encourages behavior consistent with expected value maximization. Additionally, the results suggest that the combination of myopic decision making and the “peanuts effect”—greater risk seeking for low stakes than high stakes gambles—can help explain the popularity of state lotteries.

Efficient Use of Information and Social Value of Information

This paper analyzes equilibrium and welfare for a tractable class of economies (games) that have externalities, strategic complementarity or substitutability, and heterogeneous information. First, we characterize the equilibrium use of information: complementarity heightens the sensitivity of equilibrium actions to public information, raising aggregate volatility, whereas substitutability heightens the sensitivity to private information, raising cross‐sectional dispersion. Next, we define and characterize an efficiency benchmark designed to address whether the equilibrium use of information is optimal from a social perspective; the efficient use of information reflects the social value of aligning choices across agents. Finally, we examine the comparative statics of equilibrium welfare with respect to the information structure; the social value of information is best understood by classifying economies according to the inefficiency, if any, in the equilibrium use of information. We conclude with a few applications, including production externalities, beauty contests, business cycles, and large Cournot and Bertrand games.     

John A. Buzacott and His Pioneering Contributions to Manufacturing and Service Systems

John A. Buzacott is a pioneering and premier contributor to the field of production and operations management. He has been a principal architect of the development of a unified framework and a rigorous engineering foundation for many of the major approaches currently used in the design, planning, and control of manufacturing and service systems. His innovative use of stochastic models to explain many phenomena occurring in manufacturing and service organizations has distinguished him not only as a great researcher but also as a great teacher. His contributions have inspired scholars throughout the world. We provide an overview of John's research works and accomplishments.     

Technology‐Based Communication and the Development of Interpersonal Competencies Within Adolescent Romantic Relationships: A Preliminary Investigation

This study investigated longitudinal associations between adolescents’ technology‐based communication and the development of interpersonal competencies within romantic relationships. A school‐based sample of 487 adolescents (58% girls; M_age = 14.1) participated at two time points, one year apart. Participants reported (1) proportions of daily communication with romantic partners via traditional modes (in person, on the phone) versus technological modes (text messaging, social networking sites) and (2) competence in the romantic relationship skill domains of negative assertion and conflict management. Results of cross‐lagged panel models indicated that adolescents who engaged in greater proportions of technology‐based communication with romantic partners reported lower levels of interpersonal competencies one year later, but not vice versa; associations were particularly strong for boys.     

How does paid work affect who does the childcare? An analysis of the time use of Australian couples

This paper analyzes the effect of paid work by coupled parents of young children on the joint decisions to spend time engaged in childcare. We explore this using Australian Time-Use Survey data from 2006. We examine the effect of paid work in terms of the effect that total work time on a given day has on the amount of time spent on childcare; the allocation of time on activities across work and non-work days; and the effect of non-traditional work hours. The results show that mothers perform a large share of childcare, irrespective of their earning power or their partner’s availability to take on some of these tasks. The use of formal and informal childcare by others allows the mother to balance the competing demands of work and her own childcare; an effect that does not hold for fathers. These effects on childcare are also almost solely concentrated in the routine component of childcare (e.g. preparing meals, changing nappies), with each parent ‘protecting’ interactive childcare from the effect of both paid work and the relative availability of their partner to take on some of this childcare.     

Inference for impulse response coefficients from multivariate fractionally integrated processes

This article considers a multivariate system of fractionally integrated time series and investigates the most appropriate way for estimating Impulse Response (IR) coefficients and their associated confidence intervals. The article extends the univariate analysis recently provided by Baillie and Kapetanios (2013 Baillie, R. T., Kapetanios, G. (2013). Estimation and inference for impulse response functions form univariate strongly persistent processes. Econometrics Journal 16:373–399.[Crossref], [Web of Science ®] , [Google Scholar]), and uses a semiparametric, time domain estimator, based on a vector autoregression (VAR) approximation. Results are also derived for the orthogonalized estimated IRs which are generally more practically relevant. Simulation evidence strongly indicates the desirability of applying the Kilian small sample bias correction, which is found to improve the coverage accuracy of confidence intervals for IRs. The most appropriate order of the VAR turns out to be relevant for the lag length of the IR being estimated.