HEDONIC PRICE FUNCTIONS

Three feasible interpretations of cross-sectional hedonic price regression equations are derived from consumer choice, profit maximization by competitive firms, and market clearing, each conceptual experiment deploying a Lancastrian "new approach" to micro theory. Lancaster's theory is compared with those consumer theories of Houthakker heritage, and some limitations of each are indicated. The assertion that Adelman and Griliches' quality-adjusted hedonic price index is a constant satisfaction index is shown to necessitate interpersonal comparisons of utility, and the possibility of identifying demand and supply functions for commodities by exclusion restrictions on characteristics is rejected.     

GORDON TULLOCK'S CONTRIBUTIONS TO THE THEORY OF PUBLIC CHOICE

This paper offers a commentary on Gordon Tullock's various contributions to economics and social science. Tullock's methodology and style, and various critical appraisals of Tullock's work are discussed. The importance of Tullock's work and its significance for the future of economics are also assessed.     

WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND?

Recently the National Highway Traffic Administration changed its policy concerning the public announcement of safety-related automotive recalls. This paper examines whether consumers continue to use recalls as an input in their decision to purchase an automobile. It was found that over the 1977-81 period, severe recalls adversely affected the demand for the model recalled, while benefiting substitutes of other manufacturers.     

What Must My Interest in Politics Be If I Just Told You "I Don't Know"?

How much people think they follow what's going on in governmentand public affairs depends upon the context in which they areasked the question. If asked immediately after difficult questionsabout what they know of their congressman's record, they aremuch less likely to think they pay attention to public affairsthan if they are asked, first, how interested they are in suchmatters. More important, data from two independent experimentsshow that this context effect cannot be eliminated, or significantlyreduced, by interposing a buffer of questions on unrelated topicsbetween the items that are known to affect one another. Theauthors discuss the psychological significance of these findingsand their implications for survey research.     

FEAR AND LATHING IN THE MICHIGAN FURNITURE INDUSTRY: EMPLOYEE-BASED DISCRIMINATION A CENTURY AGO

We analyze employee-based discrimination using historical data on workers attributes from Michigan's furniture industry. The data provide compelling evidence of employee-based discrimination in the form of a compensating wage differential. A one percentage point decrease in the share of the work force from the worker's own ethnic group increased the wage about 0.1 percent. This response was larger in small firms, in small towns, and among certain ethnic groups. Protestants were generally paid more to work with Catholics. The additional labor costs generated by employee-based discrimination were probably offset by several benefits which rendered complete segregation unnecessary.