The value of information in anticipated utility theory

A well-known property of expected utility theory is that the value of information is nonnegative. Given the widespread dissatisfaction with the expected utility hypothesis, a natural question to ask is whether competing theories of choice preserve this property. This article considers one widely discussed alternative to expected utility, anticipated utility theory. We show that, like expected utility, the anticipated value of perfect information is always nonnegative. The value of imperfect information, however, may be negative, though the precise valuation of information depends upon whether the reduction of compound lotteries axiom is used to derive the anticipated utility functional.I am indebted to Edi Karni, Peter Wakker, and an anonymous referee for helpful comments on earlier versions of this article. They are of course in no way responsible for errors or obscurities in the present version.     

Gender Differences in Pay of Young Management Professionals in the United States: A Comprehensive View

We conduct a comprehensive examination of the gender differences in pay focusing on multiple perspectives emanating from economics, social psychology, and gender studies. Data are drawn from surveys of MBA students conducted by the Graduate Management Admissions Council. Although women in both samples earn significantly less on average than men, when the effects of the study's variables are considered via multiple regression analysis, no significant difference in annual salary is observed. Our results show the importance of simultaneously considering the impact of human capital, job and firm characteristics, demographics, and cognitive skills. Structural differences are noted in the models estimated separately for men and women. However, the results from decomposing salary differentials are quite consistent with estimates from the single-equation models.     

Uncertainty,the bargaining problem,and the Nash-Zeuthen solution

The Zeuthen bargaining model occupies a prominent place among those theories of the bargaining process that have been formulated and expounded by economists. Its solution to the bargaining problem is essentially economic, since invariant utility functions based on economic factors alone determine the outcome. However, this paper shows that a necessary condition for reaching the Zeuthen solution (shown by Harsanyi to be mathematically equivalent to the game-theoretic solution of Nash's theory) is that bargainers initially take up positions on opposite sides of the outcome that maximizes their utility product. Whether utility functions are mutually known or unknown, inherent in the bargaining situation itself is the requirement that bargainers be at least initially uncertain as to each other's subsequent concession behaviour. With uncertainty, von Neumann-Morgenstern rationality implies that each bargainer would make an initial demand that maximizes the expected gain from holding fast. Therefore, even if Zeuthen's concession criterion should subsequently dictate concession behaviour, expected utility maximization within the context of subjective uncertainty may well yield initial demands that are inconsistent with reaching the Nash-Zeuthen solution. Finally, a general methodological conclusion that emerges from the analysis is that, since the bargaining process necessarily proceeds from a context of subjective uncertainty, greater emphasis needs to be placed on its role as a device for affecting expectations.     

The More Things Change, the More They Stay the Same: The Elusive Search for Racial Equity in Higher Education

In 1965, when affirmative action officially became part of the national consensus to achieve racial social justice, it was based on the compelling justification of establishing equality and remedying the effects of past discrimination. Since then, there has been a slow but steady shift from "equity" to "diversity" as its rationale. The shift has had a negative effect on achieving the original goal of racial equality. The diversity rationale has permitted parallel procedures to evolve that provided majority students with an even larger differential advantage than that conferred on minority students by affirmative action. In addition, we continue to have massive segregation. Minorities are concentrated in second level schools in urban areas, while whites are concentrated in higher quality institutions in the educational suburbs. It is without factual or legal foundation that whites can argue that they (relative to minorities) are the victims of discrimination through unfair and unequal educational policies and practices that determine access to higher education.     

Everyday mobilities and the construction of subjective spiritual geographies in ‘Non-places’

Traditional geographic approaches depict sacred spaces, religion and spirituality as places of stillness and tranquillity, this paper challenges such fixity and instead uses the mobilities lens to analyse the dynamic and fluid nature of contemporary spirituality. It builds on recent work that draws on mobilities and geographies of religion by shifting focus away from the extraordinary journeys of pilgrimage to the ordinary, the mundane and everyday routines and movements; trips for economic, recreational or utilitarian purposes. The findings illustrate the activities that people do when they are on the move that can be related to their personal sense of spirituality and the ways in which religion interweaves in the movements and routines of everyday life and mobilities – from the radio playing in the car to the use of meditation. Often, activities became associated with specific parts of the journey and are threaded together to form ‘subjective spiritual geographies’ and significant elements of individual spirituality challenging secular pre-conceptions of mobilities time-spaces and characterisation of ‘non-places’.     

Physician duties in the conduct of human subject research

In this article, I examine a skeptical argument against the possibility of ethically justifying risky human subject research (rHSR). That argument asserts that such research is unethical because it holds the possibility of wronging subjects who are harmed and whose consent to participate was less than fully voluntary. I conclude that the skeptical argument is not in the end sufficient to undermine the ethical foundation of rHSR because it fails to take account of the special positive duty researchers owe their clients and future patients. Although the skeptical argument is defeated, it exacts certain novel concessions from the pro‐research position. Of particular importance are the admissions (a) that researchers presumptively owe a fiduciary duty to research subjects, (b) that because the most important risks of rHSR are unknown and unquantifiable that duty must be explicitly waived by all subjects before they participate in any protocol, and (c) that such waivers must be made by individuals who satisfy objective criteria of competence for giving fully voluntary consent. The implementation of procedures responsive to these concerns might have a dampening effect on the conduct of research. However, the article concludes with a consideration of the likely benefits to researchers and society of a more cautious ethical regime.     

Information Seeking about Global Climate Change among Adolescents: The Role of Risk Perceptions, Efficacy Beliefs and Parental Influences

Global climate change is likely to have significant impacts on public health. Effective communication is critical to informing public decision making and behavior to mitigate climate change. An effective method of audience segmentation, the risk perception attitude (RPA) framework has been previously tested with other health behaviors and classifies people into 4 groups on the basis of their perceptions of risk and beliefs about personal efficacy. The 4 groups - indifference (low risk, weak efficacy), proactive (low risk, strong efficacy), avoidance (high risk, weak efficacy), and responsive (high risk, strong efficacy) - are hypothesized to differ in their self-protective behaviors and in their motivations to seek information. In this paper, we extend the RPA framework in two ways. First, we use it at the household level to determine whether parental classifications into the 4 groups are associated with their teenage children's classification into the same 4 groups. Second, we predict adolescent information-seeking behaviors on the basis of their and their parents' membership in the 4 RPA groups. Results (N = 523 parent-adolescent pairs) indicated that parental membership in the 4 RPA groups was significantly associated with children's membership in the same 4 groups. Furthermore, the RPA framework was a significant predictor of adolescent information-seeking: those in the responsive and avoidance groups sought more information on climate change than the indifference group. Family communication on global warming was positively associated with adolescents' information-seeking. Implications for interventions are discussed.     

BIG DATA AND BIG CITIES: THE PROMISES AND LIMITATIONS OF IMPROVED MEASURES OF URBAN LIFE

New, “big data” sources allow measurement of city characteristics and outcome variables at higher collection frequencies and more granular geographic scales than ever before. However, big data will not solve large urban social science questions on its own. Big urban data has the most value for the study of cities when it allows measurement of the previously opaque, or when it can be coupled with exogenous shocks to people or place. We describe a number of new urban data sources and illustrate how they can be used to improve the study and function of cities. We first show how Google Street View images can be used to predict income in New York City, suggesting that similar imagery data can be used to map wealth and poverty in previously unmeasured areas of the developing world. We then discuss how survey techniques can be improved to better measure willingness to pay for urban amenities. Finally, we explain how Internet data is being used to improve the quality of city services. (JEL R1, C8, C18)     

TARGETING WORKING PROFESSIONALS: A MASTER'S OF ARTS IN GERONTOLOGY

This overview of an online degree programme aims to develop a concrete illustration of an exploding array of courses and programmes. The approach at the Ethel Percy Andrus Gerontology Center, at the University of Southern California, seeks to address a targeted audience and to build on the special strengths and more unique degree programmes of the University.