Signaling to Partially Informed Investors in the Newsvendor Model

We analyze a signaling game between the manager of a firm and an investor in the firm. The manager has private information about the firm's demand and cares about the short‐term stock price assigned by the investor. Previous research has shown that under continuous decision choices and the Intuitive Criterion refinement, the least‐cost separating equilibrium will result, in which a low‐quality firm chooses its optimal capacity and a high‐quality firm over‐invests in order to signal its quality to investors. We build on this research by showing the existence of pooling outcomes in which low‐quality firms over‐invest and high‐quality firms under‐invest so as to provide identical signals to investors. The pooling equilibrium is practically appealing because it yields a Pareto improvement compared to the least‐cost separating equilibrium. Distinguishing features of our analysis are that: (i) we allow the capacity decision to have either discrete or continuous support, and (ii) we allow beliefs to be refined based on either the Undefeated refinement or the Intuitive Criterion refinement. We find that the newsvendor model parameters impact the likelihood of a pooling outcome, and this impact changes in both sign and magnitude depending on which refinement is used.     

Risk attitudes and digit ratio (2D:4D): Evidence from prospect theory

Journal of Risk and Uncertainty - Prenatal androgens have organizational effects on brain and endocrine system development, which may have a partial impact on economic decisions. Numerous studies...     

Civil Society Meta-organizations and Legitimating Processes: the Case of the Addiction Field in France

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - To cope with the new challenges inherent to their political role, civil society organizations must convince their...     

Estimation of geodesic tortuosity and constrictivity in stationary random closed sets

We investigate the problem of estimating geodesic tortuosity and constrictivity as two structural characteristics of stationary random closed sets. They are of central importance for the analysis of effective transport properties in porous or composite materials. Loosely speaking, geodesic tortuosity measures the windedness of paths, whereas the notion of constrictivity captures the appearance of bottlenecks resulting from narrow passages within a given materials phase. We first provide mathematically precise definitions of these quantities and introduce appropriate estimators. Then, we show strong consistency of these estimators for unboundedly growing sampling windows. In order to apply our estimators to real data sets, the extent of edge effects needs to be controlled. This is illustrated using a model for a multiphase material that is incorporated in solid oxide fuel cells.     

Maternal Postpartum Depression Increases Vulnerability for Toddler Behavior Problems through Infant Cortisol Reactivity

The current study examined the role of hypothalamic‐pituitary‐adrenal reactivity (a physiological indicator of stress) in early infancy as a mediator of the relationship between maternal postpartum depression and toddler behavior problems. Participants were 137 at‐risk mothers and their children participating in a longitudinal study of intergenerational transmission of risk. Mothers’ depression was measured five times during the infants’ first 18 months. Infant cortisol was collected during a social stressor (the still‐face paradigm) when infants were 6 months old, and mothers reported on toddlers’ internalizing and externalizing symptoms at 18 months. Among this sample of high‐risk mother–infant dyads, early postpartum depression predicted atypical infant cortisol reactivity at 6 months, which mediated the effect of maternal depression on increased toddler behavior problems. Clinical implications are discussed.     

Arranging sensations: smell and taste in augmented and virtual reality

The development of digital taste and smell underscores the importance of cultural dimensions of bodily perception in augmented reality (AR) and virtual reality (VR) devices. This can be seen in Vocktail and Season Traveller, two digital devices incorporating taste and smell. Vocktail is an AR technology that augments the experience of drinking water, or even air, through the electrical stimulation of tastebuds and the manipulation of color and smell. Season Traveller is a VR game in which the user moves through four seasonal landscapes. It uses wind, odor, and temperature in addition to the more standard audio-visual displays. The cultural dimensions of these devices can be examined using phenomenological terms. They instigate perceptual circuits, and call on and create sedimented habits. Although VR and AR are often thought of in terms of their similitude to reality, understanding Vocktail and Season Traveller this way illustrates the world-creating dimension of multisensory devices. These technologies structure and shift thresholds of taste and smell, reworking past perceptual styles and habits to develop new perceptual experiences. In so doing, Season Traveller and Vocktail throw to the fore questions about the conditions according to which people exercise their senses in digitally dominated environments.     

Income inequality and risk taking: the impact of social comparison information

Theory and Decision - In contrast to the assumptions of standard economic theory, recent experimental evidence shows that the income of peers has a systematic impact on observed degrees of risk...     

Gambling and Sport: Implicit Association and Explicit Intention Among Underage Youth

This study examined whether an implicit association existed between gambling and sport among underage youth in Australia, and whether this implicit association could shape their explicit intention to gamble. A sample of 14–17 year old Australian participants completed two phases of tasks, including an implicit association test based online experiment, and a post-experiment online survey. The results supported the existence of an implicit association between gambling and sport among the participants. This implicit association became stronger when they saw sport-relevant (vs. sport-irrelevant) gambling logos, or gambling-relevant (vs. gambling-irrelevant) sport names. In addition, this implicit association was positively related to the amount of sport viewing, but only among those participants who had more favorable gambling attitudes. Lastly, gambling attitudes and advertising knowledge, rather than the implicit association, turned out to be significant predictors of the explicit intention to gamble.     

Allais for the poor: Relations to ability,information processing,and risk attitudes

This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to indicators of “lacking ability,” such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.     

Breaking Bad: Comparing Gambling Harms Among Gamblers and Affected Others

This article examines gambling harms from both gamblers and affected others’ perspectives. Participants (3076 gamblers and 2129 affected others) completed a retrospective survey that elicited information on harms they experienced from gambling across their lifetime. Their responses were analyzed through testing measurement invariance, estimating item-response theoretic parameters, calculating percentages, confidence intervals, and correlations, as well as regressions. The results indicated large commonalities in the experience of harms reported by gamblers and affected others. Further, gamblers appeared to ‘export’ about half of the harms they experienced to those around them. The findings also provided detailed profiles of evolving harms as problem gambling severity varies.