Moral hazard and free riding in collective action

Most political and economic theorists point to moral hazard in teams as the main obstacle to lobbies’ collective action. In this paper, we address this important issue with a coalition-formation game. In the process of doing so, we characterize equilibrium lobby structures both in the absence and in the presence of moral hazard. Three notable results emerge from such an exercise: (1) an equilibrium lobby structure exists under both specifications of the model, (2) moral hazard in teams may raise large groups’ equilibrium lobby size, and (3) it may also raise the level of collective action of large groups with low organizational costs. I wish to express my appreciation to Helmuth Cremer, Philippe De Donder, Kai A. Konrad, Michel Le Breton, Daniel Seidmann, Shlomo Weber, an associate editor of this journal and a referee for valuable comments and suggestions. I am also grateful to Paul Belleflamme, Francis Bloch, Robert Dur, Joan Esteban, Debraj Ray, and the audience at the CESifo Area Conference on Public Sector Economics 2006 and at the 15th Aix-Marseille SSIEIO for helpful discussions.     

To be or not to be involved: a questionnaire-experimental view on Harsanyi’s utilitarian ethics

According to standard theory founded on Harsanyi (J Polit Econ 61:434–435, 1953; 63:309–321, 1955) a social welfare function can be appropriately based on the individual’s approach to choice under uncertainty. We investigate how people really do rank distributions in terms of welfare. According to Harsanyi, the evaluation can be done from the standpoint of an uninvolved external judge, a public official, for example, or by a person who knows that she holds one of the positions in society, with an equal chance for any of the available positions. Are these two structures to be viewed differently? We use a questionnaire experiment to focus on the two different interpretations of the Harsanyi approach. There are important, systematic differences that transcend the cultural background of respondents.     

Gender and Transnational Gossip

Transnational social networks powerfully shape Mexican migration and enable families to stretch internationally. In an atmosphere of such high dependence on social networks, it would be rare for families not to be affected by the opinions of others. This article analyzes this often-overlooked aspect of social networks, gossip. I analyze gossip stories prevalent for one type of migrant family, those in which parents and children live apart. Drawing on over 150 ethnographic interviews and observation with members of Mexican transnational families and their neighbors in multiple sites, I describe both parents’ and children’s experiences with transnational gossip. I show that in a transnational context, gossip is a highly gendered activity with different consequences for men and women. Although targeting both women and men, transnational gossip reinforces the expectations that mothers be family caregivers and fathers be family providers even when physical separation makes these activities difficult to accomplish.

Salvaging Decency: Mobile Home Residents’ Strategies of Managing the Stigma of “Trailer” Living

This paper is based on 45 ethnographic interviews conducted with residents of mobile home communities in West Central Florida between 2005 and 2008. It investigates their strategies of managing the stigma that is commonly associated with living in a mobile home. Informants routinely encounter negative stereotypes regarding their “trailer” home, community, and lifestyle in public discourse and personal interactions, and consequently have developed ways of salvaging their decency. My analysis of these strategies particularly emphasizes two versions of distancing, here called “bordering” and “fencing,” as examples of symbolic boundary work. Other techniques discussed include ignoring, passing, humoring, resisting, normalizing, upstaging, and blaming. Throughout the paper, I argue that mobile home residents’ ways of salvaging decency are both similar and different compared to how other disparaged groups deal with stigmatization. The conclusion discusses broader sociological implications of the research in enhancing our understanding of the experience of stigmatization, folk conceptions of decency, symbolic and social differentiation, as well as race and class dynamics.     

Voting on redistribution with tax evasion

This paper analyzes voting on a linear income tax whose proceeds are redistributed lump sum to the taxpayers. Individuals can evade taxes, which leads to penalties if evasion is detected. Since preferences satisfy neither single peakedness nor single crossing, a voting equilibrium may not exist. When an equilibrium does exist, there are several possible outcomes. There may be ‘conventional’ equilibria where the rich are expropriated by the poor and middle class. There may be equilibria without full expropriation where redistribution is limited by the threat of evasion. Finally, there may be equilibria where redistribution goes from the middle class to the rich and poor.     

Efficiency Wages,Productivity and Simultaneity: A Meta-Regression Analysis

This study reports a meta-analysis of 75 estimates of the efficiency-wage effect. It reveals a strong efficiency-wage effect that depends upon whether researchers control for potential simultaneity between wages and productivity. Studies that control for simultaneity tend to report stronger effects. Clear evidence of publication selection is also found. E24, J30.

What Fills the Gaps Left by Employer-Provided Insurance?

Employer-provided insurance is the leading source of medical insurance for non-elderly Americans. However, it leaves many without coverage. Evidence suggests that the non-group insurance market does a poor job of filling in these gaps, for those with both short- and long-term uninsurance. It does so for all income and age groups, as well as for both genders. It does fill some of the gaps in employer-provided coverage for those with middle and high incomes, though very incompletely.     

Temporal Patterns of Accuracy Confidence in Social Judgments: A New Method and Initial Results

An integrated, computer-based system was developed to record participants’ continuous judgment changes on a revised form of the Interpersonal Perception Task (IPT-15). Consistent with the considerable research on “thin slice” judgments, the mean latency for greater than chance accuracy confidence was just 16 s (median = 10 s) for the ten one-part scenes on the IPT. There was also a clear and strong linear trend for increasing accuracy confidence across the first 25 s of the ten one-part scenes. For the five-two-part scenes, where comparative judgments were required (e.g., which statement is truthful, which is a lie?), no clear pattern of increasing accuracy confidence was found, with mean scores hovering near chance. The utility of the new system for analyzing the time course of social judgments is discussed and the potential reasons for the contrasting results for the one-part and two-part scenes were examined.     

Psychosocial Correlates of Interpersonal Sensitivity: A Meta-Analysis

This meta-analysis examines how interpersonal sensitivity (IS), defined as accurate judgment or recall of others’ behavior or appearance, is related to psychosocial characteristics of the perceiver, defined as personality traits, social and emotional functioning, life experiences, values, attitudes, and self-concept. For 215 independent studies reported in 96 published sources, higher IS was generally associated with favorable or adaptive psychosocial functioning. Significant mean correlations were found for 27 of the 40 categories of psychosocial variables; these categories covered many different personality traits, indicators of mental health, and social and work-related competencies. Moreover, many additional studies that fell outside these conceptual categories also showed significant positive relations between IS and numerous other psychosocial variables. Taken together, the results support the construct validity of IS tests and demonstrate that IS is associated with many important aspects of personal and social functioning.