The bomb-crater effect of tax audits: Beyond the misperception of chance

The experimental literature has identified the Bomb Crater Effect (BoCE), i.e., the fact that tax compliance drops immediately after a taxpayer is audited. From a theoretical perspective, BoCE has been explained either by the misperception of chance, also known as the gambler’s fallacy, or by the loss repair effect. The aim of this paper is to look more closely at the former. We run a laboratory experiment in which the information set is relatively rich but the implementation of the Bayesian updating process is fairly simple. By doing so, we are able to elicit a range of consistent but heterogeneous probability beliefs and to distinguish between Bayesian and non-Bayesian subjects. We obtain two major results concerning Bayesian subjects. First, they exhibit a strong and robust short-run BoCE. Second, they are seemingly not affected by the audits of other taxpayers in their compliance decision. These results are robust to different definitions of Bayesianity as well as to different specifications and conflict with the evidence that Bayesian agents correctly perceive the chance of being audited. In turn, these findings suggest that the existing explanations of the BoCE are not satisfactory and that alternative theories are needed.     

Behavioral economics of death and dying decisions: Both rational and irrational approaches

A decision to accept death and forego life-extending medical procedures can be both rational and irrational. This article reviews perspectives on death from the viewpoint of behavioral economics, which relies on psychology as the basis of decision-making in this regard. According to behavioral economics, both the benefits of living and the costs of death should be emphasized so that a person who is thinking about suicide reconsiders that option and, hopefully, changes his or her mind and tries to safeguard life and avoid life-threatening risks. One way to make dying decisions more rational is to write out a living will or advance directives to help doctors understand a patients’ intentions with regard to decisions about dying should they become unable to articulate that intention at some later, critical, life-or-death situation. Living wills and advance directives can therefore reduce the chances of mercy killing or euthanasia, especially in the context of a developing country, especially when life-extending technologies are limited.     

An Empirical Study of the Volkswagen Crisis in China: Customers’ Information Processing and Behavioral Intentions

Product‐harm crises usually lead to product recalls, which may cause consumers concern about the product quality and safety. This study systematically examines customers’ immediate responses to the Volkswagen product recall crisis in China. Particular attention was given to customers’ responses to the risk information influencing their behavioral intentions. By combining the protective action decision model and the heuristic‐systematic model, we constructed a hypothetical model to explore this issue. A questionnaire survey was conducted to collect data involving 467 participants drawn from the customers of Volkswagen. We used structural equation modeling to explore the model. The results show that customers’ product knowledge plays an important role in their responses to the crisis. Having more knowledge would make them perceive a lower risk, but they might need even more information, making them more likely to seek and process information, and subsequently increasing their positive behavioral intentions toward the firm (that is pro‐firm behavioral intentions). Risk perception increased customers’ information needs, information seeking, and information processing but decreased their pro‐firm behavioral intentions. In addition to promoting information seeking, information needed to also facilitate customers’ systematic processing and thus increase their behavioral intentions to take corrective action. Customers’ behavioral intentions were also spurred by systematic processing, but failed to be predicted by information seeking. In summary, theoretical and practical implications and suggestions for further research are also discussed.     

中国创新产出的空间分布特征与成因

1994-2002年中国各省区专利授权量的统计分析表明,中国创新产出具有明显的空间分布特征.对这一特征成因的行为生态学分析和基于panel-data的实证研究结果显示,政府R&D投入水平和区域FDI规模等生境因素是中国创新产出空间分布特征的重要影响因素,而人均GDP水平对创新产出的作用并不显著.     

Genetic Contributions to Adolescents' Extrafamilial Social Interactions: Teachers, Best Friends, and Peers

The purpose of the present study was to investigate genetic and environmental contributions to individual differences in adolescents' social interactions outside the family. We investigated sibling resemblance for adolescents' reports of interactions with best friends and teachers, and parents' perceptions of adolescents' peer groups in 701 same-sex adolescent sibling pairs aged 10-18, using a twin, full sibling, and step sibling design. Our goals were to assess the magnitude of sibling resemblance, and to disentangle resemblance due to shared genetic heritage from that due to shared environmental experiences. Substantial genetic influence was found for parents' perceptions of adolescents' peer groups. Adolescents' reports of positive interactions with teachers and best friends also showed significant genetic influence. In contrast, individual differences in adolescents' reports of negative interactions with teachers and best friends showed no significant genetic influence. In addition, most environmental influences for social interactions with teachers, best friends, and peers were largely of the nonshared variety, suggesting that growing up in the same family does not make adolescents similar in their extrafamilial social interactions.     

The economics of altruism: The old,the rich,the female

This study examines whether people of different observed characteristics exhibit different degree of altruism. The article utilizes a National Mental Health Survey that gathered questions about respondents’ self-reported altruism along with their demographic, labor force, and income information. The empirical results revealed the following: (1) Older people are more altruistic. This could potentially be explained by the Socioemotional Selectivity Theory (SST) that the older people shift towards emotion-related goals that can be internally rewarding in the present. (2) Higher-income people are more altruistic. This could potentially be explained by the fact that higher-income people could better afford to be more altruistic compared to lower-income people. (3) Women are more altruistic. This could potentially be explained by either biological evolution or social imposition. The main results are robust once the potential endogeneity problem of the income variable is mitigated by the use of the instrumental variable estimation method.     

The Courage Factor: Living People-Based Leadership by Geller,E. S. & Veazie,B

We adapted the Performance Diagnostic Checklist to analyze the environmental events contributing to safe and at-risk behaviors by employees in organizations. We then used the resulting tool, the Performance Diagnostic Checklist–Safety (PDC-Safety), to identify variables contributing to unsafe equipment usage by 3 members of a landscaping crew at a private university. Based on PDC-Safety results, an intervention consisting of graphic feedback was implemented. The intervention increased safe performance for all participants.     

Money illusion,financial literacy and numeracy: Experimental evidence

Money illusion is usually defined as the inability of individuals to correctly account for inflation or deflation when making decisions. Empirical evidence shows that money illusion matters in financial decisions, particularly those made by households. In this article, we analyze money illusion at the individual level within the context of financial choices and study its relationship with numeracy and financial literacy. To do so, we propose an original measure of money illusion via an experimental task. This task consists of a series of choices between a pair of simple bonds whose returns are affected only by inflation (or deflation). We provide a fine-grained measure of money illusion that is correlated with typical measures (questionnaires) of it. Moreover, we show that money illusion depends on the choice context (e.g., inflation or deflation) and participants’ abilities. Individuals with financial knowledge are less sensitive to money illusion than others, while there is no evidence of an impact of numeracy.     

Management revolution in the age of the new economy

In the age of the new economy a management has evolved, including management ideology, learning organization, team work, incentive of all the staff, cooperative competition, and strategic alliances. The concept of this new management did not appear all of a sudden. It evolved from the traditional, profound thought of management culture and the traditional Chinese management culture in particular. The principles of the new economy are in accord with ancient Eastern philosophy. Management culture in the East and that in the West have been gradually integrated with one another. The Eastern management culture has undergone a period of spreading to the West and returning to the East. Management scholars throughout the world have noted and paid attention to the traditional Chinese management culture, whose quintessence is human orientation, moral priority, and behavioral cultivation by self-discipline (or ren wei wei ren). It is not only a new way of thinking about modern management behavior but also a manifestation of the successful adoption of the philosophical thoughts of ancient China into the age of networks.     

学校·媒体·社团:从活动领域看中国知识分子的现状

学校、媒体与社团是知识分子活动的重要领域.通过考察这些领域的结构特征与运作逻辑,可以解释当下中国知识分子的现状.当然,这些活动领域也是存在于特定的社会背景中,并随着社会变迁而改变的,这就意味着可以从社会变迁的视角来看这些活动领域所出现的各种问题.无论是从活动领域的视角来看知识分子,还是从社会变迁的视角来看活动领域,都既...