NETWORK STRUCTURE IN A LINK FORMATION GAME: AN EXPERIMENTAL STUDY

In this article, we use an experiment to evaluate the performance of alternative refinements in a Myersonian link formation game with a supermodular payoff function. Our results show that a non‐cooperative refinement, the global games (GG) approach, outperforms alternative cooperative refinements (strong Nash equilibrium, coalition‐proof Nash equilibrium, and pairwise stable Nash equilibrium) in explaining the observed experimental behavior in the static game of complete information with three players. The results are robust to some comparative statics and the GG approach shows a high predictive power under incomplete information. However, under repeated interaction or with a greater number of players, the GG approach loses predictive power, but so do the cooperative refinements. The results illustrate the importance of coordination failure in practice and the need to design mechanisms to reduce this effect in practical decision‐making problems. (JEL C70, C92, D20, D44, D82)     

Multi-level analysis of cultural phenomena: The role of ERPs approach to prejudice

Brain processes and social processes are not as separated as many of our Social Psychology and Neuroscience departments. This paper discusses the potential contribution of social neuroscience to the development of a multi-level, dynamic, and context-sensitive approach to prejudice. Specifically, the authors review research on event related potentials during social bias, stereotypes, and social attitudes measurements, showing that electrophysiological methods are powerful tools for analyzing the temporal fine-dynamics of psychological processes involved in implicit and explicit prejudice. Meta-theoretical implications are drawn regarding the social psychological modeling of social attitudes, and for the integration of social neuroscience into a multi-level account of cultural behavior.     

EVALUATING THE ECONOMIC COST OF ENVIRONMENTAL MEASURES IN PLANTATION HARVESTING THROUGH THE USE OF MATHEMATICAL MODELS

An important issue being discussed for Chilean pine plantation policies is the application of environmental protection measures when managing its timber areas. Typical measures, already in place in more developed countries, include imposing riparian strips and protecting fragile soils from the use of heavy machinery. While environmental protection measures have been considered vital for decades, so far there has been almost no attempt to quantify both the benefits and costs of these measures. This paper attempts to measure the costs associated with the main measures which can help both the forestry firms and the government evaluate the cost impact of the new environmental protection regulations being studied. The analysis for different environmental scenarios is carried out by modifying a mixed integer LP, currently used for tactical planning by one forestry firm.