Can we rationally learn to coordinate?

In this paper we examine the issue whether individual rationality considerations are sufficient to guarantee that individuals will learn to coordinate. This question is central in any discussion of whether social phenomena (read: conventions) can be explained in terms of a purely individualistic approach. We argue that the positive answers to this general question that have been obtained in some recent work require assumptions which incorporate some convention. This conclusion may be seen as supporting the viewpoint of institutional individualism in contrast to psychological individualism.     

Gender differentiated economic responses to crises in developing countries: insights for COVID-19 recovery policies

Review of Economics of the Household - COVID-19 has wide-ranging and long-term implications for individual and household outcomes. Policymakers expect that the economic impact of COVID-19,...     

The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers: A Comment*

Joglekar and Tharthare [6] presented an alternate approach for minimizing total inventory carrying and ordering costs of a vendor and the purchaser(s). This approach permits the vendor and the purchaser(s) to rationally select their operating policies. Joglekar and Tharthare claimed that their approach is more economical than the joint lot-size approach. In this note we identify some conceptual issues in their approach and demonstrate the superiority of the joint lot-size approach with the help of an example.     

Explicit versus Implicit Profit Sharing and the Determination of Wages:

ABSTRACT: This paper considers the claim that explicit profit sharing reduces the marginal cost of labour This is contrasted with the view that implicit profit sharing occurs through wage bargaining Using a microeconomic data set from the UK we find no evidence that the introduction of profit sharing reduces base wages and hence the marginal cost of labour However firm profitability is found to have a positive effect on wages which supports the hypothesis of implicit profit sharing through wage bargaining These findings suggest that it is hard to justify the favourable tax treatment of profit related pay found in the UK     

Gambling,Risk-Taking,and Antisocial Behavior: A Replication Study Supporting the Generality of Deviance

Research suggests that high frequency gambling is a component of the “generality of deviance”, which describes the observation that various forms of risky and antisocial behavior tend to co-occur among individuals. Furthermore, risky and antisocial behaviors have been associated with such personality traits as low self-control, and impulsivity, and sensation-seeking. We conducted a replication (and extension) of two previous studies examining whether high frequency gambling is part of the generality of deviance using a large and diverse community sample (n = 328). This study was conducted as a response to calls for more replication studies in the behavioral and psychological sciences (recent systematic efforts suggest that a significant proportion of psychology studies do not replicate). The results of the present study largely replicate those previously found, and in many cases, we observed stronger associations among measures of gambling, risk-taking, and antisocial behavior in this diverse sample. Together, this study provides evidence for the generality of deviance inclusive of gambling (and, some evidence for the replicability of research relating to gambling and individual differences).     

Use of online crowdsourcing platforms for gambling research

Crowdsourcing platforms like Amazon’s Mechnical Turk and Crowdflower have been touted to be a cost-effective way to collect large amounts of behavioural data. Across four large-n studies, gambling-related behaviours, tendencies and traits among participants in these labour markets were examined. In Studies 1 and 2, both conducted on Crowdflower, problem gamblers (as measured by the benchmark Problem Gambling Severity Index) comprised 24.5% and 21.9% of participants, respectively. In Study 3, conducted on Mechanical Turk, problem gamblers comprised 9.0% of participants. In Study 4, a two-wave longitudinal study conducted on Crowdflower, problem gamblers comprised 13.5% of participants in wave one and 14.8% of participants in wave two. In Studies 2 and 3, strong convergent associations were demonstrated across various measures of problem gambling tendencies and general gambling involvement. Furthermore, it was demonstrated that gambling was associated with personality traits (impulsivity, sensation-seeking, self-control), risk attitudes, affect, and behavioural risk-taking consistent with previous research. In Study 4, it was demonstrated that measures of problem gambling have acceptable test-retest reliability. Online crowdsourcing platforms appear to offer access to samples with remarkably high proportions of problem gamblers. However, this characteristic means that such samples are not necessarily representative of gambling tendencies among more general populations.     

An Examination of the Relationship Between Gambling and Antisocial Behavior

Problem gambling is significantly more prevalent in forensic populations than in the general population. Although some previous work suggests that gambling and antisocial behavior are related, the extent and nature of this relationship is unclear. Both gambling and antisocial behavior are forms of risk-taking, and may therefore share common determinants. We investigated whether individual differences in personality traits associated with risk-taking, the Big Five personality traits, and antisocial tendencies predicted gambling and antisocial behavior among 180 male students recruited for a study of gambling (35.0% non-problem gamblers, 36.7% low-risk gamblers, 21.7% problem gamblers, and 6.7% pathological gamblers). All forms of gambling and antisocial behavior were significantly correlated. Personality traits associated with risk-acceptance explained a significant portion of the variance in problem gambling, general gambling involvement, and all forms of antisocial behavior. Antisocial tendencies (aggression and psychopathic tendencies) explained a significant portion of additional variance in severe antisocial behavior but not moderate or minor antisocial behavior. When controlling for personality traits associated with risk-acceptance, the relationship between gambling and antisocial behavior was greatly diminished. The results are consistent with the hypothesis that gambling and antisocial behavior are associated because they are, in part, different manifestations of similar personality traits.     

Mood and Audience Effects on Video Lottery Terminal Gambling

Little is known about the situational factors associated with gambling behavior. We induced 180 male participants (mean age: 21.6) into a positive, negative, or neutral mood prior to gambling on a video lottery terminal (VLT). While gambling, participants were observed by either a male peer, female peer, or no one. Induced mood had no effect on gambling behavior. Participants induced into a negative mood prior to gambling, however, reported more positive moods after gambling, whereas those with positive and neutral moods reported more negative moods after gambling. Participants observed by either a male or female peer spent less time gambling on the VLT compared to those not observed. Participants observed by a female peer lost less money relative to the other observer conditions. Degree of problem gambling in the last year had little influence on these effects. Some practical implications of these findings are discussed.     

RFID‐Enabled Visibility and Retail Inventory Record Inaccuracy: Experiments in the Field

Accurate inventory records are key to effective store execution, affecting forecasting, ordering, and replenishment. Prior empirical research, however, shows that retailer inventory records are inherently inaccurate. Radio Frequency Identification (RFID) enables visibility into the movement of inventories in the supply chain. Using two different field experiments, the current research investigates the effectiveness of this visibility in reducing retail store inventory record inaccuracy (IRI). Study 1 used an interrupted time‐series design and involved daily physical counts of all products in one category in 13 stores (8 treatments and 5 controls) of a major global retailer over 23 weeks. Results indicate a significant decrease in IRI of approximately 26% due to RFID‐enabled visibility. Using an untreated control group design with pre‐test and post‐test, Study 2 expands the number of categories to five and the number of stores to 62 (31 treatment and 31 control stores). Results show that the effectiveness of RFID in reducing IRI varies by category (ranging from no statistically significant improvement to 81%). Results also suggest that RFID ameliorates the effects of known determinants of IRI and provide the key insight that the technology is most effective for product categories characterized by these determinants.     

Corrected profile likelihood confidence interval for binomial paired incomplete data

Clinical trials often use paired binomial data as their clinical endpoint. The confidence interval is frequently used to estimate the treatment performance. Tang et al. (2009) have proposed exact and approximate unconditional methods for constructing a confidence interval in the presence of incomplete paired binary data. The approach proposed by Tang et al. can be overly conservative with large expected confidence interval width (ECIW) in some situations. We propose a profile likelihood‐based method with a Jeffreys' prior correction to construct the confidence interval. This approach generates confidence interval with a much better coverage probability and shorter ECIWs. The performances of the method along with the corrections are demonstrated through extensive simulation. Finally, three real world data sets are analyzed by all the methods. Statistical Analysis System (SAS) codes to execute the profile likelihood‐based methods are also presented. Copyright © 2013 John Wiley & Sons, Ltd.