UNCERTAINTY AND STICKY-DOWNWARD BUT UPWARD-MOBILE WAGES

The usual search models of unemployment hold that firms do not offer wage cuts to employees in time of slack demand because the employees have alternatives open to them at wages higher than the reduced wage that would be required to maintain full employment. This paper extends these models by considering employees as choosing in conditions of uncertainty and showing that refusal to accept a wage cut is often rational in the absence of a higher alternative wage. Additional implications are derived for union behavior and simultaneous inflation and unemployment.     

EXTERNALITIES, PROPERTY RIGHTS AND THE ALLOCATION OF RESOURCES IN MAJOR LEAGUE BASEBALL

Most economists who have analyzed professional baseball have concluded that two distinctive features of its labor market—the reserve clause and player draft—influence the distribution of wealth between players and owners but do not affect the allocation of playing talent among teams. Such conclusions, which are strongly at variance with laymen's views of such matters, are derived from theoretical considerations rather than empirical examinations. Our paper examines data from the two decades of major league history and concludes that, on the basis of that data, the empirical generalizations of previous economists do not appear to be justified.     

Your E‐mail Trail: Where Ethics Meets Forensics1

This article addresses ethical and legal issues arising from the increasing use of e‐mail and other forms of instant written communication in the conduct of business. E‐mail communications are often casual and informal. Yet e‐mail is a written record that can be more permanent and widely accessible than a paper communication. This article focuses on the implications of this fact, including (1) how individuals compromise their own privacy by the voluntary use of e‐mail; (2) how e‐mail has complicated the duty of confidentiality of employees to employers, and professionals to clients; (3) whether the use of e‐mail affects ethical deliberation and choice; and (4) the use of e‐mail as evidence of corporate conduct and intent in civil and criminal litigation. The article suggests that e‐mail users think “forensically” about their e‐mail—i.e., consider its potential as evidence in the context of other emails and underlying events—before pressing the “send” button.     

The Taking of a Position: A Reinterpretation of the Elaboration Likelihood Model

This article explains how data associated with attitude change and persuasion in mainstream psychology and social psychology can be reinterpreted as evidence of the agentive ability of taking a position. A critical review is made of the elaboration likelihood model and a position model is adapted from positioning theory. The postulates of the elaboration likelihood model are then subjected to critical scrutiny by means of comparison with our position model. In this way regularities associated with attitude change and persuasion are interpreted as evidence of a deliberative process, involving negotiation and the use of supporting and opposing arguments. We present this as evidence of the commonly held agentive ability to position oneself and anticipate the positions of others.     

GOVERNING A GROUNDWATER COMMONS: A STRATEGIC AND LABORATORY ANALYSIS OF WESTERN WATER LAW

We examine strategic behavior in groundwater depletion within the setting of state governance of groundwater resources in the American West. Solving a dynamic common-pool resource model for its optimal solution and its subgame perfect equilibrium provides benchmarks for behavior observed in laboratory experiments. Three forms of legal rules—common-pool depletion with a "rule-of-capture" to establish ownership (absolute ownership doctrine), entry restrictions (prior appropriation doctrine), and stock quotas (correlative rights doctrine—are examined in terms of their impact on individual strategic behavior in laboratory experiments.     

HEALTH AND AMENITY EFFECTS OF GLOBAL WARMING

This study shows that climate change would probably reduce mortality in the United States by about 40,000 per year, assuming a 4.5° warmer climate—the IPCC best estimate of temperature change with a doubling of carbon dioxide. Benefits would extend to lower medical costs nationwide. Measuring willingness to pay by wage rates shows that people prefer warm climates and would be willing to give up between $30 billion and $100 billion annually for a 4.5° increase in temperatures. ( JEL Q25, J17, J31)     

VALUE STRUCTURES AND PRIORITIES OF THREE GENERATIONS OF JAPANESE AMERICANS

This article tests a powerful value theory delineating dimensions of value systems on three generations of Japanese Americans. Value variation across these generations also is examined. With increasing assimilation, later generations of Japanese Americans were hypothesized to value individualistic and change - oriented values more than earlier generations . Earlier generations were expected to rate traditional and conformity values as more important than later generations. Data were obtained from a mail survey of a western U.S. city with a large Japanese American population , using Schwartz's Value Survey. The sample includes 1,271 Japanese Americans from the second, third, and fourth generations. The results show that the theory of value structure is fully supported in samples of third - and fourth - generation Japanese Americans , but not for the older second generation. In addition, value priorities did vary in systematic ways across these generations, but not to the extent expected. Implications of these findings for this theory of value structure and the nature of value variation are discussed.