{"title":"Pre-commitment in bargaining with endogenous credibility","authors":"Zhuoqiong Chen , Ruixin Wang , Jichuan Zong","doi":"10.1016/j.jebo.2024.106714","DOIUrl":"10.1016/j.jebo.2024.106714","url":null,"abstract":"<div><p>We study whether negotiators adopt commitment tactics in bargaining, a concept first proposed by Schelling (1956), and their choice of the credibility of commitment. In a modified ultimatum game experiment, the responder is allowed to pre-commit to a minimum acceptable offer (MAO) before an offer is proposed. Meanwhile, they choose the credibility of the commitment, measured by a cost of backing down (CBD) incurred if the responder accepts an offer lower than the MAO. We find that nearly 40% of responders chose a CBD substantially lower than their MAO, despite the fact that proposers were more likely to cave in and offer a larger share of the bargaining surplus when fully credible commitments were made. Informing responders of the proposers' minimum acceptable share of the bargaining surplus does not reduce partially credible commitments, suggesting that these commitments were unlikely made to enlarge the contract zone. Further treatments and analyses suggest that other-regarding preferences may be the reason behind partially credible commitments.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106714"},"PeriodicalIF":2.3,"publicationDate":"2024-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142239483","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Conflict and returns to scale in production","authors":"Petros G. Sekeris , Kevin Siqueira","doi":"10.1016/j.jebo.2024.106735","DOIUrl":"10.1016/j.jebo.2024.106735","url":null,"abstract":"<div><p>We develop a conflict model but rather than output being subject to appropriation, one of the inputs to production is partially insecure. We find that how a player responds to an increase in the secure portion of its resource depends on the returns to scale in production. With increasing (decreasing) returns to scale, an increase in the secure portion of the resource will increase (decrease) that player’s effort to contest the resource. We also show that with increasing (decreasing) returns to scale the player controlling more of the secure resource exerts higher (lower) equilibrium effort in the contest for the unsecure resource. For constant returns to scale, players’ efforts remain unaffected by the amount of secured resources controlled. Our findings imply that territorial expansions by large actors will be more likely observed within the context of production technologies subject to increasing returns to scale (e.g. oil extraction). With decreasing returns to scale (e.g. alluvial diamonds, agricultural land), we predict more intense conflict by small actors.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106735"},"PeriodicalIF":2.3,"publicationDate":"2024-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167268124003494/pdfft?md5=b1a842e14c97f1c153d2c44d16e43d78&pid=1-s2.0-S0167268124003494-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142239486","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maja E. Marcus , Anna Reuter , Lisa Rogge , Sebastian Vollmer
{"title":"The effect of SMS reminders on health screening uptake: A randomized experiment in Indonesia","authors":"Maja E. Marcus , Anna Reuter , Lisa Rogge , Sebastian Vollmer","doi":"10.1016/j.jebo.2024.106715","DOIUrl":"10.1016/j.jebo.2024.106715","url":null,"abstract":"<div><p>As cardiovascular diseases (CVD) become the leading cause of death in low- and middle-income countries (LMICs), this raises new challenges for health systems. Regular screening is a key measure to manage CVD risk, but the uptake of such services remains low. We conducted a randomized controlled trial in Indonesia to assess whether personalized and targeted text messages increase the usage of public screening services for diabetes and hypertension in the at-risk population. Our intervention increased screening uptake by 6.6 percentage points. We show that text messages can be effective in the context of a relatively new disease burden in LMICs, where population responses may still be shaped by low salience and missing screening routines.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106715"},"PeriodicalIF":2.3,"publicationDate":"2024-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167268124003299/pdfft?md5=cd07f4e2ff7495485dc976bca5a3013c&pid=1-s2.0-S0167268124003299-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142233596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Blessing or bane: The absence of a leader, political selection, and economic growth","authors":"Maoyong Cheng , Yu Meng , Muyang Zhang","doi":"10.1016/j.jebo.2024.106721","DOIUrl":"10.1016/j.jebo.2024.106721","url":null,"abstract":"<div><p>In this study, we explore economic consequences of the absence of a political leader utilizing China's political system characterized by interlocked movements of personnel and a sophisticated procedure of selection and appointment before a local leader takes office. Using data during 2009–2018, we find that the absence of a leader weakens economic growth during the absence period, but local economic growth is stronger during the new leader's tenure. We propose two potential mechanisms, compensation effect and selection effect, and find evidence supporting the latter. These results imply that political selection process is worthwhile even if it harms the economy in the short run.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106721"},"PeriodicalIF":2.3,"publicationDate":"2024-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142172805","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cultural norms and tax compliance: Evidence from China","authors":"Maoyong Cheng , Ziying Fan , Chen Feng , Binbin Tian","doi":"10.1016/j.jebo.2024.106720","DOIUrl":"10.1016/j.jebo.2024.106720","url":null,"abstract":"<div><p>Existing studies suggest that formal institutions can effectively constrain corporate tax evasion and increase tax compliance, but little has been said about the role of informal institutions regarding tax compliance. This study empirically examines the long-term effect of Confucian cultural norms on corporate tax compliance using unique cultural and historical data from China. We find that the intergenerational transmission of the Confucian culture can significantly promote the tax compliance of modern firms, thereby effectively reducing tax evasion. Simultaneously, the compliance effect is more pronounced in informal firms, such as small-scale, non-listed, and local firms. In terms of mechanism analysis, the normative effect of the Confucian culture is a key mechanism for explaining variations in corporate tax compliance behaviors under different cultural norms. Overall, this study fills a gap in the research on how informal institutions regulate the behavior of firms to a certain extent, and at the same time supplements the existing literature on understanding the long-term effects of the Confucian culture.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106720"},"PeriodicalIF":2.3,"publicationDate":"2024-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142167938","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Alexander M. Dietrich , Gernot J. Müller , Raphael S. Schoenle
{"title":"Big news: Climate-disaster expectations and the business cycle","authors":"Alexander M. Dietrich , Gernot J. Müller , Raphael S. Schoenle","doi":"10.1016/j.jebo.2024.106719","DOIUrl":"10.1016/j.jebo.2024.106719","url":null,"abstract":"<div><p>News—anticipated changes of an economy’s fundamentals—drive the business cycle. Climate change is big news: it will impact the economy profoundly, but its full effect will take time to materialize. To better understand the transmission of news, this paper focuses on climate-change expectations. First, we measure the expected economic impact of climate change in a representative survey of U.S. consumers. We find, in particular, that costly natural disasters are salient of climate change. Second, we calibrate a New Keynesian model with rare disasters to the survey results and find that shifts in climate-change expectations operate like adverse demand shocks.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106719"},"PeriodicalIF":2.3,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167268124003330/pdfft?md5=a0632b7beb6562c0419041e764b44119&pid=1-s2.0-S0167268124003330-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163019","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Grades as signals of comparative advantage: How letter grades affect major choices","authors":"Hongyan Li , Xing Xia","doi":"10.1016/j.jebo.2024.106717","DOIUrl":"10.1016/j.jebo.2024.106717","url":null,"abstract":"<div><p>Can noisy signals about comparative advantage have long-term effects on major choices and later-life outcomes? We study the effects of grades in introductory courses on students’ choice of major and labor market outcomes. Students in our setting observe their letter grades but not the underlying scores (0-100). Using a regression-discontinuity design, we find that students just above a letter-grade cutoff in an introductory course are 3.6% more likely to major in the same field as that course. We find larger effects on students with noisier priors about their comparative advantage and in fields with higher income-GPA gradients. These results are consistent with a model where students with incomplete information learn about their comparative advantage in different fields through introductory course grades.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106717"},"PeriodicalIF":2.3,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163017","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Gerard J. van den Berg , Iris Kesternich , Gerrit Müller , Bettina M. Siflinger
{"title":"Reciprocity and the interaction between the unemployed and the caseworker","authors":"Gerard J. van den Berg , Iris Kesternich , Gerrit Müller , Bettina M. Siflinger","doi":"10.1016/j.jebo.2024.106706","DOIUrl":"10.1016/j.jebo.2024.106706","url":null,"abstract":"<div><p>We investigate how negatively reciprocal traits of unemployed individuals interact with “sticks” policies that impose constraints on individual job search effort, in the context of the German welfare system. For this we merge survey data of long-term unemployed individuals, containing indicators of reciprocity, to a unique set of register data on all unemployed coached by the same team of caseworkers and treatments they receive. We find that the combination of a higher negative reciprocity and a stricter regime has a negative interaction effect on search effort exerted by the unemployed. The results are stronger for males than for females. Stricter regimes may drive long-term unemployed males with certain types of social preferences further away from the labor market.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106706"},"PeriodicalIF":2.3,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167268124003123/pdfft?md5=92f102b0db69522b5117d0bbc5f1d570&pid=1-s2.0-S0167268124003123-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163018","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New evidence on the underrepresentation of Asian Americans in leadership positions","authors":"Maria Zhu","doi":"10.1016/j.jebo.2024.106679","DOIUrl":"10.1016/j.jebo.2024.106679","url":null,"abstract":"<div><p>For decades, Asian Americans have been characterized as a “model minority” due to perceived success in educational attainment and labor market outcomes. However, there are concerns that Asians remain underrepresented in top-level positions in the workplace. This study presents new evidence on the extent of this underrepresentation between US-born Asian American and White men and examines mechanisms driving racial leadership gaps. Results indicate that Asian men are significantly less likely to work in management and executive positions compared to White men with similar qualifications. However, Asian men are not underrepresented in other high-paying, non-leadership occupations, suggesting this is a phenomenon unique to leadership occupations. Furthermore, these gaps are only present among East Asian and Southeast Asian men, while South Asian men do not differ from White men in their likelihood of working in leadership occupations. I examine several mechanisms and find no evidence that gaps are driven by racial differences in preferences for leadership positions, selection into self-employment, intergenerational transmission, immigration recency, ethnic attrition, spousal characteristics, or geographic sorting.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106679"},"PeriodicalIF":2.3,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"To cut or not to cut: Deforestation policy under the shadow of foreign influence","authors":"Toke S. Aidt , Facundo Albornoz , Esther Hauk","doi":"10.1016/j.jebo.2024.106712","DOIUrl":"10.1016/j.jebo.2024.106712","url":null,"abstract":"<div><p>This article explores the complex interplay between deforestation policies and foreign influence, using a game theoretical model to analyze geopolitical factors influencing forest conservation decisions in countries with significant rainforests. The model highlights the conflicting interests of foreign powers – one aiming for economic benefits from agriculture and the other advocating for forest preservation to protect environmental services. The paper demonstrates how domestic political dynamics and economic shocks from the international economic influence regulatory decisions on deforestation in the shadow of foreign influence. This understanding is crucial for formulating strategies that balance developmental needs and global environmental concerns.</p></div>","PeriodicalId":48409,"journal":{"name":"Journal of Economic Behavior & Organization","volume":"227 ","pages":"Article 106712"},"PeriodicalIF":2.3,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167268124003263/pdfft?md5=36ed456db77dc7932288ac897a320b30&pid=1-s2.0-S0167268124003263-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142149303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}