{"title":"Creative destruction vs destructive destruction: A Schumpeterian approach for adaptation and mitigation","authors":"Can Askan Mavi","doi":"10.1016/j.mathsocsci.2023.12.002","DOIUrl":"10.1016/j.mathsocsci.2023.12.002","url":null,"abstract":"<div><p>This article aims to demonstrate how a market exposed to a catastrophic event strives to find a balance between adaptation and mitigation policies through R&D strategies. Our analysis reveals that, within our framework, there exists no trade-off between adaptation and mitigation. Rather, the critical relationship exists between adaptation and pollution because adaptation (wealth accumulation) increases the growth rate of the economy, leading to a higher flow pollution due to the scale effect. We also investigate the long-run effects of pollution taxes on growth rates and the influence of the probability of catastrophic events on these outcomes. Our findings suggest that even with a higher likelihood of catastrophe, the economy can elevate its R&D endeavors, provided that the penalty rate stemming from an abrupt event remains sufficiently high and the economy confronts a risk of a doomsday scenario. Additionally, we illustrate that pollution taxes can foster heightened long-term growth, with the positive effects being more pronounced when the probability of catastrophe is elevated, assuming an adequately substantial penalty rate. Finally, we find that pollution growth can be higher with less polluting inputs due to a scale effect, a phenomenon akin to the Jevons-type paradox.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"127 ","pages":"Pages 36-53"},"PeriodicalIF":0.6,"publicationDate":"2023-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138685620","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Relational utility and social norms in games","authors":"Ruiyang Su , Bryce Morsky","doi":"10.1016/j.mathsocsci.2023.12.001","DOIUrl":"10.1016/j.mathsocsci.2023.12.001","url":null,"abstract":"<div><p>Social norms, the informal rules of society, and relational utility, e.g. utility generated by guilt, are mechanisms by which cooperation and coordination can be facilitated. Here we add relational utility, derived from social norms, to the standard utility functions for several classic games and find that the qualitative outcome of these games can be altered. We find that social dilemmas can be converted into coordination games that exhibit bistability, polymorphic states with non-zero degrees of cooperation can exist at equilibrium, and that intermediate levels of relational utility (i.e. when norms are only moderately enforced) can be optimal in promoting cooperation.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"127 ","pages":"Pages 54-61"},"PeriodicalIF":0.6,"publicationDate":"2023-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138568692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Policy polarization, primaries, and strategic voters","authors":"Diego Carrasco , Shino Takayama , Yuki Tamura , Terence Yeo","doi":"10.1016/j.mathsocsci.2023.11.002","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.11.002","url":null,"abstract":"<div><p>We consider two-stage electoral competitions with strategic voters, investigating the effects of valence (i.e., a candidate’s personal quality) on policy polarization. In our model, two parties compete in a general election, and each party has two office-seeking candidates. Parties first hold a primary election to decide their representative, and then put forward their winning candidate to compete in the general election. Candidates are thus characterized by their promised policy and their valence. Although voters value policies differently, they value valence uniformly. We focus on a competitive regime pure strategy Nash equilibrium where the candidate with the highest valence does not necessarily win the general election. We provide the sufficient conditions under which such an equilibrium exists, as well as a novel comparative static analysis of the valence differences between candidates (or the valence advantage). Our findings demonstrate that changing the valence advantage in general and primary elections can pose differing implications for policy outcomes and policy polarization.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"127 ","pages":"Pages 19-35"},"PeriodicalIF":0.6,"publicationDate":"2023-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0165489623000999/pdfft?md5=602fe45c6572cc23079a81fb74272246&pid=1-s2.0-S0165489623000999-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138490582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rational Shortlist Method with refined rationales","authors":"Hassan Nosratabadi","doi":"10.1016/j.mathsocsci.2023.10.003","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.10.003","url":null,"abstract":"<div><p>We study a shortlisting model of choice where a decision-maker first applies her inherent rationale and then follows with a sequence of <em>refined</em> rationales that are triggered by inferior alternatives in a menu. Our decision-maker exhausts all the possible paths of sequential filtering. This model captures choice anomalies in multi-attribute choice space where shortlisting seems to be a natural heuristic, and where existing literature comes short.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"127 ","pages":"Pages 12-18"},"PeriodicalIF":0.6,"publicationDate":"2023-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138423312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Ultimatum bargaining with envy under incomplete information","authors":"Eric Gonzalez-Sanchez , Gino Loyola","doi":"10.1016/j.mathsocsci.2023.11.001","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.11.001","url":null,"abstract":"<div><p>We propose an ultimatum bargaining model in which the parties experience an envy-based externality that is private information<span>. Our results indicate that there is a threshold for the proposer’s envy which determines whether there will be either a perfectly equitable, certain agreement or an uncertain, inequitable agreement, and that this threshold rises as the distribution of the responder’s envy level improves in a first-order stochastic-dominance sense. In addition, conditionally on the scenario ruling out a perfectly equitable agreement, we show that the proposer’s envy level plays a dual role: (i) it increases the probability of a negotiation breakdown, and (ii) it constitutes a source of bargaining power. Numerical simulations also allow us to explore some properties of the role played by the responder’s envy and by changes in the envy distributions of the two players. Overall, our theoretical results are consistent with the main evidence from ultimatum experiments conducted in behavioral and neuroscience settings. In addition, we provide testable implications of our model for future experiments.</span></p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"127 ","pages":"Pages 1-11"},"PeriodicalIF":0.6,"publicationDate":"2023-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138423311","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the measurement of electoral volatility","authors":"Sandip Sarkar , Bharatee Bhusana Dash","doi":"10.1016/j.mathsocsci.2023.10.005","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.10.005","url":null,"abstract":"<div><p>Electoral volatility measures the degree of vote switching between political parties in two consecutive elections. Political scientists use this as an indicator of party system (in)stability. Pedersen (1979) states that volatility should increase when the number of parties changes and/or relevant parties experience vote transfer between elections. However, his proposed functional form of measuring volatility does not always respond to these changes. To address these limitations, we introduce a class of additively separable electoral volatility measures which are responsive to changes in both the number of parties and their vote shares. We present a set of axioms that are both necessary and sufficient to characterize the proposed class of indices, making the structure of the indices more transparent. The paper also introduces two quasi orders which can rank party systems in terms of all electoral volatility indices satisfying certain intuitively reasonable axioms. Finally, applications of the proposed class of indices and the quasi orders are provided using data from Indian state elections.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 119-128"},"PeriodicalIF":0.6,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91959461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Robust Bayesian choice","authors":"Lorenzo Stanca","doi":"10.1016/j.mathsocsci.2023.10.002","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.10.002","url":null,"abstract":"<div><p>A major concern with Bayesian decision making under uncertainty is the use of a single probability measure to quantify all relevant uncertainty. This paper studies prior robustness as a form of continuity of the value of a decision problem. I show that this notion of robustness is characterized by a form of stable choice over a sequence of perturbed decision problems, in which the available acts are perturbed in a precise fashion. I then introduce a choice-based measure of prior robustness and apply it to models of climate mitigation and portfolio choice.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 94-106"},"PeriodicalIF":0.6,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"92096454","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Maximal domains for strategy-proof pairwise exchange","authors":"Carmelo Rodríguez-Álvarez","doi":"10.1016/j.mathsocsci.2023.10.004","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.10.004","url":null,"abstract":"<div><p>We analyze centralized markets for indivisible objects without money through pairwise exchange when each agent initially owns a single object. We consider rules that for each profile of agents preferences select an assignment of the objects to the agents. We present a family of domains of preferences (<em>minimal reversal domains</em>) that are maximal rich domains for the existence of rules that satisfy <em>individual rationality</em>, <em>efficiency</em>, and <em>strategy-proofness</em>. Each minimal reversal domain is defined by a common ranking of the set of objects, and agents’ preferences over admissible objects coincide with such common ranking but for a specific pair of objects.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 107-118"},"PeriodicalIF":0.6,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"92115769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Subjective complexity under uncertainty","authors":"Quitzé Valenzuela-Stookey","doi":"10.1016/j.mathsocsci.2023.10.001","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.10.001","url":null,"abstract":"<div><p>Complexity of the problem of choosing among uncertain acts is a salient feature of many of the environments in which departures from expected utility theory are observed. I study a class of Generalized Simple Bounds preferences in which acts that are complex from the perspective of the decision maker are bracketed by “simple” acts to which they are related by statewise dominance. I then study a refinement of the model in which the size of the partition with respect to which an act is measurable arises endogenously as a measure of subjective complexity. Finally, I consider choice behavior characterized by a “cautious completion” of Simple Bounds preferences, and discuss the relationship between this model and models of ambiguity aversion. I develop general comparative statics results, and explore applications to portfolio choice and insurance choice.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 76-93"},"PeriodicalIF":0.6,"publicationDate":"2023-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50187457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Analytic approach for models of optimal retirement with disability risk","authors":"Jiwon Chae , Bong-Gyu Jang , Seyoung Park","doi":"10.1016/j.mathsocsci.2023.09.007","DOIUrl":"https://doi.org/10.1016/j.mathsocsci.2023.09.007","url":null,"abstract":"<div><p>Models of optimal retirement should reflect market incompleteness in reality caused by disability risk. In this paper, we develop an analytic approach for optimal retirement models with disability risk. More precisely, we provide an analytically tractable characterization of total wealth that is the sum of financial wealth and the present value of future income. We then provide analytic properties of the retirement wealth threshold. Finally, we derive the analytical optimal consumption and portfolio choice with retirement and disability risk.</p></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"126 ","pages":"Pages 68-75"},"PeriodicalIF":0.6,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50187464","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}