Deterrence in Rank-Order Tournaments

In a tournament, competitors may engage in undesirable activities, or 'cheating', in order to gain an advantage. Examples of such activities include the taking of steroids, plagiarism, and 'creative accounting'. This paper considers the problem of deterrence of these activities and finds that there exist special considerations that are not present in a traditional model of law enforcement. For example, an agent's returns to cheating depend on the cheating decisions of others, and so there may exist multiple equilibria. The problem of multiple equilibria can be reduced when the first-place prize is awarded to the person that performed best without cheating. Moreover, we show that re-awarding prizes reduces the amount of monitoring required to ensure compliance. We also demonstrate that monitoring costs can be further reduced by monitoring the winner of the tournament more than the loser, and by manipulating prizes, including through the introduction of prizes for non-winners.Enforcement; Cheating; Tournament

Efficiency and the Division of Marital Assets

This paper examines the incentives that property division laws can have for divorce and investment in marital assets. This paper considers an environment in which spouses have multiple inputs, such as time and money, to a marital asset but the choices a spouse makes with regards to one input, say time, are not observable to the courts. In such an environment, it is demonstrated that when spouses specialize, as in a traditional family structure, the common-law rule may be efficiency enhancing. However, when both spouses work and strong consumption complementarities are present, equal division leads to more efficient investment in the marital asset. Further, sufficient conditions are found for which the community rule leads to a lower divorce rate than the common-law rule.divorce, efficiency, marital property

What You Don't See Can't Hurt You: An Economic Analysis of Morality Laws

This paper provides an efficiency explanation for regulation of sex, drugs and gambling (the so-called ``morality laws''). The argument is motivated by the observation that the design an enforcement of these laws often promotes discretion by the people engaging in such activities. We propose that morality laws can be best explained by considering the proscribed activities to impose a negative externality on others when the activity is observed. In such a case, efficiency requires discretion by the individual who engages in such activities. When discretion is difficult to regulate directly, the activities can instead be proscribed thereby giving individuals incentive to hide their actions from others. We find conditions for the first-best levels of consumption and hiding to be implementable. In addition, since some level of activity is efficient, this paper provides another environment in which the optimal sanctions are not maximal.Crime; Externality; Laws; Morality; Enforcement

Turbulence and angular momentum transport in a global accretion disk simulation

The global development of magnetohydrodynamic turbulence in an accretion disk is studied within a simplified disk model that omits vertical stratification. Starting with a weak vertical seed field, a saturated state is obtained after a few tens of orbits in which the energy in the predominantly toroidal magnetic field is still subthermal. The efficiency of angular momentum transport, parameterized by the Shakura-Sunyaev alpha parameter, is of the order of 0.1. The dominant contribution to alpha comes from magnetic stresses, which are enhanced by the presence of weak net vertical fields. The power spectra of the magnetic fields are flat or decline only slowly towards the largest scales accessible in the calculation, suggesting that the viscosity arising from MHD turbulence may not be a locally determined quantity. I discuss how these results compare with observationally inferred values of alpha, and possible implications for models of jet formation.Comment: ApJ Letters, in press. The paper and additional visualizations are available at http://www.cita.utoronto.ca/~armitage/global_abs.htm

The metric tide: report of the independent review of the role of metrics in research assessment and management

This report presents the findings and recommendations of the Independent Review of the Role of Metrics in Research Assessment and Management. The review was chaired by Professor James Wilsdon, supported by an independent and multidisciplinary group of experts in scientometrics, research funding, research policy, publishing, university management and administration. This review has gone beyond earlier studies to take a deeper look at potential uses and limitations of research metrics and indicators. It has explored the use of metrics across different disciplines, and assessed their potential contribution to the development of research excellence and impact. It has analysed their role in processes of research assessment, including the next cycle of the Research Excellence Framework (REF). It has considered the changing ways in which universities are using quantitative indicators in their management systems, and the growing power of league tables and rankings. And it has considered the negative or unintended effects of metrics on various aspects of research culture. The report starts by tracing the history of metrics in research management and assessment, in the UK and internationally. It looks at the applicability of metrics within different research cultures, compares the peer review system with metric-based alternatives, and considers what balance might be struck between the two. It charts the development of research management systems within institutions, and examines the effects of the growing use of quantitative indicators on different aspects of research culture, including performance management, equality, diversity, interdisciplinarity, and the ‘gaming’ of assessment systems. The review looks at how different funders are using quantitative indicators, and considers their potential role in research and innovation policy. Finally, it examines the role that metrics played in REF2014, and outlines scenarios for their contribution to future exercises

Adam Smith’s Green Thumb and Malthus’ Three Horsemen: Cautionary tales from classical political economy

This essay identifies a contradiction between the flourishing interest in the environmental economics of the classical period and a lack of critical parsing of the works of its leading representatives. Its focus is the work of Adam Smith and Thomas Malthus. It offers a critical analysis of their contribution to environmental thought and surveys the work of their contemporary devotees. It scrutinizes Smith's contribution to what Karl Polanyi termed the "economistic fallacy," as well as his defenses of class hierarchy, the "growth imperative" and consumerism. It subjects to critical appraisal Malthus's enthusiasm for private property and the market system, and his opposition to market regulation. While Malthus's principal attraction to ecological economists lies in his having allegedly broadened the scope of economics, and in his narrative of scarcity, this article shows that he, in fact, narrowed the scope of the discipline and conceptualized scarcity in a reified and pseudo-scientific way

Testing the Cenozoic multisite composite δ¹⁸O and δ¹³C curves: new monospecific Eocene records from a single locality, Demerara Rise (Ocean Drilling Program Leg 207)

Until recently, very few high-quality deep ocean sedimentary sections of Eocene age have been available. Consequently, our understanding of Eocene paleoceanography has become heavily reliant on “composite” records patched together from multiple sites in different ocean basins and generated using multiple taxa (potential sources of “local” noise in the global signal). Here we test the reliability of the early to middle Eocene composite δ18O and δ13C stratigraphies (Zachos et al., 2001) by generating new monospecific records in benthic foraminiferal calcite from a single locality, Demerara Rise, in the tropical western Atlantic (Ocean Drilling Program Leg 207). We present new stable isotope correction factors for commonly used Eocene benthic foraminiferal species. We find that interspecies isotopic offsets are constant across the isotopic range, supporting the notion that the inconstant intertaxa offsets reported elsewhere result from mixing species within genera. In general, the δ18O stratigraphy from Demerara Rise supports the validity of the Eocene δ18O composite, while revealing a temporary warming punctuating middle Eocene cooling. This warming may correspond to the so-called “Middle Eocene Climatic Optimum” previously documented in the Southern Ocean. The composite and Demerara Rise records for δ13C differ substantially. By removing the intersite and intertaxa sources of uncertainty in δ13C, we obtain a clearer picture of carbon cycling during the Eocene. Secular change in interocean δ13C gradients through the Eocene reveals that intervals of climatic warmth (especially the early Eocene) are associated with very small water mass ageing gradients