2,243 research outputs found

    Carrots, sticks, and the multiplication effect

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    Although a punishment can be applied only once, the threat to punish (also referred to as stick) can be reiterated several times, because when parties obey, the punishment is not applied and thus the threat can be repeated. The same is not possible with promises to reward (also known as carrots), since they need to be carried on every time a party complies, and hence at each round a new reward is needed. We show that the multipliability of sticks has pervasive consequences in economics and law and provides a unified explanation for seemingly unrelated phenomena such as the dynamics of riots and revolutions, the divide-and-conquer strategy, comparative negligence, the anticommons problem, the use of property rules in markets, the most-favored nation clause, legal restrictions on penalties in employment contracts, and legal aid

    Intellectual Property and the Prisoner’s Dilemma: A Game Theory Justification of Copyrights, Patents, and Trade Secrets

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    In this article, I will offer an argument for the protection of intellectual property based on individual self-interest and prudence. In large part, this argument will parallel considerations that arise in a prisoner’s dilemma game. In brief, allowing content to be unprotected in terms of free access leads to a sub-optimal outcome where creation and innovation are suppressed. Adopting the institutions of copyright, patent, and trade secret is one way to avoid these sub-optimal results

    Exploring individual user differences in the 2D/3D interaction with medical image data

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    User-centered design is often performed without regard to individual user differences. In this paper, we report results of an empirical study aimed to evaluate whether computer experience and demographic user characteristics would have an effect on the way people interact with the visualized medical data in a 3D virtual environment using 2D and 3D input devices. We analyzed the interaction through performance data, questionnaires and observations. The results suggest that differences in gender, age and game experience have an effect on people’s behavior and task performance, as well as on subjective\ud user preferences

    Sustainability management : insights from the viable system model

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    A review of current literature on sustainability standards reveals a significant gap between their adoption and the implementation of sustainability into every level of the organisation. In this paper, it is argued that in order to overcome this challenge, an appropriate model of an organisation is needed. The Viable System Model (VSM) is proposed as such a model and, in order to illustrate this argument, it is used to interpret the ISO 26000 standard on Social Responsibility (SR). First, the VSM theory is introduced and presented by modelling the hypothetical company Widget Co. Then, the clauses of ISO 26000 are mapped on the Widget Co. model, together with detailed descriptions and examples on the organisational and managerial implications of its adopting the standard's guidelines. The result is the identification of generic SR functions that need to be performed by the various organisational governance systems, as well as their dynamic interrelations, thus clarifying implementation issues. Moreover, by identifying different SR management layers, VSM is suggested as a way forward to develop an integration model for SR issues and respective sustainability tools. Finally, a discussion is given on the implications of using this approach to integrate sustainability standards and the way this research contributes to recent developments in sustainability research

    Incomplete Contracts, Property Rights and Endogenous Outside Options

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    This paper extends the framework provided by the so-called GHM approach to a context of endogenous outside options, showing how the optimality of property rights assignment might be reversed. In some cases, non-owners could over-invest in specific assets while having mere access to property rights might not prevent hold-up. Our conclusions suggest that in order to reach the desired optimality features, the design of ownership structure should take into account the dynamics of outside options.outside options, property rights allocation, hold-up problem

    From Predicting Solar Activity to Forecasting Space Weather: Practical Examples of Research-to-Operations and Operations-to-Research

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    The successful transition of research to operations (R2O) and operations to research (O2R) requires, above all, interaction between the two communities. We explore the role that close interaction and ongoing communication played in the successful fielding of three separate developments: an observation platform, a numerical model, and a visualization and specification tool. Additionally, we will examine how these three pieces came together to revolutionize interplanetary coronal mass ejection (ICME) arrival forecasts. A discussion of the importance of education and training in ensuring a positive outcome from R2O activity follows. We describe efforts by the meteorological community to make research results more accessible to forecasters and the applicability of these efforts to the transfer of space-weather research.We end with a forecaster "wish list" for R2O transitions. Ongoing, two-way communication between the research and operations communities is the thread connecting it all.Comment: 18 pages, 3 figures, Solar Physics in pres

    Active Courts and Menu Contracts

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    We describe and analyze a contractual environment that allows a role for an active court. The model we analyze is the same as in Anderlini, Felli, and Postlewaite (2006). An active court can improve on the outcome that the parties would achieve without it. The institutional role of the court is to maximize the parties’ welfare under a veil of ignorance. In Anderlini, Felli, and Postlewaite (2006) the possibility of “menu contracts” between the informed buyer and the uninformed seller is described but not analyzed. Here, we fully analyze this case. We find that if we maintain the assumption that one of the potential objects of trade is not contractible ex-ante, the results of Anderlini, Felli, and Postlewaite (2006) survive intact. If however we let all “widgets” be contractible ex-ante, then multiple equilibria obtain. In this case the role for an active court is to ensure the inefficient pooling equilibria do not exist alongside the superior ones in which separation occurs.optimal courts, informational externalities, ex-ante welfare, informed principal, menu contracts

    The Costs of Freely Granting Specific Performance

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