The dark side of friendship: envy

This paper studies the e¤ect of social relations on the convergence to the e¢ cient equilibrium in a 2x2 coordination game. We employ a 2x2 factorial design in which we explore two di¤erent games with asymmetric payo¤s and two matching protocols: .friends.versus .strangers.. In the .rst game payo¤s of the worse o¤ player are the same in the two equilibria, whereas in the second game, this player must sacri.ce her own payo¤ for achieving the e¢ cient equilibrium. Results show that .strangers. coor- dinate more frequently in the e¢ cient equilibrium than .friends.in both games. Regarding network measures, (such us degree in, degree out and betweenness) they are all positively correlated with the strategy which leads to the e¢ cient outcome except clustering. In addition, envy is a salient factor in explaining e¢ cient convergence.coordination, efficiency, envy, experiments, friendship, social networks.

The effect of oil price on industrial production and on stock returns

This paper analyzes the relationship between oil price shocks and the industrial production and between oil price shocks and the stock returns. The objective is to study which relationship is stronger or which variables reacts more rapidly to changes in oil price. We develop a Markov switching model assuming that there exits a latent variable (the state of the economy) which determines the mean of industrial production and the volatility of stock returns. The results show that raises in oil price affects in a negative and statistically significant way to stock returns and to industrial production, but the effect on stock returns is stronger than on industrial production.oil price, Markov switching models.

Inequality aversion among gypsies: a field investigation

This paper presents a first attempt to measure inequality aversion among gypsies. We conducted an experiment among adult gypsies living at slums outside Vallecas (Madrid). To analyze this variable we use the mechanism provided by Kroll & Davidovitz (2003) among 38 voluntary participants. Results indicate that: i) 52.6% of the individuals are inequality averse; ii) there is a positive relationship between inequality aversion and some features of the population such as individual religious practise, marital status, family size, position in the hierarchy of the family or club association and, iii) neither wealth, nor participation in voluntary activities affect inequality aversion.inequality aversion, gypsies, field experiment.

An investment game with third-party intervention

This paper explores the effect of the possibility of third-party intervention on behavior in a variant of the Berg, Dickhaut, and McCabe (1995) “Investment Game”. A third-party’s material payoff is not affected by the decisions made by the other participants, but this person may choose to punish a responder who has been overly selfish. The concern over this possibility may serve to discipline potentially-selfish responders. We also explore a treatment in which the third party may also choose to reward a sender who has received a low net payoff as a result of the responder’s action. We find a strong and significant effect of third-party punishment, in both punishment regimes, as the amount sent by the first mover is more than 60% higher when there is the possibility of third-party punishment. We also find that responders return a higher proportion of the amount sent to them when there is the possibility of punishment, with this proportion slightly higher when reward is not feasible. Finally, third parties punish less when reward is feasible, but nevertheless spend more on the combination of reward and punishment when these are both permitted than on punishment when this is the only choice for redressing material outcomes.Trust, punishment, third-party intervention, responsibility-alleviation

"Si él lo necesita": Gypsy fairness in Vallecas

"Si él lo necesita" (if he really needs it) was the most common argument given by the subjects who accepted the zero offer in the ultimatum game during experiments were conducted among illiterate (adult) gypsies in Vallecas, Madrid. Interestingly the acceptance of the zero offer was not a rare case but, in contrast, it was the modal value. This is even more remarkable if we consider that the 97% of the subjects proposed the equal split.Gypsies, fairness, social welfare, strategy method ultimatum game, bargaining.

Inequality aversion among gypsies: a field investigation

This paper presents a first attempt to measure inequality aversion among gypsies. We conducted an experiment among adult gypsies living at slums outside Vallecas (Madrid). To analyze this variable we use the mechanism provided by Kroll & Davidovitz (2003) among 38 voluntary participants. Results indicate that: i) 52.6% of the individuals are inequality averse; ii) there is a positive relationship between inequality aversion and some features of the population such as individual religious practise, marital status, family size, position in the hierarchy of the family or club association and, iii) neither wealth, nor participation in voluntary activities affect inequality aversion.Both authors acknowledge finantial support by the Generalitat Valenciana under the project GV06/275 and Centro de Estudios Andaluces I+D 2006

The dark side of friendship: envy

This paper studies the effect of social relations on the convergence to the effcient equilibrium in a 2x2 coordination game. We employ a 2x2 factorial design in which we explore two different games with asymmetric payoffs and two matching protocols: "friends" versus "strangers". In the first game payoffs of the worse off player are the same in the two equilibria, whereas in the second game, this player must sacrifice her own payoff for achieving the efficient equilibrium. Results show that "strangers" coordinate more frequently in the efficient equilibrium than "friends" in both games. Regarding network measures, (such us degree in, degree out and betweenness) they are all positively correlated with the strategy which leads to the efficient outcome except clustering. In addition, envy is a salient factor in explaining efficient convergence.Financial support is gratefully acknowledge by the Generalitat Valenciana GV 06/275 , Spanish Ministry SEJ2007-62081/ECON and Junta de Andalucía SEJ-2547

The effect of oil price on industrial production and on stock returns

This paper analyzes the relationship between oil price shocks and the industrial production and between oil price shocks and the stock returns. The objective is to study which relationship is stronger or which variables reacts more rapidly to changes in oil price. We develop a Markov switching model assuming that there exits a latent variable (the state of the economy) which determines the mean of industrial production and the volatility of stock returns. The reults show that raises in oil price affects in a negative and statistically significant way to stock returns and to industrial production, but the effect on stock returns is stronger than on industrial production

"Si él lo necesita": gypsy fairness in Vallecas

“Si él lo necesita” (if he really needs it) was the most common argument given by the subjects who accepted the zero offer in the ultimatum game during experiments were conducted among illiterate (adult) gypsies in Vallecas, Madrid. Interestingly the acceptance of the zero offer was not a rare case but, in contrast, it was the modal value. This is even more remarkable if we consider that the 97% of the subjects proposed the equal split.This experiment has been fully financed by the Instituto de Estudios Sociales Avanzados (IESA/CSIC)

La percepción de los trabajadores en España de la normativa del Sistema Público de Pensiones

Durante las ultimas décadas, la edad media de jubilación de los trabajadores en los países desarrollados se ha reducido notablemente. Una cuestión discutida, sin embargo, es si esta conducta de jubilación es consecuencia o no de la normativa que rige los sistemas públicos de pensiones. Si esta conducta es consecuencia, principalmente, de dicha normativa, esto indica que los trabajadores la conocen y la comprenden. Caso contrario, entonces los trabajadores no la conocen, o la conocen pero no la comprenden. En este trabajo, analizamos la normativa del sistema público de pensiones en España, y en base a ella, obtenemos una conducta teorica optima de jubilación, dadas las características individuales del trabajador. Posteriormente, analizamos la conducta empírica de jubilación de los trabajadores en España. Encontramos que esta conducta empírica es similar a la conducta teórica, con lo cual concluímos que los trabajadores de edad avanzada si conocen y entienden la normativa del Sistema Publico Español de Pensiones