License prices for financially constrained firms

It is often alleged that high auction prices inhibit service deployment. We investigate this claim under the extreme case of financially constrained bidders. If demand is just slightly elastic, auctions maximize consumer surplus if consumer surplus is a convex function of quantity (a common assumption), or if consumer surplus is concave and the proportion of expenditure spent on deployment is greater than one over the elasticity of demand. The latter condition appears to be true for most of the large telecom auctions in the US and Europe. Thus, even if high auction prices inhibit service deployment, auctions appear to be optimal from the consumers’ point of view

Do people really want to be nudged towards healthy lifestyles?

This paper assesses Thaler and Sunstein’s claim that policies that nudge individuals towards healthy lifestyles promote the welfare of those individuals, as judged by themselves. I argue that Thaler and Sunstein switch between two different interpretations of that clause. One interpretation gives the clause a wide range of applicability, but drains it of its content as a repudiation of paternalism. The other interpretation makes it more meaningful to say that people want to make the choices they are being nudged towards, but applies to a much narrower range of cases than Thaler and Sunstein have in mind

Collusion through Joint R&D: An Empirical Assessment

This paper tests whether upstream R&D cooperation leads to downstream collusion. We consider an oligopolistic setting where firms enter in research joint ventures (RJVs) to lower production costs or coordinate on collusion in the product market. We show that a sufficient condition for identifying collusive behavior is a decline in the market share of RJV-participating firms, which is also necessary and sufficient for a decrease in consumer welfare. Using information from the US National Cooperation Research Act, we estimate a market share equation correcting for the endogeneity of RJV participation and R&D expenditures. We find robust evidence that large networks between direct competitors – created through firms being members in several RJVs at the same time – are conducive to collusive outcomes in the product market which reduce consumer welfare. By contrast, RJVs among non-competitors are efficiency enhancing

Load carrying capacity of a heterogeneous surface bearing

It has been shown before that liquids can slip at a solid boundary, which prompted the idea that parallel-surfaces bearings can be achieved just by alternating slip and non-slip regions in the direction of fluid flow. The amount of slip at the wall depends on the surface tension at the liquid–solid interface, which in turn depends on the chemical state of the surface and its roughness. In the present study a heterogeneous surface was obtained by coating half of a circular glass disc with a coating repellant to glycerol. A rotating glass disc was placed at a known/calibrated distance and the gap was filled with glycerol. With the mobile surface moving from the direction of slip to non-slip region it can be theoretically shown that a pressure build up can be achieved. The pressure gradient in the two regions is constant, similar to that in a Rayleigh step bearing, with the maximum pressure at the separation line. The heterogeneous disc was placed on a holder supported by a load cell thus the force generated by this pressure increase can be measured accurately. Tests were carried out at different sliding speeds and gaps and the load carried was measured and subsequently compared with theoretical calculations. This allowed the slip coefficient to be evaluated

State dependent choice

We propose a theory of choices that are influenced by the psychological state of the agent. The central hypothesis is that the psychological state controls the urgency of the attributes sought by the decision maker in the available alternatives. While state dependent choice is less restricted than rational choice, our model does have empirical content, expressed by simple "revealed preference" type of constraints on observable choice data. We demonstrate the applicability of simple versions of the framework to economic contexts. We show in particular that it can explain widely researched anomalies in the labour supply of taxi drivers

Being there: a preliminary study examining the role of presence in Internet Gaming Disorder

Internet Gaming Disorder (IGD) has been introduced as an emerging mental health condition requiring further study. Associations between IGD and gaming presence (i.e., absorption in the virtual environment) have been implied. The aim of the present study was twofold: (a) to evaluate the extent to which presence contributes to IGD severity and, (b) to examine longitudinal differences in IGD according to the initial level of presence experienced. The participants comprising 125 emerging adults aged 18 to 29 years completed either: (i) three face-to-face assessments (one month apart, over three months) or (ii) a cross-sectional, online assessment. IGD was assessed with the nine-item IGD Scale Short Form and presence was assessed using the Presence Questionnaire. Regression and latent growth modelling analyses were conducted. Findings demonstrated that the level of gaming presence related to IGD severity but not to linear change in severity over a three-month period. The study shows that emergent adults who play internet games may be at a high risk of IGD given a more salient sense of being present within the gaming environment. Clinical implications considering prevention and intervention initiatives are discussed