The Limit of Public Policy: Endogenous Preferences

In designing public policy it is not enough to consider the possible reaction of individuals to the chosen policy.Public policy may also affect the formation of preferences and norms in a society.The endogenous evolution of preferences, in addition to introducing a conceptual difficulty in evaluating policies, may also eventually affect actual behavior.In order to demonstrate the implications of endogenous preferences on the design of optimal public policy, we present a model in which a subsidy policy is set to encourage contributions towards a public good.However this policy triggers an endogenous preference change that results in a lower level of contribution towards the public good despite the explicit monetary incentives to raise that level.public policy

Informing Consumers About Themselves

Consumers make mistakes. Imperfect information and imperfect rationality lead to misperception of benefits and costs associated with a product. As a result, consumers might fail to maximise their preferences in product choice or product use. A proposed taxonomy of consumer mistakes draws attention to a less-studied category of mistakes: use-pattern mistakes – mistakes about how the consumer will use the product. Use-pattern mistakes are prevalent. Sellers respond strategically to use-pattern mistakes by redesigning their products, contracts and pricing schemes. These strategic design responses often exacerbate the welfare costs associated with consumer mistakes. From a policy perspective, focusing on disclosure regulation, the importance of use-pattern mistakes requires more, and better, use-pattern disclosure. In particular, sellers should be required to provide individualised use-pattern information

The Limit of Public Policy:Endogenous Preferences

In designing public policy it is not enough to consider the possible reaction of individuals to the chosen policy.Public policy may also affect the formation of preferences and norms in a society.The endogenous evolution of preferences, in addition to introducing a conceptual difficulty in evaluating policies, may also eventually affect actual behavior.In order to demonstrate the implications of endogenous preferences on the design of optimal public policy, we present a model in which a subsidy policy is set to encourage contributions towards a public good.However this policy triggers an endogenous preference change that results in a lower level of contribution towards the public good despite the explicit monetary incentives to raise that level.

Bargaining in the Absence of Property Rights. An Experiment

The Coase theorem posits that if (1) property rights are perfect, (2) contracts are perfectly enforceable, (3) transaction costs are zero, (4) preferences are common knowledge, and (5) parties are rational, then the initial allocation of entitlements matters only for distribution, not for efficiency. We study, in an experimental setting, whether condition 1 is necessary. Our results suggest that property rights have a limited effect on efficiency

Signatures of Strong Momentum Localization via Translational-Internal Entanglement

We show that atoms or molecules subject to fields that couple their internal and translational (momentum) states may undergo a crossover from randomization (diffusion) to strong localization (sharpening) of their momentum distribution. The predicted crossover should be manifest by a drastic change of the interference pattern as a function of the coupling fields.Comment: 4 pages, 3 figure

Generation of macroscopic quantum-superposition states by linear coupling to a bath

We demonstrate through an exactly solvable model that collective coupling to any thermal bath induces effectively nonlinear couplings in a quantum many-body (multi-spin) system. The resulting evolution can drive an uncorrelated large-spin system with high probability into a macroscopic quantum-superposition state. We discuss possible experimental realizations.Comment: 4 pages, 2 figures, Physical Review Letters (in press

Consumer credit in comparative perspective

We review the literature in sociology and related fields on the fast global growth of consumer credit and debt and the possible explanations for this expansion. We describe the ways people interact with the strongly segmented consumer credit system around the world—more specifically, the way they access credit and the way they are held accountable for their debt. We then report on research on two areas in which consumer credit is consequential: its effects on social relations and on physical and mental health. Throughout the article, we point out national variations and discuss explanations for these differences. We conclude with a brief discussion of the future tasks and challenges of comparative research on consumer credit.Accepted manuscrip

Controlled generation of momentum states in a high-finesse ring cavity

A Bose-Einstein condensate in a high-finesse ring cavity scatters the photons of a pump beam into counterpropagating cavity modes, populating a bi-dimensional momentum lattice. A high-finesse ring cavity with a sub-recoil linewidth allows to control the quantized atomic motion, selecting particular discrete momentum states and generating atom-photon entanglement. The semiclassical and quantum model for the 2D collective atomic recoil lasing (CARL) are derived and the superradiant and good-cavity regimes discussed. For pump incidence perpendicular to the cavity axis, the momentum lattice is symmetrically populated. Conversely, for oblique pump incidence the motion along the two recoil directions is unbalanced and different momentum states can be populated on demand by tuning the pump frequency.Comment: Submitted to EPJ-ST Special Issue. 10 pages and 3 figure

Politische Dimensionen von Militärübungen und Manövern – ein Projektbericht

Die virtuellen Kriege und Operationen, die in Militärübungen gespielt und geprobt werden, können entweder der Abschreckung dienen oder aber Angriffe vorbereiten bzw. zur Maskierung tatsächlicher Angriffe dienen. Für Beobachter ist es vielfach nicht offensichtlich, um welche Art von Militärübung es sich handelt. Die Ergebnisse eines vierjährigen internationalen Projektes zu politischen Dimensionen von Militärübungen richten das Schlaglicht insbesondere auf Missverständnisse und deren ungewollte politische Auswirkungen, die im Extremfall unbeabsichtigt zum Krieg führen können

A Tale of Two Markets: How Lower-end Borrowers Are Punished for Bank Regulatory Failures in Nigeria

In 2009, the Nigerian banking system witnessed a financial crisis caused by elite borrowers in the financial market. Regulatory response to the Nigerian crisis closely mirrored the international response with increased capital and liquidity thresholds for commercial banks. While the rise of consumer protection on the agenda of prudential supervisors internationally was logical in that consumer debt was the main cause of the global recession, the Nigerian banking reforms of 2009 disproportionately affected access by poorer consumers, who ironically had little to do with the underlying causes of the crisis. As lending criteria become more stringent, poorer consumers of credit products are pushed into informal markets because of liquidity-induced credit rationing. Overall, consumer protection is compromised because stronger consumer protection rules for the formal sector benefits borrowers from formal institutions who constitute the minority of borrowers in all markets. While the passage of regulation establishing credit bureaux and the National Collateral Registry will, in theory, ease access to credit especially by lower-end borrowers, the vast size of the informal market continues to compound the information asymmetry problem, fiscal policies to tackle structural economic issues such as unemployment and illiteracy remain to be initiated, and bank regulators continue to pander to elite customers with policy responses that endorse too big to fail but deems lower-end consumers too irrelevant to save. The essay concluded that addressing the wide disparity in access to credit between the rich and poor through property rights reforms to capture the capital of the informal class, promoting regulation to check loan concentration, and stimulating competition by allowing Telecommunication Companies (TELCOs) and fintech companies to carry on lending activities because of their superior knowledge of lower-end markets will facilitate greater access. The risk of systemic failure deriving from consumer credit in Nigeria is insignificant compared to the consumer vulnerabilities resulting from the exposure of consumers to unregulated products in the informal market