Loss Aversion and Intertemporal Choice: A Laboratory Investigation

We present results from a laboratory study of loss aversion in the context of intertemporal choice. We investigate whether the provision of (windfall) endowments results in different elicited discount rates relative to subjects who earn income or earn and retain the income for a period before making intertemporal decisions. We hypothesize that loss aversion in an intertemporal choice yields higher discount rates among subjects earning and retaining. Our results support this hypothesis: among subjects who earn and retain their income we elicit substantially higher discount rates relative to those experiencing a windfall gain.intertemporal choice, discount rates, experiments

Loss aversion and intertemporal choice: A laboratory investigation

We present results from a laboratory study of loss aversion in the context of intertemporal choice. We investigate whether the provision of (windfall) endowments results in different elicited discount rates relative to subjects who earn income or earn and retain the income for a period before making intertemporal decisions. We hypothesize that loss aversion in an intertemporal choice yields higher discount rates among subjects earning and retaining. Our results support this hypothesis: among subjects who earn and retain their income we elicit substantially higher discount rates relative to those experiencing a windfall gain

Loss Aversion in the Laboratory

We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion protocol (Holt and Laury, 2002). In our experiment, participants earn and retain money for a week before using it in an incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on behavior resulting in participants requiring higher compensation to bear risk

The cryogenic system for the SLAC E158 experiment

E158 is a fixed target experiment at SLAC in which high energy (up to 48 GeV) polarized electrons are scattered off the unpolarized electrons in a 1.5 m long liquid hydrogen target. The total volume of liquid hydrogen in the system is 47.1. The beam can deposit as much as 700 W into the liquid hydrogen. Among the requirements for the system are: that density fluctuations in the liquid hydrogen be kept to a minimum, that the target can be moved out of the beam line while cold and replaced to within 2 mm and that the target survive lifetime radiation doses of up to 1×106 Gy. The cryogenic system for the experiment consists of the target itself, the cryostat containing the target, a refurbished CTI 4000 refrigerator providing more than 1 kW of cooling at 20 K and associated transfer lines and valve boxes. This paper discusses the requirements, design, construction, testing and operation of the cryogenic system. The unique features of the design associated with hydrogen safety and the high radiation field in which the target resides are also covered

Feedback Control of coupled-Bunch Instabilities

Abstract The next generation of synchrotron light sources and particle accelerators will require active feedback systems to control multi-bunch instabilities [1, Feedback systems to stabilize coupled-bunch instabilities may be understood in the frequency domain (modebased feedback) or in the time domain (bunch-by-bunch feedback). In both approaches an external amplifier system is used to create damping fields that prevent coupledbunch oscillations from growing without bound. The system requirements for transverse (betatron) and longitudinal (synchrotron) feedback are presented, and possible implementation options developed. Feedback system designs based on digital signal-processing techniques are described. Experimental results are shown from a synchrotron oscillation damper in the SSRLjSLAC storage ring SPEAR that uses digital signal-processing techniques

Do Employment Quotas Explain the Occupational Choices of Disadvantaged Minorities in India?

This article investigates the effects of a large-scale public sector employment quota policy for disadvantaged minorities (Scheduled Castes and Scheduled Tribes) in India on their occupational choices, as defined by skill level, during the 1980s and 1990s. We find that, first, the employment quota policy significantly affects the occupational structure of both disadvantaged minority populations. In response to the employment quotas, individuals belonging to the Scheduled Caste group are more likely to choose high-skill occupations and less likely to choose low- and middle-skill occupations, while individuals belonging to the Scheduled Tribe group are less likely to choose high-skill occupations and more likely to choose low- and middle-skill occupations. Second, the impact of the employment quotas is significantly related with an individual's years of schooling. Overall, the results indicate that the employment quota policy changes the occupational choices of individuals within the targeted populations and contributes to their improved socio-economic standing

Gift Exchange and the Separation of Ownership and Control

Numerous gift exchange experiments have found a positive relationship between employers' wage offers and workers' effort levels. In (almost) all these experiments the employer both owns and controls the firm. Yet in reality many firms are characterized by the separation of ownership and control. In this paper we explore to what extent this affects the wage-effort relationship observed. We compare the standard bilateral gift exchange game between an owner-manager and a worker with two trilateral ones where the firm is owned by a shareholder and controlled by a manager. The wage-effort relationship we observe is the same in all three situations. Most strikingly, workers still reward higher wages with higher effort levels, even when the manager responsible for choosing the wage does not share in the firm's profits at all. The results of a fourth treatment in which the wage is exogenously given suggest that workers feel reciprocal towards the firm as a whole; both ownership and control are important for the gift exchange relationship

Delegation and coordination with multiple threshold public goods: experimental evidence

When multiple charities, social programs and community projects simultaneously vie for funding, donors risk mis-coordinating their contributions leading to an inefficient distribution of funding across projects. Community chests and other intermediary organizations facilitate coordination among donors and reduce such risks. To study this, we extend a threshold public goods framework to allow donors to contribute through an intermediary rather than directly to the public goods. Through a series of experiments, we show that the presence of an intermediary increases public good success and subjects’ earnings only when the intermediary is formally committed to direct donations to socially beneficial goods. Without such a restriction, the presence of an intermediary has a negative impact, complicating the donation environment, decreasing contributions and public good success.When multiple charities, social programs and community projects simultaneously vie for funding, donors risk mis-coordinating their contributions leading to an inefficient distribution of funding across projects. Community chests and other intermediary organizations facilitate coordination among donors and reduce such risks. To study this, we extend a threshold public goods framework to allow donors to contribute through an intermediary rather than directly to the public goods. Through a series of experiments, we show that the presence of an intermediary increases public good success and subjects’ earnings only when the intermediary is formally committed to direct donations to socially beneficial goods. Without such a restriction, the presence of an intermediary has a negative impact, complicating the donation environment, decreasing contributions and public good success

The DIRC Particle Identification System for the BABAR Experiment

A new type of ring-imaging Cherenkov detector is being used for hadronic particle identification in the BABAR experiment at the SLAC B Factory (PEP-II). This detector is called DIRC, an acronym for Detection of Internally Reflected Cherenkov (Light). This paper will discuss the construction, operation and performance of the BABAR DIRC in detail