Dynamic Contracting under Permanent and Transitory Private Information

To understand how firms create and maintain long term relationships with consumers, or how procurement relations evolve over time, it is useful to study a dynamic variant of the classical two-type-buyer contract in mechanism design. It is less trivial and more interesting if the utility determinant (or utility type) is not fixed or completely random, and fair assumptions are that it is either stochastic, or given by a distribution whose parameters are common knowledge. The first approach is that of Battaglini (2005), while the second is pursued in this paper. With two possible types of buyers, the buyer more likely to have a high utility type will receive the first-best allocations, while the other will receive the first best only if he has the high utility type

Judgements with errors lead to behavioral heuristics

A decision process robust to errors in the estimation of values, probabilities and times will employ heuristics that generate consistent apparent biases like loss aversion, nonlinear probability weighting with discontinuities and present bias

Dynamic Contracting under Permanent and Transitory Private Information

To understand how firms create and maintain long term relationships with consumers, or how procurement relations evolve over time, this paper examines a dynamic variant of the classical two-type-buyer contract with commitment in mechanism design. The utility determinant (or utility type) is not fixed nor completely random, and fair assumptions are that it evolves stochastically, or it is given by a distribution whose parameters are common knowledge. The second approach is pursued in this paper, and the distribution of the utility type is determined by a private information buyer type. With two possible types of buyers, the buyer more likely to have a high utility type will receive the first-best allocations, while the other will receive the first best only if he has the high utility type

Inefficient Reallocation, Loss Aversion and Prospect Theory

The paper shows that bounded rationality, in the form of limited knowledge of utility, is an explanation for common stylized facts of prospect theory like loss aversion, status quo bias and non-linear probability weighting. Locally limited utility knowledge is considered within a classical demand model framework, suggesting that costs of inefficient search for optimal consumption will produce a value function that obeys the loss aversion axiom of Tversky and Kahneman (1991). Moreover, since this adjustment happens over time, new predictions are made that explain why the status quo bias is reinforced over time. This search can also describe the behavior of a consumer facing an uncertain future wealth level. The search cost justifies non-linear forms of probability weighting. The effects that have been observed in experiments will follow as a consequence

Further insights on predictors of environmental tobacco smoke exposure during the pediatric age

Background: The smoking ban in public places has reduced Environmental Tobacco Smoke (ETS) exposure for non-smokers, but despite this, domestic environments still remain places at high risk of exposure, and, today, about 40% of children worldwide are exposed to ETS at home. The aims of the study are to investigate the contribution of several factors on ETS exposure among a group of Italian children and to evaluate the changes in smoking precautions adopted at home when the smoker is the mother, the father, or both parents, respectively. Methods: A cross-sectional study was performed on a sample of 519 Italian schoolchildren. Information was collected via a questionnaire. Results: 41.4% of the participants lived with at least one smoker. Almost half of the children exposed to ETS lived with one or more smokers who do not observe any home smoking ban. Lower maternal or paternal educational levels significantly increase the risk of ETS exposure at home and the “worst case” is represented by both parents who smoke. Conclusions: More effective preventive interventions are needed to protect children from ETS exposure. Some interventions should be specifically dedicated to smokers with a low educational level and to mothers that smoke

Which Decision Theory Describes Life Satisfaction Best? Evidence from Annual Panel Data

We use an annual household panel to test which features of prospect theory can be supported by measures of life satisfaction. We also test whether recalled or expected life satisfaction is anchored at current life satisfaction and adjusted in the direction of the recall or expectation. Using a fixed effects estimator we find that life satisfaction contains features of both classic expected utility and prospect theory. Life satisfaction depends positively on levels of income, good health, and on employment. It also depends positively on income and employment improvements, however the reverse is true for health increases. Life satisfaction is concave in income gains and convex in income losses, and it exhibits loss aversion in income and employment status, but not in health. Moreover, we find that current levels of life satisfaction are better predictors of recalled (expected) life satisfaction than past (future) life satisfaction. The results support viewing life satisfaction as representing a mixture of the classic decision utility of expected utility theory, and the value function of prospect theory. Subjects seem to use an anchoring and adjustment heuristic when answering questions about past and expected life satisfaction

Laparoscopic partial suprarenalectomy

Catedra de Chirugie nr. 4, Universitatea de Stat de Medicină și Farmacie “Nicolae Testemițanu”, Chișinău, Republica Moldova, Al XIII-lea Congres al Asociației Chirurgilor „Nicolae Anestiadi” și al III-lea Congres al Societății de Endoscopie, Chirurgie miniminvazivă și Ultrasonografie ”V.M.Guțu” din Republica MoldovaIntroducere: Abordul laparoscopic în suprarenalectomie a devenit standartul de aur pentru diverse afecțiuni ale suprarenalei. Impactul suprarenalectomiei totale este deosebit de grav atunci când procesul este bilateral, în special la pacienții tineri. Suprarenalectomia parțială este binevenită în astfel de situații. Totodată dificultățile tehnice intraoperatorii și riscurile hemoragice sunt problemele majore cu care se confruntă aceste operații. În cazuri selecționate de tumori benigne sub 3 cm, cu localizare anterioară sau laterală, suprarenalectomia parțială este perfect justificată. Principalele repere sunt reprezentate de identificarea adenomului, pãstrarea țesutului glandular restant vascularizat și disecția precisă cu menținerea spațiului de clivaj între tumorã și restul parenchimului. Realizarea propriu zisã a rezecției țesutului glandular în condiții de securitate hemostatica este fezabilă și eficientă cu utilizarea tehnicilor moderne de sigilare vascularã Liga-Sure. Scopul: Implementarea interventiilor organomenajante in chirurgia tumorilor benigne ale suprarenalelor. Material și metode: Pe parcursul a 10 ani (2009-2018) in clinică au fost supuși intervențiilor chirurgicale 144 pacienti cu diverse formațiuni de volum ale suprarenalelor. Din lotul total 68 (47.2%) au suportat rezecții parțiale de glandă în bloc cu tumora. Rezultate: Durata medie a intervențiilor chirurgicale organomenajante nu a înregistrat deosebiri esențiale de suprarenalectomia totală, iar evoluția postoperatorie precoce a fost similară. Concluzii: Ambele metode chirurgicale prezintă evoluție postoperatorie precoce similare, iar suprarenalectomia parțială necesită dotari suplimentare pentru realizare totodată fiind metoda care ar permite prezervarea parenchimului hormonal.Background: The laparoscopic approach to suprarenalectomy has become a "gold standard" for various disorders of the suprarenal gland. The overall suprarenalectomy is particularly severe when the process is bilateral, especially in young patients. Partial suprarenalectomy is welcome in such situations. Intraoperative technical difficulties and hemorrhagic risks are the major problems during these operations. In selected cases of benign tumors under 3 cm, with anterior or lateral localization, partial suprarenalectomy is perfectly justified. The main milestones are the identification of the adenoma, preservation of the vascularized resting glandular tissue and the precise dissection with the maintenance of the cleavage space between the tumor and the rest of the parenchyma. The actual realization of the resection of the glandular tissue under hemostatic safety conditions is phased and efficient with the use of modern vascular sealing techniques Liga-Sure. The aim: A comparative study between the total and partial suprarenalectomies. Methods and materials: Over the course of 10 years (2009-2018) in the clinic 144 patients with various suprarenal volume formations underwent surgical interventions. From the total group 68 (47.2%), underwent partial tumor resection of the gland. Results: The average duration of partial resection surgeries did not show any essential differences of total suprarenalectomy and postoperative evolution was similar. Conclusions: Both surgical methods have a similar postoperative evolution, but the partial suprarenalectomy is technically more difficult to perform, but at the same time it is the only method that would maintain the endogen hormonal status

Can Behavioural Economics Be Applied To Life Satisfaction?: Evidence From Annual Panel Data

We use an annual household panel to test whether a number of findings in behavioural economics can be supported by measures of life satisfaction and other variables. We test the following hypotheses: life satisfaction is increasing and concave in income gains; life satisfaction is decreasing and convex in income losses; changes in income, health, and employment are evaluated against a reference point; loss aversion applies to income, health and employment; recalled or expected life satisfaction is anchored at current life satisfaction and adjusted in the direction of the recall or expectation. Using a fixed effects estimator, we find that life satisfaction is increasing and concave in income gains, decreasing and convex in income losses, influenced by both the levels of income, health and employment, as well as their changes compared to the previous year. Moreover, we find that current levels of life satisfaction are better predictors of remembered (expected) life satisfaction than past (future) life satisfaction. The results provide support for prospect theory, anchoring and adjustment, and raise doubts about using the status quo as the correct reference point

STRUCTURAL STATIC ANALYSIS OF THE CURVED STILT BY FEM USING THE ELCUT PROGRAM

The paper presents a study of the distribution of stresses and strains in the curved stilt of the plough-body, using the ELCUT analysis program by the finite element method. In its public version, the program allows the static structural analysis in three stages of precision. However, there are some limitations on the number of nodes for the discretized structure, depending on its complexity (250 to 500 nodes)