Biographical Appendix to Svorenčík, Andrej and Harro Maas
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M31193119 - BBRUNIRUNI TTEXT.Inddext.Indd 2200 227/02/20137/02/2013 08:1708:17 Altruistic Reciprocity 21
2. Altruistic reciprocity Herbert Gintis OTHER- REGARDING PREFERENCES AND STRONG RECIPROCITY By a self- regarding actor we mean an individual who maximizes his own payoff in social interactions. A self- regarding actor thus cares about the behavior of and payoffs to the other individuals only insofar as these impact his own payoff. The term ‘self- regarding’ is more accurate than ‘self- interested’ because an other-regarding individual is still acting to maximize utility and so can be described as self- interested. For instance, if I get great pleasure from your consumption, my gift to you may be self- interested, even though it is surely other- regarding. We can avoid confusion (and much pseudo- philosophical dis- cussion) by employing the self-regarding/other- regarding terminology. One major result of behavioral game theory is that when modeling market processes with well- specified contracts, such as double auctions (supply and demand) and oligopoly, game- theoretic predictions assuming self- regarding actors are accurate under a wide variety of social settings (see Kachelmaier and Shehata, 1992; Davis and Holt, 1993). The fact that self- regarding behavior explains market dynamics lends credence to the practice in neoclassical economics of assuming that individuals are self- regarding. However, it by no means justifies ‘Homo economicus’ because many economic transac- tions do not involve anonymous exchange. This includes employer- employee, creditor- debtor, and firm- client relationships. Nor does this result apply to the welfare implications of economic outcomes (e.g., people may care about the overall degree of economic inequality and/or their positions in the income and wealth distribution), to modeling the behavior of taxpayers (e.g., they may be more or less honest than a self- regarding indi- vidual, and they may prefer to transfer resources toward or away from other individu- als even at an expense to themselves) or to important aspects of economic policy (e.g., dealing with corruption, fraud, and other breaches of fiduciary responsibility). -
Baldwin Chapter 6 the Value Structure of Technologies 8-18-20
Design Rules, Volume 2: How Technology Shapes Organizations Chapter 6 The Value Structure of Technologies, Part 1: Mapping Functional Relationships Carliss Y. Baldwin Working Paper 21-039 Design Rules, Volume 2: How Technology Shapes Organizations Chapter 6 The Value Structure of Technologies, Part 1: Mapping Functional Relationships Carliss Y. Baldwin Harvard Business School Working Paper 21-039 Copyright © 2020 by Carliss Y. Baldwin Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Funding for this research was provided in part by Harvard Business School. © Carliss Y. Baldwin Comments welcome. Please do not circulate or quote. Design Rules, Volume 2: How Technology Shapes Organizations Chapter 6 The Value Structure of Technologies, Part 1: Mapping Functional Relationships By Carliss Y. Baldwin Note to Readers: This is a draft of Chapter 6 of Design Rules, Volume 2: How Technology Shapes Organizations. It builds on prior chapters, but I believe it is possible to read this chapter on a stand-alone basis. The chapter may be cited as: Baldwin, C. Y. (2020) “The Value Structure of Technologies, Part 1: Mapping Functional Relationships,” Harvard Business School Working Paper (Rev. September 2020). I would be most grateful for your comments on any aspect of this chapter! Thank you in advance, Carliss. Abstract Organizations are formed in a free economy because an individual or group perceives value in carrying out a technical recipe that is beyond the capacity of a single person. -
The Original Version of This Chapter Was Revised: the Copyright Line Was Incorrect
The original version of this chapter was revised: The copyright line was incorrect. This has been corrected. The Erratum to this chapter is available at DOI: 10.1007/978-0-387-35615-0_52 D. Passey et al. (eds.), TelE-Learning © IFIP International Federation for Information Processing 2002 62 Yakov I. Fet. scientists from CEE countries, including two distinguished Russian scientists, Sergey Lebedev, who 'designed and constructed the first computer in the Soviet Union and founded the Soviet computer industry' , and Aleksey Lyapunov, who 'developed the first theory of operator methods for abstract programming and founded Soviet cybernetics and programming' (IEEE Computer, 1998; IEE Annals of the History of Computing, 1999). Of course, this reward recognised the important contribution of scientists and engineers from Central and Eastern Europe who played a significant role. However, in our opinion, it was just the first step in exploring and publishing this contradictory history which is of particular interest. It can serve a critical lesson to teachers and students who should learn the truth about suppressing an understanding of cybernetics and other advanced modem sciences behind the 'iron curtain'. What can be done today in order to make familiar to the world computer community the true history of computer science in CEE countries? Recently, a special group of Russian experts started their investigations in this field. The first result of their efforts was the book 'Essays on the History of computer science in Russia' (Pospelov and Fet, 1998) published in 1998 in Novosibirsk, Russia. In contrast to historical and biographical writings reflecting to a great extent the personal views of their authors, this book is built completely on the basis of authentic documents of the epoch. -
The Allais Paradox: What It Became, What It Really Was, What It Now Suggests to Us
Economics and Philosophy (2019), 35, 423–459 doi:10.1017/S0266267118000469 ARTICLE The Allais paradox: what it became, what it really was, what it now suggests to us Philippe Mongin GREGHEC, 1 rue de la Libération, F-78350 Jouy-en-Josas, France Email: [email protected] (Received 11 June 2018; revised 24 August 2018; accepted 27 August 2018; first published online 30 January 2019) Abstract Whereas many others have scrutinized the Allais paradox from a theoretical angle, we study the paradox from an historical perspective and link our findings to a suggestion as to how decision theory could make use of it today. We emphasize that Allais proposed the paradox as anormativeargument, concerned with ‘the rational man’ and not the ‘real man’,touse his words. Moreover, and more subtly, we argue that Allais had an unusual sense of the normative, being concerned not so much with the rationality of choices as with the rationality of the agent as a person. These two claims are buttressed by a detailed investigation – the first of its kind – of the 1952 Paris conference on risk, which set the context for the invention of the paradox, and a detailed reconstruction – also the first of its kind – of Allais’s specific normative argument from his numerous but allusive writings. The paper contrasts these interpretations of what the paradox historically represented, with how it generally came to function within decision theory from the late 1970s onwards: that is, as an empirical refutation of the expected utility hypothesis, and more specifically of the condition of von Neumann–Morgenstern independence that underlies that hypothesis. -
I'll Have What She's Having: Reflective Desires and Consequentialism
I'll Have What She's Having: Reflective Desires and Consequentialism by Jesse Kozler A thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Arts with Honors Department of Philosophy in the University of Michigan 2019 Advisor: Professor James Joyce Second Reader: Professor David Manley Acknowledgments This thesis is not the product of solely my own efforts, and owes its existence in large part to the substantial support that I have received along the way from the many wonderful, brilliant people in my life. First and foremost, I want to thank Jim Joyce who eagerly agreed to advise this project and who has offered countless insights which gently prodded me to refine my approach, solidify my thoughts, and strengthen my arguments. Without him this project would never have gotten off the ground. I want to thank David Manley, who signed on to be the second reader and whose guidance on matters inside and outside of the realm of my thesis has been indispensable. Additionally, I want to thank Elizabeth Anderson, Peter Railton, and Sarah Buss who, through private discussions and sharing their own work, provided me with inspiration at times I badly needed it and encouraged me to think about previously unexamined issues. I am greatly indebted to the University of Michigan LSA Honors Program who, through their generous Honors Summer Fellowship program, made it possible for me to stay in Ann Arbor and spend my summer reading and thinking intentionally about these issues. I am especially grateful to Mika LaVaque-Manty, who whipped me into shape and instilled in me a work ethic that has been essential to the completion of this project. -
TECHNOLOGY and GROWTH: an OVERVIEW Jeffrey C
Y Proceedings GY Conference Series No. 40 Jeffrey C. Fuhrer Jane Sneddon Little Editors CONTENTS TECHNOLOGY AND GROWTH: AN OVERVIEW Jeffrey C. Fuhrer and Jane Sneddon Little KEYNOTE ADDRESS: THE NETWORKED BANK 33 Robert M. Howe TECHNOLOGY IN GROWTH THEORY Dale W. Jorgenson Discussion 78 Susanto Basu Gene M. Grossman UNCERTAINTY AND TECHNOLOGICAL CHANGE 91 Nathan Rosenberg Discussion 111 Joel Mokyr Luc L.G. Soete CROSS-COUNTRY VARIATIONS IN NATIONAL ECONOMIC GROWTH RATES," THE ROLE OF aTECHNOLOGYtr 127 J. Bradford De Long~ Discussion 151 Jeffrey A. Frankel Adam B. Jaffe ADDRESS: JOB ~NSECURITY AND TECHNOLOGY173 Alan Greenspan MICROECONOMIC POLICY AND TECHNOLOGICAL CHANGE 183 Edwin Mansfield Discnssion 201 Samuel S. Kortum Joshua Lerner TECHNOLOGY DIFFUSION IN U.S. MANUFACTURING: THE GEOGRAPHIC DIMENSION 215 Jane Sneddon Little and Robert K. Triest Discussion 260 John C. Haltiwanger George N. Hatsopoulos PANEL DISCUSSION 269 Trends in Productivity Growth 269 Martin Neil Baily Inherent Conflict in International Trade 279 Ralph E. Gomory Implications of Growth Theory for Macro-Policy: What Have We Learned? 286 Abel M. Mateus The Role of Macroeconomic Policy 298 Robert M. Solow About the Authors Conference Participants 309 TECHNOLOGY AND GROWTH: AN OVERVIEW Jeffrey C. Fuhrer and Jane Sneddon Little* During the 1990s, the Federal Reserve has pursued its twin goals of price stability and steady employment growth with considerable success. But despite--or perhaps because of--this success, concerns about the pace of economic and productivity growth have attracted renewed attention. Many observers ruefully note that the average pace of GDP growth has remained below rates achieved in the 1960s and that a period of rapid investment in computers and other capital equipment has had disappointingly little impact on the productivity numbers. -
Uncertainty and Hyperbolic Discounting
Uncertainty and Hyperbolic Discounting By PARTHA DASGUPTA AND ERIC MASKIN* Empirical studies in economics and behav- they have become more impatient than they ioral ecology suggest that, ceteris paribus, ani- were in January. mals and humans appear to place less weight on Both the O’Donoghue-Rabin and Strotz ex- the future than on the present, i.e., they act as amples accord with “hyperbolic discounting,”2 though they discount future payoffs. Further- which has attracted considerable interest among more (and more interestingly), they do so with economists because it appears to shed light on discount rates that increase as the time before important economic phenomena such as house- those payoffs are realized grows shorter.1 In hold saving behavior (see David Laibson, 1997; other words, subjects act as though they become B. Douglas Bernheim et al., 2001; Christopher less patient when payoffs are more imminent. Harris and Laibson, 2003). An anecdotal (human) example is offered by One might ask whether there is some reason Ted O’Donoghue and Matthew Rabin (1999): for such behavior. The point of view that we when offered the choice in February between a take is that, to a considerable extent, animal and painful seven-hour task (e.g., preparing a tax human behavior is shaped by preferences that return) on April 1 and a painful eight-hour task are the outcome of evolutionary forces. That is, on April 15, most of us, they suggest, will opt cravings, urges, or instincts—the operational for the earlier date. But as April 1 approaches, manifestations of preferences—induce the ani- we are apt to change our minds, if we can, and mal or human to make the right choice in the postpone the pain to April 15, even though it “average” situation that it, he, or she is likely to will then be greater. -
Retail Inventory Behavior and Business Fluctuations
ALAN S. BLINDER Princeton University Retail Inventory Behavior and Business Fluctuations THE enigmatic behavior of the U.S. economy during the 1980 recession makes it more imperative than ever that some of the mystery that sur- rounds inventory behavior be solved. On the surface, the economy seems to have reacted quite differently to what appear to be rather similar exter- nal shocks (principally, rapid increases in oil prices) in 1973-75 and in 1979-80. However, if one abstracts from inventory behavior and focuses on final sales, the two recessions look rather similar. Several observations confirm this. First, the briefest recession in U.S. history was also the first in which inventory investment did not swing sharply toward liquidation between the peak and the trough. Second, if one judges the contraction by real final sales instead of real GNP, the 1980 recession was actually far deeper than the "severe" 1973-75 recession.1 And third, the way the 1980 recession was concentrated into a single quarter seems less unusual if one looks at real final sales instead of real GNP. In the 1973-75 reces- I thank Danny Quah for exceptional research assistance. I also thank Gregory Mankiw and Leonard Nakamura for research assistance and Stephenie Sigall and Phyllis Durepos for quickly and efficiently typing the paper. I am grateful to mem- bers of the Brookingspanel and to a numberof colleagues for helpful discussions on this research. I apologize to those I leave out when I mention Angus S. Deaton, David Germany, Wayne Gray, F. Owen Irvine, Jr., Louis J. -
Principles of Behavioral Economics for Personal Development 30 Giugno 2018 Rodica Ianole-Calin
Tribunale Bologna 24.07.2007, n.7770 - ISSN 2239-7752 Direttore responsabile: Antonio Zama Principles of Behavioral Economics for Personal Development 30 Giugno 2018 Rodica Ianole-Calin Contributo selezionato da Filodiritto tra quelli pubblicati nei Proceedings “International Conference on Economics and Administration 2017” Per acquistare i Proceedings clicca qui: http://www.filodirittoeditore.com/index.php?route=product/product&path=78&product_id=143 Contribution selected by Filodiritto among those published in the Proceedings “International Conference on Economics and Administration 2017” To buy the Proceedings click here: http://www.filodirittoeditore.com/index.php?route=product/product&path=78&product_id=143 IANOLE-C?LIN Rodica [1], BRATU Anca [2] [1] Faculty of Business and Administration, University of Bucharest (ROMANIA) [2] Faculty of Business and Administration, University of Bucharest (ROMANIA) Emails: [email protected], [email protected] Abstract The paper aims to illustrate how becoming aware of our own behavioral patterns, by exposure to the experiments brought forward by behavioral economics, can trigger a significant transformation of our personal habits, in the direction of a better congruence with our true self and finally of better decision- making. The argumentation highlights three main focal points: the tensioned choice between maximizing and satisficing approaches, the inter-temporal conundrum between now and later, and the gap between planning and action. Introduction Understanding standard economic thinking – how a market works, how prices are formed, how economic agents interact – is without any doubt a first premise for achieving economic development. The following step, that of becoming acquainted with behavioral economic thinking, can further refine this development, but in a reverse order: creating initially a favorable space for personal development, that may gradually be led to wellbeing, also from a financial perspective. -
A Brief Appraisal of Behavioral Economists' Plea for Light Paternalism
Brazilian Journal of Political Economy, vol 32, nº 3 (128), pp 445-458, July-September/2012 Freedom of choice and bounded rationality: a brief appraisal of behavioral economists’ plea for light paternalism ROBERTA MURAMATSU PATRÍCIA FONSECA* Behavioral economics has addressed interesting positive and normative ques- tions underlying the standard rational choice theory. More recently, it suggests that, in a real world of boundedly rational agents, economists could help people to im- prove the quality of their choices without any harm to autonomy and freedom of choice. This paper aims to scrutinize available arguments for and against current proposals of light paternalistic interventions mainly in the domain of intertemporal choice. It argues that incorporating the notion of bounded rationality in economic analysis and empirical findings of cognitive biases and self-control problems cannot make an indisputable case for paternalism. Keywords: freedom; choice; bounded rationality; paternalism; behavioral eco- nomics. JEL Classification: B40; B41; D11; D91. So the immediate problem in Libertarian Paternalism is the fatuity of its declared motivation Very few libertarians have maintained what Thaler and Sunstein suggest they maintain, and indeed many of the leading theorists have worked with ideas in line with what Thaler and Sunstein have to say about man’s nature Thaler and Sunstein are forcing an open door Daniel Klein, Statist Quo Bias, Economic Journal Watch, 2004 * Professora doutora da Universidade Presbiteriana Mackenzie e do Insper, e-mail: rmuramatsu@uol. com.br; Pesquisadora independente na área de Economia Comportamental e Psicologia Econômica, e-mail [email protected]. Submetido: 23/fevereiro/2011. Aprovado: 12/março/2011. Revista de Economia Política 32 (3), 2012 445 IntrodUCTION There is a long-standing methodological tradition stating that economics is a positive science that remains silent about policy issues and the complex determi- nants of human ends, values and motives. -
The Nobel Prize in Economics Turns 50
AEXXXX10.1177/0569434519852429The American EconomistSanderson and Siegfried 852429research-article2019 Article The American Economist 2019, Vol. 64(2) 167 –182 The Nobel Prize in © The Author(s) 2019 Article reuse guidelines: Economics Turns 50 sagepub.com/journals-permissions https://doi.org/10.1177/0569434519852429DOI: 10.1177/0569434519852429 journals.sagepub.com/home/aex Allen R. Sanderson1 and John J. Siegfried2 Abstract The first Sveriges Riksbank Prizes in Economic Sciences in Memory of Alfred Nobel were awarded in 1969, 50 years ago. In this essay, we provide the historical origins of this sixth “Nobel” field, background information on the recipients, their nationalities, educational backgrounds, institutional affiliations, and collaborations with their esteemed colleagues. We describe the contributions of a sample of laureates to economics and the social and political world around them. We also address—and speculate—on both some of their could-have-been contemporaries who were not chosen, as well as directions the field of economics and its practitioners are possibly headed in the years ahead, and thus where future laureates may be found. JEL Classifications: A1, B3 Keywords Economics Nobel Prize Introduction The 1895 will of Swedish scientist Alfred Nobel specified that his estate be used to create annual awards in five categories—physics, chemistry, physiology or medicine, literature, and peace—to recognize individuals whose contributions have conferred “the greatest benefit on mankind.” Nobel Prizes in these five fields were -
John Von Neumann Between Physics and Economics: a Methodological Note
Review of Economic Analysis 5 (2013) 177–189 1973-3909/2013177 John von Neumann between Physics and Economics: A methodological note LUCA LAMBERTINI∗y University of Bologna A methodological discussion is proposed, aiming at illustrating an analogy between game theory in particular (and mathematical economics in general) and quantum mechanics. This analogy relies on the equivalence of the two fundamental operators employed in the two fields, namely, the expected value in economics and the density matrix in quantum physics. I conjecture that this coincidence can be traced back to the contributions of von Neumann in both disciplines. Keywords: expected value, density matrix, uncertainty, quantum games JEL Classifications: B25, B41, C70 1 Introduction Over the last twenty years, a growing amount of attention has been devoted to the history of game theory. Among other reasons, this interest can largely be justified on the basis of the Nobel prize to John Nash, John Harsanyi and Reinhard Selten in 1994, to Robert Aumann and Thomas Schelling in 2005 and to Leonid Hurwicz, Eric Maskin and Roger Myerson in 2007 (for mechanism design).1 However, the literature dealing with the history of game theory mainly adopts an inner per- spective, i.e., an angle that allows us to reconstruct the developments of this sub-discipline under the general headings of economics. My aim is different, to the extent that I intend to pro- pose an interpretation of the formal relationships between game theory (and economics) and the hard sciences. Strictly speaking, this view is not new, as the idea that von Neumann’s interest in mathematics, logic and quantum mechanics is critical to our understanding of the genesis of ∗I would like to thank Jurek Konieczny (Editor), an anonymous referee, Corrado Benassi, Ennio Cavaz- zuti, George Leitmann, Massimo Marinacci, Stephen Martin, Manuela Mosca and Arsen Palestini for insightful comments and discussion.