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The econometric implementation of rational addiction theory has been highly influenced by Becker, Grossman and Murphy … makes it unclear how analyses based on the BGM approach can support, or reject, rational addiction theory. … under the alternative hypothesis of myopic addiction. Moreover, and in contrast to the common interpretation, BGM's non …
Persistent link: https://www.econbiz.de/10004980654
A common approach to defining equivalence scales is to consider a household modelled as if it maximizes a single utility function. This may be founded on an assumption of the household maximizing a welfare function of individual utilities. For a positive analysis of the household, this may be...
Persistent link: https://www.econbiz.de/10004980891
In 1967, John Krutilla suggested a relationship between car camping, canoe cruising, and cross-country skiing and induced demand for wild, primitive, and wilderness-related opportunities. Here, the time trend of cross-section parameter estimates of the relationship is examined. Households...
Persistent link: https://www.econbiz.de/10004980931
Do households' recycling efforts represent a social cost, which should be taken into account in cost-benefit analyses of alternative waste treatment systems? Some argue that it should not, since recycling efforts are to a large extent voluntary. We demonstrate that if the government can...
Persistent link: https://www.econbiz.de/10004980959
This paper studies the formation of social norms for considerate smoking behavior. Being considerate gives smokers a higher social approval from non-smokers, but imposes an inconvenience cost. A non-smoker's disapproval of inconsiderate smoking is assumed to be stronger the less used he is to...
Persistent link: https://www.econbiz.de/10004980516
This paper develops a theory for probabilistic models for risky choices that can be viewed as an extension of the … expected utility theory to account for bounded rationality. One probabilistic version of the Archimedean Axiom and two versions …
Persistent link: https://www.econbiz.de/10004980545
. The point of departure is an extension of the axiom system of the von Neumann-Morgenstern Expected utility theory to the …
Persistent link: https://www.econbiz.de/10004980563
models, models of commitment and the cognitive evaluation theory. …
Persistent link: https://www.econbiz.de/10004980630
In this paper, we present an economic model of moral motivation. Consumers prefer regarding themselves as socially responsible individuals. Voluntary contributions to public goods are motivated by this preference. The self-image as socially responsible is determined by a comparison of one's...
Persistent link: https://www.econbiz.de/10004980679
Several economists have maintained that social and internalized norms can enforce cooperation in public good situations. This experimental study investigates impacts of social and internalized norms for cooperation among strangers in a public good game. The experiment has two treatment effects....
Persistent link: https://www.econbiz.de/10004980709