Showing 1 - 10 of 148
There is no empirical evidence that trade exposure per se increases child labour. As trade theory and household … economics lead us to expect, the cross-country evidence seems to indicate that trade reduces or, at worst, has no significant …
Persistent link: https://www.econbiz.de/10011410919
emergence of China as an exporting powerhouse. While research in economics had long acknowledged that trade with lower …-income countries could raise income inequality in Europe and the US, empirical estimates indicated only a modest contribution of trade … the unequal impacts of trade can manifest along different margins. Recent evidence from countries across Europe and the US …
Persistent link: https://www.econbiz.de/10012745407
The relevance of sunk costs in decision making is one of the major sources of disagreement between neoclassical economists and behavioral economists. We test the importance of sunk costs by examining the role of a player's draft position on his playing time in the National Basketball...
Persistent link: https://www.econbiz.de/10010226087
This paper reports on a field experiment testing for sunk-cost effects in an education setting. Students signing up for extra-curricular tutorial sessions randomly received a discount on the tuition fee. The sunk-cost effect predicts that students who receive larger discounts will attend fewer...
Persistent link: https://www.econbiz.de/10010246769
It is widely believed that rent-sharing reduces the incentives for investment when long term contracts are infeasible because some of the returns to sunk capital are captured by workers. We propose a simple test for the degree of hold-up based on the fraction of capital costs that are deducted...
Persistent link: https://www.econbiz.de/10009517430
The present paper aims to contribute to the literature on the foundations of incomplete contracts by providing conditions under which simple delegation of authority is the solution to the complete-contracting problem of the parties. We consider a hold-up framework where both parties profit from...
Persistent link: https://www.econbiz.de/10002352332
Persistent link: https://www.econbiz.de/10001893839
We provide experimental evidence of behavior consistent with the sunk cost effect. Subjects who earned a lottery via a real-effort task were given an opportunity to switch to a dominant lottery; 23% chose to stick with their dominated lottery. The endowment effect accounts for roughly only one...
Persistent link: https://www.econbiz.de/10012494907
This paper presents a dynamic model that analyzes how firms' expectations with regards to technological change influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing rapidly. As the pace of innovations in production...
Persistent link: https://www.econbiz.de/10003656912
received no attention in the new trade theory and the new economic geography. We set up a simple monopolistic competition model … labor, a number of tenets of the new trade and geography literature no longer hold. We also show that in order to explain … explain the agglomeration of economic activity observed in the real world. -- Trade and location ; land for production …
Persistent link: https://www.econbiz.de/10003759291