Department of Economics
University of Minnesota
Minneapolis, MN 55455
NBER Working Papers and Publications
|January 2015||Pareto Efficiency and Identity|
with Christopher Phelan: w20883
Inherent in the definition of Pareto efficiency is the idea that, in dynamic environments, an individual is indexed by the history of events up to his birth (rather than, as usual, the date of birth). Here, we explore the implications of this natural formulation. The set of Pareto efficient allocations that is consistent with this view is potentially larger than those considered so far in the literature. We show that the set of allocations is strictly larger because we do not require individuals to have insurance motives of the Harsanyi-Rawls type regarding risks on their own type realization. We do, however, maintain the insurance motives of parents toward their children. Even in our more general framework, efficiency criteria impose substantial restrictions on the set of allocations. Int...
|October 2008||Using Behavioral Economic Field Experiments at a Firm: The Context and Design of the Truckers and Turnover Project|
with Stephen V. Burks, Jeffrey Carpenter, Lorenz Götte, Kristen Monaco, Kay Porter
in The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, Stefan Bender, Julia Lane, Kathryn Shaw, Fredrik Andersson, and Till von Wachter, editors
|March 2007||Using Behavioral Economic Field Experiments at a Large Motor Carrier: The Context and Design of the Truckers and Turnover Project|
with Stephen V. Burks, Jeffrey Carpenter, Lorenz Goette, Kristen Monaco, Kay Porter: w12976
The Truckers and Turnover Project is a statistical case study of a single firm and its employees which matches proprietary personnel and operational data to new data collected by the researchers to create a two-year panel study of a large subset of new hires. The project's most distinctive innovation is the data collection process which combines traditional survey instruments with behavioral economics experiments. The survey data include information on demographics, risk and loss aversion, time preference, planning, non-verbal IQ, and the MPQ personality profile. The data collected by behavioral economics experiments include risk and loss aversion, time preferences (discount rates), backward induction, patience, and the preference for cooperation in a social dilemma setting. Subjects w...
|September 1993||Better Late Than Early: Vertical Differentiation in the Adoption of a New Technology|
with Prajit K. Dutta, Saul Lach: w4473
After the initial breakthrough in the research phase of R&D a new product undergoes a process of change, improvement and adaptation to market conditions. We model the strategic behavior of firms in this development phase of R&D. We emphasize that a key dimension to this competition is the innovations that lead to product differentiation and quality improvement. In a duopoly model with a single adoption choice, we derive endogeneously the level and diversity of product innovations. We demonstrate the existence of equilibria in which one firm enters early with a low quality product while the other continues to develop the technology and eventually markets a high quality good. In such an equilibrium, no monopoly rent is dissipated and the later innovator makes more profits. Incumbent fir...
Published: Journal of Economics and Management Strategy, vol. 4, no. 4, Winter 1995, pp.563-589. citation courtesy of