Christian Ewerhart, Monotone comparative statics with separable objective functions, Economics Bulletin, Vol. 30 (3), 2010. (Journal Article)
The Milgrom-Shannon single crossing property is essential for monotone comparative statics of optimization problems and noncooperative games. This paper formulates conditions for an additively separable objective function to satisfy the single crossing property. One component of the objective function is assumed to allow a monotone concave transformation with increasing differences, and to be nondecreasing in the parameter variable. The other component is assumed to exhibit increasing differences, and to be nonincreasing in the choice variable. As an application, I prove existence of an isotone pure strategy Nash equilibrium in a Cournot duopoly with logconcave demand, affiliated types, and nondecreasing costs. |
|
A Rangel, Todd Anthony Hare, Neural computations associated with goal-directed choice, Current Opinion in Neurobiology, Vol. 20 (2), 2010. (Journal Article)
In goal-directed decision-making, animals choose between actions that are associated with different reward outcomes (e.g., foods) and with different costs (e.g., effort). Rapid advances have been made over the past few years in our understanding of the computations associated with goal-directed choices, and of how those computations are implemented in the brain. We review some important findings, with an emphasis on computational models, human fMRI, and monkey neurophysiology studies. |
|
Christopher J Burke, Philippe Tobler, M Baddeley, W Schultz, Neural mechanisms of observational learning, Proceedings of the National Academy of Sciences of the United States of America (PNAS), Vol. 107 (32), 2010. (Journal Article)
Individuals can learn by interacting with the environment and experiencing a difference between predicted and obtained outcomes (prediction error). However, many species also learn by observing the actions and outcomes of others. In contrast to individual learning, observational learning cannot be based on directly experienced outcome prediction errors. Accordingly, the behavioral and neural mechanisms of learning through observation remain elusive. Here we propose that human observational learning can be explained by two previously uncharacterized forms of prediction error, observational action prediction errors (the actual minus the predicted choice of others) and observational outcome prediction errors (the actual minus predicted outcome received by others). In a functional MRI experiment, we found that brain activity in the dorsolateral prefrontal cortex and the ventromedial prefrontal cortex respectively corresponded to these two distinct observational learning signals. |
|
G Hein, G Silani, K Preuschoff, C D Batson, T Singer, Neural responses to ingroup and outgroup members' suffering predict individual differences in costly helping, Neuron, Vol. 68 (1), 2010. (Journal Article)
Little is known about the neurobiological mechanisms underlying prosocial decisions and how they are modulated by social factors such as perceived group membership. The present study investigates the neural processes preceding the willingness to engage in costly helping toward ingroup and outgroup members. Soccer fans witnessed a fan of their favorite team (ingroup member) or of a rival team (outgroup member) experience pain. They were subsequently able to choose to help the other by enduring physical pain themselves to reduce the other's pain. Helping the ingroup member was best predicted by anterior insula activation when seeing him suffer and by associated self-reports of empathic concern. In contrast, not helping the outgroup member was best predicted by nucleus accumbens activation and the degree of negative evaluation of the other. We conclude that empathy-related insula activation can motivate costly helping, whereas an antagonistic signal in nucleus accumbens reduces the propensity to help. |
|
T Kalenscher, Philippe Tobler, W Huijbers, S M Daselaar, C M A Pennartz, Neural signatures of intransitive preferences, Frontiers in Human Neuroscience, Vol. 4, 2010. (Journal Article)
|
|
J Driver, F Blankenburg, S Bestmann, Christian Ruff, New approaches to the study of human brain networks underlying spatial attention and related processes, Experimental Brain Research, Vol. 206 (2), 2010. (Journal Article)
Cognitive processes, such as spatial attention, are thought to rely on extended networks in the human brain. Both clinical data from lesioned patients and fMRI data acquired when healthy subjects perform particular cognitive tasks typically implicate a wide expanse of potentially contributing areas, rather than just a single brain area. Conversely, evidence from more targeted interventions, such as transcranial magnetic stimulation (TMS) or invasive microstimulation of the brain, or selective study of patients with highly focal brain damage, can sometimes indicate that a single brain area may make a key contribution to a particular cognitive process. But this in turn raises questions about how such a brain area may interface with other interconnected areas within a more extended network to support cognitive processes. Here, we provide a brief overview of new approaches that seek to characterise the causal role of particular brain areas within networks of several interacting areas, by measuring the effects of manipulations for a targeted area on function in remote interconnected areas. In human participants, these approaches include concurrent TMS-fMRI and TMS-EEG, as well as combination of the focal lesion method in selected patients with fMRI and/or EEG measures of the functional impact from the lesion on interconnected intact brain areas. Such approaches shed new light on how frontal cortex and parietal cortex modulate sensory areas in the service of attention and cognition, for the normal and damaged human brain. |
|
Bruno Frey, David A Savage, Benno Torgler, Noblesse oblige? Determinants of survival in a life-and-death situation, Journal of Economic Behavior & Organization, Vol. 74 (1-2), 2010. (Journal Article)
This paper explores what determines the survival of people in a life-and-death situation. The sinking of the Titanic allows us to inquire whether pro-social behavior matters in such extreme situations. This event can be considered a quasi-natural experiment. The empirical results suggest that social norms such as ‘women and children first’ persevered during such an event. Women of reproductive age and crew members had a higher probability of survival. Passenger class, fitness, group size, and cultural background also mattered. |
|
Michael Hutter, Bruno Frey, On the influence of cultural value on economic value, Revue d'économie politique, Vol. 120 (1), 2010. (Journal Article)
The object of our study is a better understanding of the difference between cultural value and economic value, and of the process through which a change in the cultural value of an item changes the economic valuation of that item.
Cette contribution analyse la dynamique relative de la valeur artistique ou culturelle et de la valeur économique des œuvres d’art, notamment la manière dont l’évolution de la valeur culturelle d’une œuvre influence ou non dans le temps sa valeur économique. Dans certains domaines, la valeur culturelle est relativement ignorée par les économistes parce qu’elle ne semble guère influencer les prix de vente correspondants. Mais de manière générale, il existe des raisons pour considérer que ces deux types de valeur évoluent de manière liée. Pour cela l’histoire économique de trois tableaux célèbres est examinée, ce qui montre le rôle important de l’évolution de la valeur culturelle pour expliquer celui de la valeur culturelle. La « Vierge des roses » de Raphaël montre comment l’augmentation de la valeur culturelle a ici entrainé l’augmentation de sa valeur économique. « L’homme au casque d’or » de Rembrandt témoigne de l’évolution inverse. Enfin, « Numéro 12, 1949 » de Jason Pollock illustre leur codétermination progressive. De tels exemples doivent être considérés comme une première analyse empirique d’un nouveau territoire scientifique. |
|
Y Morishima, J Okuda, K Sakai, Reactive mechanism of cognitive control system, Cerebral Cortex, Vol. 20 (11), 2010. (Journal Article)
The prefrontal cortex (PFC) is thought to modulate the neural network state in favor of the processing of task-relevant sensory information prior to the presentation of sensory stimuli. However, this proactive control mechanism cannot always optimize the network state because of intrinsic fluctuation of neural activity upon arrival of sensory information. In the present study, we have investigated an additional control mechanism, in which the control process to regulate the behavior is adjusted to the trial-by-trial fluctuation in neural representations of sensory information. We asked normal human subjects to perform a variant of the Stroop task. Using functional magnetic resonance imaging, we isolated cognitive conflict at a sensory processing stage on a single-trial basis by calculating the difference in activation between task-relevant and task-irrelevant sensory areas. Activation in the dorsolateral PFC (DLPFC) covaried with the neural estimate of sensory conflict only on incongruent trials. Also, the coupling between the DLPFC and anterior cingulate cortex (ACC) was tighter on high-sensory conflict trials with fast response. The results suggest that although detection of sensory conflict is achieved by the DLPFC, online behavioral adjustment is achieved by interactive mechanisms between the DLPFC and ACC. |
|
Alois Stutzer, Bruno Frey, Recent advances in the economics of individual subjective well-being, Social Research: An International Quarterly, Vol. 77 (2), 2010. (Journal Article)
Over the last decades, empirical research on subjective well-being in the social sciences has provided a major new stimulation of the discourse on individual happiness.
Recently this research has also been linked to economics where reported subjective wellbeing is often taken as a proxy measure for individual welfare. In our review, we intend to provide an evaluation of where the economic research on happiness stands and of three directions it might develop. First, it offers new ways for testing the basic assumptions of the economic approach and for going about a new understanding of utility. Second, it provides a
new possibility for the complementary testing of theories across fields in economics. Third, we inquire how the insights gained from the study of individual happiness in economics affect public policy. |
|
R S Weil, N Furl, Christian Ruff, M Symmonds, G Flandin, R J Dolan, J Driver, G Reese, Rewarding feedback after correct visual discriminations has both general and specific influences on visual cortex, Journal of Neurophysiology, Vol. 104 (3), 2010. (Journal Article)
Reward can influence visual performance, but the neural basis of this effect remains poorly understood. Here we used functional magnetic resonance imaging to investigate how rewarding feedback affected activity in distinct areas of human visual cortex, separating rewarding feedback events after correct performance from preceding visual events. Participants discriminated oriented gratings in either hemifield, receiving auditory feedback at trial end that signaled financial reward after correct performance. Greater rewards improved performance for all but the most difficult trials. Rewarding feedback increased blood-oxygen-level-dependent (BOLD) signals in striatum and orbitofrontal cortex. It also increased BOLD signals in visual areas beyond retinotopic cortex, but not in primary visual cortex representing the judged stimuli. These modulations were seen at a time point in which no visual stimuli were presented or expected, demonstrating a novel type of activity change in visual cortex that cannot reflect modulation of response to incoming or anticipated visual stimuli. Rewarded trials led on the next trial to improved performance and enhanced visual activity contralateral to the judged stimulus, for retinotopic representations of the judged visual stimuli in V1. Our findings distinguish general effects in nonretinotopic visual cortex when receiving rewarding feedback after correct performance from consequences of reward for spatially specific responses in V1. |
|
K Beck, Risikoselektion in der sozialen Krankenversicherung der Schweiz: Überlebensstrategie in einem schlecht regulierten Markt, In: Jahrbuch Risikostrukturausgleich 2009/2010: Von der Selektion zur Manipulation?, medhochzwei Verlag, Heidelberg, p. 135 - 154, 2010. (Book Chapter)
Kernstück des 2009 eingeführten Gesundheitsfonds ist die Einführung des morbiditätsorientierten Risikostrukturausgleichs. Die Einführung des so genannten Morbi-RSA hatte erhebliche Auswirkungen auf die Wettbewerbsposition der Krankenkassen und die finanziellen Anreize zur Weiterentwicklung von Versorgungsstrukturen. In diesem Band des Jahrbuch liegt der Schwerpunkt auf der Weiterentwicklung des Morbi-RSA. Die Herausgeber des Jahrbuchs Risikostrukturausgleich 2009/10 haben daher namhafte Autoren aus Wissenschaft und Praxis eingeladen, dieses Thema aus unterschiedlichen Perspektiven zu beleuchten. |
|
Stefan Boes, Regula Julia Leemann, Scientific achievements of young researchers: does funding make a gender difference?, In: Forschungsförderung aus Geschlechterperspektive, Rüegger, Zürich, p. 111 - 134, 2010. (Book Chapter)
|
|
Simon Luechinger, Alois Stutzer, Rainer Winkelmann, Self-selection models for public and private sector job satisfaction, Research in Labor Economics, Vol. 30 (30), 2010. (Journal Article)
We discuss a class of copula-based ordered probit models with endogenous switching. Such models can be useful for the analysis of self-selection in subjective well-being equations in general, and job satisfaction in particular, where assignment of regressors may be endogenous rather than random, resulting from individual maximization of well-being. In an application to public and private sector job satisfaction, and using data on male workers from the German Socio-Economic Panel for 2004, and using two alternative copula functions for dependence, we find consistent evidence for endogenous sector selection. |
|
Christopher John Burke, Philippe Tobler, W Schultz, M Baddeley, Striatal BOLD Response Reflects the Impact of Herd Information on Financial Decisions, Frontiers in Human Neuroscience, Vol. 4, 2010. (Journal Article)
|
|
F Blankenburg, Christian Ruff, S Bestmann, O Bjoertomt, O Josephs, R Deichmann, J Driver, Studying the role of human parietal cortex in visuospatial attention with concurrent TMS-fMRI, Cerebral Cortex, Vol. 20 (11), 2010. (Journal Article)
Combining transcranial magnetic stimulation (TMS) with concurrent functional magnetic resonance imaging (fMRI) allows study of how local brain stimulation may causally affect activity in remote brain regions. Here, we applied bursts of high- or low-intensity TMS over right posterior parietal cortex, during a task requiring sustained covert visuospatial attention to either the left or right hemifield, or in a neutral control condition, while recording blood oxygenation-level-dependent signal with a posterior MR surface coil. As expected, the active attention conditions activated components of the well-described "attention network," as compared with the neutral baseline. Also as expected, when comparing left minus right attention, or vice versa, contralateral occipital visual cortex was activated. The critical new finding was that the impact of high- minus low-intensity parietal TMS upon these visual regions depended on the currently attended side. High- minus low-intensity parietal TMS increased the difference between contralateral versus ipsilateral attention in right extrastriate visual cortex. A related albeit less pronounced pattern was found for left extrastriate visual cortex. Our results confirm that right human parietal cortex can exert attention-dependent influences on occipital visual cortex and provide a proof of concept for the use of concurrent TMS-fMRI in studying how remote influences can vary in a purely top-down manner with attentional demands. |
|
Bruno Frey, Superb Posner – but can we go further?, Journal of Institutional Economics, Vol. 6 (01), 2010. (Journal Article)
Posner`s (2010) analysis offers many exciting insights into the principal-agent problem, particularly with respect to the secret service. I argue that it would be useful to consider a broader model of human behaviour, which includes awards as extrinsic incentives beyond pay, as well as intrinsic motivation. A more comparative stance that goes beyond the United States would be a useful check of how general the results are. Scholars should not forget that while the US is the dominant economy today, there are 195 nations in the world that offer many fascinating institutional variations, which are useful to take into account. |
|
Christine Benesch, Bruno Frey, Alois Stutzer, TV channels, self-control and happiness, B.E. Journal of Economic Analysis & Policy, Vol. 10 (1), 2010. (Journal Article)
In many countries, TV viewers have access to more and more TV channels. We study whether people can cope with this and watch the amount of TV they find optimal for themselves, or whether they are prone to over-consumption. We find that heavy TV viewers do not benefit, but instead report lower life satisfaction with access to more TV channels. This finding runs counter to the standard economic prediction that a larger choice set does not make people worse off. It suggests that an identifiable group of persons experience a self-control problem when it comes to TV viewing. |
|
A Muller, Taking the lead – how the global South could benefit from climate finance, technology transfer, and from adopting stringent climate policies, In: Nanotechnology and Microelectronics: Global Diffusion, Economics and Policy, IGI Global, New York, p. 226 - 242, 2010. (Book Chapter)
In this chapter, I argue that the countries in the South can gain from stringent own climate policies. This is so, as in the current situation, the south tends to be dominated by the climate policies of northern countries and climate finance largely supports single projects and technology transfer that are not embedded in a broader policy framework in southern countries. Adopting own
stringent policies could help to counteract this and to channel these financial means to their most beneficial use. This could help southern countries to follow an agenda that is different from the fossil fuel based development path of the north. Such a “green new deal” could be a promising economic and technological development strategy. Stringent climate policies would strengthen the southern countries in the international climate negotiations and southern countries could take the lead in the climate change mitigation debate. Technology transfer and the carbon finance sector would play a crucial role for this. Climate policy and climate finance could thus be used to set a new stage, where the south is not at a disadvantage with respect to the north. |
|
Lars P Feld, Bruno Frey, Tax evasion and the psychological tax contract, In: Developing alternative frameworks for explaining tax compliance, Routledge, London, p. 74 - 94, 2010. (Book Chapter)
|
|