Contributions in Merlin

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Economic models typically allow for “free disposal” or “reversibility” of information, which implies non-negative value. Building on previous research on the “curse of knowledge” we explore situations where this might not be so. In three experiments, we document situations in which participants place positive value on information in attempting to predict the performance of uninformed others, even when acquiring that information diminishes their earnings. In the first experiment, a majority of participants choose to hire informed—rather than uninformed—agents, leading to lower earnings. In the second experiment, a significant number of participants pay for information—the solution to a puzzle—that hurts their ability to predict how many others will solve the puzzle. In the third experiment, we find that the effect is reduced with experience and feedback on the actual performance to be predicted. We discuss implications of our results for the role of information and informed decision making in economic situations.

A major challenge for third generation data mining and knowledge discovery systems is the integration of different data mining tools and services for data understanding, data integration, data preprocessing, data mining, evaluation and deployment, which are distributed across the network of computer systems. In this paper we outline how an intelligent assistant that is intended to support end-users in the difficult and time consuming task of designing KDD-Workflows out of these distributed services can be built. The assistant should support the user in checking the correctness of workflows, understanding the goals behind given workflows, enumeration of AI planner generated workflow completions, storage, retrieval, adaptation and repair of previous workflows. It should also be an open easy extendable system. This is reached by basing the system on a data mining ontology (DMO) in which all the services (operators) together with their in-/output, pre-/postconditions are described. This description is compatible with OWL-S and new operators can be added importing their OWL-S specification and classifying it into the operator ontology.

The external quality assurance system in Switzerland focuses on institutional assessments. Periodic assessments of the internal quality assurance systems of the Swiss universities are mandatory and linked to the financing of the institutions. The OAQ successfully carried out the first cycle of such audits in 2003 – 4 which it then repeated in 2007 – 8. These audits have been well accepted by the institutions and were perceived as being a contribution to institutional quality enhancement. Changes at universities following the first audit have been noticed and this clearly shows the success of an institutional approach to external QA. Bologna, and particularly the ESG, served to accelerate internal developments in Switzerland. Project- based international partnerships proved to be an essential ingredient to improve the agency’s daily work, while international memberships in relevant networks increased the agency’s level of accountability and credibility with positive national spill-over effects.

In this paper, we argue that important labor market phenomena can be better understood if one takes (a) the inherent incompleteness and relational nature of most employment contracts and (b) the existence of reference-dependent fairness concerns among a substantial share of the population into account. Theory shows and experiments confirm that, even if fairness concerns were to exert only weak effects in one-shot interactions, repeated interactions greatly magnify the relevance of such concerns on economic outcomes. We also review evidence from laboratory and field experiments examining the role of wages and fairness on effort, derive predictions from our approach for entry-level wages and incumbent workers' wages, confront these predictions with the evidence, and show that reference-dependent fairness concerns may have important consequences for the effects of economic policies such as minimum wage laws.

A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We compare the standard BDM procedure and a BDM procedure with a restricted range of minimum selling prices that an individual can state. We find that elicited prices are systematically affected by the range of feasible minimum selling prices. Expected utility theory cannot explain these results. Nonexpected utility theories can only explain the results if subjects consider compound lotteries generated by the BDM procedure. We present an alternative explanation where subjects sequentially compare the lottery to monetary amounts in order to determine their minimum selling price. The model offers a formal explanation for range effects and for the underweighting of small and the overweighting of large probabilities.