Contributions in Merlin

One of the most basic questions in economics concerns the effects of competition onnmarket prices. We show that the neglect of both fairness concerns and decision errors prevents ansatisfactory understanding of how competition affects prices. We conducted experiments whichndemonstrate that the introduction of even a very small amount of competition to a bilateralnexchange situation - by adding just one competitor - induces large behavioral changes amongnbuyers and sellers, causing large changes in market prices. Models that assume that all people arenself-interested and fully rational fail to explain these changes satisfactorily. In contrast, a modelnthat combines heterogeneous fairness concerns with decision errors predicts all comparative staticneffects of changes in competition correctly. Moreover, the combined model enables us to predictnthe entire distribution of prices in many different competitive situations remarkably well.

In this paper we explore a serious eating disorder, bulimia nervosa (BN), which a­fflicts a surprising number of girls in the US. We challenge the long-held belief that BN primarily affects high income White teenagers, using a unique data set on adolescent females evaluated regarding their tendencies towards bulimic behaviors independent of any diagnoses or treatment they have received. Our results reveal that African Americans are more likely to exhibit bulimic behavior than Whites; as are girls from low income families compared to middle and high income families. We use another data set to show that who is diagnosed with an eating disorder is in accord with popular beliefs, suggesting that African American and low-income girls are being under-diagnosed for BN. Our findings have important implications for public policy since they provide direction to policy makers regarding which adolescent females are most at risk for BN. Our results are robust to different model specifications and identifying assumptions.

Using the Swiss Graduate Survey, we study how the type of tertiary education an individual chooses (i.e., vocational or academic) influences career entry and labor market success after graduation. Our results show that vocational graduates face less risky career entry than academic graduates. Considering endogenous educational choice by using parental education as an instrument, we find higher returns for vocational tertiary education. In the longer term, initial educational type effects disappear, so vocational and academic graduates face the same risk and return. Therefore, career entry for vocational graduates compares favorably to that of academic graduates, while career success for both educational types equalizes over time.

This chapter analyzes how one particular governance mechanism affects the performance of research teams. We look at an external requirement for interdisciplinarity and internationality of Research Training Groups (RTGs) and study how their performance is affected. We expect to observe two countervailing effects with changes in interdisciplinarity and/or internatio-nality: first, increased performance due to an increase in productive resources and a second, decreased performance due to increased team problems (communication, conflicts etc). Since both effects are expected to vary with the disciplinary field of research, we separate our analysis for the Humanities & Social Sciences in comparison to the Natural & Life Sciences and indeed find different effects in the different disciplinary fields. Furthermore, we separately analyze the effects of interdisciplinarity on the one hand and internationality on the other hand. We conclude that the effectiveness of a particular governance mechanism varies substantially between the disciplinary fields and for the type of heterogeneity under consideration. Therefore governance of research should be either precisely engineered to a particular disciplinary field and a given type of heterogeneity or it should offer a menu of options that allows research teams to choose from according to their specific needs.