UNTVERSITY OF CALIFORNIA AT BERKELEY Department of Economics Berkeley, CaHfornia 94720-3880 Working Paper No. 97-251 Psychology and Economics Matthew Rabin Department of Economics University of California, Berkeley January 1997 Key words: bounded rationality, decision making, fairness, framing effects, heuristics and biases, preferences, psychology, reciprocity, reference-dependent utility JEL Classification: A12, B49, D i l , D60, D81, D83, D91 This is a longer version of an essay under preparation for possible publication in the Journal of Economic Literature. I thank John Pencavel and anonymous referees for earlier comments on its structure and content. For comments on this draft, I thank Steven Blatt, Colin Camerer, Peter Diamond, Erik Eyster, Ernst Fehr, Danny Kahneman, George Loewenstein, Ted O'Donoghue, and John Pencavel. For helpful conversations over the past several years on topics covered in this essay, I thank George Akerlof, Gary Chamess, Eddie Dekel, Peter Diamond, David Laibson, David I. Levine, George Loewenstein, Rob MacCoun, James Montgomery, Vai-Lam Mui, Drazen Prelec, and especially Colin Camerer, Danny Kahneman, and Richard Thaler. Co-authors on research related to the topics of this essay include David Bowman, Deborah Minehart, Ted O'Donoghue, and Joel Schrag. Helpful research assistance was provided by Gadi Barlevy, Nikki Blasberg, Gail Brennan, Paul Ellickson, April Franco, Marcus Heng, Bruce Hsu, Jin Woo Jung, and especially Steven Blatt, Jimmy Chan, Erik Eyster, and Clara Wang. I am extremely grateful for financial support from the Russell Sage and Alfred P. Sloan Foundations.

https://www.jstor.org/stable/pdfplus/2564950.pdf

Psychology and Economics

Biodegradable Zn-Cu alloys show antibacterial activity against MRSA bone infection by inhibiting pathogen adhesion and biofilm formation.

Purpose – This study is the first attempt to explore in depth users' views on corporate annual reports in Qatar, which has a rapidly growing economy and underdeveloped accounting systems.Design/methodology/approach – A questionnaire was distributed to 80 individual investors, 40 institutional investors, 30 financial analysts, 30 bank credit officers and 40 government officers who are involved with investment decisions. A total of 150 completed questionnaires were returned giving a response rate of 68 percent. Descriptive statistics and Kruskal‐Wallis and Mann Whitney tests were used to analyze the results.Findings – The respondents considered annual reports to be important and useful and to be the main source of information for investment decisions. The respondents rated the balance sheet, auditor's report, cash flow statement, income statement and notes to the accounts as the most important and understandable sections in the annual reports. Additionally, respondents considered government publications and...

An empirical investigation of users' views on corporate annual reports in Qatar

Firms have the incentive to aggregate multiple pieces of good and bad news together in a consistent direction (i.e., all positive news or all negative news) and disclose it either sequentially or all together (simultaneously) in order to reduce the risk of stock price volatility or large stock price declines. Unfortunately for investors, disclosure patterns such as these may result in order effects, which reduce decision quality. My paper examines the results of three experiments in order to determine: (1) which order effect, if any, results when long series of consistent direction voluntary disclosures are made, and (2) if the sequential or simultaneous nature of the disclosures exacerbates any order effect found. The first two experiments use undergraduates as participants, while the third experiment uses actual nonprofessional investors to try and tease out explanations for the experimental findings. I find recency effects for all conditions in all experiments, and significantly greater recen...

Primacy or Recency? A Study of Order Effects When Nonprofessional Investors are Provided a Long Series of Disclosures

Towards a fully connected intelligent digital world, 5G and beyond networks experience a new era of Internet of intelligence with connected people and things. This new era brings challenging demands to the network, such as high spectral efficiency, low-latency, high-reliable communication, and high energy efficiency. One of the major technological breakthroughs to cope with these unprecedented demands is the cell-free (CF) massive multiple-input multiple-output (mMIMO) systems. In CF mMIMO, a large number of distributed access points are connected to a central processing unit, and serve a smaller number of users over the same time-frequency resources. The system has shown a great potential in improving the network performance in various perspectives compared to the co-located mMIMO and conventional small-cell systems. Furthermore, the system can be flexibly integrated with various emerging techniques/technologies for 5G and beyond networks to boost the network performance in different perspectives. Despite the substantial reported theoretical gains of CF mMIMO systems, the full picture of a practical scalable deployment of the system is not clear yet. In this paper, we provide a comprehensive survey of different aspects of the CF mMIMO system from the general system model, the detailed system operation, the limitations towards a practically implemented system to the potential of integrating the system with emerging techniques/technologies. Besides, we provide a number of timely open problems and future research directions to fully exploit the CF mMIMO system potential in delivering the anticipated requirements of future wireless networks. 

Cell-Free Massive MIMO: A Survey

Towards a fully connected intelligent digital world, 5G and beyond networks experience a new era of internet of intelligence with connected people and things. This new era brings challenging demands to the network, such as high spectral efficiency, low-latency, high-reliable communication, and high energy efficiency. One of the major technological breakthroughs to cope with these unprecedented demands is the cell-free (CF) massive multiple-input multiple-output (mMIMO) systems. In CF mMIMO, a large number of distributed access points are connected to a central processing unit, and serve a smaller number of users over the same time-frequency resources. The system has shown a great potential in improving the network performance in various perspectives compared to the co-located mMIMO and conventional small-cell systems. Furthermore, the system can be flexibly integrated with various emerging techniques/technologies for 5G and beyond networks to boost the network performance in different perspectives. Despite the substantial reported theoretical gains of CF mMIMO systems, the full picture of a practical scalable deployment of the system is not clear yet. In this paper, we provide a comprehensive survey of different aspects of the CF mMIMO system from the general system model, the detailed system operation, the limitations towards a practically implemented system to the potential of integrating the system with emerging techniques/technologies. Besides, we provide a number of timely open problems and future research directions to fully exploit the CF mMIMO system potential in delivering the anticipated requirements of future wireless networks.

In this paper, we propose a novel routing technique for millimeter wave (mmWave) networks to improve the spectral efficiency. The performance of the proposed $n^{\rm th}$ best relay routing technique is investigated using tools from stochastic geometry. First, we derive the probability density function (PDF) of the distance between the $n^{\rm th}$ best relay and destination. Capitalizing on this result, we derive a closed-form expression of the coverage probability over the log-normal fading channels. Monte Carlo simulations show an accurate match with the analytical results. We further demonstrate that the coverage probability varies according to specific system parameters, such as density of relays, blockage density and the signal-to-noise ratio threshold. Furthermore, we show that the adaptive signal-to-noise ratio threshold plays an important role in improving the spectral efficiency for different relay density, blockage density and the order of best relay $(n)$ . These findings provide insights for designing multi-hop mmWave networks with better performance.

Spectral Efficiency of Multi-Hop Millimeter Wave Networks Using $N^{\rm th}$ Best Relay Routing Technique

This paper examines the perceived usefulness and reliability of a set of twenty‐three financial disclosure items, as well as five sources of information, for investment decisions using a sample of eighty‐nine institutional and individual Investors in two Middle Eastern countries, Jordan and Kuwait. Data were collected through questionnaires and were analyzed using parametric and nonparametric statistics to test for differences between the two users groups within each country and between the two countries. The results indicate that there is a somewhat significant difference in the perceived importance of the special financial reports, as a source of information, between Institutional and individual investors in both countries (p ≤ .092). The results also indicate that there is a significant difference in the perceived usefulness of seven items out of twenty three financial items between investors in Jordan and Kuwait (p ≤ .065). However, the difference in the perceived reliability of the items was signific...

Usefulness of disclosure items in financial reports: a comparison between jordan and kuwait

Hogarth and Einhorn (1990) posited a psychological model for updating beliefs that is based on an anchoring and adjustment process which incorporates a contrast or surprise effect; in particular, the larger the current belief in a hypothesis or outcome, the more it is discounted by negative information and the less it is increased by positive information. The model provides a set of predictions that could be of important implications for financial decisions. It predicts strong recency effects for mixed or conflicting information (negative and positive), and no order effects for consistent information (all positive or all negative). Furthermore, an earlier version of the model (1985) predicts that simultaneous processing of consistent information leads to more extreme responses than the sequential processing of the same information. Einhorn and Hogarth refer to this phenomenon as a “dilution effect.” This paper reports the results of testing these qualitative predictions of the belief updating model. Three experiments involving a content rich scenario of asset valuation judgment were conducted using a sample of 120 subjects enroled in two MBA courses. The results support the model's prediction that there is no order effects attributable to sequential processing of consistent information. The results also support the existence of recency effects for mixed information regardless of the response mode. However, no significant effects were observed for processing consistent information under different response modes.

Information sequence, response mode and asset valuation judgment

In this work, 316L stainless steel samples were coated with copper (Cu) and German silver (Cu 17%Ni 10%Zn) to investigate the relation between their mechanical and antibacterial behaviors. The mechanical and material characteristics of the samples were studied by looking into the microstructure of the surface and the cross-section of the coatings, the surface roughness, and the adhesion strength between the coating layer and the substrate. The antibacterial behavior is then studied against gram-negative Escherichia coli and gram-positive Staphylococcus aureus. Two experiments were conducted to examine the antibacterial behavior. In the first experiment, the coated samples were covered with distilled water, whereas in the second experiment, the samples were tested without being covered with distilled water. The results show that German silver (Cu 17%Ni 10%Zn) had a higher antibacterial rate than copper (Cu) by around 10% for both gram-negative E. coli and gram-positive S. aureus. The reason is because a smoother surface is expected to limit the bacterial adhesion in most cases, and the German silver samples have a lower surface roughness (Ra) due to the higher thermal expansion value of zinc (Zn) compared with copper (Cu). A more in-depth look into the effect of various thickness of the coating with alloying elements (in this case nickel and zinc) on the antibacterial rate would be of great interest.

Mohamed Ibrahim

Papers

Cell-Free Massive MIMO: A Survey

Spectral Efficiency of Multi-Hop Millimeter Wave Networks Using $N^{\rm th}$ Best Relay Routing Technique

Usefulness of disclosure items in financial reports: a comparison between jordan and kuwait

Information sequence, response mode and asset valuation judgment

Effect of Ni and Zn Elements on the Microstructure and Antibacterial Properties of Cu Coatings