Showing papers in "Journal of Economic Behavior and Organization in 2016"
TL;DR: In some experiments participants make multiple decisions; this feature facilitates gathering a considerable amount of incentivized data over the course of a compact session as mentioned in this paper, which can help to avoid wealth effects, hedging, and bankruptcy considerations.
Abstract: In some experiments participants make multiple decisions; this feature facilitates gathering a considerable amount of incentivized data over the course of a compact session. A conservative payment scheme is to pay for the outcome from every decision made. An alternative approach is to pay for the outcome of only a subset of the choices made, with the amount at stake for this choice multiplied to compensate for the decreased likelihood of that choice’s outcome being drawn for payoff. This “pay one” approach can help to avoid wealth effects, hedging, and bankruptcy considerations. A third method is to pay only a subset of the participants for their choices, thereby minimizing transactions costs. While the evidence on differences across payment methods is mixed, overall it suggests that paying for only a subset of periods or individuals is at least as effective as the “pay all” approach and can well be more effective. We further the discussion about how to best choose an incentive structure when designing an experiment.
200 citations
TL;DR: This article found that people with higher confidence in their own financial literacy are less likely to seek financial advice, but no relation between objective measures of literacy and advice seeking, and the negative association between confidence and advice-seeking is more pronounced among wealthy households.
Abstract: We find that people with higher confidence in their own financial literacy are less likely to seek financial advice, but no relation between objective measures of literacy and advice seeking. The negative association between confidence and advice seeking is more pronounced among wealthy households. We base these findings on the analysis of two rich data sources from the Netherlands: the DNB Household survey and a sample of investors from a large Dutch retail bank. Our results imply that policy makers should be careful to put financial advice forward as a mechanism to curb the ill effects of low financial literacy and that steering people towards more accurate self-assessments seems a more promising route.
168 citations
TL;DR: In this article, the potential for bribery of tax officials has been investigated in a firm's tax reporting decisions, using firm-level information on reporting obtained from the World Enterprise Survey and the Business Environment and Enterprise Performance Survey.
Abstract: Although corruption and tax evasion are distinct and separate problems, they can easily become intertwined and reinforcing. A society that is more corrupt may enable more tax evasion as corrupt officials seek more income via bribes; conversely, higher levels of tax evasion may drive corruption by offering more opportunities for bribes. While a large body of work on each subject separately has emerged, the relationship between the two problems has remained a largely unexplored area. This paper focuses on how the potential for bribery of tax officials affects a firm's tax evasion decisions. To test how the potential for bribery affects a firm's tax reporting decisions, we use firm-level information on reporting obtained from the World Enterprise Survey and the Business Environment and Enterprise Performance Survey. Our basic estimation approach uses instrumental variables methods to control for the potential endogeneity of evasion and corruption. We also use propensity score matching methods as a robustness check. Our results show that it is corruption that largely drives higher levels of evasion; that is, corruption of tax officials is a statistically and economically significant determinant of tax evasion. The presence of tax inspectors who request bribes results in a reduction of sales reported for taxes of between 4 and 10 percentage points. Additionally, larger bribes result in higher levels of evasion. Overall these results indicate that governments seeking to decrease tax evasion – and so increase tax revenues – must work first to ensure an honest tax administration.
155 citations
TL;DR: In this article, the authors examined the relationship between efficiency and default risk in Islamic banks and conventional banks in Gulf Cooperation Countries (GCC) and three non-GCC countries over the period 2002-2010.
Abstract: We examine the relationship between efficiency and default risk in Islamic banks (IBs) and conventional banks (CBs) in Gulf Cooperation Countries (GCC) and three non-GCC countries over the period 2002–2010. To the best of our knowledge this is the first study to consider the efficiency–default risk paradigm in a comparative setup which includes IBs. Efficiency and default risk are measured using the Stochastic Frontier Approach and distance to default (Merton's model) respectively. The existence of causality/reverse causality between the two is addressed via a panel Vector Auto Regression (VAR) framework. Our analysis shows that the relationship between profit efficiency and default risk banks across the sample, for CBs and for the GCC is such that a decrease in default risk is associated with lower efficiency levels. With the single exception of IBs, the causality from profit efficiency to default risk is inversely related for all categories. For CBs, the trade-off between efficiency and risk is evident. The absence of a trade-off for IBs suggests that efficiency and default risk are plausible early warning indicators of IB instability. These findings could be of relevance to regulators in countries where both banking system co-exist.
122 citations
TL;DR: The authors used the synthetic control method to perform a case study of the impact of Hugo Chavez on the Venezuelan economy and compared outcomes under Chavez's leadership and polices against a counterfactual of "business as usual" in similar countries.
Abstract: We use the synthetic control method to perform a case study of the impact of Hugo Chavez on the Venezuelan economy. We compare outcomes under Chavez's leadership and polices against a counterfactual of “business as usual” in similar countries. We find that, relative to our control, per capita income fell dramatically. While poverty, health, and inequality outcomes all improved during the Chavez administration, these outcomes also improved in each of the corresponding control cases and thus we cannot attribute the improvements to Chavismo. We conclude that the overall economic consequences of the Chavez administration were bleak.
113 citations
TL;DR: In this paper, the impact of organizational religiosity on the earnings quality of listed banks in the Middle East and North Africa region was investigated, and it was found that Islamic banks are less likely to manage earnings and adopt more conservative accounting policies.
Abstract: We investigate the impact of organizational religiosity on the earnings quality of listed banks in the Middle East and North Africa region. We analyze Islamic banking institutions, which operate within strict religious norms and extended accountability constraints, and compare them with their conventional counterparts during 2008–2013. We find that Islamic banks are less likely to manage earnings and that they adopt more conservative accounting policies. Based on these findings, we argue that religious norms and moral accountability constraints in these organizations have a significant impact on financial reporting quality and agency costs, which have implications for both regulators and market participants.
104 citations
TL;DR: In this paper, a taxonomy of the social determinants of behavior is presented, and the results of controlled and natural experiments that only a broader view of these determinants can plausibly explain.
Abstract: This paper is an attempt to broaden economic discourse by importing insights into human behavior not just from psychology, but also from sociology and anthropology. Whereas the concept of the decision-maker in standard economics is the rational actor and, in early work in behavioral economics, the quasi-rational actor influenced by the context of the moment of decision-making, in some recent work in behavioral economics the decision-maker could be called the enculturated actor. This actor's preferences, perception, and cognition are subject to two deep social influences: (a) the social contexts to which he has become exposed and, especially, accustomed; and (b) the cultural mental models—including categories, identities, narratives, and worldviews—that he uses to process information. The paper traces how these factors shape individual behavior through the endogenous determination of preferences and the lenses through which individuals see the world—their perception and interpretation of situations. The paper offers a tentative taxonomy of the social determinants of behavior and describes the results of controlled and natural experiments that only a broader view of these determinants can plausibly explain. The perspective suggests more realistic models of human behavior for explaining outcomes and designing policies.
104 citations
TL;DR: For instance, the authors argue that a large fraction of cognitive processes are devoted to making sense of the information we acquire, and they do this by seeking simple descriptions of the world.
Abstract: This paper draws attention to a powerful human motive that has not yet been incorporated into economics: the desire to make sense of our immediate experience, our life, and our world. We propose that evolution has produced a ‘drive for sense-making’ which motivates people to gather, attend to, and process information in a fashion that augments, and complements, autonomous sense-making. A large fraction of autonomous cognitive processes are devoted to making sense of the information we acquire: and they do this by seeking simple descriptions of the world. In some situations, however, autonomous information processing alone is inadequate to transform disparate information into simple representations, in which case, we argue, the drive for sense-making directs our attention and can lead us to seek out additional information. We propose a theoretical model of sense-making and of how it is traded off against other goals. We show that the drive for sense-making can help to make sense of a wide range of disparate phenomena, including curiosity, boredom, ‘flow’, confirmation bias and information avoidance, esthetics (both in art and in science), why we care about others’ beliefs, the importance of narrative and the role of ‘the good life’ in human decision making.
102 citations
TL;DR: In this paper, the authors used advanced metering and information technologies to test how different messages about household energy use impact the dynamics of conservation behavior down to the appliance level, and found that a health-based frame, in which households consider the human health effects of their marginal electricity use, induced persistent energy savings behavior of 8-10% over 100 days; whereas a more traditional cost savings frame, drove sharp attenuation of treatment effects after 2 weeks with no significant savings versus control after 7 weeks.
Abstract: Little is known about the effect of message framing on conservation behavior over time. In a randomized controlled trial with residential households, we use advanced metering and information technologies to test how different messages about household energy use impact the dynamics of conservation behavior down to the appliance level. Our results, based on 374 million panel observations of kilowatt-hour (kWh) electricity consumption for 118 households over 9 months, show that differences in behavioral responses due to message framing become more significant over time. We find that a health-based frame, in which households consider the human health effects of their marginal electricity use, induced persistent energy savings behavior of 8–10% over 100 days; whereas a more traditional cost savings frame, drove sharp attenuation of treatment effects after 2 weeks with no significant savings versus control after 7 weeks. We discuss implications for the design of effective information campaigns to engage households in conservation behavior.
98 citations
TL;DR: Using panel data from Australia, it is shown that individuals with strong internal locus of control are psychologically insured against own and others' serious illness or injury, close family member detained in jail, becoming a victim of property crime and death of a close friend, but not against the majority of other life events.
Abstract: We investigate whether the intensity of emotional pain following a negative shock is different across the distribution of a person's locus of control – the extent to which individuals believe that their actions can influence future outcomes. Using panel data from Australia, we show that individuals with strong internal locus of control are psychologically insured against own and others’ serious illness or injury, close family member detained in jail, becoming a victim of property crime and death of a close friend, but not against the majority of other life events. The buffering effects vary across gender. Our findings thus add to the existing literature on the benefits of internal locus of control.
93 citations
TL;DR: This article studied the impact of the earned income tax credit (EITC) on various measures of subjective well-being (SWB) using the National Survey of Families and Households (NSFH) to estimate intent-to-treat effects of the EITC expansion embedded in the 1990 Omnibus Budget Reconciliation Act.
Abstract: We study the impact of the earned income tax credit (EITC) on various measures of subjective well-being (SWB) using the National Survey of Families and Households (NSFH) to estimate intent-to-treat effects of the EITC expansion embedded in the 1990 Omnibus Budget Reconciliation Act. We use a difference-in-differences framework that compares the pre-and post-expansion SWB-changes of women likely eligible for the EITC (low-skilled mothers of working age) to the SWB-changes of a comparison group that is likely ineligible (low-skilled, childless women of working age). Our results suggest that the EITC expansion generated sizeable SWB-improvements in the three major categories of SWB identified in the literature. The NSFH is one of few datasets containing all three major categories of SWB. Subgroup analyses by marital status suggest that improvements accrued more to married than unmarried mothers. Relative to their childless counterparts, married mothers experienced a 15.7% decrease in depression symptomatology (experiential SWB), a 4.4% increase in happiness (evaluative SWB), and a 10.1% increase in self-esteem (eudemonic SWB). We also present specification checks that increase confidence that the observed SWB-effects are explained by the OBRA90 EITC expansion. Lastly, we explore mechanisms that may explain the differential impact of the EITC expansion by marital status.
TL;DR: In this article, the authors re-examine the common wisdom that cross-border mergers are the most effective merger strategy for firms facing powerful unions and obtain a domestic merger outcome whenever firms are sufficiently heterogeneous (in terms of productive efficiency and product differentiation).
Abstract: We re-examine the common wisdom that cross-border mergers are the most effective merger strategy for firms facing powerful unions. In contrast, we obtain a domestic merger outcome whenever firms are sufficiently heterogeneous (in terms of productive efficiency and product differentiation). A domestic merger unfolds a “wage-unifying” effect which limits the union's ability to extract rents. When products become sufficiently homogeneous, then cross-border mergers are the unique equilibrium. However, they may be either between firms with the same cost efficiency or with different cost efficiencies. Social welfare is never higher under a domestic merger outcome than under a cross-border merger outcome.
TL;DR: It is suggested that variants of the I-Vax Game can contribute to a better understanding of vaccination behavior and vaccine hesitancy and can further be a useful experimental tool for testing interventions aiming at increasing vaccine uptake.
Abstract: This paper provides an experimental game model – the Interactive Vaccination (I-Vax) Game – in order to investigate the behavioral consequences of risks from disease and from vaccination, and the epidemiological interdependence of vaccination decisions. Results from a controlled laboratory experiment provide evidence for selfish-rational non-vaccination: individuals react to the interactive incentive structure and make strategic vaccination decisions. We also find support for additional psychological factors determining behavior: individuals with stronger positive other-regarding preferences are more likely to vaccinate. Moreover, costs from action (vaccine-adverse events) have a stronger impact on behavior than costs from inaction (disease), which is evidence for the omission bias. Overall, we suggest that variants of the I-Vax Game can contribute to a better understanding of vaccination behavior and vaccine hesitancy. It can further be a useful experimental tool for testing interventions aiming at increasing vaccine uptake.
TL;DR: This article analyzed how physicians, medical students, and non-medical students respond to financial incentives from fee-for-service and capitation and found that physicians, participating in the field and medical and nonmedical students participating in lab experiments, respond to the incentives in a consistent way: Significantly more medical services are provided under fee for service compared to capitation.
Abstract: We analyze how physicians, medical students, and non-medical students respond to financial incentives from fee-for-service and capitation. We employ a series of artefactual field and conventional lab experiments framed in a physician decision-making context. Physicians, participating in the field, and medical and non-medical students, participating in lab experiments, respond to the incentives in a consistent way: Significantly more medical services are provided under fee-for-service compared to capitation. The intensity by which subjects respond to incentives, however, differs by subject pool. Our findings are robust regarding subjects’ gender, age, and personality traits.
TL;DR: In this paper, the relative importance of Islamic banks, alongside their conventional counterparts, in relation tobanking and financial development and economic welfare was investigated using a sample of 22 Muslim countries, with dual-banking systems, during the period 1999-2011.
Abstract: This paper investigates the relative importance of Islamic banks, alongside their conventional counterparts, in relation tobanking and financial development and economic welfare. Using a sample of 22 Muslim countries, with dual-banking systems, during the period 1999–2011, this paper reports some significant positive relationship between the market share of Islamic banks and the development of financial intermediation, financial deepening and economic welfare, particularly in low income or predominantly Muslim countries,and countries with a comparatively higher uncertainty avoidance index. Additionally, the results reveal thata greater market share of Islamic banks is associated with higherefficiency of conventional banks.
TL;DR: In this paper, the positive mood documented during Ramadan translates into higher herding compared to non-Ramadan days, and significant herding during Ramadan in most of the seven majority Muslim countries was reported.
Abstract: In view of evidence linking herding and social mood, we examine whether the positive mood documented during Ramadan translates into higher herding compared to non-Ramadan days. Drawing on a sample of seven majority Muslim countries, we report significant herding during Ramadan in most of our sample markets. Additionally, we show that herding appears significantly stronger within rather than outside Ramadan for most tests whereby its significance is manifested on both Ramadan- and non-Ramadan-days. Overall, herding significance within/outside Ramadan exhibits some variation in its levels across markets in relation to variables reflective of market states, both domestically (market returns; market volume) and internationally (US market returns; US investors’ sentiment; global financial crisis) market states.
TL;DR: In this article, the authors report on data from a real-effort tax compliance experiment using three subject pools: students, who do not pay income tax; company employees, whose income is reported by their employer; and self-employed taxpayers, who are responsible for filing and payment.
Abstract: We report on data from a real-effort tax compliance experiment using three subject pools: students, who do not pay income tax; company employees, whose income is reported by their employer; and self-employed taxpayers, who are responsible for filing and payment. While compliance behavior is unaffected by changes in the level of, or information about the audit probability, higher fines increase compliance. We find subject pool differences: self-assessed taxpayers are the most compliant, while students are the least compliant. Through a simple framing manipulation, we show that such differences are driven by norms of compliance from outside the lab.
TL;DR: Conditional on control, however, CE agents’ effort is crowded out more strongly, with the effect being most pronounced for agents who successfully coordinated in the team-building exercise.
Abstract: In a laboratory experiment, we investigate the interaction of two prominent firm strategies to increase worker effort: team building and control. We compare a team-building treatment where subjects initially play a coordination game to gain common experience (CE) with an autarky treatment where subjects individually perform a task (NCE). In both treatments, subjects then play two-player control games where agents provide costly effort and principals can control to secure a minimum effort. CE agents always outperform NCE agents. Conditional on control, however, CE agents’ effort is crowded out more strongly, with the effect being most pronounced for agents who successfully coordinated in the team-building exercise. Differential reactions to control perceived as excessive is one explanation for our findings.
TL;DR: The authors found that the honesty of people in an online panel from 15 countries was measured in two experiments: reporting a coin flip with a reward for "heads" and an online quiz with the possibility of cheating.
Abstract: The honesty of people in an online panel from 15 countries was measured in two experiments: reporting a coin flip with a reward for “heads”, and an online quiz with the possibility of cheating. There are large differences in honesty across countries. Average honesty is positively correlated with per capita GDP. This is driven mostly by GDP differences arising before 1950, rather than by GDP growth since 1950. A country's average honesty correlates with the proportion of its population that is Protestant. These facts suggest a long-run relationship between honesty and economic development. The experiment also elicited participants’ expectations about different countries’ levels of honesty. Expectations were not correlated with reality. Instead they appear to be driven by cognitive biases, including self-projection.
TL;DR: In this article, the authors design a simple network formation experiment to test these extreme theories, but find evidence against both of them: the subjects are consistent with an intermediate rule of behavior, which they interpret as a form of limited farsightedness.
Abstract: Pairwise stability Jackson and Wolinsky [1996] is the standard stability concept in network formation. It assumes myopic behavior of the agents in the sense that they do not forecast how others might react to their actions. Assuming that agents are perfectly farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test these extreme theories, but find evidence against both of them: the subjects are consistent with an intermediate rule of behavior, which we interpret as a form of limited farsightedness. On aggregate, the selection among multiple pairwise stable networks (and the performance of farsighted stability) crucially depends on the level of farsightedness needed to sustain them, and not on efficiency or cooperative considerations. Individual behavior analysis corroborates this interpretation, and suggests, in general, a low level of farsightedness (around two steps) on the part of the agents.
TL;DR: In this article, the performance of market-weighted Shariah-compliant portfolios (SCPs) with conventional benchmark portfolios (CBPs) from the USA, Canada, Europe, the GCC, and Japan were compared.
Abstract: This study compares the performance of market-weighted Shariah-compliant portfolios (SCPs) with conventional benchmark portfolios (CBPs) from the USA, Canada, Europe, the GCC, and Japan. Portfolios are constructed from constituent-level monthly price data using the Shariah screening criteria as proposed by MSCI, FTSE, Dow Jones, S&P and AAOIFI. The unique SCP construction approach used in this study removes any concerns of performance deviation due to the portfolio construction methodology, rebalancing timing, and management skills for security selection or market timing. Empirical results indicate that SCPs are generally less risky than CBPs. We also find that Shariah screening standards are insignificant in their effect on return performance. SCPs using the BVTA approach usually report a little better nominal and risk-adjusted returns than SCPs using the MVE approach for financial screening. The negligible difference in risk-adjusted performance and rebalancing based on different criteria indicate a need for greater consistency in applying Shariah screening standards.
TL;DR: In this paper, the authors provide a theoretical explanation for the vicious circle of political corruption and tax evasion in which countries often fall into, and show that multiple self-fulfilling equilibria with different levels of corruption can emerge based on the existence of strategic complementarities, indicating that corruption may corrupt.
Abstract: We provide a theoretical explanation for the vicious circle of political corruption and tax evasion in which countries often fall into. We address this issue in the context of a model with two distinct groups of agents: citizens and politicians. Citizens decide the fraction of their income for which they evade taxes. Politicians decide the fraction of the public budget that they peculate. We show that multiple self-fulfilling equilibria with different levels of corruption can emerge based on the existence of strategic complementarities, indicating that “corruption may corrupt.” Furthermore, we find that standard deterrence policies cannot eliminate the multiplicity of equilibria. Instead, policies that impose a strong moral cost on tax evaders and corrupt politicians can lead to a unique equilibrium.
TL;DR: In this paper, the authors analyzed age patterns in unmet expectations and found that people tend to err systematically in predicting their life satisfaction over the life cycle, and that these errors are large, ranging from 9.8% at age 21 to −4.5%.
Abstract: An emerging economic literature has found evidence that wellbeing follows a U-shape over age. Some theories have assumed that the U-shape is caused by unmet expectations that are felt painfully in midlife but beneficially abandoned and experienced with less regret during old age. This paper is the first to analyze age patterns in unmet expectations. Using the German Socio-Economic Panel, a unique data set that contains life satisfaction expectations as well as the same individuals’ subsequent life satisfaction realizations, I match 132,609 life satisfaction expectations to subsequent realizations. I find people to err systematically in predicting their life satisfaction over the life cycle. They expect – incorrectly – increases in young adulthood and decreases during old age. These errors are large, ranging from 9.8% at age 21 to −4.5% at age 68. They are stable over time and observed within cohorts and individuals as well as across socio-economic groups. These findings support theories that unmet expectations drive the age U-shape in wellbeing.
TL;DR: This paper used an experiment to show that compliance to a cue by an authority is a powerful motivating mechanism and found that up to around 60% of participants decide to comply with the orders or cues being provided.
Abstract: Compliance to authority is an integral part of how organizations operate. We use an experiment to show that compliance to a cue by an authority is a powerful motivating mechanism. We do this in an experiment where there are direct orders or indirect cues to destroy half of another participant's earnings at a cost to one's own earnings. Depending on the experimental treatment, up to around 60–70% of participants decide to comply with the orders or cues being provided.
TL;DR: In this article, the authors present an analysis of economic behavior and organization in the context of the Eurozone, focusing on the role of economic incentives and social norms in economic decision making.
Abstract: Published in Journal of Economic Behavior and Organization, Volume 132, December 2016: 63-76
TL;DR: In this article, the authors extend promotion signaling theory to incorporate gender and across-firm mobility (within and across job levels) and find that women have lower promotion probabilities than men and a greater sensitivity of promotion probability to educational attainment.
Abstract: We extend promotion signaling theory to incorporate gender and across-firm mobility (within and across job levels). Evidence from worker-firm-linked Finnish panel data supports our theory for some groups. Controlling for worker performance (inferred from performance-related pay), within-firm promotion probabilities are increasing (and wage increases from promotion are decreasing) in educational attainment for some educational groups, with results stronger for first than for subsequent promotions. Women have lower promotion probabilities than men and a greater sensitivity of promotion probability to educational attainment. Across-firm promotions are rare but bring wage increases exceeding those for internal promotions and across-firm lateral moves.
TL;DR: The authors investigate the impact of social/group identity on cheating by running a new variant of the die-under-cup methodology (Fischbacher and Follmi-Heusi, 2013) that captures both the key features of ingroup bias and cheating behavior.
Abstract: We present a controlled laboratory experiment to investigate whether and to what extent people will cheat on behalf of a member of their own in-group at the expense of a non-member. We investigate the impact of social/group identity on cheating by running a new variant of the die-under-cup methodology (Fischbacher and Follmi-Heusi, 2013) that captures both the key features of in-group bias and cheating behavior. Specifically, we examine the following questions: Does moral concern curb people from cheating to benefit a member of their own in-group? Is the moral burden of cheating as strong a deterrent for such cheating for others as it is for purely selfish cheating? We find evidence of dishonesty to benefit not only oneself but also one’s in-group. In particular, we find that some people lie to increase the payoff of an in-group member even though such a lie does not affect their own monetary payoff.
TL;DR: This article found that students in a neighborhood with high Mafia involvement exhibit lower generalized trust and trustworthiness, but higher in-group favoritism, with punishment norms failing to resolve these deficits.
Abstract: We use experiments in high schools in two neighborhoods in the metropolitan area of Palermo, Italy to experimentally support the argument that the historical informal institution of organized crime can undermine current institutions, even in religiously and ethnically homogeneous populations. Using trust and prisoner's dilemma games, we found that students in a neighborhood with high Mafia involvement exhibit lower generalized trust and trustworthiness, but higher in-group favoritism, with punishment norms failing to resolve these deficits. Our study suggests that a culture of organized crime can affect adolescent norms and attitudes that might support a vicious cycle of in-group favoritism and crime that in turn hinders economic development.
TL;DR: In this paper, the authors compare the performance of four mechanisms which use agents' reports on fair shares as input and yield a division of the cake (or less) as output.
Abstract: In a subjective claims problem agents have conflicting perceptions on what constitutes a fair division of a jointly produced cake. In a large-scale experimental study involving a three-agent subjective claims problem, we compare the performance of four mechanisms which use agents’ reports on fair shares as input and yield a division of the cake (or less) as output. The mechanisms differ with respect to the desirable properties they possess and they are compared in terms of efficiency and perceived allocative and procedural fairness. Successful in terms of both fairness and efficiency are two mechanisms that explicitly ask for an assessment of the partners’ fair shares and that do not induce agents to exaggerate their assessment of the own fair share. One of the two successful mechanisms does not ask for an assessment of the own fair share while the other punishes overly selfish own claims.
TL;DR: In this paper, the authors present the Network for Sustainable Climate Risk Management (NCSR) as a tool for climate risk management in the field of sustainable risk management, which is based on the work of the National Science Foundation.
Abstract: National Science Foundation through the Network for Sustainable Climate Risk Management [GEO-1240507]