Games Played by Teams of Players

By Jeongbin Kim, Thomas R. Palfrey, and Jeffrey R. Zeidel

American Economic Journal: Microeconomics, November 2022

We develop a general framework for analyzing games where each player is a team and members of the same team all receive the same payoff. The framework combines noncooperative game theory with collective choice theory, and is developed for both strategic f...

Reaping the Informational Surplus in Bayesian Persuasion

By Ronen Gradwohl, Niklas Hahn, Martin Hoefer, and Rann Smorodinsky

American Economic Journal: Microeconomics, November 2022

The Bayesian persuasion model studies communication between an informed sender and a receiver with a payoff-relevant action, emphasizing the ability of a sender to extract maximal surplus from his informational advantage. In this paper, we study a setting...

License Complementarity and Package Bidding: US Spectrum Auctions

By Mo Xiao and Zhe Yuan

American Economic Journal: Microeconomics, November 2022

US spectrum licenses cover geographically distinct areas and often complement each other. A bidder seeking to acquire multiple licenses is exposed to the risk of winning only isolated patches. Using Auction 73 data, we model the bidding process as an entr...

Sequential Screening with Type-Enhancing Investment

By Bin Liu and Jingfeng Lu

American Economic Journal: Microeconomics, November 2022

Due to the well-known efficiency–rent extraction trade-off, the optimal mechanism in a pure screening environment (e.g., revenue maximization in auctions or cost minimization in procurement) typically calls for distortions in allocative efficiency when ...

Call for Proposals: Hong Kong Institute of Monetary and Financial Research - Open-bid Applied Research Programme

[News]

November 12, 2020

Deadline for submissions is January 15, 2023.

14th International Conference "Challenges of Europe"

[News]

October 27, 2022

The conference will be held May 17-19, 2023 in Croatia.

Front Matter

American Economic Journal: Economic Policy, November 2022

Gerrymandering in State Legislatures: Frictions from Axiomatic Bargaining

By Hisam Sabouni and Cameron A. Shelton

American Economic Journal: Economic Policy, November 2022

Theories of partisan redistricting postulate unitary actors maximizing their party's expected seat share. Yet, the partition of a fixed supply of friendly voters necessarily implies a tragedy of the commons. We recast partisan redistricting as a bargainin...

Enhancing the Efficacy of Teacher Incentives through Framing: A Field Experiment

By Roland G. Fryer, Jr., Steven D. Levitt, John List, and Sally Sadoff

American Economic Journal: Economic Policy, November 2022

In a field experiment, we provide financial incentives to teachers framed either as gains, received at the end of the year, or as losses, in which teachers receive up-front bonuses that must be paid back if their students do not improve sufficiently. Pool...

Health Care Rationing in Public Insurance Programs: Evidence from Medicaid

By Timothy J. Layton, Nicole Maestas, Daniel Prinz, and Boris Vabson

American Economic Journal: Economic Policy, November 2022

We study two mechanisms used by public health insurance programs for rationing health care: outsourcing to private managed care plans and quantity limits for prescription drugs. Leveraging a natural experiment in Texas's Medicaid program, we find that the...

Do Two Electricity Pricing Wrongs Make a Right? Cost Recovery, Externalities, and Efficiency

By Severin Borenstein and James B. Bushnell

American Economic Journal: Economic Policy, November 2022

Economists favor pricing pollution in part so that consumers face the full social marginal cost (SMC) of goods and services. But even absent externalities, retail electricity prices typically exceed private marginal cost, due to a utility's need to cover ...

Multinationals' Sales and Profit Shifting in Tax Havens

By Sébastien Laffitte and Farid Toubal

American Economic Journal: Economic Policy, November 2022

We show that US multinationals record sales and the profits from these sales in tax havens while their goods and services are physically sold in other countries. We propose a framework illustrating the strategy of sales shifting. Our results reveal the im...

Behavioral Responses to Wealth Taxes: Evidence from Switzerland

By Marius Brülhart, Jonathan Gruber, Matthias Krapf, and Kurt Schmidheiny

American Economic Journal: Economic Policy, November 2022

We study how declared wealth responds to changes in wealth tax rates. Exploiting rich intranational variation in Switzerland, we find a 1 percentage point drop in a canton's wealth tax rate raises reported taxable wealth by at least 43 percent after 6 yea...

The Hazards of Unwinding the Prescription Opioid Epidemic: Implications for Child Maltreatment

By Mary F. Evans, Matthew C. Harris, and Lawrence M. Kessler

American Economic Journal: Economic Policy, November 2022

Child maltreatment has significant and long-lasting consequences. We examine how two interventions designed to curtail prescription opioid misuse, the reformulation of OxyContin and the implementation of must-access prescription drug monitoring programs (...

Your Place in the World: Relative Income and Global Inequality

By Dietmar Fehr, Johanna Mollerstrom, and Ricardo Perez-Truglia

American Economic Journal: Economic Policy, November 2022

Although there is abundant evidence on individual preferences for policies that reduce national inequality, there is very little evidence on preferences for policies addressing global inequality. To investigate the latter, we conducted a two-year, face-to...

Reminders Work, but for Whom? Evidence from New York City Parking Ticket Recipients

By Ori Heffetz, Ted O'Donoghue, and Henry S. Schneider

American Economic Journal: Economic Policy, November 2022

We investigate heterogeneity in responsiveness to reminder letters among New York City parking ticket recipients. Using variation in the timing of letters, we find a strong aggregate response. But we find large differences across individuals: those with a...

The Old-Age Security Motive for Fertility: Evidence from the Extension of Social Pensions in Namibia

By Pauline Rossi and Mathilde Godard

American Economic Journal: Economic Policy, November 2022

The old-age security motive for fertility postulates that people's needs for old-age support raise the demand for children. We exploit the extension of social pensions in Namibia during the 1990s to provide a quasi-experimental quantification of this wide...

Mandatory Energy Efficiency Disclosure in Housing Markets

By Erica Myers, Steven L. Puller, and Jeremy West

American Economic Journal: Economic Policy, November 2022

Mandatory disclosure policies are implemented broadly despite sparse evidence that they improve market outcomes. We study the effects of requiring home sellers to provide buyers with certified audits of residential energy efficiency. Using similar nearby ...

Can Nudges Increase Take-Up of the EITC? Evidence from Multiple Field Experiments

By Elizabeth Linos, Allen Prohofsky, Aparna Ramesh, Jesse Rothstein, and Matthew Unrath

American Economic Journal: Economic Policy, November 2022

The Earned Income Tax Credit distributes more than $60 billion to over 20 million low-income families annually. Nevertheless, an estimated one-fifth of eligible households do not claim it. We ran six preregistered, large-scale field experiments with 1 mil...

Adviser Value Added and Student Outcomes: Evidence from Randomly Assigned College Advisers

By Serena Canaan, Antoine Deeb, and Pierre Mouganie

American Economic Journal: Economic Policy, November 2022

This paper provides the first causal evidence on the impact of college advisor quality on student outcomes. To do so, we exploit a unique setting where students are randomly assigned to faculty advisors during their first year of college. We find that hig...