how to identify trust and reciprocity this paper uses a three games or triadic design to identify trusting and reciprocating behavior a large literature on single game trust and reciprocity experiments is based on the implicit assumption that subjects do not have altruistic or inequality averse other regarding preferences such experimental designs test compound hypotheses that include the hypothesis that other regarding preferences do not affect behavior in contrast experiments with the triadic design do discriminate between transfers resulting from trust or reciprocity and transfers resulting from other regarding preferences that are not conditional on the behavior of others decomposing trust from altruism and reciprocity from altruism or inequality aversion is critical to obtaining empirical information that can guide the process of constructing models that can increase the empirical validity of game theory

distinguishing trust from risk an anatomy of the investment game the role of trust in promoting economic activity and societal development has received considerable academic attention by social scientists a popular way to measure trust at the individual level is the so called investment game berg dickhaut and mccabe 1995 it has been widely noted however that risk attitudes can also affect decisions in this game and thus in principle confound inferences about trust we provide novel evidence shedding light on the role of risk attitudes for trusting decisions to the best of our knowledge our data are the first rigorous evidence that i aggregate investment distributions differ significantly between trust and risk environments and ii risk attitudes predict individual investment decisions in risk games but not in the corresponding trust games our results are convergent evidence that trust decisions are not tightly connected to a person s risk attitudes and they lend support to the trust interpretation of decisions in investment games

empowered examining self disconnection in a postal survey of electricity prepayment meter consumers in new zealand abstract prepayment metering is an electricity payment method often used by low income consumers fuel poverty is an important public health problem in new zealand and is likely to be a particular problem for those using prepayment metering this paper details a nationwide postal survey of consumers undertaken with the support of three major electricity retailers which investigated the advantages and disadvantages of using prepayment metering from a consumer perspective the study surveyed a total pool of 359 randomly selected consumers across the three companies a response rate of 48 the study found that while almost all respondents felt the benefits of using prepayment outweighed the risks of running out of credit or self disconnection 53 of respondents experienced self disconnection in the past year of concern over a third of respondents experiencing self disconnection were without electricity for more than 12 h the frequency of self disconnection was also high with 17 of those disconnecting reporting six or more events in the past year government intervention could reduce the risks and disadvantages involved with using prepayment metering which could then support initiatives aimed at reducing fuel poverty

a comparative analysis of the stabilizing properties of nominal income growth targeting given highly persistent cost push shocks the relative performance of nominal income growth targeting depends critically on the size of two key parameters barring extreme preferences nominal income growth targeting performs fairly well relative to commitment and pure discretion for small values of the phillips curve parameter

trust under the prospect theory and quasi hyperbolic preferences a field experiment in vietnam abstractwe conduct a field experiment in vietnamese villages to explore the effect of the prospect theory and of quasi hyperbolic time preferences parameters on trust and trustworthiness we find that risk aversion loss aversion and present bias do not influence trustors decisions but higher time discounting increases the amount sent to trustees in the south of vietnam and probability weighting decreases it in the north if time discounting and loss aversion do not influence trustworthiness we show that more risk averse and less present biased trustees return a higher share of their wealth to the trustors these results suggest that adopting a perspective other than the expected utility theory and the exponential discounting approach of time preferences enables one to uncover some channels by which risk and intertemporal time preferences influence trusting behavior in societies

correlated equilibrium as an expression of bayesian rationality if it is common knowledge that the players in a game are bayesian utility maximizers who treat uncertainty about other players actions like any other uncertainty then the outcome is necessarily a correlated equilibrium random strategies appear as an expression of each player s uncertainty about what the others will do not as the result of willful randomization use is made of the common prior assumption according to which differences in probability assessments by different individuals are due to the different information that they have where information may be interpreted broadly to include experience upbringing and genetic makeup copyright 1987 by the econometric society

spatializing energy justice this paper introduces the concept of spatial justice and inequality to understandings of energy poverty and vulnerability by applying an explicitly spatial lens to conceptualize energy poverty as a form of injustice it contributes to debates in the domain of energy justice where previous examinations of energy deprivation through a justice framing have focused on inequalities between social groups and often marginalized questions of spatial difference we start from the premise that geographic disparities in the risk and incidence of domestic energy deprivation are a key component of energy justice an extensive literature review has allowed us to highlight the spatial and temporal variation of cross sectoral and entire energy chain injustices that lead to elevated energy poverty risks these processes contribute to the rise of energy injustices via four mechanisms which we term landscapes of material deprivation geographic underpinnings of energy affordability vicious cycles of vulnerability and spaces of misrecognition operating at a multiplicity of scales while lending some support to area based approaches towards energy poverty alleviation our findings also suggest that such policies alone may marginalize the underlying structural dynamics that re produce spatial inequalities therefore achieving energy justice necessitates broader interventions in the fundamental driving forces of spatial inequality

speed limit policies the output gap and optimal monetary policy in a standard new keynesian model a myopic central bank concerned with stabilizing inflation and changes in the output gap will implement a policy under discretion that replicates the optimal timeless perspective precommitment policy by stabilizing output gap changes the central bank imparts inertia into output and inflation that is absent under pure discretion even a fully optimizing i e non myopic central bank operating in a discretionary policy environment achieves better social outcomes if it focuses on inflation and changes in the output gap than are achieved under inflation targeting this abstract was borrowed from another version of this item

densification what does it mean for fuel poverty and energy justice an empirical analysis energy is increasingly at the forefront of the global political agenda while there is a longstanding literature relating to fuel poverty and increasingly energy justice there remains little evidence which explores its link with the urban form specifically the purpose of this study is to explore the relationship between the urban consolidation hypothesis and the cultivation of energy justice in australia this study uses data from the household income and labour dynamics in australia hilda survey years 2007 2014 a national probability sample and indefinite life panel the substantive findings of this study demonstrate that for low income and renting households greater urban density corresponds to a higher likelihood of experiencing fuel poverty further for households with a dwelling type described as an apartment two or three storeys there is a separate and quite generalisable indication that this type of dwelling is associated with a lower likelihood of experiencing fuel poverty this study connects the debate regarding urban consolidation and energy consumption to the fuel poverty and energy justice literature alongside this contribution this study also provides policymakers and planners with new evidence to inform remediation policies that are directed at supporting the fuel poor

stated social behavior and revealed actions evidence from six latin american countries abstract do attitudinal surveys and incentivized experiments predict actual behavior we answer this question using data on trust and pro sociality from experiments and surveys conducted on six latin american cities individuals in agreement with a set of pro social statements who also either are willing to trust others more or are interested in risk pooling end up investing more in maintaining their social capital in the form of social organizations such as charities religion politics sports and culture both experiments and surveys carry useful information to understand motivations and intentions in pro social behavior and social capital formation

the role of social capital in financial development to identify the effect of social capital on financial development we exploit social capital differences within italy in high social capital areas households are more likely to use checks invest less in cash and more in stock have higher access to institutional credit and make less use of informal credit the effect of social capital is stronger where legal enforcement is weaker and among less educated people these results are not driven by omitted environmental variables since we show that the behavior of movers is still affected by the level of social capital of the province where they were born

evaluating fuel poverty policy in northern ireland using a geographic approach abstract recent audits have shown that anti fuel poverty policies in the uk depend on loosely defined targeting and cannot accurately identify fuel poor households new methods of targeting are necessary to improve fuel poverty policy this paper uses geographic information system gis techniques to evaluate the targeting of a home energy efficiency scheme small area level in northern ireland based on the level of need the concept of need is modelled using an area based multi dimensional fuel poverty risk index the characteristics and spatial distribution of household retrofits are explored policy activity and expenditure are compared with the level of need in an area results indicate that policy activity is only weakly associated with the level of need in an area although policy appears to be well targeted in a few areas contrary to existing evidence rural areas appear to be well served by policy receiving above average numbers of retrofits and expenditure there are typically two types of retrofit major and minor most retrofits are minor and may not reduce fuel poverty these results evidence the limitations of the current targeting system and suggest that there may be scope for improved policy implemented via a more proactive area based approach

unequal resilience the duration of electricity outages abstract the resilience of social biophysical and technological systems is of increasing scholarly and practical import guided by scholarship on disaster resilience environmental inequality and urban service inequality we advance the study of unequal resilience in a critical infrastructure the electric grid we analyze inequality in electricity outage duration at the census block group level using data from the u s census the u s geological survey and a u s electrical utility s database of power outages from 2002 to 2004 our intersectional approach identifies a factor variable of american indian disadvantage as a correlate of average outage duration suggesting possible support for an institutional bias hypothesis however spatial error regression models demonstrate that unequal resilience within our study area is most consistently explained by proximity to priority assets i e hospitals average downstream customers affected by outages and environmental conditions i e the seasonality of outages these results are consistent with existing research on utilities response to power outages and more broadly with the bureaucratic decision rules perspective on service inequalities we discuss the implications of our findings for future research and energy policy

voluntary leadership in an experimental trust game abstract we present a lab experiment on an endogenous trust game in which one player the principal may decide to leave the investment choice to the agent or to take the investment decision himself herself in the latter case we refer to this as voluntary leadership we show that voluntary leadership increases investment and increases backtransfer of the second mover compared to the alternative sequencing in which the agent is investor we also show that investment and backtransfer are higher under voluntary leadership than in the control treatment with exogenously determined sequencing furthermore we show that risk preference and inequality aversion as modeled formally by fehr and schmidt 1999 influence behavior in the endogenous trust game

trust in large organizations several authors suggest that trust is an important determinant of cooperation between strangers in a society and therefore of performance of social institutions we argue that trust should be particularly important for the performance of large organizations in a cross section of countries evidence on government performance participation in civic and professional societies importance of large firms and the performance of social institutions more generally supports this hypothesis moreover trust is lower in countries with dominant hierarchical religions which may have deterred networks of cooperation trust hold up remarkably well on a cross section of countries this abstract was borrowed from another version of this item

portfolio choice and risk attitudes an experiment i introduction suppose an investor is faced with a decision concerning how to allocate financial resources between a risky lottery asset with a higher expected return and an asset with a fixed and guaranteed lower return is the choice of portfolio independent of preferences outside the standard neoclassical model in experiments with financial incentives we study how portfolio choice depends on three well documented behavioral phenomena ambiguity aversion the illusion of control and myopic loss aversion we also investigate whether participants are willing to explicitly pay a small sum of money to indulge such preferences pay for more perceived control less ambiguity or more frequent opportunities to change the portfolio based on feedback about its performance while standard finance theory presumes that investors successfully identify and process information relevant to reaching optimal decisions in recent years a body of empirical evidence suggests that there are systematic departures from this behavior behavioral finance is concerned with psychological influences in financial decision making and markets investors make decisions while trying to stay afloat in a sea of uncertainty when predictability is low people may be prone to unjustified beliefs that may survive and even flourish in such an environment 1 people may resort to rules of thumb on a conscious or subconscious level to the extent that psychological influences are present it is economically important to consider which of these actually affect risk attitudes and portfolio choice a key issue is whether any such influences disappear when monetary incentives are present we pursue a systematic experimental comparison of three of the most prominent behavioral phenomena documented in the literature the illusion of control langer 1975 is concerned with greater confidence in one s predictive ability or in a favorable outcome when one has a higher degree of personal involvement even when one s involvement is not actually relevant ambiguity aversion ellsberg 1961 is the desire to avoid unclear circumstances even when this will not increase the expected utility myopic loss aversion benartzi and thaler 1995 combines loss aversion kahneman and tversky 1979 tversky and kahneman 1992 and a tendency to evaluate outcomes frequently this combination leads investors to be more willing to invest a greater proportion of their portfolio in risky assets if they evaluate their investments less frequently we show that these phenomena are present with monetary incentives and also investigate whether people are willing to pay money to accommodate such preferences or whether they are closer to the rational model when incentives are present with the procedure we chose the willingness to actually pa for such preferences depends on the preference the great majority of investors pay for less ambiguity or more frequent feedback investment opportunities but fewer than 10 pay to roll a determinative die themselves 2 we then examine how the preferences between lotteries in the different treatments affect portfolio choice we have participants allocate their investment capital between an asset with a sure return and a risky asset with a higher expected rate of return in fact there is very little variation in investment behavior across any of the illusion of control or ambiguity aversion treatments in contrast the results found in previous experimental studies of myopic loss aversion suggest that participants invest less in their preferred option the main conclusion we draw from these findings is that the relation between which procedure or lottery people prefer and how much they are willing to actually invest in this lottery is not trivial at all people are generally unwilling to pay even small amounts of money to indulge the illusion of control and it does not influence their portfolio choice people are generally willing to pay money for less ambiguity but having less ambiguity does not influence their portfolio choice finally in some cases people are willing to pay money for more frequent feedback and opportunities to change their portfolio but again previous studies have shown that people invest less with this additional information and greater flexibility

do negative random shocks affect trust and trustworthiness we report data from a variation of the trust game aimed at determining whether and how inequality and random shocks that affect wealth influence the levels of trust and trustworthiness to tease apart the effect of the shock and the inequality we compare behavior in a trust game where the inequality is initially given and one where it is the result of a random shock that reduces the second mover s endowment we find that first movers send less to second movers but only when the inequality results from a random shock as for the amount returned second movers return less when they are endowed less than first movers regardless of whether the difference in endowments was initially given or occurred after a random shock

the effect of liberalizing uk retail energy markets on consumers this paper describes the evolution of supply competition in the uk residential energy market and the extent to which consumers in general and vulnerable households in particular have benefited from liberalization it concludes that earlier fears about higher prices for vulnerable groups from tariff rebalancing have not so far been realized however in assessing the extent to which suppliers may be able to exploit individual or joint market power increasing concentration in the downstream market may result in adverse effects on all consumers especially low income households this poses a threat to the government s programme to reduce fuel poverty particularly at a time when upstream costs are expected to rise to reflect environmental concerns copyright 2005 oxford university press

the distributional implications of a carbon tax in ireland we study the effects of carbon tax and revenue recycling across the income distribution in the republic of ireland in absolute terms a carbon tax of 20 tco2 would cost the poorest households less than 3 week and the richest households more than 4 week a carbon tax is regressive therefore however if the tax revenue is used to increase social benefits and tax credits households across the income distribution can be made better off without exhausting the total carbon tax revenue

eliciting von neumann morgenstern utilities when probabilities are distorted or unknown this paper proposes a new method the gamble tradeoff method for eliciting utilities in decision under risk or uncertainty the elicitation of utilities to be used in the expected utility criterion turns out to be possible even if probabilities are ambiguous or unknown a disadvantage of the tradeoff method is that a few more questions usually must be asked to clients also the lotteries that are needed are somewhat more complex than in the certainty equivalent method or in the probability equivalent method the major advantage of the tradeoff method is its robustness against probability distortions and misconceptions which constitute a major cause of violations of expected utility and generate inconsistencies in utility elicitation thus the tradeoff method retains full validity under prospect theory rank dependent utility and the combination of the two i e cumulative prospect theory the tradeoff method is tested for monetary outcomes and for outcomes describing life duration we find higher risk aversion for life duration but the tradeoff method elicits similar curvature of utility apparently the higher risk aversion for life duration is due to more pronounced deviations from expected utility

can risk averse households make risky investments the role of trust in others in this paper using data from the survey on health ageing and retirement in europe share 2006 and 2013 waves we illustrate the link between individuals attitudes to financial risk combined with their willingness to trust others and their investments in risky assets individuals who display either risk tolerance alone or to a lesser extent risk aversion and trust more frequently decide to buy risky assets the comparison between scandinavian and mediterranean countries indicates that trust plays qualitatively different roles depending on the prevailing combination of risk attitude and trust in the area being studied

targeting nominal income growth or inflation within a simple new keynesian model emphasizing forward looking behavior of private agents i evaluate optimal nominal income growth targeting versus optimal inflation targeting when the economy is mainly subject to shocks that do not involve monetary policy trade offs for society inflation targeting is preferable otherwise nominal income growth targeting may be superior because it induces inertial policy making which improves the inflation output gap trade off somewhat paradoxically inflation targeting may be relatively less favorable the more society dislikes inflation and the more persistent are the effects of inflation generating shocks jel e42 e52 f58

occupant behaviour as a fourth driver of fuel poverty aka warmth energy deprivation a conceptual framework for occupant behaviour as a driver of fuel poverty is presented comprising housing and use of the home heating and energy arrangements and thermal comfort household structure and dynamics health and well being household finances and social activity and relations this framework informs longitudinal analysis of movements into and out of fuel poverty among households in deprived communities in glasgow household surveys across ten years yielded a longitudinal sample of 3297 cases where initial and subsequent fuel poverty status was recorded using an experiential measure a third of households changed their fuel poverty status over time 18 moving out of fuel poverty and 16 moving in factors strongly associated with movements into fuel poverty included being a single parent or 2 27 experiencing a mental health problem or 2 74 and remaining out of work or 1 89 movement out of fuel poverty was less likely among those with infrequent family contact or 0 55 and who moved home or 0 66 home improvements had no effect upon the experience of fuel poverty it is argued that the policy problem should be considered one of warmth and energy deprivation accompanied by a broader interpretation of vulnerability to as well as from fuel poverty

fuel poverty as injustice integrating distribution recognition and procedure in the struggle for affordable warmth bringing attention to fuel poverty as a distinct manifestation of social inequality has asserted the place of affordable warmth in the profile of contemporary rights and entitlements as such fuel poverty can be understood as an expression of injustice involving the compromised ability to access energy services and thereby to secure a healthful living environment in this paper we consider how fuel poverty may be aligned to various alternative concepts of social and environmental justice whilst recognising that fuel poverty is fundamentally a complex problem of distributive injustice we argue that other understandings of injustice are also implicated and play important roles in producing and sustaining inequalities in access to affordable warmth addressing fuel poverty has to involve seeking justice in terms of the cultural and political recognition of vulnerable and marginalised social groups and pursuing procedural justice through opening up involvement and influence in decision making processes we make this argument both in theoretical terms and through considering the experience of fuel poverty advocacy and policy development in the uk opportunities for future action may be illuminated through such interconnected justice framings as wider awareness of energy climate and poverty issues emerge

energy equity and the future of the fuel poor abstract a warm and adequately lit home is considered a basic need together with access to energy consuming appliances ranging from a fridge to a tv an underlying tenet of sustainable energy is that such basic needs should be affordably met yet low incomes energy inefficient housing and appliances and high energy costs mean that roughly 10 per cent of uk households many of them elderly or with young children fail to attain this basic standard these households which would need to spend more than 10 per cent of their income to attain adequate energy services are officially defined as fuel poor their cold poorly equipped homes lead to chronic cold related health conditions exacerbate social isolation and may undermine educational achievement in addition rural areas have a disproportionately high incidence of fuel poverty this review examines the current distribution of energy consumption its social impacts and the opportunities to address fuel poverty through improvements to the housing stock it will then consider potential future developments

it takes two to cheat an experiment on derived trust abstract social life offers innumerable instances in which trust decisions involve multiple agents of particular interest is the case when a breach of trust is not profitable if carried out in isolation but requires an agreement among agents in such situations the pattern of behaviors is richer than in dyadic games because even opportunistic trustees who would breach trust when alone may act trustworthily based on what they believe to be the predominant course of action anticipating this trusters may be more inclined to trust we dub these motivations derived trustworthiness and derived trust to capture them we design a collective trust game and study it by means of a laboratory experiment we report that overall levels of trustworthiness are almost thirty percentage points higher when derived motivations are present and this generates also higher levels of trust in our set up the effects of derived trustworthiness are comparable in size to positive reciprocity and more important than concerns for equality

measurement of spatial socioeconomic impact of energy poverty abstract this article presents a spatial analysis of the evolution of energy poverty in spanish households and aims to measure the socioeconomic impact of energy poverty the economic financial measurement of palliative measures implemented and social perceptions of energy poverty are also dimensioned in order to analyse holistically the economic financial and social impact of energy poverty at a territorial level a statistical analysis of the financial aids has been conducted and the perception of technicians employed by both the public and the private sectors who work with affected households has been compiled in addition this paper explores the relationship between media coverage and the economic financial impact at territorial level to this goal 259 newspaper articles about energy poverty were classified and analysed to examine the socio genesis of the problem of energy poverty the measurement of the socio economics impact of energy poverty in households in a territory represents the spatial dimension of the problem for the definition of local energy policies taking into consideration the evolution of different measures implemented over time their limitations scope and flexibility