We revisit the question of price elasticity of employer-sponsored insurance (ESI) take-up by directly examining changes in the take-up of ESI at a large firm in response to exogenous changes in employee premium contributions. We find that, on average, a 10% increase in the employee's out-of-pocket premium increases the probability of dropping coverage by approximately 1%. More importantly, we find heterogeneous impacts: married workers are much more price-sensitive than single employees, and lower-paid workers are disproportionately more likely (...) to drop coverage than higher-paid workers. Elasticity estimates for employees below the 25th percentile of salary distribution in our sample are nearly twice the average. (shrink)

The standard microeconomic analysis of taxation suggests that excise taxes on goods with a price-inelastic demand are more efficient in that they lead to a lower deadweight loss than taxes on goods with price-elastic demand. This argument ignores secondary effects on the rest of the economy. By narrowly focusing on the primary effects on the market where the tax is raised, the overall deadweight loss is underestimated when demand is price-inelastic. Moreover, it is overestimated when demand is (...) price-elastic. This puts into question the validity of the standard textbook argument. In this paper we address this issue by considering how taxes affect consumer behavior in other markets. From this we can clearly see how the impact of an excise tax is not limited to one market in isolation, but is spread over all markets and affects the demand for cash balances. We suggest a simple way to incorporate this important insight into a standard textbook exposition. (shrink)

The number of competing-brands changes by new product's entry. The new product introduction is endemic among consumer packaged goods firm and is an integral component of their marketing strategy. As a new product's entry affects markets, there is a pressing need to develop market response model that can adapt to such changes. In this paper, we develop a dynamic model that capture the underlying evolution of the buying behavior associated with the new product. This extends an application of a dynamic (...) linear model, which is used by a number of time series analyses, by allowing the observed dimension to change at some point in time. Our model copes with a problem that dynamic environments entail: changes in parameter over time and changes in the observed dimension. We formulate the model with framework of a state space model. We realize an estimation of the model using modified Kalman filter/fixed interval smoother. We find that new product's entry (1) decreases brand differentiation for existing brands, as indicated by decreasing difference between cross-price elasticities; (2) decreases commodity power for existing brands, as indicated by decreasing trend; and (3) decreases the effect of discount for existing brands, as indicated by a decrease in the magnitude of own-brand price elasticities. The proposed framework is directly applicable to other fields in which the observed dimension might be change, such as economic, bioinformatics, and so forth. (shrink)

Instead of relying on the usual price elasticity technique, this book combines economic and engineering analysis to study economic growth and energy demands to the year 2000. It asserts that future energy demand will be determined by two basic factors--the gross national product and the efficiency with which energy is used to produce this output in the household, commercial, industrial, and transport sectors of the economy.Labor hours multiplied by a productivity factor results in the GNP. This study predicts (...) that, in the long run, productivity in the United States will recover most of the sharp losses registered in the past five years. The study points out the decelerating population growth, the higher number of women in the labor force, and new investments as having an influence on this situation.After projecting the size and composition of each of the four energy consuming sectors that account for the total GNP. Energy and Economic Growth estimates efficiency improvements for each. It shows, for example, that higher levels of thermal insulation will reduce sharply energy needs for household heating and cooling. Similarly, the study notes that improvements in energy consumption per dollar of output can be made for each of the energy intensive manufacturing industries, nothing that although the savings in energy are significant, none is a consequence of pushing improvements to known technological limits. Finally, the book establishes the price elasticities that are inherent in the calculated energy requirements and checks these against elasticity estimates made by other researchers. (shrink)

This paper analyzes and compares different policy scenarios as well as discusses price elasticities and willingness to pay and to accept using revealed preference data from the French new-car market in 2014 by means of a cross-nested logit model. We focus particularly on electric and hybrid vehicles. We use interactions between the cost and the household income to analyze the sensitivity towards different policy scenarios per income level. Results show that the willingness to pay and to accept obtained in (...) our study is consistent with the real-market conditions. We also find that the most effective scenario to increase the market shares of new sold electric vehicles is that of a major technological advance such as a decrease in price due to cheaper manufacturing costs and an increase in driving range, rather than a policy-based scenario. In addition, the market segment that has more potential to increase the market shares of electric vehicle purchase is the middle-income level. In the paper, we discuss how to overcome the difficulties of working with revealed preference data, and propose multiple imputations to impute the attributes of the unchosen alternatives, by drawing from their empirical distributions. (shrink)

In this contribution we take a look at the development of environmental concern and mobility behavior of the population in Germany and Switzerland. The proportion of survey participants who express concern about the state of the natural environment is high in both countries. However, this proportion did not increase during the last two decades despite the ongoing public debate about environmental issues. At the same time the demand for private transportation did increase in Germany by almost 20% (in Switzerland by (...) 2.5%). However, fuel consumption per capita decreased in Germany by 6.5% and in Switzerland by 2.2%. Our time series analyses of these trends suggest that this reduction is due to the price increase of gasoline which was substantial in both countries and not due to any change in attitudes. We argue that further price increases are appropriate means to reduce fuel consumption. However, our analyses also show that the price elasticity for fuel is low. (shrink)

This paper extends the standard model of bundling to allow products to be substitutes and for products to be supplied by separate sellers. Whether integrated or separate, …rms have an incentive to introduce bundling discounts when demand for the bundle is elastic relative to demand for stand-alone products. Separate …rms often have a unilateral incentive to o¤er inter-…rm bundle discounts, although this depends on the detailed form of substitutability. Bundle discounts mitigate the innate substitutability of products, which can relax competition (...) between …rms and induce an integrated …rm to lower all of its prices when it follows a bundling strategy. (shrink)

The paper presents the second part of the study of “sponsored goods” in the cultural sector. It describes economic activities of theaters, concert organizations and museums in three dimensional index space coordinate axes being the lag of labor productivity, faster growth of salaries and tickets prices in relation to the corresponding macroeconomic indices. The methodology of constructing such indexes and statistical data used for this purpose are described in the first article published under the title “Symptoms and consequences of Baumol’s (...) cost disease in cultural sector: an econometric study of “sponsored goods”. The aim of the present article is to construct and analyse econometric model of cost disease based on statistical data on activities of Russian theaters, concert organizations and museums for the period of 1994-2010. The regression analysis based on structural model that reflects theoretically predictable links was chosen as a method of study. Such links include first, influence on cost growth of lag of labour productivity in arts organisations and parallel trend in salaries. Second, dependence of increase of income of such organizations on dynamics of labour productivity and ticket prices, third, balanced equation - product of equilibrium conditions for sponsored goods that describes the interrelation between costs of production, prices and budget subsidies. The calculations made it possible to construct basic and modified econometric models that establish statistical correlations between income deficit and three regressors, namely indexes of labour productivity, salaries and ticket prices. As a result of this model the article presents projections of regression relation of income deficit on «expenditures plane», «income plane» and «economic results plane». Theequations derived allow to conclude that there is a statistically significant income deficit negative elasticity by labour productivity index, positive elasticity by salaries index and ticket price index, as well as rising dynamics of Russian performing arts organization income deficit and its compensation in the nearest future. (shrink)

During the COVID-19 public health crisis, market failures such as shortage of supplies and soaring prices of anti-epidemic materials – with masks as the core – have occurred. In essence, such anti-epidemic materials have the dual nature of necessities with low elasticity of demand and private products with positive externalities. This research explores the understanding of anti-pandemic materials and how different initiatives, and evaluation to increase availability of necessary resources can be effective in curbing a pandemic. Market regulation results (...) in a non-Pareto optimal allocation of resources and the difficulty of exerting the positive externalities of products. However, in China, the market failure of anti-epidemic materials was quickly resolved, due to the institutional advantages of socialism with Chinese characteristics, the social responsibility drive of domestic enterprises, and cultural genes that focus on equity and concern for the disadvantaged. The optimal allocation of anti-epidemic materials gave access to exerting efficiency and fairness effects, positive external effects, and public effects. (shrink)

We describe a first experiment on whether product complexity affects competition and consumers in retail markets. We are unable to detect a significant effect of product complexity on prices, except insofar as the demand elasticity for complex products is higher. However, there is qualified evidence that complex products have the potential to induce consumers to buy more than they would otherwise. In this sense, consumer exploitability in quantities cannot be ruled out. We also find evidence for shaping effects: consumers’ (...) preferences are shaped by past experience with prices, and firms may in principle exploit this to sell more. (shrink)

In a recent paper, Richard Rorty begins by telling us why pragmatists such as himself are inclined to identify truth with justification: ‘Pragmatists think that if something makes no difference to practice, it should make no difference to philosophy. This conviction makes them suspicious of the distinction between justification and truth, for that distinction makes no difference to my decisions about what to do.’ (1995, p. 19) Rorty goes on to discuss the claim, defended by Crispin Wright, that truth is (...) a normative constraint on assertion. He argues that this claim runs foul of this principle of no difference without a practical difference: ‘The need to justify our beliefs to ourselves and our fellow agents subjects us to norms, and obedience to these norms produces a behavioural pattern that we must detect in others before confidently attributing beliefs to them. But there seems to be no occasion to look for obedience to an additional norm – the commandment to seek the truth. For – to return to the pragmatist doubt with which I began – obedience to that commandment will produce no behaviour not produced by the need to offer justification.’ (1995, p. 26) Again, then, Rorty appeals to the claim that a commitment to a norm of truth rather than a norm of justification makes no behavioural difference. This is an empirical claim, testable in principle by comparing the behaviour of a community of realists (in Rorty’s sense) to that of a community of pragmatists. In my view, the experiment would show that the claim is unjustified, indeed false. I think that there is an important and widespread behavioural pattern that depends on the fact that speakers do take themselves to be subject to such an additional norm. Moreover, it is a.. (shrink)

Speech act theory is one of the more lasting products of the linguistic movement in philosophy of the mid−Twentieth century. Within philosophy itself the movement's products did not in general prove so durable. Particularly striking in this respect is the perceived fate of what was one of the most characteristic applications of the linguistic turn in philosophy, namely the view that many traditional philosophical problems are such as to yield to an understanding of the distinctive function of a particular part (...) of language. Most typically, the crucial insight was held to be that despite appearances, the function of the part of language in question is not assertoric, or descriptive, and that the traditional problems arose at least in part from a failure to appreciate this point. Thus problems in moral philosophy were thought to yield to an appreciation that moral discourse is expressive rather than descriptive, problems in the philosophy of mind to an understanding of distinctive r×le of psychological ascriptions, and so on. The philosophical journals of the 1950s are rich with views like these. (No general term for this approach seems to have become widely accepted at the time. I shall call it "non−factualism", for what it denies, most characteristically, is the fact−stating r×le of language of a certain kind.). (shrink)

Dreamwork, Anthropology and the Curing Professions:. Cultural Approach to Dreamwork. Ian R. Edgar. Aldershot, UK: Avebury, 1995. ix. 145 pp. £29.95.

We tend to assume that progress in answering the ‘hard question’ of consciousness will be accompanied by a subjective feeling of greater understanding. However, in order to feel we understand how one state of affairs arises from another, we have to deceive ourselves into thinking we have found a type of causal link which in reality may not exist . I draw from and expand upon Rosch's model, which specifies the conditions under which this self-deceptive kind of causal attribution arises. (...) I argue that the mind-body relationship may not meet these conditions, especially because of its potential novelty and uniqueness. We should not therefore expect to subjectively feel we understand consciousness. (shrink)

One major success of studying neural cell development in tissue culture has been the discovery of the O‐2A cell. This bipotential cell generates oligodendrocytes or, under certain conditions, a type of astrocyte. This essay considers the evidence that the characteristic properties demonstrated by the O‐2A cells in vitro are an accurate reflection of oligodendrocyte development in vivo.

New protocols have been developed for donors after circulatory death involving early assessment of donor status and premortem supporting treatment in appropriate cases where there is evidence that the patient wished to be an organ donor. These donors are now making an increasingly marked impact on overall deceased donor numbers in the UK. Donors after brainstem death, on the other hand, are much less buoyant yet require the same flexibility in approach in order to improve rates of donation and to (...) realize the wishes of potential deceased organ donors to the proper requisite extent. (shrink)

Ecstasy, Ritual, and Alternate Reality: Religion in. Pluralistic World by Felicitas D. Goodman. Bloomington and Indianapolis: Indiana.University Press, 1988. Pp. 193. ISBN 0‐253‐31899‐8.