| 1. |
|
|
| 2. |
- Bos, Marieke, et al.
(författare)
-
Scarcity and consumers’ credit choices
- 2022
-
Ingår i: Theory and Decision. - : Springer Nature. - 1573-7187 .- 0040-5833. ; 92:1, s. 105-139
-
Tidskriftsartikel (refereegranskat)abstract
- We study the effect of scarcity on decision making by low income Swedes. We exploit the random assignment of welfare payments to study their borrowing decisions within the pawn and mainstream credit market. We document that higher educated borrowers borrow less frequently and choose lower loan to value ratios when their budget constraints are exogenously tighter. In contrast, low-educated borrowers do not respond to temporary elevated levels of scarcity. This lack of response translates into a significantly higher probability to default and an 11.6% increase in borrowing cost. We show that a difference in access to liquidity and/or buffer stocks cannot explain our results. Instead a framework, where the awareness of self-control problems is positively correlated with education can explain that high-educated consumers choose a lower LTV as a commitment device to increase their likelihood to repay. Analogously, low-educated with less awareness of their future self-control problems, do not tie themselves to the mast and thus ignore the consequences of their credit decisions when focusing on solving acute liquidity problems. Our findings highlight that increased levels of scarcity risk reinforcing the conditions of poverty through overborrowing. © 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
|
|
| 3. |
- Ganguli, Ina, et al.
(författare)
-
How Do Nascent Social Entrepreneurs Respond to Rewards? A Field Experiment on Motivations in a Grant Competition
- 2018
-
Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We conducted a field experiment to identify the causal effect of extrinsic reward cues on the sorting and performance of nascent social entrepreneurs. The experiment, carried out with one of the United Kingdom’s largest support agencies for social entrepreneurs, encouraged 431 nascent social entrepreneurs to submit a full application for a grant competition that provides cash and in-kind mentoring through a one-time mailing sent by the agency. The applicants were randomly assigned to one of three groups: one group received a standard mailing that emphasized the intrinsic incentives of the program, or the opportunity to do good (Social treatment), and the other two groups received a mailing that instead emphasized the extrinsic incentives - either the financial reward (Cash treatment) or the in-kind reward (Support treatment). Our results show that an emphasis on extrinsic incentives has a causal impact on sorting into the applicant pool: the extrinsic reward cues led fewer candidates to apply and “crowded out” the more prosocial candidates while “crowding in” the more money-oriented ones. The extrinsic reward cues also increased application effort, which led these candidates to be more successful in receiving the grant. Yet, the selection resulting from the extrinsic incentive cues led to worse performance at the end of the one-year grant period. Our results highlight the critical role of intrinsic motives in the selection and performance of social enterprises and suggest that using extrinsic incentives to promote the development of successful social enterprises may backfire in the longer run.
|
|
| 4. |
|
|
| 5. |
- Le Coq, Chloé, et al.
(författare)
-
Cartel birth and death dynamics: Empirical evidence
- 2023
-
Ingår i: International Journal of Industrial Organization. - : Elsevier B.V. - 1873-7986 .- 0167-7187. ; 89
-
Tidskriftsartikel (refereegranskat)abstract
- •We examine the population of Swedish legal cartels registered in 1946–1993.•We identify observed (registered) and hidden cartel dynamics.•Antitrust enforcement changes are key in determining cartel births and deaths.•Strengthening antitrust law can deter cartels but does not always destabilize them.•When the law becomes particularly strict, cartels still form but do so undercover. This paper examines how a gradual tightening of antitrust enforcement impacts cartels’ births and deaths. To avoid the inherent sample selection bias in prosecuted cartel studies, we use a unique dataset of Swedish legal cartels registered between 1946 and 1993. We compare estimates from a count model (considering only registered cartels) and a Hidden Markov Model (allowing for potentially unregistered cartels) to identify observed and hidden cartel dynamics. The count model suggests that strengthening antitrust enforcement has a deterrent effect, but the Hidden Markov Model suggests otherwise. Despite stricter competition laws and a credible threat of cartel prohibition, cartels continue to form, but do so undercover. Additionally, our results suggest that the strengthening of competition law has little impact on destabilizing existing cartels.
|
|
| 6. |
|
|
| 7. |
- Le Coq, Chloé, et al.
(författare)
-
Do forward markets enhance competition?
- 2006
-
Ingår i: Journal of economic behavior & organization. - : Elsevier B.V. - 1879-1751 .- 0167-2681. ; 61:3, s. 415-431
-
Tidskriftsartikel (refereegranskat)abstract
- Hedging risks is an important rationale for forward trading. However, Allaz and Vila [Allaz, B., Vila, J.-L., 1993. Cournot competition, forwards markets and efficiency. Journal of Economic Theory 59, 1–16] show that oligopolists may also have a strategic motive to sell forward. Moreover, in their model forward markets increase competitiveness between firms, raising consumer surplus and efficiency. In this study, we examine this theoretical result in a controlled laboratory environment and investigate how the trading institution and the number of firms affect competition. Our findings support the main comparative-static predictions but also suggest that, when compared to the increase in competitive pressure due to entry, the competition-enhancing effect of a forward market is weaker than predicted.
|
|
| 8. |
|
|
| 9. |
- Le Coq, Chloé, et al.
(författare)
-
Does opponents' experience matter? Experimental evidence from a quantity precommitment game
- 2012
-
Ingår i: Journal of Economic Behavior and Organization. - : Elsevier. - 0167-2681. ; 84:1, s. 265-277
-
Tidskriftsartikel (refereegranskat)abstract
- This paper investigates why subjects in laboratory experiments on quantity precommitment games consistently choose capacities above the Cournot level – the subgame-perfect equilibrium. We argue that this puzzling regularity may be attributed to players’ perceptions of their opponents’ skill or level of rationality. We first show theoretically that it is the case by modelling a two-stage game of capacity investment and pricing with bounded rational players. We then design an experiment in which we use the level of experience as a proxy for the level of rationality and match subjects with different levels of experience. We find significant differences in behavior depending on opponents’ experience; moreover, players facing inexperienced players tend to choose higher capacities than they would otherwise.
|
|
| 10. |
- Le Coq, Chloé, et al.
(författare)
-
EU-Russia: Gas relationship at a crossroads
- 2014
-
Ingår i: Russian Energy and Security up to 2030. - : Routledge. - 9781315858920 - 9780415639644 ; , s. 41-60
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)
|
|
