1,721,240 research outputs found
The Mediating Role of Urbanization on the Composition of Happiness
Full text linkThis paper investigates whether urbanization plays a role in determining the importance of each happiness domain on overall happiness. The analysis focuses on Italy. We exploit a multilevel model to consider regional heterogeneity in happiness determinants. We first verify whether a direct effect of urbanization exists on each specific components of happiness, as well as on overall happiness. Consistent with the findings in the literature, happiness decreases with urbanization. In the analysis of the mediating role, we find that the importance of satisfaction family explains more overall happiness in urban areas. On the contrary, satisfaction with health, friendships and environment gain more weight in rural areas
University admission: Is achievement a sufficient criterion?
Full text linkWe analyse university admissions using a statistical discrimination model where students differ by ability and social group. In this university system, candidates are evaluated on the basis of their expected human capital, which includes both their innate abilities and the knowledge acquired during their schooling. Consequently, students determine their study effort based on the behaviour of universities. Interestingly, we find that students from a less advantaged group need a lower grade to gain admission to the best universities. If a university cannot discriminate between social groups, all students with the same grade will attend universities of the same quality, but with different levels of human capital
ENDOGENOUS TIMING IN QUALITY CHOICES AND PRICE COMPETITION
No full textWe modify the price-setting version of the vertically differentiated duopoly model by Aoki (2003) by introducing an extended game in which firms noncooperatively choose the timing of moves at the quality stage. Our results show that there are multiple equilibria in pure strategies, whereby firms always select sequential play at the quality stage. We also investigate the mixed-strategy equilibrium, revealing that the probability of generating outcomes out of equilibrium is higher than the probability of playing one Nash equilibria in pure strategies. In the alternative case with full market coverage, we show that the quality stage is solved in dominant strategies and therefore the choice of roles becomes irrelevant as the Nash and Stackelberg solutions coincide. With full market coverage and corner solution, the results show that the game has a unique subgame perfect equilibrium in pure strategies, where the high-quality firm takes the lead in the quality stage
Incentives, performance and desirability of socially responsible firms in a Cournot oligopoly
No full textThis paper investigates how socially responsible behaviour influences firms' profits and social welfare when production entails an environmental externality. We study a Cournot oligopoly with pollution, with one CSR operating in the market. A CSR firm not only takes into account its profits but also internalises its own share of pollution and is sensitive to consumer surplus. With a large enough market, the CSR firm obtains higher profits than its profit-seeking competitors, and induces a higher level of social welfare. The results are confirmed when a socially optimal tax on pollution is adopted. Indeed, even if the environmental concern restrains the production of a CSR firm, the social concern expands it. The second effect more than offsets the first one in a large market, making the CSR production strategy be more aggressive compared to its competitors
The Mediating Role of Urbanization on the Composition of Happiness
No full textThis paper investigates whether urbanization plays a role in determining the importance of each happiness domain on overall happiness. The analysis focuses on Italy. We exploit a multilevel model to consider regional heterogeneity in happiness determinants. We first verify whether a direct effect of urbanization exists on each specific components of happiness, as well as on overall happiness. Consistent with the findings in the literature, happiness decreases with urbanization. In the analysis of the mediating role, we find that the importance of satisfaction family explains more overall happiness in urban areas. On the contrary, satisfaction with health, friendships and environment gain more weight in rural areas
Do minimum quality standards bite in polluting industries?
No full textWe investigate the introduction of a minimum quality standard in a verticallydifferentiated duopoly where production is polluting. We examine the alternative frameworks with quality-dependent fixed or variable costs, under both price and quantity competition. Under Bertrand behaviour, the introduction of a binding MQS regulation reduces product differentiation, which causes an increase in the output and pollution. Hence its adoption must rely on the increase in consumer surplus generated by the increase in output and average quality. Conversely, in the Cournot setting, a binding MQS decreases output and pollution, and its adoption is driven by the fact that the balance between these effects and the associated increase in average quality yields a welfare improvement. © 2012 University of Venice
Low-quality leadership in a vertically differentiated duopoly with Cournot competition
No full textWe model a vertically differentiated duopoly with quantity-setting firms as an extended game in which firms noncooperatively choose the timing of moves at the quality stage, to show that at the subgame, perfect equilibrium sequential play obtains, with the low-quality firm taking the leader's role. © 2011 Elsevier B.V
The persistence of environmental and social strategies under emission permits
No full textIn this paper, we analyse the long-run industry configuration of an oligopoly where profit-seeking (PS) and environmentally socially responsible (ECSR) firms compete in quantities. We adopt an evolutionary setting to determine the firms’ endogenous choice of statute (PS or ECSR). Pollution is regulated through an Emission Trading System (ETS) scheme that allocates emissions rights to firms. Firms may also invest in emission abatement technology to reduce the cost of emission rights. Our findings show that the introduction of an ETS favours the persistence of the ECSR strategy by reducing the share of PS firms in the industry. In contrast, an increase in the stringency of the ETS policy makes the PS strategy more competitive
On the evolutionary interplay between environmental CSR and emission tax
No full textThis paper analyses the steady-state industry configuration of an oligopoly composed of profit-seeking (PS) and environmentally socially responsible (ECSR) firms in an evolutionary setting. Within this industry, an emission tax is levied, and firms may invest in emission abatement technology to reduce the tax burden. Our main findings show that, despite the commitment towards emission abatement, an ECSR firm may end up polluting more than its PS counterpart, leading to ill-fated effects on the environment. In contrast, the introduction of an emission tax puts competitive pressure to ECSR firms by inducing PS firms to invest in emission abatement. The industry configuration that minimises the environmental damage (and maximises social welfare) is mixed, with a small but relevant share of ECSR firms, combined with the adoption of a tax on emissions
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