Utilitarian and economic theories of deterrence hold that the relation of the penalty to the misdeed should be irrelevant. In five experiments using hypothetical cases, judgments of penalties depended on whether this relation was in-kind (IK) or out-of-kind (OK). When victims were identifiable, IK penalties were higher than OK and preferred to OK. Subjects seemed to confuse penalties and compen...

This paper proposes a multivariate extension of the equilibrium pricing transforms for pricing general financial and insurance risks. The multivariate Esscher and Wang transforms are derived from Bühlmann’s equilibrium pricing model (1980) under some assumptions on the aggregate risk. It is shown that the Esscher and Wang transforms coincide with each other when the underlying risks are normall...

We model the idea that when consumers search for products, they first visit the firms which advertise more, or the firms whose advertising is more salient. Equilibrium prices and advertising efforts are increasing in consumer search costs. By contrast, equilibrium profits are nonmonotonic in search costs so firms are not necessarily better off if search costs rise. In our model, firms are engag...