The purpose of the present study was to examine whether parents' locus of control (LOC) obtained before the birth of their child predicts the child's behavior at school in School Years 3 (ages 7-8) and 6 (ages 10-11). A modified version of the adult Nowicki-Strickland internal-external locus of control scale was completed by mothers and fathers in their own home during pregnancy. Externality wa...

It is known that when people generate externalities, a birth also generates an externality and efficiency requires a Pigou tax/subsidy on having children. The size of the externality from a birth is important for studying policy. We calculate the size of this “population externality” in a specific case: we consider a maintained hypothesis that greenhouse gas emissions are a serious problem and ...

This note extends Strulovici (2010) to the case where voter types are correlated and/or ex ante heterogeneous. There are two voters and the risky action is taken according to the unanimity rule. Increasing correlation between the types of the two voters reduces the negative payoff externality that voters have on each other, thereby increases experimentation and efficiency. Moreover, it allows v...

The most obvious explanations come from three standard findings of the new psychology of happiness. First, a person’s happiness is negatively affected by the incomes of others (a negative externality). Second, a person’s happiness adapts quite rapidly to higher levels of income (a phenomenon of addiction). And third, our tastes are not given – the happiness we get from what we have is largely c...

Consider an urban economy with two types of externalities, negative traffic congestion externalities and positive agglomeration externalities deriving from non-market interaction. Suppose that urban travel can be tolled, that non-market interaction cannot be subsidized, and that non-market interaction is stimulated by a reduction in travel costs. Then the optimal toll is below the congestion ex...

This paper analyses a two-sidedmarket in which two platforms compete against each other. One side, the advertisers, exerts a negative externality on the other side, the users. It is shown that if platforms can charge advertisers only, a higher degree of competition for users can lead to higher profits because competition on the advertisers’ side is reduced. If platforms can charge users as well...

We study the consequences of indexing, i.e. commiting to invest in risky assets only via the market portfolio. We extend the canonical rational expectations model (Grossman and Stiglitz, 1980) to allow for multiple assets and endowment shocks, and show that indexing imposes a negative externality on other uninformed agents. More indexing makes informed trading on the market more profitable, whi...

In this paper, we propose to model attention consumption of advertisements as a negative externality. We examine the methods of maximum permissible values, fees, and tradable certificates to cope with the negative effects. We propose to integrate auctions for tradable attention certificates with auctions for advertising slots on digital signage. This method allows us to implement tradable certi...