Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe analyze the two goals behind the European Bologna Process of increasing student mobility: enabling graduates to develop multicultural skills and increasing the quality of universities. We isolate three effects: 1) a competition effect that raises quality; 2) a free rider effect that lowers quality; 3) a composition effect that influences the relative strengths of the two previous effects. The effects lead to a trade-off between the two goals. Full mobility may be optimal, only when externalities are high. In this case, student mobility yields inefficiently high educational quality. For moderate externalities partial mobility is optimal and yields an inefficiently low quality of education.
In this paper, I provide a theoretical explanation for the gender differences in education and on the labour market that are observed empirically in most OECD (Organisation for Economic Cooperation and Development) countries, including the US Within a cheap talk model of grading, I show that biased grading in schools results in (1) boys outperforming girls in maths and sciences, (2) boys having more top and more bottom achievers in maths and sciences than girls, (3) girls outperforming boys in reading literacy, (4) female graduates enrolling in university studies more often than male graduates, (5) the predominance of female students in arts and humanities at the university, (6) the predominance of male students in maths and sciences at the university and (7) the gender wage gap on the labour market for the highly educated. 1431 REVIEW OF ECONOMIC STUDIESProof. See Appendix.Consider now the boys. Theorem 3 reports their distribution over tuples of grades and their respective posterior beliefs formally.Theorem 3. In the US equilibrium, there are (1) 1 4 (1 + α) boys with m = (1, 1),H (k, 1) = σ ; (4) 1 4 boys with m = (k, k), π B M (k, 1) = (1 − σ ) and π B H (k, k) = (1 − σ ). (5) Boys with grades m = (1, 1) are underconfident in humanities.Proof. See Appendix.
When preferences are sensitive to context, firms may try to influence purchase decisions by designing the environment of consumption choices. Confirming anecdotal evidence on retailer marketing tricks, we show that competitive retailers exploit context-sensitivity by designing environments that drive a wedge between preferences before and after entering a store. This wedge induces naïve consumers to switch preference from a loss-leader product that attracts consumers into the store to a more profitable product. Depending on the quality preferences and budget of consumers, markets are either in an "up-selling" or "down-selling" equilibrium. In the former, firms attract consumers with low-quality products, compete on prices, and design context to ultimately sell a product of higher price. In the latter, firms attract consumers with high-price products, compete on quality, and design context to ultimately sell a product of lower quality. When modeling context-sensitivity according to the theories of Salience, Focusing, or Relative Thinking, designing context comes down to the introduction of a single decoy product. This decoy draws consumer attention at the store to the favorable attributes of the product the firm aims to sell.
Whistle-blowing by employees plays a major role in uncovering corporate fraud. Various recent laws aim at improving protection of whistle-blowers and enhancing their willingness to report. Evidence on the effectiveness of such legislation is, however, scarce. Moreover, critics have raised worries about fraudulent claims by low-productivity employees. We study these issues in a theory-guided lab experiment. Easily attainable ("belief-based") protection indeed leads to more reports, both truthful and fraudulent. Fraudulent claims dilute prosecutors' incentives to investigate, and thereby hamper deterrence. These effects are ameliorated under more stringent ("fact-based") protection.
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