Many households face the tradeoff between paying an extra dollar off the remaining mortgage on their house and saving that extra dollar in tax-deferred accounts (TDAs) used for retirement. We show that, under certain conditions, it becomes a tax arbitrage to reduce mortgage prepayments and to increase TDA contributions because of the tax deductibility of mortgage interest and tax-exemption of q...

We present a theoretical framework to describe coalition formation in standardisation alliances, combining different strands of standardisation literature about alliances and incentives to participation. Applying the game-theoretic concept of the core we discuss conditions for stable coalitions and calculate expected payoffs from a private good perspective by means of the Shapley value. Paying ...

Countries that represent a small portion of overall drug spending have an incentive to pay low prices for a given drug, knowing that their share of drug spending is small enough not to adversely affect incentives for research and development. If, however, many countries use price controls, the aggregate harm for research incentives could be substantial. The US which accounts for 48% of global p...

In the psychology of language, most accounts of self-monitoring assume that it is based on comprehension. Here we outline and develop the alternative account proposed by Pickering and Garrod (2013), in which speakers construct forward models of their upcoming utterances and compare them with the utterance as they produce them. We propose that speakers compute inverse models derived from the dis...

How do individuals perceive paying for goods? Recent behavioral economic theories of purchases suggest a hedonic process underlying the act of paying—that is, that individuals experience a displeasure of paying. We investigated this idea in three incentive-compatible experiments. First, we conducted a brain imaging study, which suggested that there exists a displeasure of paying akin to a highe...