In this paper, we study mergers in oral or second-price auctions and compare them to mergers in sealed-bid or rst-price auctions. We use an adaptation of the logit qualitative choice model to characterize the underlying bidder value distributions. In second-price auctions, this model has a closed-form relationship between winning bids (prices) and the probabilities of winning (shares), and this...

Luce’s choice axiom (LCA) is a theory of individual choice behavior that has proven to be a powerful tool in the behavioral sciences for over 50 years. LCA is grounded in two fundamental properties: choice is probabilistic and the probability of choosing an option from one set of alternatives is related to the probability of choosing the same option from a different set. This entry reviews the ...

This paper finds evidence of positive neighborhood effects on adult labor market outcomes using the Moving to Opportunity (MTO) housing mobility experiment. Our results stand in such sharp contrast to the current literature because our analysis focuses on outcomes of the subpopulation induced by the program to move to a higher quality neighborhood, while previous analyses have focused on outcom...

We propose a constructed-choice model for general decision making. The model departs from utility theory and prospect theory in its treatment of multiple goals and it suggests several different ways in which context can affect

This paper assesses the role of advertising in the demand of a differenciated and infrequently purchased good market. Advertising enters directly in the demand as goodwill stock with decreasing returns. Demand is specified and estimated in a discrete choice model approach, which allows us to compute the predatory and spillover effects of advertising and different sensibilities to advertising ac...

Often in cooperative situations, many aspects of the decision-making environment are uncertain. We investigate how cooperation is shaped by the way information about risk is presented (from description or from experience) and by differences in risky environments. Drawing on research from risky choice, we compare choices in stochastic social dilemmas to those in lotteries with equivalent levels ...

This article develops an account of a theory of rational choice based on the conception of rationality as a normatively justified correspondence between interests and choices. In this conception, rationality is best thought of as a property not of individual actions, but of a complex two-level phenomenon comprised of the social justification of behavioral norms and of the everyday choices made ...

Although the economic integration of immigrants has been the subject of a large number of studies, the research on the effect of intermarriage on immigrants' economic integration/assimilation is scarce and has no equivalence in the literature on the receipt of social assistance. This study fills this gap in the literature by estimating the structural state dependence in social assistance in Swe...

One striking phenomenon in the U.S. labor market is the reversal of the gender gap in college attainment. Females have outnumbered males in college attainment since 1987. We develop a discrete choice model of college entry decisions to study the effects of changes in relative earnings, changes in parental education, and changes in the marriage market on time series observations of college attai...

We propose an integrated activity-based discrete choice model system of an individual’s activity and travel schedule, for forecasting urban passenger travel demand. A prototype demonstrates the system concept using a 1991 Boston travel survey and transportation system level of service data. The model system represents a person’s choice of activities and associated travel as an activity pattern ...