Intangibility in intertemporal choice

Since the advent of the discounted utility (DU) model, economists have thought about intertemporal choice in very specific terms. DU assumes that people make explicit trade-offs between costs and benefits occurring at different points in time. While this explicit trade-off perspective is simple and tractable, and has stimulated productive research, it does not provide a very realistic representation of a wide range of the most important intertemporal trade-offs that people face in daily life. If one considers the most important and commonly discussed examples of intertemporal choices, a striking pattern emerges: in almost all cases, early outcomes tend to be concrete (e.g. purchasing this latte), but later outcomes tend to be much less tangible (e.g. the unknown item that could have been purchased later with the money spent on this latte). We propose that people rely on anticipatory emotions as a proxy for intangible outcomes when trade-offs are implicit. This paper reviews neuroeconomic evidence that has begun to elucidate the role of anticipatory emotions in decisions involving intangible outcomes. Although most progress has been made in the domain of spending and saving, we discuss how the existing neuroeconomic research could be extended to other domains where trade-offs are ill defined.     

Body weight manipulation,reinforcement value and choice between sucrose and wheel running: A behavioral economic analysis

Twelve female Long-Evans rats were exposed to concurrent variable (VR) ratio schedules of sucrose and wheel-running reinforcement (Sucrose VR 10 Wheel VR 10; Sucrose VR 5 Wheel VR 20; Sucrose VR 20 Wheel VR 5) with predetermined budgets (number of responses). The allocation of lever pressing to the sucrose and wheel-running alternatives was assessed at high and low body weights. Results showed that wheel-running rate and lever-pressing rates for sucrose and wheel running increased, but the choice of wheel running decreased at the low body weight. A regression analysis of relative consumption as a function of relative price showed that consumption shifted toward sucrose and interacted with price differences in a manner consistent with increased substitutability. Demand curves showed that demand for sucrose became less elastic while demand for wheel running became more elastic at the low body weight. These findings reflect an increase in the difference in relative value of sucrose and wheel running as body weight decreased. Discussion focuses on the limitations of response rates as measures of reinforcement value. In addition, we address the commonalities between matching and demand curve equations for the analysis of changes in relative reinforcement value.     

Implant overdentures for edentulous elders: study of patient preference

Background: Studies show that elders wearing implant overdentures have improved nutrition and quality of life. However, upfront costs of this therapy are high, and the income of elderly edentulous populations is low. Objectives: This study was designed (i) to measure the preferences of edentulous patients for mandibular two‐implant overdentures using Willingness‐To‐Pay (WTP) and Willingness‐To‐Accept (WTA), (ii) to assess the effect of long‐term financing on WTP and (iii) to assess the desired role of health care plans in financing dental prostheses. Methods: Edentulous elders (68–79 years; n = 36) wearing maxillary dentures and either a mandibular conventional denture (CD, n = 13) or a two‐implant overdenture with ball attachments (IOD, n = 23) participated in this study. All had received their prostheses 2 years previously, as part of a randomised clinical trial. A three‐part questionnaire was completed during a 20‐min interview with a trained researcher. Results: Forty‐six per cent (6/13) of the CD wearers and 70% (16/23) of the IOD wearers were willing to pay three times more than the current cost of conventional dentures for implant prostheses. These percentages were increased to 77% (CD) and 96% (IOD) if participants could pay for implant overdentures in monthly instalments. Eighty‐six per cent (31/36) of all participants in both groups (21/23 IOD; 10/13 CD) thought that the government should cover at least some of the cost of implant overdentures. Conclusions: This study shows that, the majority of elderly edentate individuals who have not experienced mandibular two‐implant overdenture therapy are willing to pay the cost, particularly when payment can be made in monthly instalments.     

A behavioral-economic analysis of the essential value of brands

Recently, Hursh and Silberberg (2008) have advanced a behavior-economic approach to measure the value of reinforcers, in which demand elasticity is measured relative to the point at which price is zero, a technique that allows for comparisons across reinforcers that show different consumption patterns or across different dosages or magnitudes of the same reinforcer. The authors have proposed an exponential model in which the elasticity coefficient measures the essential value of reinforcers. The application of the exponential model in various experiments has shown that it provided a good fit to the data and supplied different theoretically consistent results. Considering that this previous research has either been experimentally based or has involved nonhuman participants, the present work examined the application of the model to the analysis of changes in consumption of brands with changes in prices, employing data from actual consumers buying brands of food products in grocery shopping, differing in the level of informational (i.e., socially mediated) and utilitarian (i.e., product mediated) reinforcement they offered. Purchase information concerning two products was obtained from a consumer panel, which included data related to purchases of more than 1600 consumers during 52 weeks. The model, calculated for different brands, fitted the data only moderately, but its parameters showed good reliability across stores. The essential value of brands showed significant increases with increases in brand informational reinforcement. The results indicate the reliability of the measure of essential value as its application is extended from the closed setting of the laboratory to the open settings of the marketplace and to symbolic secondary reinforcers.     

生态系统服务价值的市场转化问题初探

为生态系统服务寻找建立特定的、真实的市场环境,将生态系统服务的间接价值转化为直接的经济价值,既有利于区域经济的发展,又可促进人们对生态系统服务功能的维持和保护。提出了生态系统服务价值的市场转化(率)概念,即生态系统服务价值市场转化是指为生态系统服务价值寻找建立特定的、真实的市场环境,使一些生态系统服务能够像普通商品一样进入市场流通,转化为直接的经济价值;而生态系统服务价值市场转化率(Cr)就是能够进入市场流通的服务价值(Va)占生态系统总服务价值(Vg)的比例。阐述了市场转化(率)的应用意义。在此基础上分析了全球及我国各类生态系统服务价值的市场转化情况,并提出了将来的发展思路。     

Development of unit cost for the health services offered at King FAHD Central hospital Jazan,Saudi Arabia

BackgroundEfficiency remains one of the most important drivers of decision making in health care system. Fund allocators need to receive structured information about the cost healthcare services from hospitals for better decisions related to resource allocation and budgeting. The objective of the study was to estimate the unit cost for health services offered to inpatients in King Fahd Central hospital (KFCH) Jazan during the financial year 2018.MethodsWe applied a retrospective approach using a top-down costing method to estimate the cost of health care services. Clinical and Administrative departments divided into cost centres, and the unit cost was calculated by dividing the total cost of final care cost centres into the total number of patients discharged in one year. The average cost of inpatient services was calculated based on the average cost of each ward and the number of patients treated.ResultsThe average cost per patient stayed in KFCH was SAR 19,034, with the highest cost of SAR 108,561 for patients in the Orthopedic ward. The average cost of the patient in the Surgery ward, Plastic surgery, Neurosurgery, Medical ward, Pediatric ward and Gynecology ward was SAR 33,033, SAR 29,425, SAR 23,444, SAR 20,450, SAR 9579 and SAR 8636 respectively.ConclusionThis study provides necessary information about the cost of health care services in a tertiary care setting. This information can be used as a primary tool and reference for further studies in other regions of the country. Hence, this data can help to provide a better understanding of tertiary hospital costing in the region to achieve the privatization objective.     

Economic Analysis of the Legal Regimes Governing Salvage of Historic Shipwrecks

This article offers an economic analysis of the international and U.S. laws governing the recovery of archaeological data from historic shipwrecks. The framework combines values of treasure salvage and archaeological knowledge. It is suggested that U.S. salvage law, sometimes extended to international waters, gives insufficient protection to archaeological value, but that UNESCO's Convention on the Protection of the Underwater Cultural Heritage goes too far in the other direction. Two other legal regimes (government-salvager and interstate agreements) are shown to have the potential to maximize the social values of historic shipwrecks. It is also suggested that a move towards maximizing social values would be promoted if the U.S. admiralty courts tied the size of salvage awards more closely to the quality of the archaeological work performed.     

Training Common Marmosets (Callithrix jacchus) to Cooperate During Routine Laboratory Procedures: Ease of Training and Time Investment

Streamlining purchasing in nonhuman animal shelters can provide multiple financial benefits. Streamlining shelter inputs and thus reducing shelter costs can include trading paid labor and management for fewer, more involved volunteers or purchasing large quantities of medical supplies from fewer vendors to take advantage of bulk-purchasing discounts. Beyond direct savings, time and energy spent on purchasing and inventory control can be reduced through careful management. Although cost-cutting measures may seem attractive, shelter managers are cautioned to consider the potential unintended consequences of short-term cost reduction measures that could limit revenues or increase costs in the future. This analysis illustrates an example of the impact of cost reductions in specific expense categories and the impact on shelter net revenue, as well as the share of expenses across categories. An in-depth discussion of labor and purchasing cost-reducing strategies in the real world of animal shelter management is provided.