Search

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.joep.2006.01.007 Byline: Lars-Olof Johansson, Mathias Gustafsson, Lars Olsson, Tommy Garling Keywords: Allocation decisions; Third-party fairness; Self-interest; Efficient resource use; Social dilemma; Goal conflicts Abstract: In two experiments participants allocated a resource between themselves, one privileged, and one unprivileged group. Conflicts were induced between 'third-party fairness' (difference in payoff to the two groups) and efficient resource use. Experiment 1 employed 42 undergraduates making multi-stage allocation decisions. Fairness was varied at three levels and self-interest, operationalized as the political motive of win votes, at two levels. Adverse effects of fairness on preserving the resource were found. In Experiment 2 another 48 undergraduates performed a similar task. Self-interest was now operationalized as a financial motive. The results showed that participants reduced their resource use when neither fairness nor self-interest was salient. A regression analysis demonstrated consistent adverse effects of fairness on resource use controlling for efficient resource use and total group payoff. It was concluded that fairness causes decision makers to overuse resources, although they are unwilling to totally deplete a resource and will make compromises. Author Affiliation: Goteborg University, Gothenburg, Sweden Article History: Received 6 July 2005; Revised 15 December 2005; Accepted 9 January 2006

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.joep.2006.04.002 Byline: Ted Martin Hedesstrom, Henrik Svedsater, Tommy Garling Keywords: Premium pension; Heuristic choice rules; Internet-based survey Abstract: The results of previous analyses of citizens' actual choices of mutual funds in the Swedish compulsory public pension system were replicated in an Internet-based survey of fictitious choices among fund categories. The sample consisted of 392 university employees. Findings indicated a possible default bias, the use of a diversification heuristic, a home bias, and the use of a 1/n heuristic. Involvement in the fund choice, measured by self-rating scales, increased with the amount to invest but decreased with age. Involvement decreased the likelihood of choosing the default fund and was positively correlated with the number of funds included in a portfolio. Home bias and the use of a 1/n heuristic was however unaffected by involvement and by having previous stock market investment experience. Efforts to better inform investors about how to diversify are warranted. Author Affiliation: Goteborg University, Gothenburg, Sweden Article History: Received 8 July 2005; Revised 6 April 2006; Accepted 27 April 2006

A study examines whether the age of individuals and the market presence of a number of mutual funds guides their choice of the funds.

Regression analysis is made to examine the impact of fairness in management of scarce resources and individual self-interest on future resource allocations.

The impact of household's economic situation on household consumption, aspiration level and social comparison is examined from the results of household survey of metropolitan area in Sweden.

The effect of framing and priming on willingness to pay for non use value is examined in two Swedish studies. In first study, the expected contribution was more than or a less than a valuable service. In the other study, respondents recalled buying something worthy or unworthy of the money spent.

One hundred automobile owners were surveyed to determine if their intention to replace their automobiles is influenced by the gap between their assessment of the current quality of the automobile and their aspiration level. The study also sought to examine whether or not the timing of replacement purchases are affected by environmental concerns through an influence on the the owner's aspiration level. The results of the study are discussed.

A survey of the taxicab industry in Sweden eight months after it underwent deregulation was conducted. Results indicated that during this time period, not all the expectations of the proponents of deregulation have been achieved. While the number of taxis had increased because of the relief of entry constraints, the demand for them has not. This shows a decreased productivity per taxicab. Furthermore, fares were raised by taxicab operators as a way of recovering from the decrease in revenue.

A study investigated the influence of the behavioral life-cycle theory on the manner in which temporary income changes affect specific buying decisions. Specifically, it aimed to examine how precisely the behavioral life-cycle theory, the renewable resources model or the loss-sensitivity principle accounts for why people opt to either buy immediately or to defer buying after experiencing a temporary income change. Findings support the behavioral life-cycle theory.