A test of competing explanations of compensation demanded

We find that prospect theory behavior is significantly more prevalent than utility theory behavior in experiments involving multiple, real items. In the experiments, subjects were endowed with three items and asked the minimum payments they required to be willing to return one, two, or three of them. Our key observation is that prospect theory implies concavity of compensation demanded, whereas utility theory implies convexity. We examine whether the compensation demanded is convex or concave in the number of items returned. (JEL C91).

Biaxial failure model for fiber reinforced concrete

Steel fiber reinforced concrete (SFRC) is widely applied in the construction industry. Numerical elastoplastic analysis of the macroscopic behavior is complex. This typically involves a piecewise linear failure curve including corner singularities. This paper presents a single smooth biaxial failure curve for SFRC based on a semianalytical approximation. Convexity of the proposed model is guaranteed so that numerical problems are avoided. The model has sufficient flexibility to closely match experimental results. The failure curve is also suitable for modeling plain concrete under biaxial loading. Since this model is capable of simulating the failure states in all stress regimes with a single envelope, the elastoplastic formulation is very concise and simple. The finite element implementation is developed to demonstrate the conciseness and the effectiveness of the model. The computed results display good agreement with published experimental data.

A Bayesian approach to imposing curvature on distance functions

The estimated parameters of output distance functions frequently violate the monotonicity, quasi-convexity and convexity constraints implied by economic theory, leading to estimated elasticities and shadow prices that are incorrectly signed, and ultimately to perverse conclusions concerning the effects of input and output changes on productivity growth and relative efficiency levels. We show how a Bayesian approach can be used to impose these constraints on the parameters of a translog output distance function. Implementing the approach involves the use of a Gibbs sampler with data augmentation. A Metropolis-Hastings algorithm is also used within the Gibbs to simulate observations from truncated pdfs. Our methods are developed for the case where panel data is available and technical inefficiency effects are assumed to be time-invariant. Two models-a fixed effects model and a random effects model-are developed and applied to panel data on 17 European railways. We observe significant changes in estimated elasticities and shadow price ratios when regularity restrictions are imposed. (c) 2004 Elsevier B.V. All rights reserved.

Yield functions for porous materials with cubic symmetry using different definitions of yield

Plastic yield criteria for porous ductile materials are explored numerically using the finite-element technique. The cases of spherical voids arranged in simple cubic, body-centred cubic and face-centred cubic arrays are investigated with void volume fractions ranging from 2 % through to the percolation limit (over 90 %). Arbitrary triaxial macroscopic stress states and two definitions of yield are explored. The numerical data demonstrates that the yield criteria depend linearly on the determinant of the macroscopic stress tensor for the case of simple-cubic and body-centred cubic arrays - in contrast to the famous Gurson-Tvergaard-Needleman (GTN) formula - while there is no such dependence for face-centred cubic arrays within the accuracy of the finite-element discretisation. The data are well fit by a simple extension of the GTN formula which is valid for all void volume fractions, with yield-function convexity constraining the form of the extension in terms of parameters in the original formula. Simple cubic structures are more resistant to shear, while body-centred and face-centred structures are more resistant to hydrostatic pressure. The two yield surfaces corresponding to the two definitions of yield are not related by a simple scaling.