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).

A simple analysis of the US emission permits auctions

We examine a stylized version of EPA auctions when agents know the list of values of sellers and buyers. There are inefficient equilibria where no goods are traded and efficient equilibria where all exchange occurs at a uniform price. We also provide examples under incomplete information when the uniform price equilibrium holds and when it does not hold. (C) 1999 Elsevier Science S.A. All rights reserved. JEL classification: D44; Q29.

A typology of community opportunity and vulnerability in metropolitan Australia

A multivariate model using hierarchical clustering and discriminant analysis is used to identify clusters of community opportunity and community vulnerability across Australia's mega metropolitan regions, Variables used in the model measure aspects of structural economic change, occupational change, human capital, income, unemployment, family/household disadvantage, and housing stress. A nine-cluster solution is used to categorise communities across metropolitan space. Significant between-city variations in the incidence of these clusters of opportunity and vulnerability are apparent, suggesting the emergence of marked differentiation between Australia's mega metropolitan regions in their adjustments to changing economic and social conditions. JEL classification: C49, R11, R12.

Information, Wildlife Valuation, Conservation: Experiments and Policy

The authors use experimental surveys to investigate the association between individuals' knowledge of particular wildlife species and their stated willingness to allocate funds to conserve each. The nature of variations in these allocations between species (e.g., their dispersion) as participants' knowledge increases is examined. Factors influencing these changes are suggested. Willingness-to-pay allocations are found not to measure the economic value of species, but are shown to be policy relevant. The results indicate that poorly known species, e.g., in remote areas, may obtain relatively less conservation support than they deserve. (JEL Q51, Q57, Q58)