Relative Concerns on Visible Consumption: A Source of Economic Distortions

Do relative concerns on visible consumption give rise to economic distortions? We re-examine the question posited by Arrow and Dasgupta (2009) building upon their general framework but recognizing that relative concerns can only apply to visible goods (e.g., cars, clothing, jewelry) and that households consume both visible and non-visible goods. Contrary to Arrow and Dasgupta (2009), the answer to this question turns to be always affirmative: the competitive equilibrium will always be different than the socially optimal one, since individuals do not take into account the negative externality they exert on others through the consumption of the visible good, while the social planner does. If one invokes separability assumptions, then the steady state competitive equilibrium consumption of non-visible goods will be strictly lower than the socially optimal one.

Measurement of the magnetic field of small magnets with a smartphone: a very economical laboratory practice for introductory physics courses

In this work, we propose an inexpensive laboratory practice for an introductory physics course laboratory for any grade of science and engineering study. This practice was very well received by our students, where a smartphone (iOS, Android, or Windows) is used together with mini magnets (similar to those used on refrigerator doors), a 20 cm long school rule, a paper, and a free application (app) that needs to be downloaded and installed that measures magnetic fields using the smartphone's magnetic field sensor or magnetometer. The apps we have used are: Magnetometer (iOS), Magnetometer Metal Detector, and Physics Toolbox Magnetometer (Android). Nothing else is needed. Cost of this practice: free. The main purpose of the practice is that students determine the dependence of the component x of the magnetic field produced by different magnets (including ring magnets and sphere magnets). We obtained that the dependency of the magnetic field with the distance is of the form x-3, in total agreement with the theoretical analysis. The secondary objective is to apply the technique of least squares fit to obtain this exponent and the magnetic moment of the magnets, with the corresponding absolute error.