A dual characterization of incentive efficiency

We show that incentive efficient allocations in economies with adverse selection and moral hazard can be determined as optimal solutions to a linear programming problem and we use duality theory to obtain a complete characterization of the optima. Our dual analysis identifies welfare effects associated with the incentives of the agents to truthfully reveal their private information. Because these welfare effects may generate non-convexities, incentive efficient allocations may involve randomization. Other properties of incentive efficient allocations are also derived.

On the valuation and incentive effects of executive cash bonus contracts

Executive compensation packages are often valued in an inconsistent manner: while employee stock options (ESOs) are typically valued ex-ante, cash bonuses are valued ex-post. This renders the existing valuation models of employee compensation packages theoretically unsatisfactory and, potentially, empirically distortive. In this paper, we propose an option-based framework for ex-ante valuation of cash bonus contracts. After obtaining closed-form expressions for ex-ante values of several frequently used types of bonus contracts, we utilize them to explore the e¤ects that the shape of a bonus contract has on the executive s attitude toward risk-taking. We, also, study pay-performance sensitivity of such contracts. We show that the terms of a bonus contract can dramatically impact both risk-taking behavior as well as pay-performance incentives. Several testable predictions are made, and venues of future research outlined.

The challenge of representative design in psychology and economics

The demands of representative design, as formulated by Egon Brunswik (1956), set a high methodological standard. Both experimental participants and the situations with which they are faced should be representative of the populations to which researchers claim to generalize results. Failure to observe the latter has led to notable experimental failures in psychology from which economics could learn. It also raises questions about the meaning of testing economic theories in abstract environments. Logically, abstract tests can only be generalized to abstract realities and these may or may not have anything to do with the empirical realities experienced by economic actors.

Psychology in Catalonia: 1996-2002

En aquest article es presenta el resum del Report de la Recerca en Psicologia a Catalunya durant el període 1996-2002, publicat l'any 2004 per l'Institut d'Estudis Catalans. A partir de informacions diverses, procedents especialmentd'institucions educatives de nivell universitari, Administració de Catalunya (Departament d'Universitats, Recercai Societat de la Informació, DURSI), i els propis coordinadors de Grups de Recerca -prèviament detectats mitjançant laelaboració d'un qüestionari ad hoc-, s'ha perfilat un mapa de la recerca en Psicologia a Catalunya durant el períodeestudiat, el qual inclou investigadors procedents de les sis Universitats catalanes en les quals s'imparteixen estudis dePsicologia (o, en el cas de la Universitat de Lleida, de Psicopedagogia). Els eixos organitzadors de la informació hanestat les Àrees de Coneixement i les Universitats. La informació recollida s'ha articulat al voltant de diversesqüestions cabdals relatives als Grups de Recerca: Projectes de recerca obtinguts per part de diversos organismes subvencionants, la productivitat contemplada des de la vessant de la publicació d'articles científics, el finançament obtingut per part de diverses Administracions i entitats privades, la infrastructura amb la que compten, les característiques d'arranjament d'aquests Grups, i, finalment, les condicions, valoracions, expectatives i gestió dels recursos dels Grups de Recerca.

The Dialogic Turn in Educational Psychology

The increasing presence of and claim for dialogue in today"s society has already had an impact on the theory and practice of learning. Whereas in the past individual and cognitive elements were seen as crucial to learning, since about two decades ago, scientific literature indicates that culture, interaction and dialogue are the key factors. In addition, the research project of highest scientific rank and with most resources dedicated to the study of school education in the Framework Program of the European Union: INCLUD-ED shows that the practices of successful schools around Europe are in line with the dialogic approach to learning. This article presents the dialogic turn in educational psychology, consisting of moving from symbolic conceptions of mind and internalist perspectives that focus on mental schemata of previous knowledge, to theories that see intersubjectivity and communication as the primary factors in learning. The paper deepens on the second approach.

Counteracting incentive sensitization in severe alcohol dependence using deep brain stimulation of the nucleus accumbens: clinical and basic science aspects

The ventral striatum / nucleus accumbens has been implicated in the craving for drugs and alcohol which is a major reason for relapse of addicted people. Craving might be induced by drug-related cues. This suggests that disruption of craving-related neural activity in the nucleus accumbens may significantly reduce craving in alcohol-dependent patients. Here we report on preliminary clinical and neurophysiological evidence in three male patients who were treated with high frequency deep brain stimulation of the nucleus accumbens bilaterally. All three had been alcohol dependent for many years, unable to abstain from drinking, and had experienced repeated relapses prior to the stimulation. After the operation, craving was greatly reduced and all three patients were able to abstain from drinking for extended periods of time. Immediately after the operation but prior to connection of the stimulation electrodes to the stimulator, local field potentials were obtained from the externalized cables in two patients while they performed cognitive tasks addressing action monitoring and incentive salience of drug related cues. LFPs in the action monitoring task provided further evidence for a role of the nucleus accumbens in goal-directed behaviors. Importantly, alcohol related cue stimuli in the incentive salience task modulated LFPs even though these cues were presented outside of the attentional focus. This implies that cue-related craving involves the nucleus accumbens and is highly automatic.