Interactions between dorsolateral and ventromedial prefrontal cortex underlie context-dependent stimulus valuation in goal-directed choice.

External circumstances and internal bodily states often change and require organisms to flexibly adapt valuation processes to select the optimal action in a given context. Here, we investigate the neurobiology of context-dependent valuation in 22 human subjects using functional magnetic resonance imaging. Subjects made binary choices between visual stimuli with three attributes (shape, color, and pattern) that were associated with monetary values. Context changes required subjects to deviate from the default shape valuation and to integrate a second attribute in order to comply with the goal to maximize rewards. Critically, this binary choice task did not involve any conflict between opposing monetary, temporal, or social preferences. We tested the hypothesis that interactions between regions of dorsolateral and ventromedial prefrontal cortex (dlPFC; vmPFC) implicated in self-control choices would also underlie the more general function of context-dependent valuation. Consistent with this idea, we found that the degree to which stimulus attributes were reflected in vmPFC activity varied as a function of context. In addition, activity in dlPFC increased when context changes required a reweighting of stimulus attribute values. Moreover, the strength of the functional connectivity between dlPFC and vmPFC was associated with the degree of context-specific attribute valuation in vmPFC at the time of choice. Our findings suggest that functional interactions between dlPFC and vmPFC are a key aspect of context-dependent valuation and that the role of this network during choices that require self-control to adjudicate between competing outcome preferences is a specific application of this more general neural mechanism.

Bargaining for power and information : an experimental and theoretical analysis of the interaction between institutions, externalities and adverse selection

Bargaining is the building block of many economic interactions, ranging from bilateral to multilateral encounters and from situations in which the actors are individuals to negotiations between firms or countries. In all these settings, economists have been intrigued for a long time by the fact that some projects, trades or agreements are not realized even though they are mutually beneficial. On the one hand, this has been explained by incomplete information. A firm may not be willing to offer a wage that is acceptable to a qualified worker, because it knows that there are also unqualified workers and cannot distinguish between the two types. This phenomenon is known as adverse selection. On the other hand, it has been argued that even with complete information, the presence of externalities may impede efficient outcomes. To see this, consider the example of climate change. If a subset of countries agrees to curb emissions, non-participant regions benefit from the signatories’ efforts without incurring costs. These free riding opportunities give rise to incentives to strategically improve ones bargaining power that work against the formation of a global agreement. This thesis is concerned with extending our understanding of both factors, adverse selection and externalities. The findings are based on empirical evidence from original laboratory experiments as well as game theoretic modeling. On a very general note, it is demonstrated that the institutions through which agents interact matter to a large extent. Insights are provided about which institutions we should expect to perform better than others, at least in terms of aggregate welfare. Chapters 1 and 2 focus on the problem of adverse selection. Effective operation of markets and other institutions often depends on good information transmission properties. In terms of the example introduced above, a firm is only willing to offer high wages if it receives enough positive signals about the worker’s quality during the application and wage bargaining process. In Chapter 1, it will be shown that repeated interaction coupled with time costs facilitates information transmission. By making the wage bargaining process costly for the worker, the firm is able to obtain more accurate information about the worker’s type. The cost could be pure time cost from delaying agreement or cost of effort arising from a multi-step interviewing process. In Chapter 2, I abstract from time cost and show that communication can play a similar role. The simple fact that a worker states to be of high quality may be informative. In Chapter 3, the focus is on a different source of inefficiency. Agents strive for bargaining power and thus may be motivated by incentives that are at odds with the socially efficient outcome. I have already mentioned the example of climate change. Other examples are coalitions within committees that are formed to secure voting power to block outcomes or groups that commit to different technological standards although a single standard would be optimal (e.g. the format war between HD and BlueRay). It will be shown that such inefficiencies are directly linked to the presence of externalities and a certain degree of irreversibility in actions. I now discuss the three articles in more detail. In Chapter 1, Olivier Bochet and I study a simple bilateral bargaining institution that eliminates trade failures arising from incomplete information. In this setting, a buyer makes offers to a seller in order to acquire a good. Whenever an offer is rejected by the seller, the buyer may submit a further offer. Bargaining is costly, because both parties suffer a (small) time cost after any rejection. The difficulties arise, because the good can be of low or high quality and the quality of the good is only known to the seller. Indeed, without the possibility to make repeated offers, it is too risky for the buyer to offer prices that allow for trade of high quality goods. When allowing for repeated offers, however, at equilibrium both types of goods trade with probability one. We provide an experimental test of these predictions. Buyers gather information about sellers using specific price offers and rates of trade are high, much as the model’s qualitative predictions. We also observe a persistent over-delay before trade occurs, and this mitigates efficiency substantially. Possible channels for over-delay are identified in the form of two behavioral assumptions missing from the standard model, loss aversion (buyers) and haggling (sellers), which reconcile the data with the theoretical predictions. Chapter 2 also studies adverse selection, but interaction between buyers and sellers now takes place within a market rather than isolated pairs. Remarkably, in a market it suffices to let agents communicate in a very simple manner to mitigate trade failures. The key insight is that better informed agents (sellers) are willing to truthfully reveal their private information, because by doing so they are able to reduce search frictions and attract more buyers. Behavior observed in the experimental sessions closely follows the theoretical predictions. As a consequence, costless and non-binding communication (cheap talk) significantly raises rates of trade and welfare. Previous experiments have documented that cheap talk alleviates inefficiencies due to asymmetric information. These findings are explained by pro-social preferences and lie aversion. I use appropriate control treatments to show that such consideration play only a minor role in our market. Instead, the experiment highlights the ability to organize markets as a new channel through which communication can facilitate trade in the presence of private information. In Chapter 3, I theoretically explore coalition formation via multilateral bargaining under complete information. The environment studied is extremely rich in the sense that the model allows for all kinds of externalities. This is achieved by using so-called partition functions, which pin down a coalitional worth for each possible coalition in each possible coalition structure. It is found that although binding agreements can be written, efficiency is not guaranteed, because the negotiation process is inherently non-cooperative. The prospects of cooperation are shown to crucially depend on i) the degree to which players can renegotiate and gradually build up agreements and ii) the absence of a certain type of externalities that can loosely be described as incentives to free ride. Moreover, the willingness to concede bargaining power is identified as a novel reason for gradualism. Another key contribution of the study is that it identifies a strong connection between the Core, one of the most important concepts in cooperative game theory, and the set of environments for which efficiency is attained even without renegotiation.

Valoración económica de los efectos de la presión antrópica sobre el piedemonte mendocino : una aplicación de los experimentos de elección discreta

En general, el análisis socioeconómico de los sistemas naturales no se contempla en los dominios de la ciencia natural. En este trabajo, sin embargo, se estima el cambio en el bienestar social por los efectos de la presión antrópica sobre el piedemonte mendocino vía la menor provisión de servicios ambientales. Para ello, se utiliza el método de los experimentos de elección discreta para inferir el valor social de tres servicios ambientales generados en las cuencas ubicadas al oeste del Gran Mendoza (riesgo aluvional, cobertura vegetal y recreación) y los costos de programas diseñados para mitigar la intensidad de dichos efectos. Un incremento del riesgo aluvional es el efecto de origen antrópico sobre el piedemonte mendocino que más preocupa a la población, seguido de una disminución de la cobertura vegetal y de la recreación. Se estimó que un incremento del riesgo aluvional en 1% equivale en pérdida de bienestar individual a un gasto, en promedio, de 24,13 pesos, en moneda de 2013, al año, cifra que es equivalente en términos de bienestar a una disminución de 6% de cobertura vegetal. Esta información puede ayudar a los hacedores de políticas, gestores de territorio y ecologistas a tener en cuenta las preferencias sociales en el diseño de sus programas y actividades.

New agri-environmental policies for the sustainability of mountainous olive farming. Evidences from Andalusia, Spain

La sostenibilidad de los sistemas olivareros situados en zonas de pendiente y montaña (SMOPS) en Andalucía se encuentra actualmente amenazada por las elevadas tasas de abandono que afectan a estos sistemas productivos. Así, la consumación de este proceso de abandono, no sólo pondría en peligro a las propias explotaciones, sino a todo el conjunto de bienes y servicios no productivos y al patrimonio cultural generado por este sistema productivo. En este contexto, la búsqueda de alternativas políticas enfocadas a revertir este proceso se erige como una necesidad categórica en aras de garantizar en el largo plazo la sostenibilidad de los olivares de montaña. Esta tesis pretende hacer frente a esta necesidad a través de la construcción de un marco político alternativo para los SMOPS, que permita la integración simultánea de todas las dimensiones que pueden influir en su desarrollo; esto es: el marco político actual, principalmente determinado por la Política Agraria Común (PAC) de la Unión Europea (UE); las preferencias de la sociedad hacia la oferta de bienes y servicios públicos generados por los SMOPS; y las preferencias y voluntad de innovación hacia nuevos manejos y sistemas de gestión de los agricultores y propietarios de las explotaciones. Para ello, se emplea una metodología de investigación mixta, que abarca la realización de cuatro encuestas (personales y online) llevadas a cabo a los agentes o grupos de interés involucrados directa o indirectamente en la gestión de los SMOPS –ciudadanos, agricultores y propietarios y expertos-; una profunda revisión de las herramientas de política agroambiental actuales y posibles alternativas a las mismas; y el desarrollo de nuevas estrategias metodológicas para dotar de mayor precisión y fiabilidad las estimaciones obtenidas a partir del Método del Experimento de Elección (MEE) en el campo de la valoración medioambiental. En general, los resultados muestran que una estrategia de política agroambiental basada en la combinación de los Contratos Territoriales de Zona Rural (CTZR) y el manejo ecológico supondría una mejora en la sostenibilidad de los sistemas olivareros de montaña andaluces, que, al mismo tiempo, propiciaría una mejor consideración de las necesidades y demandas de los agentes implicados en su gestión. Asimismo, los hallazgos obtenidos en esta investigación demandan un cambio de paradigma en los actuales pagos agroambientales, que han de pasar de una estrategia basada en la implementación de acciones, a otra enfocada al logro de objetivos, la cual, en el caso del olivar, se podría centrar en el aumento del secuestro de carbono en el suelo. Desde un punto de vista metodológico, los resultados han contribuido notablemente a mejorar la fiabilidad y precisión de las conclusiones estimadas a partir del MEE, mediante el diseño de un novedoso proceso iterativo para detectar posibles comportamientos inconsistentes por parte de los entrevistados con respecto a su máxima Disposición al Pago (DAP) para lograr la situación considerada como “óptima” en los olivares ecológicos de montaña andaluces. En líneas generales, el actual marco institucional favorece la puesta en práctica de la mayoría de las estrategias propuestas en esta tesis; sin embargo son necesarios mayores esfuerzos para reconducir los actuales Pagos Agroambientales y Climáticos de la PAC, hacia una estrategia de política agroambiental adaptada a las necesidades y requisitos del territorio en el que se aplica, enfocada al logro de objetivos y que sea capaz de integrar y coordinar al conjunto de agentes y grupos de interés involucrados -directa o indirectamente- en la gestión de los olivares de montaña. En este contexto, se espera que la puesta en práctica de nuevas estructuras y acuerdos de gobernanza territorial juegue un importante papel en el desarrollo de una política agroambiental realmente adaptada a las necesidades de los sistemas olivareros de montaña andaluces. ABSTRACT The long-term sustainability of Andalusian sloping and mountainous olive production systems (SMOPS) is currently threatened by the high abandonment rates that affect these production systems. The effective occurrence of this abandonment process is indeed menacing not only farms themselves, but also the wide array of public goods and services provided by SMOPS and the cultural heritage held by this production system. The search of policy alternatives aimed at tackling this process is thus a central necessity. This thesis aims to undertake this necessity by building an alternative policy framework for SMOPS that simultaneously integrates the several dimensions that are susceptible to influence it, namely: the current policy framework, mainly determined by the European Union’s (EU) Common Agricultural Policy (CAP); the social preferences toward the supply of SMOPS’ public goods and services; and farmers’ preferences and willingness to innovate toward new management practices in their farms. For this purpose, we put into practice a mixed-method strategy that combines four face-to-face and online surveys carried out with SMOPS’ stakeholders -including citizens, farmers and experts-; in-depth analysis of current and alternative agrienvironmental policy (AEP) instruments; and the development of novel methodological approaches to advance toward more reliable Discrete Choice Experiment’s (DCE) outcomes in the field of environmental valuation. Overall, results show that a policy strategy based on the combination of Territorial Management Contracts (TMC) and organic management would further enhance Andalusian SMOPS’ sustainability by simultaneously taking into account stakeholders’ demands and needs. Findings also call for paradigm shift of the current action-oriented design of Agri-Environmental-Climate Schemes (AECS), toward a result-based approach, that in the case of olive orchards should particularly be focused on enhancing soil carbon sequestration. From a methodological perspective, results have contributed to improve the accuracy and feasibility of DCE outcomes by designing a novel and iterative procedure focused in ascertaining respondents’ inconsistent behaviour with respect to their stated maximum WTP for the attainment of an ideal situation to be achieved in organic Andalusian SMOPS. Generally, the present institutional framework favours the implementation of the main policy strategies proposed in this thesis, albeit further efforts are required to better conduct current CAP’s agri-environmental instruments toward a territorially targeted result-oriented strategy capable to integrate and coordinate the whole set of stakeholders involved in the management of SMOPS. In this regard, alternative governance structures and arrangements are expected to play a major role on the process of tackling SMOPS’ agri-environmental policy challenge.

Modulation of pair bonding in female prairie voles (Microtus ochrogaster) by corticosterone.

Glucocorticoid levels in animals may respond to and influence the development of social attachments. This hypothesis was tested in prairie voles (Microtus ochrogaster), monogamous rodents that form long-term heterosexual pair bonds. In socially naive female prairie voles, cohabitation with an unfamiliar male resulted in a dramatic decline in serum corticosterone levels. When corticosterone levels were reduced via adrenalectomy, females developed partner preferences after 1 h of cohabitation, while sham-operated and untreated females required 3 h or more of nonsexual cohabitation to establish a partner preference. In adrenalectomized and intact females, exogenous injections of corticosterone, given prior to social exposure, prevented the development of preferences for the cohabitating male. Although corticosterone inhibited the development of partner preferences, it did not interfere with the expression of previously established social preferences. These results suggest that social stimuli can modulate adrenal activity and that adrenal activity, in turn, is capable of influencing the formation of adult social preferences in female prairie voles. The involvement of the adrenal axis in the formation of partner preferences and the subsequent development of pair bonds provides a mechanism through which environmental and social factors may influence social organization in this species.

Subliminal influence on generosity

We experimentally subliminally prime subjects prior to charity donation decisions by showing words that have connotations of pro-social values for a very brief time (17ms). Our main fnding is that, compared to a baseline condition, the pro-social prime increases donations by approximately 10-17 percent among subjects with strong pro-social preferences (universalism values). We find a similar effect when interacting the prime with the Big 5 personality characteristic of agreeableness. We furthermore introduce a novel method for testing for priming, "subliminity". This method reveals that some subjects are capable of recognizing prime words, and the overall results are weaker when we control for this capacity.

Using crowdsourced imagery to detect cultural ecosystem services: a case study in South Wales, UK

Within ecological research and environmental management, there is currently a focus on demonstrating the links between human well-being and wildlife conservation. Within this framework, there is a clear interest in better understanding how and why people value certain places over others. We introduce a new method that measures cultural preferences by exploring the potential of multiple online georeferenced digital photograph collections. Using ecological and social considerations, our study contributes to the detection of places that provide cultural ecosystem services. The degree of appreciation of a specific place is derived from the number of people taking and sharing pictures of it. The sequence of decisions and actions taken to share a digital picture of a given place includes the effort to travel to the place, the willingness to take a picture, the decision to geolocate the picture, and the action of sharing it through the Internet. Hence, the social activity of sharing pictures leaves digital proxies of spatial preferences, with people sharing specific photos considering the depicted place not only “worth visiting” but also “worth sharing visually.” Using South Wales as a case study, we demonstrate how the proposed methodology can help identify key geographic features of high cultural value. These results highlight how the inclusion of geographical user-generated content, also known as volunteered geographic information, can be very effective in addressing some of the current priorities in conservation. Indeed, the detection of the most appreciated nonurban areas could be used for better prioritization, planning, and management.

Topics in Behavioural Economics - Information and Fairness. Revised edition

This thesis dwells upon topics in behavioural economics: information and fairness, with five research papers. The first two contributions are concerned with the extension of standard auction formats with information acquisition strategies. The third paper addresses global games framed as a speculative attack and tests theoretical predictions for risk and ambiguity. The fourth contribution deals with disclosing conflicts of interest, where one player has a monetary incentive to deceive. The last paper extends a standard model of social preferences with a second fairness dimension and studies how economic agents distort fairness norms exhibiting a self-serving bias effect.

Essays in nonlinear pricing and rent seeking

This thesis consists of three self-contained essays on nonlinear pricing and rent-seeking. In the first chapter of the thesis, I provide new theoretical insights about non-linear pricing in monopoly and common agency by combining the principal-agent framework with other-regarding preferences. I introduce a new theoretical model that separately characterizes status-seeker and inequity-averse buyers. I show how the buyer’s optimal choice of quality and market inefficiency change when the buyer has other-regarding preferences. In the second chapter, I find the optimal productive rent-seeking and sabotaging efforts when the prize is endogenous. I show that due to the existence of endogeneity, sabotaging the productive rent-seeking efforts causes sabotaging the endogenous part of the prize, which can affect the rent-seeking efforts. Moreover, I introduce social preferences into my model and characterize symmetric productive rent-seeking and sabotaging efforts. In the last chapter, I propose a new theoretical model regarding information disclosure with Bayesian persuasion in rent-seeking contests when the efforts are productive. I show that under one-sided incomplete information, information disclosure decision depends on both the marginal costs of efforts and the marginal benefit of aggregate exerted effort. I find that since the efforts are productive and add a positive surplus on the fixed rent, my model narrows down the conditions for the information disclosure compared to the exogenous model. Under the two-sided incomplete information case, I observe that there is a non-monotone relationship between optimal effort and posterior beliefs. Thus, it might be difficult to conclude whether a contest organizer should disclose any information to contestants.

Bait and Habitat Preferences, and Temporal Variability of Social Wasps (Hymenoptera: Vespidae) Attracted to Vertebrate Carrion

In addition to feeding on carrion tissues and fluids, social wasps can also prey on immature and adult carrion flies, thereby reducing their populations and retarding the decomposition process of carcasses. In this study, we report on the occurrence and behavior of social wasps attracted to vertebrate carrion. The collections were made monthly from September 2006 to October 2007 in three environments (rural, urban, and forest) in six municipalities of southeast Brazil, using baited bottle traps. We collected Agelaia pallipes (Olivier, 1791) (n = 143), Agelaia vicina (Saussure, 1854) (n = 106), Agelaia multipicta (Haliday, 1836) (n = 18), and Polybia paulista Ihering, 1896 (n = 3). The wasps were observed feeding directly on the baits and preying on adult insects collected in the traps. Bait and habitat associations, temporal variability of social wasps, and possible forensic implications of their actions are discussed.

Habitat preferences, diet, feeding strategy and social organization of the black spider monkey [Ateles paniscus paniscus Linnaeus 1758] in Surinam

A Socioecological Field Study.This monograph reports on a 26 month socioecological study of black spider monkeys (Ateles paniscus paniscus)in the Raleigh-vallen — Voltzberg Nature Reserve, Surinam. It recognizes the fundamental importance of food to the behavior and the regulation of population density fox this primate. It clarifies the complex temporal and spatial effects of tropical rain forest food sources on the behavior of a group of spider monkeys, concentrating on food category, food plant identity and phenology, and quantity, density and dispersion of the most important food sources. In addition, the present study describes habitat choice, optimal feeding strategy and sexual behavior of the spider monkey, and discusses implications of diet for social behavior. This study is also fundamental to conservation. Specialized in eating mature fruits, the spider monkey is a very important dispersal agent for many trees and lianes, particularly canopy species. However, the spider monkey is probably the most vulnerable monkey species in Surinam and it is disappearing rapidly throughout the remainder of its range. Unfortunately, it is large and noisy and can be easily tracked and hunted. It is largely restricted to undisturbed high forest, and consequently habitat destruction has more effect on it than on most other species. Together with its slow reproductive rate (a female gives birth only once every four or five years), this means that the species is poorly adapted to recover from exploitation. In order to implement proper measures for conservation, data on forest type preferences, diet and social behavior of the species, or on closely related species, in undisturbed areas, such as the one described in this monograph, are essential tools for assessing the potential of proposed protected areas.

Proceedings of the National Conference on the assessment of Older People's Health and Social Care Needs and Preferences

The Conference took place on May 30th, 2002 in the Royal Marine Hotel, Dun Laoigaire. It attracted over 250 delegates from across the statutory, voluntary and private sectors and the interest that was expressed in the Conference was indicative of the growing recognition of the importance of establishing a more co-ordinated way of conducting health and social care assessments for older people. The Conference provided the opportunity to both discuss the necessity for a standardised approach to conducting assessments and to explore the merits of establishing a national framework for the multi-disciplinary assessment of older people’s health and social care needs and preferences.   Download document here

Social Policy Preferences and Party Choice in the 2011 Swiss Elections

To what extent do social policy preferences explain party choice? This question has received little attention over the past years, because the bulk of the literature has argued that electoral choice is increasingly shaped by identity-based attitudes, rather than by preferences for economic-distributive social policies. We argue that in the wake of this debate, the significance of social policy preferences for electoral choice has been underestimated, because most contributions neglect social policy debates that are specific to post-industrial societies. In particular, they merely focus on income redistribution, while neglecting distributive conflicts around social investment. The Selects 2011 data allows investigating this crucial distinction for Switzerland. Our empirical analyses confirm that it is pivotal to take the pluridimensionality of distributive conflicts seriously: when looking at preferences for social investment rather than income redistribution, we find that social policy preferences are significant explanatory factors for the choice of the five major Swiss political parties.

Bait and habitat preferences, and temporal variability of social wasps (Hymenoptera: Vespidae) attracted to vertebrate carrion

In addition to feeding on carrion tissues and fluids, social wasps can also prey on immature and adult carrion flies, thereby reducing their populations and retarding the decomposition process of carcasses. In this study, we report on the occurrence and behavior of social wasps attracted to vertebrate carrion. The collections were made monthly from September 2006 to October 2007 in three environments (rural, urban, and forest) in six municipalities of southeast Brazil, using baited bottle traps. We collected Agelaia pallipes (Olivier, 1791) (n = 143), Agelaia vicina (Saussure, 1854) (n = 106), Agelaia multipicta (Haliday, 1836) (n = 18), and Polybia paulista Ihering, 1896 (n = 3). The wasps were observed feeding directly on the baits and preying on adult insects collected in the traps. Bait and habitat associations, temporal variability of social wasps, and possible forensic implications of their actions are discussed. © 2011 Entomological Society of America.