DO AUCTION BIDS BETRAY EXPECTATIONS-BASED REFERENCE DEPENDENT PREFERENCES? A TEST, EXPERIMENTAL EVIDENCE, AND ESTIMATES OF LOSS AVERSION

In this paper, we provide a novel experimental auction design that exploits an exogenous variation in the probability of winning to test for the presence of expectations-based reference dependent preferences. We prove that (i) in this design, (which is a one parameter modification of a Becker-de Groote-Marschak (BDM) auction), a lower probability of winning will cause a loss averse agent to bid lower, for a large range of intrinsic values for the object. Data from an experiment demonstrate the existence of this effect. The effect would be absent if preferences were 'standard', or if the status quo was the reference point. Thus we contribute to the nascent literature that empirically documents the importance of expectations as a source of reference points. (ii) We further prove that the experimental design enables unique identification of participants' value distribution and loss averse than men. Finally, as a contribution to experimental methodology, we prove that the BDM mechanism will underestimate loss averse participants' values, we quantify the underestimation, and we suggest methods to bound this bias.Auctions, Expectations, Loss Aversion, Reference dependence

Do shocks affect men's and women's assets differently?: A review of literature and new evidence from Bangladesh and Uganda

This background paper attempts to expand our understanding of the gender-differentiated impact of shocks on assets through a literature review on shocks and gendered asset dynamics and an analysis of new panel data (2007 and 2009) from Uganda and Bangladesh looking at the impact of negative shocks and positive events on men's and women's assets. We take advantage of detailed assets and shocks modules to disaggregate the type of shock between covariate and idiosyncratic shocks and types of assets according to ownership (joint, husband's, and wife's assets). We also consider the impact of life-cycle events such as dowry payments and receipts, and inheritance. Estimation of an asset accumulation regression as a function of covariate and idiosyncratic shocks, with controls for baseline characteristics and asset stocks, finds that although many shocks are similar in both countries, commonly experienced shocks do not necessarily have the same effects across countries and on men's, women's, and jointly owned assets within countries. Land and assets in general were relatively well insured against food price increases in Bangladesh, but jointly held assets and wives' assets in Uganda were negatively affected. Weather shocks negatively impact husbands' assets and wives' assets in Bangladesh and Uganda, respectively. Reflecting differences in country and context, dowry and wedding expenses took their toll on wives' land in Bangladesh, and illness shocks also had a large detrimental impact on wives' assets in Bangladesh, while death negatively affected wives' assets in Uganda. Within households, however, it appears that in Bangladesh, husbands' land and assets were more negatively affected by covariate shocks relative to wives' assets, whereas in Uganda, husbands' assets were relatively protected against covariate shocks relative to wives' assets.Shocks, Gender, assets,

Motor Output Variability Impairs Driving Ability in Older Adults

Background: The functional declines with aging relate to deficits in motor control and strength. In this study, we determine whether older adults exhibit impaired driving as a consequence of declines in motor control or strength. Methods: Young and older adults performed the following tasks: (i) maximum voluntary contractions of ankle dorsiflexion and plantarflexion; (ii) sinusoidal tracking with isolated ankle dorsiflexion; and (iii) a reactive driving task that required responding to unexpected brake lights of the car ahead. We quantified motor control with ankle force variability, gas position variability, and brake force variability. We quantified reactive driving performance with a combination of gas pedal error, premotor and motor response times, and brake pedal error. Results: Reactive driving performance was ~30% more impaired (t = 3.38; p \u3c .01) in older adults compared with young adults. Older adults exhibited greater motor output variability during both isolated ankle dorsiflexion contractions (t = 2.76; p \u3c .05) and reactive driving (gas pedal variability: t = 1.87; p \u3c .03; brake pedal variability: t = 4.55; p \u3c .01). Deficits in reactive driving were strongly correlated to greater motor output variability (R 2 = .48; p \u3c .01) but not strength (p \u3e .05). Conclusions: This study provides novel evidence that age-related declines in motor control but not strength impair reactive driving. These findings have implications on rehabilitation and suggest that interventions should focus on improving motor control to enhance driving-related function in older adults

Motor Output Variability Impairs Driving Ability in Older Adults: Reply to Stinchcombe, Dickerson, Weaver, and Bedard

Driving is a complex skill, as indicated by Stinchcombe and colleagues in their letter. It requires the integration of sensory inputs, cognitive processing, and motor execution. Although our title is broad, we clearly indicate that our findings only address a single component of driving, namely reactive driving. We also indicate that these findings are based on a simulated task and recommend that future studies should examine the contribution of motor output variability to on-road driving performance (see Considerations in the Discussion section). Thus, we share the consideration of Stinchcombe and colleagues that the current results only address a small portion of the driving complexity

Polarization of seven MBM clouds at high galactic latitude

We made R-band polarization measurements of 234 stars towards the direction of MBM 33-39 cloud complex. The distance of MBM 33-39 complex was determined as $120\pm10$ pc using polarization results and near-infrared photometry from the 2MASS survey. The magnetic field geometry of the individual cloud inferred from our polarimetric results reveals that the field lines are in general consistent with the global magnetic field geometry of the region obtained from the previous studies. This implies that the clouds in the complex are permeated by the interstellar magnetic field. Multi-wavelength polarization measurements of a few stars projected on the complex suggest that the size of the dust grains in these clouds is similar to those found in the normal interstellar medium of the Milky Way. We studied a possible formation scenario of MBM 33-39 complex by combining the polarization results from our study and from the literature and by identifying the distribution of ionized, atomic and molecular (dust) components of material in the region.Comment: 18 pages, 9 figures, accepted in MNRA