Maximum Earnings Research Articles

An experimental dynamic public goods game with carryover

We examine voluntary contributions in a two-stage public good experiment with ‘carryover.’ In two treatments, each subject's second-stage endowment is determined by the return from the public good in the first-stage. We manipulate payoffs across treatments such that, relative to our no-carryover baseline, earnings from either Nash Equilibrium (constant NE) play or Pareto Optimal (constant PO) play are held constant. The remaining two treatments maintain a constant endowment in each stage, but vary the marginal per capita return (MPCR high or MCPR low) to contributions in the second-stage. Our results indicate that carryover increases first-stage contributions. Our implementation of carryover enables us to examine the effects of changing endowments and a wide range of MPCR's. Consistent with the literature, we find that MPCR and endowment effects are important determinants of subject contributions to the group account. While stage 1 contributions tend to increase in the presence of carryover, efficiency levels across both stages fall relative to the baseline. Efficiency levels fall because the maximum earnings possible increase with carryover (due to higher endowments or MPCR levels in stage 2).

Economic Games on the Internet: The Effect of $1 Stakes

Online labor markets such as Amazon Mechanical Turk (MTurk) off er an unprecedented opportunity to run economic game experiments quickly and inexpensively. Using Mturk, we recruited 756 subjects and examined their behavior in four canonical economic games, with two payoff conditions each: a stakes condition, in which subjects' earnings were based on the outcome of the game (maximum earnings of $1); and a no-stakes condition, in which subjects' earnings are una ffected by the outcome of the game. Our results demonstrate that economic game experiments run on MTurk are comparable to those run in laboratory settings, even when using very low stakes.

Is Costco Better than Walmart? A Comparative Analysis Based on Enterprise Marketing Efficiency

The purpose of this research was to analyze the operations of Walmart and Costco during the period from May 2006 until August 2008 from the standpoint of the efficiency of their operations in utilizing the resources to create shareholder’s value, using key performance and enterprise marketing ratios. This study is relevant given the different business models and strategies used by both companies, as well as their intense rivalry in the retail industry. The results showed that Walmart is clearly superior in attracting investors willing to pay a premium for the stock, but Costco is far more efficient in the use of Selling, General and Administrative expenses to generate profits. Furthermore, based on the Maximum Earnings Market Share (MEMS) and Relative Earnings Productivity calculations, the results evidenced that Costco could have made $3.6 billion more in earnings, and Walmart could had earned $26.8 billion more for the same period, although in relative terms Costco was more efficient since it lost 20.9% of potential earnings, versus a much higher 28.3% of Walmart. Consequently, we can affirm that Costco is better than Walmart, based on relative earnings productivity. Moreover, this study proves that a higher market share does not necessarily generate higher profits, for it depends on the company’s enterprise marketing efficiency.

Incentive Pay in the Public Sector: A Discriminant Analysis of Professional Employee Responses

This study examines an incentive pay system designed for professional employees in the public sector. During a two-year trial period, 73.6 percent of the subjects reached production goals and earned the maximum pay (10 percent above base). Despite the employees’ ability to attain maximum earnings, only a slight majority expressed a desire for continuation of the incentive pay program. Examination of survey responses indicates that those earning the maximum were the least likely to favor continuation of the program. This study uses multiple discriminant analysis to identify respondent characteristics exerting the greatest influence on their acceptance of this incentive pay system. Implications for designing pay for performance plans for professionals are discussed.

Pacing stress, human adaptation and training in car production

Paced systems of production offer economic advantages but are often lacking in terms of ergonomic principles. Stress arises through forcing longer than standard work cycle times into a fixed time allowance. Operators adopt strategies to reduce these stresses, but where they persist, human reactions can include collective strikes, local unauthorised line stoppages, or transfer to other work. Problems include the lack of rest breaks and the desire for maximum earnings. The solutions proposed include off-track training, higher payment grades for trained workers, assured rest breaks, and removal of work from the line for fault rectification or for final assembly by older workers.

Relationship of three motives to choice in the Prisoner's Dilemma.

23 Ss each played 24 trials of a Prisoner's Dilemma Game against a confederate who mimicked their previous responses. Before each trial, Ss wrote briefly about their conscious thoughts and motivations. These written responses were scored for cooperativeness-competitiveness, trust-mistrust, and economic rationality. Correlations between response measures indicated that A-responses (allowing maximum joint earnings) were strongly influenced by both cooperativeness and trust but that B-responses (allowing maximum individual earnings) did not have as strong a relation to competitiveness. Analysis of differences among religious groups suggested that B-responses may sometimes measure economic rationality more strongly than either competitiveness or mistrust. The study suggests that the A-B response dichotomy may not always be coincident with a cooperative-competitive or trust-mistrust dichotomy.

What Benefits Will Self-Employed Doctors Receive Under Social Security?

After many years of debate, a bill has been passed extending compulsory coverage under old-age, survivors, and disability insurance (OASDI), as well as a new program of hospital insurance (HI), to self-employed physicians. It is not the purpose of this report to argue the merits of such compulsory coverage. Rather, it is to point out the effects of coverage and the protection that is provided, and particularly to illustrate the benefits that accrue to the older doctors brought under the program. These advantages derive from liberalizations contained in the 1960 and 1961 amendments to the Social Security Act, as well as in the current amendments. This presentation is concerned only with male self-employed physicians and does not encompass the effect of any coverage secured through work as an employee. It is also assumed that annual earnings are at least equal to the maximum taxable earnings, $6,600 beginning in 1966 ($4,800

A Method of Automatically Adjusting the Maximum Earnings Base under OASDI: Author's Comment

Although I have no comments on the interesting communications that appeared in the September, 1965 issue of this Journal relative to my paper entitled A Method of Automatically Adjusting the Maximum Earnings Base under OASDI,' it may be worth noting that this adjustment procedure was adopted in the Social Security Amendments of 1965 in regard to the maximum-benefit provision when both DI and Workmen's Compensation benefits are payable. Specifically, under these circumstances, the combined benefits (including supple-

Comments on "A Method of Automatically Adjusting the Maximum Earnings Base under OASDI"

Comments on "A Method of Automatically Adjusting the Maximum Earnings Base under OASDI"

A Method of Automatically Adjusting the Maximum Earnings Base under OASDI

The benefits of the flat pension systems of several countries (Denmark, Finland, Iceland, Israel, and Sweden) are adjusted automatically at intervals to reflect changes in the cost of living (i.e., prices), as measured by a statistical index.' The U.S. Civil Service Retirement system, following amendment in 1962, and the retirement system for members of the uniformed services of the United States, also provide for adjustment of pensions according to changes in the cost of living.2 In some countries that have earningsrelated pension systems, the procedure has been followed of converting all wage records (and the resulting benefits) to index numbers, and then each year paying benefits on the basis of the current (or recent) wage level. The maximum earnings base

Management of California Pension Funds

An appropriate investment policy for a retirement fund should result in a portfolio structure that provides maximum earnings with prudent safety. The portfolio of the California State Employees Retirement System is analyzed in this article and changes are recommended looking toward increasing investment in corporate equities and real estate mortgages.