Sharing the Fruit of Labor: Flexible Application of Justice Principles in an Ultimatum Game with Joint-Production

Individuals often need to negotiate how to distribute jointly produced goods—equally (e.g., 50:50) or equitably (e.g., proportionally to their contributions). We examined whether people have stable preferences, or whether they switch between equality and equity in different situations. Pairs of anonymous participants first produced a common pie, and then distributed it in an ultimatum game. Results suggest that individuals apply different justice principles depending on their contribution. When they produced less than 50%, proposers divided the pie equally. However, when they produced more than 50%, their offers fell between equality and equity. Responders’ ratings of fairness and satisfaction varied similarly; with low production, equality was preferred, whereas with high production, equity was preferred. Nevertheless, equal and equitable offers were generally accepted, and only outright unfair offers were rejected. This suggests that individuals are relatively flexible about which justice principle should be applied, but punish proposers whose offers violate both principles.     

Sustainability of the effects of multisystemic therapy for juvenile delinquents in The Netherlands: effects on delinquency and recidivism

Objectives

The present study focused on the sustainability of the effects of Multisystemic Therapy (MST) on delinquency and recidivism.

Methods

A sample of 256 juveniles with severe and persistent antisocial behavior were randomly assigned to MST (147) and Treatment As Usual (TAU) (109) condition. Pre-test assessment took place before the start of MST/control group treatment. Post-test assessment took place at 6 months after termination of the program. Delinquency (parent and adolescent reported) was assessed 6 months after termination of the treatment. Official judicial data were collected to assess recidivism, with a mean length of follow-up of 3.06 years. ANCOVAs and survival analyses were used to test the effectiveness of MST.

Results

The multi-informant data showed that MST is effective in diminishing delinquent behavior as reported by adolescents and parents, with d’s larger than at post-test assessment immediately after ending of the intervention. The official judicial data, however, suggest that there are no differences between MST and TAU in recidivism. Few and inconsistent moderator effects were found.

Conclusions

According to parent and adolescent reports, the beneficial effects of MST were sustained at the follow-up. This was not supported by official data. These results stress the importance of using multi-informant data on delinquency, as each source of information has its own advantages and disadvantages.     

Seeking rents in the shadow of Coase

In this paper, we study a two-stage rent-seeking game. In the first stage, contestants compete à-la-Tullock; in the second stage, the winner can resell the rent à-la-Coase. We consider a complete information Tullock game in which the contestants have different valuations for the rent. The analysis focuses on the ex ante effects of a secondary market on efforts, payoffs, rent-dissipation and rent-misallocation. We show that the secondary market, while correcting possible misallocations, may exacerbate rent dissipation. In some situations, the increase in rent dissipation more than offsets the allocative advantage, so that a secondary market might reduce welfare. We further show how the effect of ex post tradeability on welfare depends on the parties’ bargaining power and valuations of the rent, also considering the case of endogenous bargaining power.     

Developing Principles for Best Practice in Expanded School Mental Health

On the basis of activities of a federally funded national center for school mental health, review of literature on principles for best practice in child and adolescent mental health and school health, and consultation with national experts and family members, a set of 10 principles for best practice in school mental health was developed. A survey was developed enabling 1–6 point Likert ratings (clearly unimportant to clearly important) for each of the 10 principles. With an original sample of 426 people involved in education, school health or mental health, all 10 principles were strongly endorsed, receiving mean ratings ranging between 5.10 and 5.75. On the basis of qualitative feedback from this survey and interactive forums, language for 9 of the 10 principles was revised and a survey reflecting these changes was developed and administered to a validation sample of 86 respondents. As with the original sample, endorsements of the principles were strong, with mean ratings ranging between 5.45 and 5.79. Findings are discussed in relation to advancing interconnected agendas related to quality assessment and improvement and empirically supported practice in school mental health.     

Transparency and accountability of central banks in their role of financial stability supervisor in OECD countries

We aim to get a better understanding of the accountability of central banks in their role of financial stability supervisors, distinguishing between three crucial elements: (1) the legal basis for the financial stability task, (2) providing of information on financial stability, and (3) the formal relationship between the accountable and the accountee. We conclude that in most OECD countries the law does not provide a clear objective for financial stability supervisors. Many central banks nowadays publish a stand-alone financial stability report. In most countries there are hardly any accountability measures in place regarding the objective of financial stability. JEL classification G28     

Ways of Handling Conflict: What We Have Learned, What Problems Remain

This article canvasses the principal achievements of the past twenty-five years in alternative dispute resolution and addresses some of the current challenges and how they might be addressed.