Direct tests of the reservation wage property

Article Abstract:

The optimal job search theory is examined through direct tests with reservation wages and through comparison of the theory's performance with that of a naive rule. Results of the application of the reservation wages in the direct test reject both naive rule and a risk neutral model, but with the exception of a general concave model. However, indirect tests indicate that both naive rule and the risk neutral model, that employ search duration data, have satisfactory performances. These findings imply the weak points of indirect tests when applied as test of the job search theory.

Labor supply, Labor force, Job hunting

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On testing the utility hypothesis

Article Abstract:

Evaluation of the utility hypothesis involves the use of complete, disaggregated data and the extension of a revealed preference theory. Testing the results involves the use of two compound hypotheses involving preference separability. The test reveals inconsistencies that are negligible and limitations for the two compound hypotheses include data collection, surveillance and self-reporting.

Testing, Consumer preferences, Utility theory, Utility functions

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Eliciting reservation prices: Becker-DeGroot-Marschak mechanisms vs. markets

Article Abstract:

An analysis of the use of the Becker-DeGroot-Marschak (BDM) mechanism in determining reservation prices for commodities reveals that the mechanism is demonstrated to be greatly affected by upper bound randomly generated buyout prices. The mechanism was evaluated using an experimental market where traders are not capable of affecting buyout prices even when applied on a small market.

Prices

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