Department of Economics

The overall objective for HyperXite 9 was to design and build a more robust, and reliable pod, capable of proving the feasibility of a high-speed transportation system. We are working to improve a linear induction motor as the pod's propulsion system. We are also designing and implementing a thermal cooling system to actively dissipate the heat generated by this propulsion system. Our team is comprised of the following 7 subteams: Static Structures, Braking & Pneumatics, Dynamic Structures, Propulsion, Power Systems, Control Systems, and Outreach.

We provide some theory and experimental evidence on contests with entry fees. In our setup, players must simultaneously decide whether or not to pay a fee to enter a contest and the amount they wish to bid should they choose to enter the contest. In a general n-bidder game, we show that the addition of contest entry fees increases the contest designer’s expected revenue and that there is a unique revenue maximizing entry fee. In an experimental test of this theory we vary both the entry fee and the number of bidders. We find over-bidding for all entry fees and bidder group sizes, n. We also find under-participation in the contest for low entry fees and over-participation for higher entry fees. In the case of 3 bidders, the revenue maximizing entry fee for the contest designer is found to be significantly greater than the theoretically optimal entry fee. We offer some possible explanations for these departures from theoretical predictions.

Stock splits and reverse splits often result in short-term abnormal returns even though such split events do not change any fundamental factors affecting the valuation of a firm's stock. In this paper we report an experiment designed to better understand market reactions to stock splits and reverse splits. In one treatment, two assets have increasing fundamental values, and one asset is subject to a 2-for-1 share split while the other asset is not. In a second treatment, the fundamental values of both assets are decreasing, and one asset is subject to a 1-for-2 reverse split while the other asset is not. We find that in both cases, share prices do not fully adjust to changes in fundamental values per share following a split announcement. We provide evidence that the incomplete adjustment of share prices to splits or reverse splits can be attributed to heterogeneity in traders' cognitive abilities.

This study is a conceptual replication of a widely cited study by Moffitt et al. (2011) which found that attention and behavior problems in childhood (a composite of impulsive hyperactive, inattentive, and impulsive-aggressive behaviors labeled "self-control") predicted adult financial status, health, and criminal activity. Using data from longitudinal cohort studies in the United States (n = 1,168) and the United Kingdom (n = 16,506), we largely reproduced their pattern of findings that attention and behavior problems measured across the course of childhood predicted a range of adult outcomes including educational attainment (β_U.S. = -0.22, β_U.K. = -0.13) and spending time in jail (OR_U.S. = 1.74, OR_U.K. = 1.48). We found that associations with outcomes in education, work, and finances diminished in the presence of additional covariates for children's home environment and achievement but associations for other outcomes were more robust. We also found that attention and behavior problems across distinct periods of childhood were associated with adult outcomes. Specific attention and behavior problems showed some differences in predicting outcomes in the U.S. cohort, with attention problems predicting lower educational attainment and hyperactivity/impulsivity predicting ever spending time in jail. Together with the findings from Moffitt et al., our study makes clear that childhood attention and behavior problems are associated with a range of outcomes in adulthood for cohorts born in the 1950s, 1970s, and 1990s across three countries. (PsycInfo Database Record (c) 2023 APA, all rights reserved).