Rasmusen's Unpublished Papers (January 11, 2013)
To see other abstracts, go to Abstracts of my published
articles. To return to my homepage, go to http://www.rasmusen.org/.
1. Working Papers
3. Useful Notes, Not for Publication
4. Topics I Am Working On Without Circulating
I have a separate page for papers that I
don't think I will ever publish.
- "Three Years or Six to Audit? The Ill-Considered Intermountain Decision,"
The IRS wishes to interpret “omits from gross income” to mean “reports but
understates gross income” to extend the period for audit from three years to six. It
took that position without notice-and-comment, in the context of the hot pursuit of
a particular tax shelter, and after losing in court, with all 13 Tax Court judges
concurring, it made the motions of going through notice-and-comment so as to get
Chevron deference on appeal. This paper discusses what should be considered in
choosing a statute of limitations and points out how these considerations were
completely ignored in IRS decisionmaking. This provides a good example for showing
how the various theories of Chevron deference work.
- The Economics of Regulation. I am writing an undergraduate
textbook on regulation. I start with 4 chapters of theory (supply-and-demand, market
failure, government failure, discounting and life valuation) and have just 2
chapters of antitrust, with 6 more chapters on other topics. My aim is to write a
relatively short book (350 pages) with lots of photos and stories, skipping many
topics and being interesting enough for someone to read for recreation.I also want
to charge a low price, and I might well self-publish. http://www.rasmusen.org/g406/chapters/
- ``Isoperfect Price Discrimination: Bargaining and Market
Power,'' with David Myatt. Standard discussions of perfect price
discrimination rest on a hidden
assumption: that the monopolist can make take-it-or-leave-it offers. If
a monopoly charges different prices to each of a large number of
buyers, the correct paradigm is not the ultimatum game, but bilateral
monopoly. The monopolist's profit will not be the entire surplus, but
something less. Under ``balanced isoperfect price discrimination''-- a
constant split \lambda=.5 of the bargaining surplus with each
buyer--- and constant marginal cost, the monopolist has the same
profit as monopoly pricing if the demand curve is linear, less if demand
is concave, and more if demand is convex. Increasing marginal cost tends
to make the monopolist prefer price discrimination. Isoperfect price
discrimination is complemented by an idiosyncratic product design and
informative advertising, whereas simple monopoly pricing is
facilitated by plain-vanilla designs promoted via pure hype. Competition
pushes suppliers away from isoperfect price discrimination and towards
simple posted pricing.
http://www.rasmusen.org/papers/pdisc-myatt-rasmusen.pdf or in
- ``Monopoly versus Competitive Leveraging of Reputation through Umbrella
A firm with a reputation for high quality in
one product may usefully extend that reputation to other products. We
look at how that works in a moral hazard model of product quality.
http://www.rasmusen.org/papers/umbrella.pdf or http://www.rasmusen.org/papers/umbrella.tex.
- ``Coarse Grades,'' with Rick Harbaugh.
Certifiers of quality often report only coarse grades to the public
despite having measured quality more
finely, e.g., "A" instead of "98". Why? We show that using coarse grades can
actually result in more information
reaching the public, because it encourages low-quality individuals or firms to
become certified. In our model the
certifier aims to minimize public uncertainty over quality subject to the
feasibility constraint of voluntary
certification at a fixed cost. Moving from the best exact grading scheme to the
best coarse one (a) induces more
participation and (b) reduces public uncertainty.
http://www.rasmusen.org/papers/coarse-harbaugh-rasmusen.pdf or in
- ``The Concealment Argument: Why No Conclusive Evidence or Proof for
Will Be Found.''
Logic and Biblical evidence suggest that God wishes that some but not
all humans become convinced of His existence and desires. If so, this
suggests that attempts to either prove or disprove such things as God's
existence, past miracles, or present supernatural intervention are
doomed to failure, because God could and would take care to evade any
such efforts. In tex and pdf. (http://rasmusen.org/papers/conceal-rasmusen.pdf).
``Concavifying the Quasi-Concave,'' with Christopher Connell.
We show that if and only if a real valued function f is strictly
quasi-concave except possibly for a flat interval at its maximum and belongs
to a precise regularity class, there exists a strictly monotonically increasing
function g such that g of f is concave.
We prove this sharp sharp characterization of quasi-concavity for any
Euclidean space or even any arbitrary geodesic metric space. We also establish
a simpler sufficient condition suitable for most applications for
concavifiability on Euclidean spaces or any other Riemannian manifolds.
http://rasmusen.org/papers/quasi-connell-rasmusen.pdf or in
- Book Publishing Ideas: I've put these on a separate page, at
- "Are Americans More Litigious? Some Quantitative Evidence (with J. Mark
Ramseyer). Forthcoming in An American Illness , edited by Frank Buckley,
http://buckleysmix.com/american-illness-4/ Yale University Press (scheduled for
March 4, 2013). Many observers suggest that American citizens sue more readily than
citizens elsewhere, and that American judges shape society more powerfully than
judges elsewhere. We examine the problems involved in exploring these questions
quantitatively. The data themselves indicate that American law’s notoriety does not
result from how we handle routine disputes. Instead, it results from the peculiar
and dysfunctional way American courts handle particular legal doctrines like class
actions. In MS Word (
http://www.rasmusen.org/papers/litigation-ramseyer-rasmusen.doc). and pdf (
- "Principles of
Graphs and Tables." Tips for undergraduate writing (
- "Belief in God: A Game Theory Approach. "
- ``Isoperfect Price Discrimination in a Hotelling
Duopoly,'' with David Myatt. When duopolists compete by haggling
with consumers, the form of the bargaining model is very important,
whether in a Bertrand model or a Hotelling model.
- Notes on ``Biased Experts in a Sender-Receiver Model.'' http://www.rasmusen.org/papers/bias-rasmusen.tex.
- ``Odd, Enter; Even, Out: A Peculiarity of Buyout, Blackmail, Extortion, and
Nuisance Suit Games.''
- "Hold-Up as a Social Cost of Monopoly with Perfectly Competitive Retailers
or with Consumers."
- ``What Asset Sale Price Is Fair? – The Chrysler Bankruptcy Section 363
Sale'' (with J. Mark Ramseyer).
- "A Simple Model of Keynesian Fiscal Policy." A one-input, one-period,
two-good, extremely simple structural model with rigid prices and labor markets can
generate Keynesian effects.
- ``Government Regulation,''a 12-chapter text on the economics and politics of regulation. http://www.rasmusen.org/regulation.
URL: http://www.rasmusen.org/unpabs.htm. Indiana University, Department of Business
Public Policy, in the
Kelley School of Business, BU 456, 1309 East Tenth Street, Bloomington, Indiana 47405-1701, (812)855-9219. Comments: Erasmuse@Indiana.edu.
Back to the Rasmusen Homepage.