Palma, Marco A.

May, 2021

By: Kassas, Bachir ; Palma, Marco A. ; Hall, Charles R.
The consistent appeals against mandatory checkoff programs stimulated a wave of research investigating voluntary contributions mechanisms (VCMs) as a potential alternative in the provision of generic advertising. Using a public goods experiment with heterogeneous income and marginal per capita returns (MPCR), we examine the interaction between high- and low-income individuals in VCMs, an understanding of which can help enhance the performance of voluntary generic advertising programs. While free-riders were present among both income types, the majority of low-income individuals were keen on stimulating higher contributions through cooperation. Conversely, high-income individuals tended to decrease their contributions in the presence of the low-income type.

January, 2021

By: Zhang, Yinjunjie ; Palma, Marco A.
Berkeley's sugar tax policy is currently under intense scrutiny and debate, while similar tax policies are rapidly expanding to other U.S. states. Contrary to theoretical predictions and policy expectations, previous literature documents short-term evidence of increased consumption of sugary drinks in response to a sugar tax policy. We investigate the underlying mechanism behind this behavioral anomaly using the Berry, Levinsohn, and Pakes (BLP) random coefficient (RC) logit demand model in characteristic space. We find that the consumption increase is mainly driven by a change in the average valuation of the sugar content going from negative to positive following enactment of the sugar tax policy.