function results = compute_efficiency(commit_models,no_commit_models, ... no_p_commit_models) % compute efficiency of behavior change & other outcomes from the % commitment contract and two piece-rate incentives n = length(commit_models); % compute average change in attendance from the contract delta_a_Cs = []; avg_delta_a_C = 0; for i = 1:n avg_delta_a_C = avg_delta_a_C + (commit_models(i).mu .* ... (commit_models(i).avg_att - no_p_commit_models(i).avg_att)); delta_a_Cs = [delta_a_Cs, commit_models(i).avg_att - no_p_commit_models(i).avg_att]; end results.avg_delta_a_C = avg_delta_a_C; % compute average period 1 incremental welfare from the contract avg_delta_surplus = 0; for i = 1:n avg_delta_surplus = avg_delta_surplus + (commit_models(i).mu .* ... (commit_models(i).t1_utility - no_p_commit_models(i).t1_utility)); end results.avg_delta_surplus = avg_delta_surplus; % compute the surplus just for those who took up the contract mu_commit = 0; for i = 1:n mu_commit = mu_commit + commit_models(i).mu; end results.commit_delta_surplus = avg_delta_surplus / mu_commit; % compute average change in expected benefits from the contract avg_delta_benefits = 0; for i = 1:n avg_delta_benefits = avg_delta_benefits + ... (commit_models(i).mu .* commit_models(i).b .* ... (commit_models(i).avg_att - no_p_commit_models(i).avg_att)); end results.avg_delta_benefits = avg_delta_benefits; % compute average change in expected costs from the contract avg_delta_costs = 0; for i = 1:n avg_delta_costs = avg_delta_costs + (commit_models(i).mu .* ... (commit_models(i).avg_costs - no_p_commit_models(i).avg_costs)); end results.avg_delta_costs = avg_delta_costs; % compute efficiency of behavior change from the commitment contract results.V_E = results.avg_delta_benefits - results.avg_delta_costs; % compute the optimal r syms r eqns_n = []; % placeholder for numerator eqns_d = []; % placeholder for denominator for k = 1:n eqns_n = [ eqns_n; commit_models(k).mu .* (1 - commit_models(k).beta) .* ... commit_models(k).b .* commit_models(k).beta .* ... commit_models(k).f(commit_models(k).beta .* (commit_models(k).b + r)) ]; eqns_n = [ eqns_n; no_commit_models(k).mu .* (1 - no_commit_models(k).beta) .* ... no_commit_models(k).b .* no_commit_models(k).beta .* ... no_commit_models(k).f(no_commit_models(k).beta .* (no_commit_models(k).b + r)) ]; eqns_d = [ eqns_d; commit_models(k).mu .* (commit_models(k).beta .^ 2) .* ... commit_models(k).f(commit_models(k).beta .* (commit_models(k).b + r)) ]; eqns_d = [ eqns_d; no_commit_models(k).mu .* (no_commit_models(k).beta .^ 2) .* ... no_commit_models(k).f(no_commit_models(k).beta .* (no_commit_models(k).b + r)) ]; end r_opt = vpasolve(sum(eqns_n) ./ sum(eqns_d) == r, r); results.r_opt = double(r_opt); % compute outcomes under r_opt results.U_E_r_opt = compute_incentive_efficiency(results.r_opt, ... commit_models, no_commit_models); [results.delta_surplus_r_opt, results.delta_benefits_r_opt, ... results.delta_costs_r_opt, results.delta_att_r_opt] = ... compute_incentive_outcomes(results.r_opt, ... commit_models, no_commit_models); % find the r that generates the same expected change in attendance syms r eqns = []; for k = 1:n eqns = [ eqns; (commit_models(k).mu .* ... (commit_models(k).F(commit_models(k).beta .* ... (commit_models(k).b + r)) ... - commit_models(k).F(commit_models(k).beta .* ... commit_models(k).b))) ]; eqns = [ eqns; (no_commit_models(k).mu .* ... (no_commit_models(k).F(no_commit_models(k).beta .* ... (no_commit_models(k).b + r)) ... - no_commit_models(k).F(no_commit_models(k).beta .* ... no_commit_models(k).b))) ]; end r_att = vpasolve(commit_models(1).T .* sum(eqns) == avg_delta_a_C, r); results.r_att = double(r_att); % compute outcomes under r_att results.U_E_r_att = compute_incentive_efficiency(results.r_att, ... commit_models, no_commit_models); [results.delta_surplus_r_att, results.delta_benefits_r_att, ... results.delta_costs_r_att, results.delta_att_r_att] = ... compute_incentive_outcomes(results.r_att, ... commit_models, no_commit_models); end %% Helper functions function U_E = compute_incentive_efficiency(r, commit_models, ... no_commit_models) % compute the efficiency of behavior change under incentive r N = length(commit_models); U_E = 0; inc = [r 0]; for j = 1:N commit_models(j) = commit_models(j).compute_incentive_behavior(inc); U_E = U_E + commit_models(j).mu .* ... (commit_models(j).net_surplus_r(1) - ... commit_models(j).net_surplus_r(2)); no_commit_models(j) = no_commit_models(j).compute_incentive_behavior(inc); U_E = U_E + no_commit_models(j).mu .* ... (no_commit_models(j).net_surplus_r(1) - ... no_commit_models(j).net_surplus_r(2)); end end function [delta_surplus, delta_benefits, delta_costs, delta_a_r] = ... compute_incentive_outcomes(r, commit_models, no_commit_models) % compute the expected change in agent surplus, benefits, and costs % under incentive r N = length(commit_models); delta_surplus = 0; delta_benefits = 0; delta_costs = 0; delta_a_r = 0; inc = [r 0]; for j = 1:N commit_models(j) = commit_models(j).compute_incentive_behavior(inc); no_commit_models(j) = no_commit_models(j).compute_incentive_behavior(inc); % expected change in agent surplus delta_surplus = delta_surplus + commit_models(j).mu .* ... (commit_models(j).surplus_r(1) - ... commit_models(j).surplus_r(2)); delta_surplus = delta_surplus + no_commit_models(j).mu .* ... (no_commit_models(j).surplus_r(1) - ... no_commit_models(j).surplus_r(2)); % expected change in health benefits delta_benefits = delta_benefits + commit_models(j).mu .* ... (commit_models(j).benefits_r(1) - ... commit_models(j).benefits_r(2)); delta_benefits = delta_benefits + no_commit_models(j).mu .* ... (no_commit_models(j).benefits_r(1) - ... no_commit_models(j).benefits_r(2)); % expected change in costs delta_costs = delta_costs + commit_models(j).mu .* ... (commit_models(j).costs_r(1) - ... commit_models(j).costs_r(2)); delta_costs = delta_costs + no_commit_models(j).mu .* ... (no_commit_models(j).costs_r(1) - ... no_commit_models(j).costs_r(2)); % expected change in attendance delta_a_r = delta_a_r + commit_models(j).mu .* ... commit_models(j).change_att_r(1); delta_a_r = delta_a_r + no_commit_models(j).mu .* ... no_commit_models(j).change_att_r(1); end end