nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2006‒01‒29
four papers chosen by
Marco Novarese
Universita del Piemonte Orientale

  1. Consumers' immediate memory for prices By VANHUELE, Marc; LAURENT, Gilles; DREZE, Xavier
  2. Knowledge Integration and Network Formation. By Müge Ozman
  3. What Happiness Research Can Tell Us About Self-Control Problems And Utility Misprediction By Alois Stutzer; Bruno S. Frey
  4. Serendipity: why some organizations are luckier than others By Cunha, Miguel Pina e

  1. By: VANHUELE, Marc; LAURENT, Gilles; DREZE, Xavier
    Abstract: In this article, the authors examine the cognitive mechanics involved in keeping prices in short-terme memory for subsequent recall. Consumers code and store prices verbally, visually, and in terms of their magnitude. The encoding used influences immediate recall performance. The memorability of prices depends on their verbal length, usualness and overall magnitude. They find that the performance of consumers recall prices better than what previous digit span studies with simple numbers have suggested.
    Keywords: consumer behavior; numerical cognition; price memory
    JEL: D10
    Date: 2005–01–01
  2. By: Müge Ozman
    Abstract: In this paper, we highlight how inter-firm collaboration networks are influenced by the knowledge composition of goods in an industry. For this purpose, we carry out an agent based simulation study in which firms integrate their competencies under different knowledge base regimes. In this way networks form. The results reveal that, knowledge regime significantly influences the network structure, and interaction among firms is very intensive when the products are specialized but also have common knowledge among them.
    Date: 2006
  3. By: Alois Stutzer; Bruno S. Frey
    Abstract: Neoclassical economic theory rules out systematic errors in consumption choice. According to the basic view, individuals know what they choose. They are able to predict how much utility an activity or a good produces for them now and in the future and they can maximize their utility. This implies that behavior reveals consistent preferences. This approach makes it impossible to detect and understand sub-optimal consumption decisions, due to problems of self-control and the misprediction of utility. We propose the economics of happiness as a methodological approach to study these phenomena. Based on proxy measures for experienced utility, it is, in principle, possible to directly address whether some observed behavior is sub-optimal and is therefore reducing a person’s well-being. We discuss recent evidence on smoking and eating habits, TV viewing and commuting choice.
    Keywords: adaptation, individual decision-making, revealed preference, self-control, subjective well-being, utility misprediction
    JEL: D00 D11 D12 D84 D91 I12 I31
    Date: 2006–01
  4. By: Cunha, Miguel Pina e
    Abstract: Serendipity refers to the accidental discovery of something valuable. It is sometimes presented as an element of organizational learning but has been the object of scarce research. In this paper, I discuss the notion of serendipity in the organizational context, and elaborate a model of organizational serendipity. Four building blocks are considered: the conditions that facilitate serendipitous discovery, the search for a solution for a given problem, a process of bisociation leading to the combination of previously unrelated skills or information, and the discovery of an unexpected solution to a different problem. I also discuss what organizations can do to improve the chances of serendipity.
    Keywords: serendipity; search; bisociation; chance; accidental discoveries; unintentional learning
    Date: 2005

This nep-cbe issue is ©2006 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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