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on Cognitive and Behavioural Economics |
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Issue of 2017‒10‒15
six papers chosen by Marco Novarese Università degli Studi del Piemonte Orientale |
| By: | Committee, Nobel Prize (Nobel Prize Committee) |
| Abstract: | The American economist Richard H. Thaler is a pioneer in behavioural economics, a research field in which insights from psychological research are applied to economic decision-making. A behavioural perspective incorporates more realistic analysis of how people think and behave when making economic decisions, providing new opportunities for designing measures and institutions that increase societal benefit. |
| Keywords: | Behavioral economics; |
| JEL: | D03 D90 G02 |
| Date: | 2017–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:nobelp:2017_002&r=cbe |
| By: | Rau, Holger; Müller, Stephan |
| Abstract: | This paper theoretically and experimentally studies decision-making in risky and social environments. We explore the interdependence of individual risk attitudes and inequality aversion as two decisive behavioral determinants in such contexts. Our model and the data demonstrate that individual risk aversion is attenuated when lagging behind peers, whereas it is amplified under favorable income inequality. People's choices are also are sensitive to their degree of inequality aversion. |
| JEL: | C91 D03 D63 D81 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168228&r=cbe |
| By: | Ji Yong Lee (Department of Agricultural Economics and Agribusiness,, University of Arkansas); Rodolfo M. Nayga, Jr (The National Bureau of Economic Research); Cary Deck (Department of Economics, Finance, and Legal Studies, University of Alabama); Andreas Drichoutis (Department of Agricultural Economics & Rural Development, Agricultural University of Athens) |
| Abstract: | Behavioral biases are more pronounced for individuals with lower cognitive abilities. This paper examines what connection if any there is between cognitive ability and bidding strategy in second price auctions. Despite truthful revelation being a weakly dominant strategy, previous experiments have consistently observed overbidding, which makes use of such auctions for inferring homegrown value problematic. Examining the effect of cognitive ability is important as it may help identify when one can reliably recover values from bids. The results indicate that more cognitively able subjects behave in closer accordance with theory, and that cognitive ability partially explains heterogeneity in bidding behavior. |
| Keywords: | Cognitive ability, Second price auction, Bid deviation, Overbidding, Laboratory experiment |
| JEL: | C91 C92 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:aua:wpaper:2017-3&r=cbe |
| By: | Gürerk, Özgür; Irlenbusch, Bernd; Rockenbach, Bettina |
| Abstract: | We study gender diversity and performance in endogenously formed teams. Participants choose to either perform a cooperation task with members of the own gender only or in a mixed-gender team. We find that independent of the team choice, initially men cooperate significantly more than women. In subsequent periods, men prefer the successful men-only teams, resulting in significantly higher profits for men compared to women. Only over time, this endogenously emerged “gender profit gap” closes. |
| JEL: | C92 J71 M54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168067&r=cbe |
| By: | Konrad, Kai; Lohse, Tim; Simon, Sven |
| Abstract: | We conduct a laboratory experiment of self-serving deceptive behavior and exogenously vary the level of reflection time. We find that time pressure leads to more honesty compared to sufficient contemplation time. Moreover, more reflection time increases awareness of the misreporting opportunity. However, it has no effect on the conscious decision of whether to misreport or not. Due to subjects' lack of awareness under time pressure we conclude that misreporting is not the intuitive response. |
| JEL: | C91 D83 K42 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168171&r=cbe |
| By: | Schmidt, Felix; Berger, Eva; Schunk, Daniel; Müller, Henning; König, Günther |
| Abstract: | We conducted a randomized natural field experiment embedded in an existing labor market reactivation program to examine the effect of a self-regulation training on long-term unemployed individuals. First, we find a positive treatment effect on the quality of submitted CVs. Second, there is no overall treatment effect on (short-term) labor market reintegration, but heterogeneous effects with respect to participants’ Locus of Control that are consistent with psychological theory. |
| JEL: | C93 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168177&r=cbe |