nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2020‒06‒22
two papers chosen by
Marco Novarese
Università degli Studi del Piemonte Orientale

  1. On the Causes and Consequences of Deviations from Rational Behavior By Dainis Zegners; Uwe Sunde; Anthony Strittmatter
  2. Economic preferences in the classroom - research documentation By Horn, Dániel; Kiss, Hubert Janos; Lénárd, Tünde

  1. By: Dainis Zegners; Uwe Sunde; Anthony Strittmatter
    Abstract: This paper presents novel evidence for the prevalence of deviations from rational behavior in human decision making - and for the corresponding causes and consequences. The analysis is based on move-by-move data from chess tournaments and an identification strategy that compares behavior of professional chess players to a rational behavioral benchmark that is constructed using modern chess engines. The evidence documents the existence of several distinct dimensions in which human players deviate from a rational benchmark. In particular, the results show deviations related to loss aversion, time pressure, fatigue, and cognitive limitations. The results also demonstrate that deviations do not necessarily lead to worse performance. Consistent with an important influence of intuition and experience, faster decisions are associated with more frequent deviations from the rational benchmark, yet they are also associated with better performance.
    Date: 2020–05
  2. By: Horn, Dániel; Kiss, Hubert Janos; Lénárd, Tünde
    Abstract: In this paper, we document how we carried out a research that aimed at measuring the economic preferences of high school students. We describe the preferences that we study and what experimental games we used to investigate them. Then we report how we carried out the experiments in the schools. We provide detailed descriptive statistics on the preferences in aggregate and also school by school. Last, we validate our measurement by comparing the measured preferences to those in the literature.
    Keywords: altruism, competitive preferences, cooperation, risk preferences, social preferences, student, time preferences, trust
    JEL: C91 C92 I21 I24
    Date: 2020–05–30

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