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on Cognitive and Behavioural Economics |
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Issue of 2021‒07‒26
ten papers chosen by Marco Novarese Università degli Studi del Piemonte Orientale |
| By: | Dickinson, David L. (Appalachian State University); Masclet, David (University of Rennes) |
| Abstract: | Recent examinations into the cognitive underpinnings of ethical decision making has focused on understanding whether honesty is more likely to result from deliberative or unconscious decision processes. We randomly assigned participants to a multi-night sleep manipulation, after which they completed 3 tasks of interest: imperfectly identifiable dishonesty (the Coin Flip task), identifiable dishonesty (the Matrix task), and anti-social allocation choices (the Money Burning game). We document the validity of the sleep protocol via significantly reduced nightly sleep levels (objectively measured using validated instrumentation) and significantly higher sleepiness ratings in the sleep-restricted (SR) group compared to the well-rested (WR) group. We report that money burning decisions are not statistically different between SR and WR participants. However, regarding honesty, we find significant and robust effects of SR on honesty. In total, given the connection between sleepiness and deliberation, these results add to the literature that has identified conditions under which deliberation impacts ethical choice. When dishonesty harms an abstract "other" person (e.g., the researcher's budget), reduced deliberation more likely increases dishonesty compared to when harm is done to someone at closer social distance (e.g., another subject). |
| Keywords: | ethical choice, dishonesty, antisocial behavior, sleep |
| JEL: | C91 D91 D63 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14537&r= |
| By: | Falk, Armin (briq, University of Bonn); Neuber, Thomas (affiliation not available); Strack, Philipp |
| Abstract: | We study response behavior in surveys and show how the explanatory power of self-reports can be improved. First, we develop a choice model of survey response behavior under the assumption that the respondent has imperfect self-knowledge about her individual characteristics. In panel data, the model predicts that the variance in responses for different characteristics increases in self-knowledge and that the variance for a given characteristic over time is non-monotonic in self-knowledge. Importantly, the ratio of these variances identifies an individual's level of self-knowledge, i.e., the latter can be inferred from observed response patterns. Second, we develop a consistent and unbiased estimator for self-knowledge based on the model. Third, we run an experiment to test the model's main predictions in a context where the researcher knows the true underlying characteristics. The data confirm the model's predictions as well as the estimator's validity. Finally, we turn to a large panel data set, estimate individual levels of self-knowledge, and show that accounting for differences in self-knowledge significantly increases the explanatory power of regression models. Using a median split in self-knowledge and regressing risky behaviors on self-reported risk attitudes, we find that the R2 can be multiple times larger for above- than below-median subjects. Similarly, gender differences in risk attitudes are considerably larger when restricting samples to subjects with high self-knowledge. These examples illustrate how using the estimator may improve inference from survey data. |
| Keywords: | survey research, rational inattention, lab experiment, non-cognitive skills, preferences |
| JEL: | C83 D83 C91 D91 J24 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14526&r= |
| By: | Armin Falk; Thomas Neuber; Philipp Strack |
| Abstract: | We study response behavior in surveys and show how the explanatory power of selfreports can be improved. First, we develop a choice model of survey response behavior under the assumption that the respondent has imperfect self-knowledge about her individual characteristics. In panel data, the model predicts that the variance in responses for different characteristics increases in self-knowledge and that the variance for a given characteristic over time is non-monotonic in self-knowledge. Importantly, the ratio of these variances identifies an individual’s level of self-knowledge, i.e., the latter can be inferred from observed response patterns. Second, we develop a consistent and unbiased estimator for self-knowledge based on the model. Third, we run an experiment to test the model’s main predictions in a context where the researcher knows the true underlying characteristics. The data confirm the model’s predictions as well as the estimator’s validity. Finally, we turn to a large panel data set, estimate individual levels of self-knowledge, and show that accounting for differences in self-knowledge significantly increases the explanatory power of regression models. Using a median split in self-knowledge and regressing risky behaviors on self-reported risk attitudes, we find that the R2 can be multiple times larger for above- than below-median subjects. Similarly, gender differences in risk attitudes are considerably larger when restricting samples to subjects with high self-knowledge. These examples illustrate how using the estimator may improve inference from survey data. |
| Keywords: | survey research, rational inattention, lab experiment, non-cognitive skills, preferences |
| JEL: | C83 D83 C91 D91 J24 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2021_307&r= |
| By: | Armin Falk; Thomas Neuber; Philipp Strack |
| Abstract: | We study response behavior in surveys and show how the explanatory power of self-reports can be improved. First, we develop a choice model of survey response behavior under the assumption that the respondent has imperfect self-knowledge about her individual characteristics. In panel data, the model predicts that the variance in responses for different characteristics increases in self-knowledge and that the variance for a given characteristic over time is non-monotonic in self-knowledge. Importantly, the ratio of these variances identifies an individual’s level of self-knowledge, i.e. the latter can be inferred from observed response patterns. Second, we develop a consistent and unbiased estimator for self-knowledge based on the model. Third, we run an experiment to test the model’s main predictions in a context where the researcher knows the true underlying characteristics. The data confirm the model’s predictions as well as the estimator’s validity. Finally, we turn to a large panel data set, estimate individual levels of self-knowledge, and show that accounting for differences in self-knowledge significantly increases the explanatory power of regression models. Using a median split in self-knowledge and regressing risky behaviors on self-reported risk attitudes, we find that the R2 can be multiple times larger for above- than below-median subjects. Similarly, gender differences in risk attitudes are considerably larger when restricting samples to subjects with high self-knowledge. These examples illustrate how using the estimator may improve inference from survey data. |
| JEL: | C83 D83 C91 D91 J24 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9179&r= |
| By: | Michael Kuroda (Economic Science Institute, Chapman University); Jieran Li (Economic Science Institute, Chapman University); Jason Shachat (Durham University and Wuhan University); Lijia Wei (Wuhan University); Bochen Zhu (Wuhan University) |
| Abstract: | We study whether cross- and within-culture groups have different cooperation rates in the Prisoner’s Dilemma Game. In an experiment, university students in China and America engage in a single iteration of the game, complete belief elicitation tasks regarding their opponents’ play and take a survey including attitudinal measurements regarding their in- and out-group attitudes. Cooperation rates are higher across the two countries are higher in both cross-culture and in within-culture interactions, although not significantly. We also find that Chinese participants cooperate less than American ones. Further, female Chinese participants are more cooperative than Chinese male ones. In the cross-culture treatment, Chinese participants underestimate the likelihood of cooperative behavior of their American counterparts, while Americans overestimate the same likelihood of their Chinese counterparts. Our results also show that Chinese participants cooperate more conditionally than American ones. Finally, while we find some attitudinal in- and out-biases both they do not generate meaningful impact on cooperative behavior. |
| Keywords: | Cross-culture; Prisoner’s Dilemma; Cooperation; Experiment |
| JEL: | C72 C92 D91 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:chu:wpaper:21-14&r= |
| By: | Armin Falk; Peter Andre; Teodora Boneva; Felix Chopra |
| Abstract: | We document individual willingness to fight climate change and its behavioral determinants in a large representative sample of US adults. Willingness to fight climate change – as measured through an incentivized donation decision – is highly heterogeneous across the population. Individual beliefs about social norms, economic preferences such as patience and altruism, as well as universal moral values positively predict climate preferences. Moreover, we document systematic misperceptions of prevalent social norms. Respondents vastly underestimate the prevalence of climate- friendly behaviors and norms among their fellow citizens. Providing respondents with correct information causally raises individual willingness to fight climate change as well as individual support for climate policies. The effects are strongest for individuals who are skeptical about the existence and threat of global warming. |
| JEL: | D64 D83 D91 Q51 Z13 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9175&r= |
| By: | Florian Englmaier; Stefan Grimm; Dominik Grothe; David Schindler; Simeon Andreas Dermot Schudy |
| Abstract: | Tournaments are often used to improve performance in innovation contexts. Tournaments provide monetary incentives but also render teams’ identity and social-image concerns salient. We study the effects of tournaments on team performance in a non-routine task and identify the importance of these behavioral aspects. In a natural field experiment (n>1,700 participants), we vary the salience of team identity, social-image concerns, and whether teams face monetary incentives. Increased salience of team identity does not improve performance. Social-image motivates mainly the top-performing teams. Additional monetary incentives improve all teams’ outcomes without crowding out teams’ willingness to explore or perform similar tasks again. |
| Keywords: | team-work, tournaments, rankings, incentives, identity, image concerns, innovation, exploration, natural field experiment |
| JEL: | C93 D90 J24 J33 M52 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9189&r= |
| By: | Felix Holzmeister; Jürgen Huber; Michael Kirchler; Rene Schwaiger |
| Abstract: | We conducted two large-scale, highly powered randomized controlled trials intended to encourage consumer debt repayments. In Study 1, we implemented five treatments varying the design of envelopes sent to debtors. We did not find any treatment effects on response and repayment rates compared to the control condition. In Study 2, we varied the letters' contents in nine treatments, implementing factorial combinations of social norm and (non-)deterrence nudges, which were either framed emotively or non-emotively. We find that all nudges are ineffective compared to the control condition and even tend to induce backfiring effects compared to the agency's original letter. Since comparable nudges have been shown to be highly effective in other studies, our study supports the literature, emphasizing that the success of nudging interventions crucially depends on the domain of application. |
| Keywords: | Nudging, randomized controlled trial, debt repayment |
| JEL: | C93 D91 G51 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2021-21&r= |
| By: | Mario A. Maggioni; Domenico Rossignoli |
| Abstract: | This paper presents the results of a behavioral experiment conducted between February 2020 and March 2021 at Università Cattolica del Sacro Cuore, Milan Campus, in which students were matched with either a human or a humanoid robotic partner to play an iterated Prisoner’s Dilemma. The results of a Logit estimation procedure show that subjects are more likely to cooperate with human rather than with robotic partners; that they are more likely to cooperate after receiving a dialogic verbal reaction following a sub-optimal social outcome; and that the effect of the verbal reaction is not dependent on the nature of the partner. Our findings provide new evidence on the effects of verbal communication in strategic frameworks. The results are robust to the exclusion of students of Economics-related subjects, to the inclusion of a set of psychological and behavioral controls, to the way subjects perceive robots’ behavior, and to potential gender biases in human-human interactions. |
| JEL: | C91 D91 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:dis:wpaper:dis2101&r= |
| By: | Claudia Keser; Maximilian Späth |
| Abstract: | We study the impact of information on the effectiveness of a taking frame in the context of charitable giving. In our laboratory experiment, either the decision maker (giving frame) or the recipient (taking frame) receives an endowment. In both cases, the decision maker can freely decide the final allocation of the money. In addition to the frame, we vary the level of information that we provide about the worthiness of the receiving charity. In keeping with our theoretical prediction, participants donate significantly more, when the decision is framed as taking rather than as giving. |
| Keywords: | Information,Giving,Taking,Charity,Experiment, |
| JEL: | C91 D64 D80 |
| Date: | 2021–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2021s-23&r= |