nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2022‒05‒23
five papers chosen by
Marco Novarese
Università degli Studi del Piemonte Orientale

  1. Preferences and Perceptions in Provision and Maintenance Public Goods By Simon Gaechter; Felix Koelle; Simone Quercia
  2. Identifying self-image concerns from motivated beliefs: Does it matter how and whom you ask? By Lata Gangadharan; Philip J. Grossman; Nina Xue
  3. The Variability of Conditional Cooperation in Sequential Prisoner’s Dilemmas By Simon Gaechter; Kyeongtae Lee; Martin Sefton
  4. How Can Students' Entrepreneurial Intention Be Increased? The Role of Psychological Capital, Perceived Learning From an Entrepreneurship Education Program, Emotions and Their Relationships By Séverine Chevalier; Isabelle Calmé; Hélène Coillot; Karine Le Rudulier; Evelyne Fouquereau
  5. Green start-ups and the role of founder personality By Chapman, Gary; Hottenrott, Hanna

  1. By: Simon Gaechter (University of Nottingham); Felix Koelle (University of Cologne); Simone Quercia (University of Verona)
    Abstract: We study two generic versions of public goods problems: in Provision problems, the public good does not exist initially and needs to be provided; in Maintenance problems, the public good already exists and needs to be maintained. We document a robust asymmetry in preferences and perceptions in two incentive-equivalent versions of these public good problems. We find fewer conditional cooperators and more free riders in Maintenance than Provision, a difference that is replicable, stable, and reflected in perceptions of kindness. Incentivized control questions administered before gameplay reveal dilemma-specific misperceptions but controlling for them neither eliminates game-dependent conditional cooperation, nor differences in perceived kindness of others’ cooperation. Thus, even when sharing the same game form, Maintenance and Provision are different social dilemmas that require separate behavioral analyses. A theory of revealed altruism can explain some features of our results.
    Keywords: maintenance and provision social dilemmas, conditional cooperation, kindness, misperceptions, experiments, revealed altruism
    Date: 2022–09
  2. By: Lata Gangadharan (Monash University, Department of Economics); Philip J. Grossman (Monash University, Department of Economics); Nina Xue (Monash University, Department of Economics)
    Abstract: Beliefs are increasingly recognised as an important driver of behaviour, but measuring beliefs is not straightforward. We design a giving experiment to compare beliefs using different elicitation mechanisms when motivated reasoning may be present. We propose a new means of identifying self-image concerns through beliefs about the behaviour of others. Consistent with a simple theoretical framework, we find evidence of self-image biases for non-donors when beliefs are not incentivised, while donors’ beliefs are more accurate, irrespective of the incentive mechanism. Offering a binary incentive does not reduce non-donors’ pessimism about others, however, a variation of the Becker-DeGroot-Marschak (BDM) procedure does appear to “debias” their beliefs. Our results also show that belief biases do not vary with the timing of belief elicitation.
    Keywords: self-image, motivated beliefs, incentive mechanisms, altruism, experiment
    JEL: C9 D9 H4
    Date: 2022–04
  3. By: Simon Gaechter (University of Nottingham); Kyeongtae Lee (Economic Research Institute, Bank of Korea); Martin Sefton (University of Nottingham)
    Abstract: We examine how conditional cooperation is related to the material payoffs in a Sequential Prisoner’s Dilemma experiment. We have subjects play eight SPDs with varying payoffs, systematically varying the material gain to the second-mover and the material loss to the first-mover when the second-mover defects in response to cooperation. We find that few second-movers are conditionally cooperative in all eight games, and most second-movers change their strategies from game to game. Second-movers are less likely to conditionally cooperate when the gain is higher and when the loss is lower. This pattern is consistent with models of distributional preferences.
    Keywords: prisoner’s dilemma, conditional cooperation,
    Date: 2022–10
  4. By: Séverine Chevalier (QualiPsy - E.E. 1901 - Qualité de vie et Santé psychologique [Tours] - UT - Université de Tours); Isabelle Calmé (VALLOREM - Val de Loire Recherche en Management - UO - Université d'Orléans - UT - Université de Tours); Hélène Coillot (QualiPsy - E.E. 1901 - Qualité de vie et Santé psychologique [Tours] - UT - Université de Tours); Karine Le Rudulier (IODE - Institut de l'Ouest : Droit et Europe - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Evelyne Fouquereau (QualiPsy - E.E. 1901 - Qualité de vie et Santé psychologique [Tours] - UT - Université de Tours)
    Abstract: Entrepreneurship education has become a major focus of interest for researchers and national policy makers to encourage students to pursue entrepreneurial careers. The research on entrepreneurship education-entrepreneurial intentions (EIs) has yielded mixed results, and indicates the need to focus on antecedents of EI. More precisely, the aim of this paper was to examine antecedents of students' EI in French entrepreneurship education programs. Participants were 460 French university undergraduates. Structural equation modeling results revealed that students' Psychological Capital (PsyCap) had a significant positive relationship with perceived learning from the program and a significant negative relationship with negative emotions related to entrepreneurial actions. They also show that PsyCap indirectly enhanced EI. More precisely, students with high PsyCap learned more from the program in terms of perceived skills and knowledge and in turn had a higher EI. Moreover, students with high PsyCap had less entrepreneurial action-related doubt, fear and aversion, which also increased EI. This decrease in negative emotions can be explained notably by what students perceived they had learned from the program. This article concludes with the implications of these findings for future research and practical applications.
    Keywords: psychological capital,entrepreneurial intention,entrepreneurship education
    Date: 2022
  5. By: Chapman, Gary; Hottenrott, Hanna
    Abstract: Green start-ups play a vital role in the needed transition towards more environmentally sustainable economies. Yet our understanding of why some founders start green ventures and others do not remains incomplete. We build on the cognitive and decision-making perspectives on start-ups proenvironmental engagement to shed light on the role of founders' personality traits - focusing on the 'Big 5' and risk tolerance - in explaining whether founders' start new ventures with environmentally friendly products. Our analysis of a large, representative, manufacturing and service sector sample of German start-ups illustrates the important role of founder personality traits. Specifically, openness and extraversion promote environmentally friendly products while neuroticism inhibits it. We discuss the implications of these insights.
    Keywords: emission reduction,environmentally friendly products,green innovation,Big Fivepersonality traits,sustainability
    JEL: G24 L26 O25 O31
    Date: 2022

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