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on Cognitive and Behavioural Economics |
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Issue of 2024‒05‒13
four papers chosen by |
| By: | Peter Andre (Leibniz Institute for Financial Research SAFE); Teodora Boneva (Department of Economics, University of Bonn); Felix Chopra (Department of Economics, University of Copenhagen); Armin Falk (Department of Economics, University of Bonn) |
| Abstract: | We document the individual willingness to act against climate change and study the role of social norms in a large sample of US adults. Individual beliefs about social norms positively predict pro-climate donations, comparable in strength to universal moral values and economic preferences such as patience and reciprocity. However, we document systematic misperceptions of social norms. Respondents vastly underestimate the prevalence of climate-friendly behaviors and norms. Correcting these misperceptions inan experiment causally raises individual willingness to act against 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. |
| Keywords: | Climate change, climate behavior, climate policies, social norms, misperception, beliefs, economic preferences, moral values, survey experiments |
| JEL: | D64 D83 D91 Q51 Q54 Z13 |
| Date: | 2024–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kucebi:2408&r=cbe |
| By: | Rene Schwaiger; Markus Strucks; Stefan Zeisberger |
| Abstract: | Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating that MLA’s applicability is confined to highly artificial settings. Given the impact of these findings, we reevaluated the evidence on MLA involving a total of 2, 245 university students, thereby achieving substantially higher statistical power than in almost all previous studies. To clarify inconsistencies in the literature, specifically under more realistic investment environments, we systematically modified the seminal study design by Gneezy and Potters (1997) to include five key adjustments. These involved realistic, down-scaled returns, return compounding, and extended investment horizons. Contrary to some prior studies that have raised doubts about the robustness of MLA, our results—which are highly robust to analytical heterogeneity—consistently document the presence of MLA across all experimental conditions. Our findings substantiate the widespread applicability of MLA and underscore the benefits of disclosing aggregated returns in practical financial decision-making contexts. |
| Keywords: | myopic loss aversion, narrow framing, risk-taking, meta science, replication |
| JEL: | D14 D81 G02 G11 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2024-05&r=cbe |
| By: | Adam, Martin; Roethke, Konstantin; Benlian, Alexander |
| Abstract: | To augment traditional monetization strategies, digital platform providers increasingly draw on gamblification (i.e., the use of gambling design elements). By means of gambling design elements (e.g., lottery tickets, scratch cards, loot boxes), platform providers do not only entertain users but also incentivize them to purchase digital products. Yet, despite the increasing prevalence of gamblified digital platforms, little is known about how gamblification influences user purchase behaviors. Drawing on prospect theory, we investigate gamblification in the form of loot box menu designs and the associated effects of uncertainty, loss experience and behavioral control on user purchase behavior. Specifically, we conducted a contest-based online experiment with 159 participants, finding that platform providers can profit from offering loot boxes with certain (vs. uncertain) rewards in loot box menus. Furthermore, this effect intensifies when participants previously experienced a loss and decreases when they perceive to have more control over the result. Thus, our findings provide theoretical and practical insights for a better understanding of gamblification in general and of loot box menu designs for enhancing digital business models in particular. |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:144177&r=cbe |
| By: | Marlène Guillon (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier); Phu Nguyen-Van (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Bruno Ventelou (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Marc Willinger (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | We study the behavioral determinants of COVID-19 vaccination uptake. The vaccine-pass policy, implemented in several countries in 2021, conditioned the access to leisure and consumption places to being vaccinated against COVID-19 and created an unprecedented situation where individuals' access to consumption goods and vaccine status were interrelated. We rely on a quasi-hyperbolic discounting model to study the plausible relationships between time preference and the decision to vaccinate in such context. We test the predictions of our model using data collected from a representative sample of the French population (N = 1034) in August and September 2021. Respondents were asked about their COVID-19 vaccination status (zero, one, or two doses), as well as their economic and social preferences. Preference elicitations were undertaken online through incentivized tasks, with parallel collection of self-stated preferences. Factors associated with COVID-19 vaccination were investigated using a logistic model. Both elicited and stated impatience were found to be positively associated with COVID-19 vaccination decisions. These results suggest that impatience is a key motivational lever for vaccine uptake in a context where the vaccination decision is multidimensional and impacts the consumption potential. Results also serve to highlight the potential effectiveness of public communications campaigns based on time preferences to increase vaccination coverage. |
| Keywords: | Time preferences, Time inconsistency, Health behavior, COVID-19 Vaccination |
| Date: | 2024–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04516843&r=cbe |