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on Cognitive and Behavioural Economics |
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Issue of 2024‒11‒11
six papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | Breitkopf, Laura; Chowdhury, Shyamal; Priyam, Shambhavi; Schildberg-Hörisch, Hannah; Sutter, Matthias |
| Abstract: | We study the relationship between parenting style and a broad range of children's skills and outcomes. Based on survey and experimental data from 5, 580 children and their parents, we find that children exposed to positive parenting have higher IQs, are more altruistic, open to new experiences, conscientious, and agreeable, have a higher locus of control, self-control, and self-esteem, perform better in scholarly achievement tests, behave more prosocially in everyday life, and are more satisfied with their life. Positive parenting is negatively associated with children's neuroticism, patience, engagement in risky behaviors, and their emotional and behavioral problems. |
| Keywords: | parenting style, child outcomes, economic preferences, personality traits, IQ |
| JEL: | C91 D01 D10 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:304410 |
| By: | Cuimin Ba (University of Pittsburgh); J. Aislinn Bohren (University of Pennsylvania); Alex Imas (University of Chicago) |
| Abstract: | This paper explores how cognitive constraints—namely, attention and processing capacity—interact with properties of the learning environment to determine how people react to information. In our model, people form a simplified mental representation of the environment via salience-channeled attention, then process information with cognitive imprecision. The model predicts overreaction to information when environments are complex, signals are noisy, information is surprising, or priors are concentrated on less salient states; it predicts underreaction when environments are simple, signals are precise, information is expected, or priors are concentrated on salient states. Results from a series of pre-registered experiments provide support for these predictions and direct evidence for the proposed cognitive mechanisms. We show that the two psychological mechanisms act as cognitive complements: their interaction is critical for explaining belief data and together they yield a highly complete model in terms of capturing explainable variation in belief-updating. Our theoretical and empirical results connect disparate findings in prior work: underreaction is typically found in laboratory studies, which feature simple learning settings, while overreaction is more prevalent in financial markets which feature greater complexity. |
| Keywords: | overreaction, underreaction, beliefs, noisy cognition, representativeness, bounded rationality, attention, mental representation, completeness, restrictiveness, behavioral economics, learning, forecasting, inference |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:pen:papers:24-030 |
| By: | Erkut, Hande; Reuben, Ernesto |
| JEL: | D23 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302367 |
| By: | Hampel, Tim |
| Abstract: | Mistakes at work can lead to learning and personal development or can massively harm one's professional career. How a mistake affects a professional career often depends on how it is perceived by involved individuals (e.g. supervisors). In the present study we investigate two different types of mistakes at work: mistakes in routine and complex work tasks. In two experiments with 192 alumni of a German university we tested whether mistakes in routine tasks are judged differently than mistakes in complex work tasks. Results revealed that mistakes are judged significantly more negative when occurring in a routine work task compared to a complex work task. The results of our study give rise to a dilemma of mistakes at work where on basis of dual process theories mistakes are more likely to happen in routinized tasks while at the same time these mistakes are judged more negatively. We discuss an intervention to resolve the dilemma and suggest avenues for future research alongside the limitations of our study. |
| Keywords: | mistakes at work, errors, failures, attitudes towards mistakes, career development |
| JEL: | M |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhbm:304403 |
| By: | Matthes, Julian; Momsen, Katharina |
| JEL: | C91 D01 D83 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302412 |
| By: | Eugen Dimant; Fabio Galeotti; Marie Claire Villeval (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We investigate how individuals select sources of information about peers' behavior and normative views, and the influence of this social information on individual behavior and both empirical and normative expectations. This is explored through two experiments (N=1, 945; N=2, 414) using a lying game, with and without known political identification. Our findings reveal a self-serving bias in the selection of information sources, with a preference for lenient sources (i.e., those presenting more tolerant empirical or normative information about lying), particularly when these sources align with an individual's political identity. We observe that being exposed to information that suggests lying is more socially acceptable increases lying behavior. Additionally, while people's normative expectations are not swayed by observing their peers' actions, these expectations are influenced by information about what peers believe is the right thing to do, underscoring the role of normative information in shaping social norms. |
| Keywords: | Social norms, Information acquisition, Peer effects, Group identity, Lying, Experiment |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04740082 |