|
on Experimental Economics |
| By: | Daniela Glätzle-Rützler; Matthias Sutter; Claudia Zoller |
| Abstract: | Efficient coordination is a major source of efficiency gains. We study in an experimental coordination game with 718 children and teenagers, aged 9 to 18 years, the strategies played in pre-adulthood. We find no robust age effects in the aggregate, but see that smaller group sizes and larger incentives increase the likelihood of choosing the efficient strategy. Beliefs play an important role as well, as subjects are more likely to play the efficient strategy when they expect others to do so as well. Our results are robust to controlling for individual risk-, time-, and social preferences. |
| Keywords: | coordination game, age, group size, incentives, children, experiment |
| JEL: | C91 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:inn:wpaper:2024-11 |
| By: | Paul M. Lohmann (University of Cambridge); Elisabeth Gsottbauer (Free University of Bozen-Bolzano); Christina Gravert (Department of Economics, University of Copenhagen); Lucia A. Reisch (Judge Business School, University of Cambridge,) |
| Abstract: | This paper explores the relationship between decision-making speed and the effectiveness of two nudges – carbon footprint labelling and menu repositioning – aimed at encouraging climate-friendly food choices. Building on Kahneman’s dual-process theory of decision-making, we examine whether these interventions are more effective in fast, intuitive (System 1) contexts compared to reflective, deliberate (System 2) ones. Using an incentivized online randomized controlled trial with a quasirepresentative sample of British consumers (N=3, 052) ordering meals through an experimental food-delivery platform, we introduced a time-pressure mechanism to capture both fast and slow decision-making processes. Our findings suggest that menu repositioning is an effective tool for promoting climate-friendly choices when decisions are made quickly, though the effect fades with extended deliberation. Carbon labels, in contrast, showed minimal impact overall but reduced emissions among highly educated, climate-conscious individuals under time pressure. The results imply that choice architects should apply both interventions in contexts where consumers make rapid decisions, such as digital platforms, to help mitigate climate externalities. |
| Keywords: | carbon-footprint labelling, choice architecture, food-delivery apps, low-carbon diets, dual-process models, system 1 |
| JEL: | C90 D04 I18 D90 Q18 Q50 |
| Date: | 2024–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2419 |
| By: | Claire Mollier (EconomiX, Paris Nanterre University, France); Aurora García-Gallego (ICAE and Economics Department, Universidad Complutense de Madrid and LEE and Department of Economics, Universitat Jaume I, Castellón, Spain); Tarek Jaber-López (Institute of Public Goods and Policies (IPP), Spanish National Research Council (CSIC), Madrid, Spain); Sarah Zaccagni (Department of Economics and Business Economics, Aarhus University, Denmark.) |
| Abstract: | We investigate how the competition outcome and the gender of the opponent affect the decision to compete again, using a lab experiment. Our experimental design adopts the strategy method to measure individuals’ reactions to winning or losing. Subjects indicate their willingness to compete again based on performance gaps with their opponents. Furthermore, gender is inferred from participant-selected- names, allowing for an exploration of the role played by the opponent’s gender. We find that all subjects are slightly more willing to compete after winning against a female opponent. Also, it is slightly more likely that they accept to re-compete against a male after winning. Males try significantly more to outperform a female after losing, and this is robust when controlling for gender stereotypes and age. |
| Keywords: | competitiveness, gender, feedback, career decisions, lab experiment |
| JEL: | C91 D91 J16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/08 |
| By: | Barron, Kai; Stüber, Robert; van Veldhuizen, Roel |
| Abstract: | An extensive literature documents that people are willing to sacrifice personal material gain to adhere to a moral motive. However, less is known about the psychological mechanisms that operate when two moral motives come into conflict. We hypothesize that individuals adhere to the moral motive that aligns with their self-interest. We test this hypothesis using experiments that induce a conflict between two of the most-studied moral motives: fairness and truth-telling. Consistent with our hypothesis and across experiments, our results show that individuals do prefer to adhere to the moral motive that is more aligned with their self-interest. |
| Keywords: | Moral dilemmas, Dictator game, Lying game, Motives, Motivated reasoning |
| JEL: | C91 D01 D63 D90 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wzbeoc:306849 |
| By: | Guglielmo Briscese; John List |
| Abstract: | Field experiments provide the clearest window into the true impact of many policies, allowing us to understand what works, what does not, and why. Yet, their widespread use has not been accompanied by a deep understanding of the political economy of their adoption in policy circles. This study begins with a large-scale natural field experiment that demonstrates the ineffectiveness of a widely implemented intervention. We leverage this result to understand how policymakers and a representative sample of the U.S. population update their beliefs of not only the policy itself, but the use of science and the trust they have in government. Policymakers, initially overly optimistic about the program's effectiveness, adjust their views based on evidence but show reduced demand for experimentation, suggesting experiment aversion when results defy expectations. Among the U.S. public, support for policy experiments is high and remains robust despite receiving disappointing results, though trust in the implementing institutions declines, particularly in terms of perceptions of competence and integrity. Providing additional information on the value of learning from unexpected findings partially mitigates this trust loss. These insights, from both the demand and supply side, reveal the complexities of managing policymakers' expectations and underscore the need to educate the public on the value of open-mindedness in policy experimentation. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:feb:natura:00799 |
| By: | Elena Stepanova (European Commission, Joint Research Centre (JRC), Ispra, Italy); Marius Alt (European Commission, Joint Research Centre (JRC), Ispra, Italy); Astrid Hopfensitz (emlyon business school, CNRS, Université Lumière Lyon 2, Université Jean Monnet Saint-Etienne, GATE, 69007, Lyon, France) |
| Abstract: | Trust behavior and being trusted are influenced by a multitude of individual and situational factors. Loneliness is a factor that has recently been hypothesized to be related to trust. Societies and governments are increasingly concerned with the rise of loneliness, and a negative impact on trust might add an additional social cost of loneliness. To evaluate the economic risk of loneliness, we present results from a large, incentivized trust experiment conducted with more than 27000 respondents. Our study allows us to investigate (i) the relationship between self-reported loneliness and behavior in an incentivized trust situation and (ii) the impact of knowing about the loneliness status of others on behavior. Contrary to what the literature hypothesized, we observe no negative correlation between self-reported loneliness and trust in the trust game: lonely individuals are more trusting than individuals who are not lonely. Higher trust by lonely individuals cannot be attributed to more optimistic beliefs of returns but seems to reflect a larger willingness of the lonely to take the social risk associated with trusting in the trust game. We further observe that being informed that an interaction partner is lonely leads to a beneficial treatment of the lonely. Individuals known to be lonely are significantly more likely to be trusted, and they benefit from their partners acting more trustworthy. Behavior that cannot be attributed to strategic concerns. We conclude that loneliness should not be considered as a deteriorator of social capital but as an emotional state that organizations should acknowledge to enable individuals to reconnect to others. |
| Keywords: | loneliness, trust, experiment, trust game |
| JEL: | C90 D91 N34 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2420 |
| By: | Fernando Payr\'o; Evan Piermont |
| Abstract: | We consider an analyst whose goal is to identify a subject's utility function through revealed preference analysis. We argue the analyst's preference about which experiments to run should adhere to three normative principles: The first, Structural Invariance, requires that the value of a choice experiment only depends on what the experiment may potentially reveal. The second, Identification Separability, demands that the value of identification is independent of what would have been counterfactually identified had the subject had a different utility. Finally, Information Monotonicity asks that more informative experiments are preferred. We provide a representation theorem, showing that these three principles characterize Expected Identification Value maximization, a functional form that unifies several theories of experimental design. We also study several special cases and discuss potential applications. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.11625 |
| By: | Giacomo Battiston; Lucia Corno (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Eliana La Ferrara |
| Abstract: | Can providing information to potential migrants in uence their decisions about risky and irregular migration? We conduct an experiment with over 7, 000 secondary school students in Guinea, providing information through video testimonials by migrants who settled in Europe and through aggregate statistics. We implement three treatments: (i) information about the risks of the journey; (ii) information about economic outcomes in the destination country; and (iii) a combination of both. One month after the intervention, all treatments led students to update their beliefs about the risks and the economic outcomes of migration, resulting in decreased intentions to migrate. One year later, the Risk Treatment resulted in a 51% decline in migration outside Guinea. This e ect was driven by a decrease in migration without a visa (i.e., potentially risky and irregular) and was more pronounced among poorer students. These findings are consistent with the predictions of a model where individuals choose between not migrating, migrating regularly, or migrating irregularly, and where information increases the perceived cost of irregular migration, thus decreasing migration among poorer students who cannot a ord regular migration. |
| Keywords: | irregular migration, tracking, information experiment, Guinea. |
| JEL: | F22 O15 J61 D8 C93 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie1:def136 |
| By: | Christoph Huber; Felix Holzmeister; Magnus Johannesson; Christian König-Kersting; Anna Dreber; Jürgen Huber; Michael Kirchler |
| Abstract: | Experimental asset markets provide a controlled approach to studying financial markets. We attempt to replicate 17 key results from four prominent studies, collecting new data from 166 markets with 1, 544 participants. Only 3 of the 14 original results reported as statistically significant were successfully replicated, with an average replication effect size of 2.9% of the original estimates. We fail to replicate findings on emotions, self-control, and gender differences in bubble formation but confirm that experience reduces bubbles and cognitive skills explain trading success. Our study demonstrates the importance of replications in enhancing the credibility of scientific claims in this field. |
| JEL: | G12 G41 C91 C92 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:inn:wpaper:2024-12 |
| By: | Alexander Dzionara (Johannes-Gutenberg University, Germany); Niklas M. Witzig (Johannes-Gutenberg University, Germany) |
| Abstract: | In many economic contexts, people need to solve trade-offs between doing an activity (e.g., solving a task) faster and doing it better. While time choices in speed-accuracy trade-offs have been extensively studied in cognitive science for motor-response and perception tasks, little evidence is available for more deliberate economic decision-making, where people’s choices often fail to maximize payoffs. Conversely, the impact of behavioral biases – key explanans of said failure – on time choices has yet to be explored. We present a theoretical model linking time choices in speed-accuracy trade-offs to an agent’s abilities, subjective beliefs and uncertainty attitudes. We test the predictions of the model in an experiment for two distinct (but otherwise identical) environments: prospective time choices before solving a task and simultaneous time choices while solving a task. Correlational analyses indicate that overconfidence (in one’s ability) and uncertainty aversion affect time choices in the prospective but not in the simultaneous environment. Probabilistic structural estimations, aimed at capturing the optimization process on the individual level, support this conclusion. This suggests that long-known behavioral biases influence decisions beyond classical domains like risk and intertemporal choice, but may “play out“ differently in planned versus actual actions. |
| Keywords: | speed-accuracy trade-off, time allocation, beliefs, probability weighting |
| JEL: | C91 D01 D83 D90 D91 |
| Date: | 2024–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:jgu:wpaper:2416 |
| By: | Kibris, Arzu (Department of Politics and International Studies, University of Warwick); Pickard, Harry (Newcastle University Business School, Newcastle University); Uler, Neslihan (Newcastle University Business School, Newcastle University) |
| Abstract: | How does exposure to armed conflict shape individuals’ prosocial behavior toward different identity groups? We study this question using a natural experimental setting that exogenously exposes individuals to armed conflict while isolating individual level mechanisms from broader societal changes. Through an incentivized lab-in-the field donation experiment with a representative sample, we measure altruistic and parochial preferences. We show that conflict exposure significantly reduces donations to out-group recipients. Further analysis reveals this parochial effect stems primarily from war traumas. We identify several individual-level psychological mechanisms driving these results, including heightened negative perceptions of the out-group, increased aggression, and greater authoritarianism. Our findings demonstrate the lasting effects of violent conflict on prosocial behavior, with implications for social cohesion and post-conflict recovery. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:wqapec:24 |
| By: | Martin Dufwenberg (Department of Economics, University of Arizona); Katja Goerlitz (University of Applied Labour Studies); Christina Gravert (Department of Economics, University of Copenhagen) |
| Abstract: | Peer evaluation tournaments are common in academia, the arts, and corporate environments. They make use of the expert knowledge that academics or team members have in assessing their peers performance. However, rampant opportunities for cheating may throw a wrench in the process unless, somehow, players have a preference for honest reporting. Building on Dufwenberg and Dufwenbergs (2018) theory of perceived cheating aversion, we develop a multi-player model in which players balance the utility of winning against the disutility of being identified as a cheater. We derive a set of predictions, and test these in a controlled laboratory experiment. |
| Keywords: | psychological game, cheating, tournaments, laboratory experiment |
| JEL: | C91 |
| Date: | 2024–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2420 |
| By: | Eldar Dadon (BGU); Marie Claire Villeval (CNRS, Université Lumière Lyon 2, Université Jean- Monnet Saint-Etienne, emlyon business school, GATE, 69007, Lyon, France. IZA, Bonn, Germany); Ro’i Zultan (BGU) |
| Keywords: | CSR, signaling, labor market, experiment |
| JEL: | C91 D83 D91 J33 J62 M14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bgu:wpaper:2415 |
| By: | Ruicheng Ao; Hongyu Chen; David Simchi-Levi |
| Abstract: | In this work, we introduce a new framework for active experimentation, the Prediction-Guided Active Experiment (PGAE), which leverages predictions from an existing machine learning model to guide sampling and experimentation. Specifically, at each time step, an experimental unit is sampled according to a designated sampling distribution, and the actual outcome is observed based on an experimental probability. Otherwise, only a prediction for the outcome is available. We begin by analyzing the non-adaptive case, where full information on the joint distribution of the predictor and the actual outcome is assumed. For this scenario, we derive an optimal experimentation strategy by minimizing the semi-parametric efficiency bound for the class of regular estimators. We then introduce an estimator that meets this efficiency bound, achieving asymptotic optimality. Next, we move to the adaptive case, where the predictor is continuously updated with newly sampled data. We show that the adaptive version of the estimator remains efficient and attains the same semi-parametric bound under certain regularity assumptions. Finally, we validate PGAE's performance through simulations and a semi-synthetic experiment using data from the US Census Bureau. The results underscore the PGAE framework's effectiveness and superiority compared to other existing methods. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.12036 |
| By: | Lunzheng Li; Philippos Louis; Zacharias Maniadis; Dimitrios Xefteris |
| Abstract: | Peer assessment’s reliability can be undermined when participants behave strategically. Using a formal model we show how reciprocity can lead to reviewers inflating their rating of each others’ work, which is exacerbated when review takes place sequentially. We conduct a pre-registered online experiment and we find that reviewers engaged in mutual-review relationships inflate their reports more, compared to when reviews are one-sided. For sequential reviews, a non-trivial fraction of first movers maximally over-report. In accordance to our theoretical model, we also find that second movers are responsive to the review they received, but only when reviews are mutual. This reveals the potential for a quid-pro-quo element in mutual reviews. Our results highlight the importance of appropriately structuring peer assessment to take strategic reciprocity motives into account and ensure the system’s reliability. |
| Keywords: | Reciprocity, Lying, Peer Assessment, Experiment |
| JEL: | D9 L2 M5 |
| Date: | 2024–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:ucy:cypeua:06-2024 |
| By: | Tanzir Rahman Khan; Bradley J. Ruffle |
| Abstract: | We introduce a new variant of the Public Goods Game (PGG), building on and com bining the frameworks of Fischbacher et al. (2001) and Cheung (2014). We demonstrate that the widely used player categorizations based on players’ responses to others’ average contribution– such as conditional cooperators, free-riders, and hump-shaped cooperators– fail to fully capture players’ conditioning tendencies. Specifically, players are sensitive to the different distributions of contributions that can arise from a given mean, which leads to a re-categorization of players based on distributions compared to their categorization based solely on averages. Furthermore, we elicit beliefs about the most likely distribution of contributions underlying each mean. We find that providing incentives for correct guesses does not improve accuracy. Moreover, cooperators and free-riders hold widely divergent distributional beliefs. |
| Keywords: | experimental economics; public goods game; conditional cooperation; belief elicitation |
| JEL: | C72 C91 H41 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mcm:deptwp:2024-12 |
| By: | Christian Belzil (CREST, CNRS, Paris Polytechnic Institute, IZA, and CIRANO); Tomáš Jagelka (University of Bonn, Dartmouth College, CREST-Ensae, and IZA) |
| Abstract: | We develop a framework for accounting for individuals’ effort and cognitive noise which confound estimates of preferences based on observed behavior. Using a large-scale experimental dataset we estimate that failure to properly account for decision errors due to (rational) inattention on a more complex, but commonly used, task design biases estimates of risk aversion by 50% for the median individual. Effort propensities recovered from preference elicitation tasks generalize to other settings and predict performance on an OECD-sponsored achievement test used to make international comparisons. Furthermore, accounting for endogenous effort allows us to empirically reconcile competing models of discrete choice. |
| Date: | 2024–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:crs:wpaper:2024-13 |
| By: | Baptiste Rigaux; Sam Hamels; Marten Ovaere (-) |
| Abstract: | As renewable energy grows, flexible electricity demand becomes essential. We conducted a field experiment with nine heat pumps in well-insulated homes near Ghent, Belgium. During 287 flexibility interventions, we remotely deactivated heating until indoor temperatures reached predefined thresholds or households manually overruled the intervention. After initiating a flexibility event, the heat pump power is initially lowered by 250Won average per unit in the fleet. As some heat pumps in the fleet reactivate, they consume more power to restore their threshold temperatures, triggering a rebound effect that gradually reduces net power savings achieved. On average, net power savings become zero after 18 hours, followed by a rebound period. Overall heat pump consumption was reduced by 1 kWh per event, stabilizing 36 hours after the event start. If flexibility activation is timed strategically, up to €1.1 can be saved through price arbitrage, assuming energy-crisis-level wholesale prices. Colder weather significantly influences savings, by increasing heat pump power available for flexibility but also amplifying rebound effects. This flexibility came with moderate comfort impacts: on average, indoor temperatures were 0.38°C lower during interventions. However, 19% of interventions were manually overruled when larger temperature drops occurred, with households citing discomfort, illness, or occupancy as factors on an online dashboard. These findings suggest that flexible residential heating can support renewable energy integration with moderate comfort impacts. |
| Keywords: | Electricity Demand; Flexibility; Direct Load Control; Field Experiment; Household; Heat Pump; Thermal Comfort |
| JEL: | Q40 Q41 D12 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:24/1101 |
| By: | José Javier Domínguez; Juan Antonio Lacomba; Francisco Lagos; Natalia Montinari |
| Abstract: | The underrepresentation of women in male-dominated labor markets is often linked to biased perceptions of their capabilities. In recent decades, Spain has advanced significantly in including women in political and economic roles. This study examines how these shifts impact perceptions of women’s abilities and managerial decisions (i.e. hiring and task assignments). We conducted an online experiment with a representative sample of the Spanish population (N=806), focusing on the effects of age and gender. Results show either gender equality or positive discrimination favouring women. Additionally, age positively influences hiring decisions, likely due to shifting beliefs as workplace exposure to women increases. Evidence from a new Spanish sample (N=1, 450) supports this mechanism through the contact hypothesis, indicating that increased exposure to women in the workplace reduces gender bias among older male employers. To test whether results are specific to Spain, we conducted a robustness check with a representative sample from Italy (N=1, 450), a country with similar culture but differing gender equality trends. The findings were consistent. These age-related patterns underscore the importance of workplace characteristics in shaping employment decisions and offer insights for strategies to foster inclusion and reduce gender discrimination. |
| JEL: | D03 C91 J71 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1199 |
| By: | Vasudha Chopra (Plaksha University); Christian A. Vossler (Department of Economics, University of Tennessee) |
| Abstract: | Researchers deploying stated preference surveys to elicit monetary valuations for public goods commonly use techniques devised to reduce bias in hypothetical choice settings. This practice is conceptually at odds with accumulated evidence that most survey respondents instead perceive that their decisions have economic consequences (i.e., affect their future welfare). We examine three bias reduction procedures in both hypothetical choice and incentive compatible, real payment settings: cheap talk, solemn oath, and certainty adjustment. While we find that the oath reduces willingness to pay (WTP) in a hypothetical setting, the oath instead increases WTP by over 30% in a consequential setting. Cheap talk does not alter mean WTP in a consequential setting but leads to a stark difference in WTP across sexes. Applying the common rules for ex post adjustment of choices based on stated response certainty leads to significant and large decreases in WTP estimates for both hypothetical and consequential cases. Our results suggest that survey researchers should make use of screening questions to better target hypothetical bias reduction techniques to only those prone to bias. |
| Keywords: | hypothetical bias, consequentiality, stated preferences, experiments, solemn oath, cheap talk, certainty adjustment |
| JEL: | C92 D82 D9 H41 Q51 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ten:wpaper:2024-03 |
| By: | Edward Honda; Keh-Kuan Sun |
| Abstract: | We provide and axiomatize a representation of preferences over lotteries that generalizes the expected utility model. Our representation is consistent with the violations of the independence axiom that we observe in the laboratory experiment that we conduct. The violations differ from the Allais Paradox in that they are incompatible with some of the most prominent non-expected utility models. Our representation can be interpreted as a decision-maker with context-dependent attitudes to risks and allows us to generate various types of realistic behavior. We analyze some properties of our model, including specifications that ensure preferences for first-order stochastic dominance. We test whether subjects in our experiment exhibit the type of context-dependent risk attitudes that arise in our model. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.13823 |
| By: | Giampaolo Bonomi |
| Abstract: | As US political party leaders increasingly take stances both on economic and cultural (i.e., social policy) issues, the economic views of opposite cultural groups are growing apart. This paper explores a novel explanation for this phenomenon. I provide experimental evidence that adding social policy content to a policy message pushes those disagreeing with the social policy to disagree also with the economic content of the message. As my results suggest regular deviations from Bayesian explanations, I propose a model of identity-based belief updating that predicts the main regularities found in the experiment. Finally, I shed light on opinion leaders' incentives to strengthen the association between social policy and economic policy views. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.11186 |
| By: | Sofia Amaral (World Bank); Aixa Garcia-Ramos (University of Passau); Selim Gulesci (Trinity College Dublin); Sarita Oré (Teachers College, Columbia University); Alejandra Ramos (Trinity College Dublin); Maria Micaela Sviatschi (Princeton University) |
| Abstract: | Gender-based violence (GBV) at schools is a pervasive problem that affects millions of adolescent girls worldwide. In partnership with the Ministry of Education in Mozambique, we developed an intervention to increase the capacity of key school personnel to address GBV and to improve students' awareness as well as proactive behaviors. To understand the role of GBV on girls' education, we randomized not only exposure to the intervention but also whether the student component was targeted to girls only, boys only, or both. Our findings indicate a reduction in sexual violence by teachers and school staff against girls, regardless of the targeted gender group, providing evidence of the role of improving the capacity of key school personnel to deter perpetrators. Using administrative records, we also find that in schools where the intervention encouraged proactive behavior by girls, there was an increase in their school enrollment, largely due to an increased propensity for GBV reporting by victims. Our findings suggest that effectively mitigating violence to improve girls' schooling requires a dual approach: deterring potential perpetrators and fostering a proactive stance among victims, such as increased reporting. |
| Keywords: | Gender-Based Violence, Schooling, Adolescents |
| JEL: | O12 J16 I25 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep1024 |
| By: | James Alm (Tulane University); Weizheng Lai (University of Maryland, College Park); Xun Li (Wuhan University); Peiwen Yuan (Peking University) |
| Abstract: | âHomophilyâ â the tendency of individuals to associate with others who are similar â is considered as a key determinant of friendships. Most studies focus on the homophily of friendships as measured by demographic characteristics. In this paper, we explore patterns of homophily as measured by risk preferences and social preferences, both of which are elicited from a large-scale laboratory experiment. Our focus is on gender differences in homophily, which are examined by testing for behavioral gaps in friendship formation within a pair of same-gender friends in a series of decision-making tasks. We find significant gender differences in homophily: among males, friendship appears along with similar patterns in social decision-making, while females are more likely to become friends with those who exhibit different patterns of decision-making. Our findings are consistent across various robustness checks. We conclude by proposing potential explanations for these gender differences. |
| Keywords: | Homophily; Friendship Formation; Risk Preferences; Social Preferences; Gender Differences |
| JEL: | D85 D91 J16 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:tul:wpaper:2412 |
| By: | Christian Belzil (CREST, CNRS, Paris Polytechnic Institute, IZA, and CIRANO); Jörgen Hansen (Concordia University, CIREQ and IZA); Julie Pernaudet (University of Chicago) |
| Abstract: | Using the unique design of a field experiment among Canadian high school students combined with early life-cycle data collected 10 years later, we estimate the impacts of financial aid distributed as grants on the distribution of university majors. We find that financial aid raises net university enrollment and graduation rates but attracts marginal entrants with lower STEM enrollment probabilities than the population enrolling under the status quo (the composition effect). Among the latter population, financial aid also reduces STEM enrollment and graduation probabilities (the structural effect). Our results thereby reveal potential unintended consequences of financial aid on students’ educational outcomes. |
| Keywords: | Financial Aid, College Enrollment, College Majors, STEM, Liquidity Constraints. |
| JEL: | I2 J1 J3 |
| Date: | 2024–12–09 |
| URL: | https://d.repec.org/n?u=RePEc:crs:wpaper:2024-14 |
| By: | Claudia Biancotti; Carolina Camassa; Andrea Coletta; Oliver Giudice; Aldo Glielmo |
| Abstract: | Advancements in large language models (LLMs) have renewed concerns about AI alignment - the consistency between human and AI goals and values. As various jurisdictions enact legislation on AI safety, the concept of alignment must be defined and measured across different domains. This paper proposes an experimental framework to assess whether LLMs adhere to ethical and legal standards in the relatively unexplored context of finance. We prompt nine LLMs to impersonate the CEO of a financial institution and test their willingness to misuse customer assets to repay outstanding corporate debt. Beginning with a baseline configuration, we adjust preferences, incentives and constraints, analyzing the impact of each adjustment with logistic regression. Our findings reveal significant heterogeneity in the baseline propensity for unethical behavior of LLMs. Factors such as risk aversion, profit expectations, and regulatory environment consistently influence misalignment in ways predicted by economic theory, although the magnitude of these effects varies across LLMs. This paper highlights both the benefits and limitations of simulation-based, ex post safety testing. While it can inform financial authorities and institutions aiming to ensure LLM safety, there is a clear trade-off between generality and cost. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.11853 |
| By: | Liam D'Hert; Louis Lippens; Stijn Baert (-) |
| Abstract: | Sustaining social security systems amidst an ageing population requires (re)integrating the unemployed and inactive into work. However, stigma surrounding non-employment history can create barriers to finding a job. Whilst unemployment stigma is well-documented, inactivity stigma remains under the radar. To address whether, why, and when inactivity hinders hiring, we employed a vignette experiment where real-life recruiters rated fictitious applicants with varying non-employment breaks on hireability and productivity. Results reveal employers rank candidates by their reason for being out of work: those with training breaks rank highest, followed by former caregivers, the previously ill and the unemployed, and last, the discouraged. Productivity perceptions match this pattern. Trainees score highest for skills, motivation, cognition, discipline, reliability, flexibility, and trainability. Caregivers excel in perceived social skills but fall short on flexibility. The previously ill are seen as more motivated than the unemployed but likely raise health concerns. The discouraged trigger the harshest stigma, particularly for motivation and self-discipline. Longer lapses hurt hiring chances, but not for training breaks. |
| Keywords: | career break, unemployment, inactivity, hiring chances, factorial survey experiment |
| JEL: | C91 E24 J21 J64 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:24/1100 |
| By: | Agata Galkiewicz; Jan Marcus; Thomas Siedler |
| Abstract: | To reduce cheating in written tests and exams, assessors often randomly vary the order of questions across students. However, little is known about the potential unintended side effects of question order. This paper examines whether randomizing students to start with an easier or harder question makes a difference to overall assessment performance in incentivized testing situations under time pressure. Using data from more than 8, 000 online tests and exams administered in econometrics and statistics courses at two of Germany's largest universities, we find no evidence that the difficulty of the first question(s) has an effect on overall assessment performance. Our findings are good news for people designing (online) assessments, because randomizing the order of questions can be used as an effective tool to mitigate cheating, but does not affect students' overall performance. |
| Keywords: | education, university students, question order, randomization, e-learning, teaching of economics |
| JEL: | A22 I23 |
| Date: | 2024–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:bdp:dpaper:0055 |
| By: | Nikhil Masters (University of Essex); Tim Lloyd (Bournmouth University); Chris Starmer (University of Nottingham) |
| Abstract: | Existing research has demonstrated carryover effects whereby emotions generated in one context influence decisions in other, unrelated ones. We examine the carryover effect in relation to valuations of risky and ambiguous lotteries with a novel focus on the comparison of carryovers arising from a targeted stimulus (designed to elicit a specific emotion) with those arising from a naturalistic stimulus (designed to produce a more complex emotional response). We find carryover effects using both types of stimuli, but they are stronger for the naturalistic stimulus and in the context of ambiguity, providing a proof of concept that carryover effects can be observed when moving away from highly stylised settings. These effects are also gender specific with only males being susceptible. To probe the emotional foundations of the carryover effect, we conduct analysis relating individual self-reports of emotions to valuation behaviour. Our results cast doubt on some previously claimed links between specific incidental emotions and risk taking. |
| Keywords: | incidental emotions; emotional carryover; risk; ambiguity; naturalistic |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:not:notcdx:2024-09 |