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on Neuroeconomics |
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Issue of 2009‒10‒31
four papers chosen by |
| By: | Dohmen Thomas; Falk Armin; Huffman David; Sunde Uwe (METEOR) |
| Abstract: | This paper investigates whether risk aversion and impatience are correlated with cognitive ability. We conduct incentive compatible choice experiments measuring risk aversion, and impatience over an annual time horizon, for a representative sample of roughly 1,000 German adults. A measure of cognitive ability is provided by two submodules of one of the most widely used IQ tests. Interviews are conducted in subjects'' own homes. We find that lower cognitive ability is associated with greater risk aversion, and more pronounced impatience. These relationships are statistically and economically significant, and robust to controlling for personal characteristics, educational attainment, income, and measures of liquidity constraints. We perform a series of additional robustness checks, which help rule out other possible confounds. |
| Keywords: | Economics ; |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2009042&r=neu |
| By: | Dohmen Thomas; Falk Armin; Huffman David; Sunde Uwe; Schupp Jürgen; Wagner Gert G. (METEOR) |
| Abstract: | This paper studies risk attitudes using a large representative survey and a complementary experiment conducted with a representative subject pool in subjects'' homes. Using a question asking people about their willingness to take risks "in general", we find that gender, age, height, and parental background have an economically significant impact on willingness to take risks. The experiment confirms the behavioral validity of this measure, using paid lottery choices. Turning to other questions about risk attitudes in specific contexts, we find similar results on the determinants of risk attitudes, and also shed light on the deeper question of stability of risk attitudes across contexts. We conduct a horse race of the ability of different measures to explain risky behaviors such as holdings stocks, occupational choice, and smoking. The question about risk-taking in general generates the best all-around predictor of risky behavior. |
| Keywords: | Economics ; |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2009041&r=neu |
| By: | Vlaev, I; Dolan, P |
| Abstract: | Existing theories of behaviour change in psychology and behavioural economics rely mostly on changing cognitions and incentives as a route to altering behavioural responses. We propose a more general reflective-automatic model (RAM), which postulates that, in addition to cognitive change, interventions can also rely exclusively on contextual change as an alternative route to behaviour change. RAM is a dual-process model which assumes that these two routes rely predominantly on different information processing systems – the reflective system is in charge of changing cognitions and the automatic system responds to changing the context. We also identify four processes: salience, norms, affect, and priming (SNAP), which can bring about behaviour change by relying mainly on the automatic system. The SNAP processes might be important targets for population-wide behaviour change initiatives and have important implications for psychological research, health promotion and policy analysis |
| Date: | 2009–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:imp:wpaper:4197&r=neu |
| By: | Emmanuel PETIT (GREThA UMR CNRS 5113) |
| Abstract: | We test the effect of emotions on moral behaviour in a one shot gift-exchange game. Using the emotional induction technique, we induce either positive or negative emotions to the subjects before they play the game. We also consider a control treatment, without any affect manipulation. Emotional induction was effective: participants who saw the shocking and appalling movie reported significantly stronger negative emotions and weaker positive emotions than those who saw the funny movie. We find that players’ choices differ significantly across emotional conditions: we observe essentially that second movers who experience positive or neutral emotions do reciprocate whereas subjects overwhelmed with indignation, anger or guilt feelings show a very strong unconditional generous behaviour and do not reciprocate at all. We argue that indignation has a strong proactive force which allows subjects to reveal to themselves their own true values. |
| Keywords: | Emotions; moral values; gift-exchange game |
| JEL: | A12 C70 C91 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2009-10&r=neu |