New Economics Papers
on Neuroeconomics
Issue of 2010‒05‒22
four papers chosen by

  1. Classification of functional data: a weighted distance approach By Andrés M. Alonso; David Casado; Juan Romo
  2. How Cognitive Maps May Help Understand Consumer Attitude? By Ricci, Sophie; Fourcadet, Olivier
  3. Advertising Message Processing Amongst Urban Children: With Reference To TV Advertising in Pakistan. By Zain, Ul Abideen; Farooq, Waqas
  4. Investment, Resolution of Risk, and the Role of Affect By Hopfensitz, Astrid; Krawczyk, Michal; Van Winden, Frans

  1. By: Andrés M. Alonso; David Casado; Juan Romo
    Abstract: A popular approach for classifying functional data is based on the distances from the function or its derivatives to group representative (usually the mean) functions or their derivatives. In this paper, we propose using a combination of those distances. Simulation studies show that our procedure performs very well, resulting in smaller testing classication errors. Applications to real data show that our procedure performs as well as –and in some cases better than– other classication methods.
    Keywords: Discriminant analysis, Functional data, Weighted distances
    Date: 2009–07
  2. By: Ricci, Sophie; Fourcadet, Olivier
    Abstract: At the beginning of this research, we had in mind the low consumption level of fruits and vegetables among French young people despite several months of intense exposure to health messages, such as âeat 5 portions of fruits and vegetables every dayâ. Studies show that French young people have memorized the messages, but did not alter their eating habits. Our major hypothesis was that some âmental blocksâ might be curbing fruit consumption, and removing them might increase consumption. Similarly we thought that some âmental leversâ if well activated could increase fruit consumption. Identifying âmental blocksâ and âmental leversâ related to fruits became our research goal. To achieve this objective, building the cognitive map of the fruit universe appears an appropriate method. In the process of constructing the map we discovered that we could also assess, although imperfectly, how people have formed their mental representation over the courses of the years.
    Keywords: Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty,
    Date: 2009–10
  3. By: Zain, Ul Abideen; Farooq, Waqas
    Abstract: The current study extends the knowledge of cognitive processing of advertising messages by urban children in Pakistan. Data were collected from 230 children in age bracket 7 - 12 years, drawn by using the cluster sampling approach. Structured questionnaire using three point rating scale was used. Data analysis showed that children’s capability to understand, decode and process advertising messages is directed not only by their own cognitive capabilities at different age levels but also through societal and personal backgrounds. Some communal and social customs related to tolerability and aptness of human behavior also manipulate the processing of advertising messages by children of either sex. Some other factors including the model liking, role played, story, and jingle will not only influence liking or disliking of some specific advertisements and therefore its decoding. At this age group, it was not appropriate to use advanced psychometric techniques for study, so, a simple three a point scale was used for data collection. Further research may explore other insights by using development in measuring tools and techniques. How advertising messages are decoded by children and which are important sources of persuading and influencing is a topic not explored much in Pakistan. Therefore, the study would add some insights for good understanding the children’s capabilities to process and ultimately scheming valuable communication approaches.
    Keywords: Advertising; Cognitive Processing; Communication; Pakistan; Children
    JEL: M37
    Date: 2009–12–29
  4. By: Hopfensitz, Astrid; Krawczyk, Michal; Van Winden, Frans
    Abstract: This experimental study is concerned with the impact of the timing of the resolution of risk on investment behavior, with a special focus on the role of affect. In a between-subjects design we observe the impact of a substantial delay of risk resolution (2 days) on investment choices. Besides the resolution timing all other factors, including the timing of payout, are held constant across treatments. In addition, state-of-the-art experimental techniques from experimental economics and psychology are used for eliciting preferences and to explicitly measure emotions and personality traits. Participants put their own money at stake. Our main finding is that the timing of the resolution of risk matters for investment, modulated by the probability of investment success. Emotions are found to play a significant role in this respect and explain our main finding. Our results support recent models of decision making under risk trying to incorporate anticipatory emotions but also uncover some important shortcomings related to the dynamics of emotions.
    Keywords: investment decision, delayed resolution of risk, emotions
    JEL: C91 D91 G11
    Date: 2009–11

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