New Economics Papers
on Neuroeconomics
Issue of 2011‒11‒14
three papers chosen by

  1. Creativity, Analytical Skills, Personality Traits, and Innovation Game Behavior in the Lab: An Experiment By Agnes Bäker; Werner Güth; Kerstin Pull; Manfred Stadler
  2. Would you train me with my mental illness? Evidence from a discrete choice experiment By Deuchert, Eva; Kauer, Lukas; Meisen Zannol, Flurina
  3. Overconfidence in the Market for Lemons By Herweg, Fabian; Müller, Daniel

  1. By: Agnes Bäker (University of Tübingen, Department of Business and Economics); Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group); Kerstin Pull (University of Tübingen, Department of Business and Economics); Manfred Stadler (University of Tübingen, Department of Business and Economics)
    Abstract: nnovative behavior is mostly studied theoretically, e.g., in models of patent races, and empirically, e.g., by using R&D or patent data. This research, however, is only poorly informed about the psychological tradition of creativity research. Our study is an attempt to experimentally collect behavioral data revealing in how far creativity, analytical skills, personality traits and innovation game behavior in the lab are interrelated. With the help of a within-subject design we find that participants' performance in the innovation games is in fact related to their creativity, risk tolerance and self-control. Other personality traits such participants' anxiety, independence, tough-mindedness and extraversion, if any, only play a minor role, and the same is true for participants' analytical skills.
    Keywords: Creativity, personality traits, innovation games, experiments
    JEL: C91 L13 O31
    Date: 2011–11–09
  2. By: Deuchert, Eva; Kauer, Lukas; Meisen Zannol, Flurina
    Abstract: The low employment among people with disabilities in general, and mental disorders in particular, generates high costs to the society. This raises the need to develop effective vocational rehabilitation methods. Supported Education/Employment is effective in increasing sustainable employment for people with mental disorders. This vocational rehabilitation method places patients directly in realistic work settings instead of training them in a protected work environment. Supported Education and Employment has not yet been widely implemented. Using a discrete choice experiment, we demonstrate that one of the key problems is to find employers willing to provide training. Non-cognitive dysfunctions are the main deterrents.
    Keywords: upported Vocational Education & Training; vocational rehabilitation; mental disorders; discrete choice experiment
    JEL: J24 M53
    Date: 2011–10
  3. By: Herweg, Fabian; Müller, Daniel
    Abstract: We extend Akerlof ’s (1970) “Market for Lemons” by assuming that some buyers are overconfident. Buyers in our model receive a noisy signal about the quality of the good that is at display for sale. Overconfident buyers do not update according to Bayes’ rule but take the noisy signal at face value. The main finding is that the presence of overconfident buyers can stabilize the market outcome by preventing total adverse selection. This stabilization, however, comes at a cost: rational buyers are crowded out of the market.
    Keywords: Adverse Selection; Market for Lemons; Overconfidence
    JEL: D82 L15
    Date: 2011–11

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.