New Economics Papers
on Neuroeconomics
Issue of 2012‒06‒13
four papers chosen by

  1. Retirement and cognitive development: are the retired really inactive? By Grip Andries de; Dupuy Arnaud; Jolles Jelle; Boxtel Martin van
  2. Warning Young Adults Against Tobacco Consumption Through Ad Parodies: its Effects on Cigarette Brands Attitude By Béatrice Parguel; Renaud Lunardo; Jean-Charles Chebat
  3. Reported happiness, fast and slow By Raphael Studer; Rainer Winkelmann
  4. Bayesian Games with Unawareness and Unawareness Perfection By Meier, Martin; Schipper, Burkhard C.

  1. By: Grip Andries de; Dupuy Arnaud; Jolles Jelle; Boxtel Martin van (ROA rm)
    Abstract: This paper uses longitudinal test data to analyze the relation between retirement andcognitive development. Controlling for individual fixed effects, we find that retirees facegreater declines in information processing speed than those who remain employed.However, remarkably, their cognitive flexibility declines less, an effect that appears to bepersistent 6 years after retirement. Both effects of retirement on cognitive developmentare comparable to those of a five to six-year age difference. They cannot be explained by(1) a relief effect after being employed in low-skilled jobs, (2) mood swings or (3) changesin lifestyle. Controlling for changes in blood pressure, which are negatively related tocognitive flexibility, we still find lower declines in cognitive flexibility for retirees. Sincethe decline in information processing speed after retirement holds particularly for thelow educated, activating these persons after retirement could lower the social costs ofan aging society.
    Keywords: education, training and the labour market;
    Date: 2012
  2. By: Béatrice Parguel (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine); Renaud Lunardo (Bordeaux Ecole de Management - Bordeaux Management School (BEM)); Jean-Charles Chebat (HEC Montréal - HEC MONTRÉAL)
    Abstract: This paper compares the effects of anti-tobacco ad parodies and visual cigarette package warnings on emotional and cognitive responses of young adults. The findings indicate that graphic-only ad parodies can compete with warnings in their attempt to damage consumers' attitude toward tobacco brands through the health beliefs they lead consumers to associate to the brand. On the contrary, text-only ad parodies prove counterproductive and lead to a boomerang effect characterized by an increase in consumers' tobacco brand attitude.
    Keywords: ad parodies ; tobacco consumption ; emotions ; cognitive ; Ab
    Date: 2012
  3. By: Raphael Studer; Rainer Winkelmann
    Abstract: In this paper, we test how reporting behaviors (response time, cognitive effort, questionnaire order) affect reported happiness in a large Dutch internet panel survey. We find that slower responses and higher cognitive effort reduce reported happiness. Moreover, in multivariate happiness equations, these factors moderate the estimated effect of income on happiness, while no interaction effects are found for other determinants of happiness. As a consequence, relative marginal effects may not be invariant to reporting circumstances.
    Keywords: Reporting function, happiness, mood
    JEL: I31
    Date: 2012–05
  4. By: Meier, Martin (IHS Vienna); Schipper, Burkhard C. (University of CA, Davis)
    Abstract: Applying unawareness belief structures introduced in Heifetz, Meier, and Schipper (2012), we develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower awareness levels. We apply Bayesian games with unawareness to investigate the robustness of equilibria to uncertainty about opponents' awareness of actions. We show that a Nash equilibrium of a strategic game is robust to unawareness of actions if and only if it is not weakly dominated. Finally, we discuss the relationship between standard Bayesian games and Bayesian games with unawareness.
    JEL: C70 C72 D80 D82
    Date: 2012–05

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