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on Neuroeconomics |
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Issue of 2013‒08‒10
two papers chosen by |
| By: | Florian Lindner |
| Abstract: | Entry decisions in market entry games usually depend on the belief about how many others are entering the market, the belief about the own rank in a real effort task, and subjects' risk preferences. In this paper I am able to replicate these basic results and examine two further dimensions: (i) the level of strategic sophistication, which has a positive impact on entry decisions, and (ii) the impact of time pressure, which has a (partly) negative influence on entry rates. Furthermore, when ranks are determined using a real effort task, differences in entry rates are explainable by higher competitiveness of males. Additionally, I show that individual characteristics are more important for the entry decision in more competitive environments. |
| Keywords: | Market entry game, Time pressure, Level-k reasoning, Risk, Competitiveness, Experiment |
| JEL: | C72 C91 D81 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2013-19&r=neu |
| By: | Andreas Orland |
| Abstract: | I examine the determinants of both perceived inflation and unemployment in one single survey and include personality traits (BFI-S) in the analysis. This is the first survey on this topic in Germany. My sample consists of 1,771 students from different fields and levels. Using PhD students’ estimates as a reference, I create categories for underestimation and overestimation of both variables. Multinomial logit regressions show that females overestimate both variables. Education and news consumption reduce misestimation. A higher level of Neuroticism is related with a higher probability to overestimate unemployment. Overstating (understating) one indicator is associated with overstating (understating) the other. |
| Keywords: | Survey; inflation perception; unemployment perception; personality traits; cross-sectional heterogeneity |
| JEL: | C20 D12 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0424&r=neu |