nep-neu 2014-08-20 papers

on Neuroeconomics

Issue of 2014‒08‒20
two papers chosen by

Fertility in the absence of self-control By Bertrand Wigniolle
Does More Detailed Information Mean Better Performance? An Experiment in Information Explicitness By Zilu Shang; Chris Brooks; Rachel McCloy

Fertility in the absence of self-control

By:	Bertrand Wigniolle (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
Abstract:	This paper studies the quantity-quality trade-off model of fertility, under the assumption of hyperbolic discounting. It shows that the lack of self-control may play a different role in a developed economy and in a developing one. In the first case, characterized by a positive investment in quality, the lack of self-control may tend to reduce fertility. In the second case, it is possible that the lack of self-control leads to both no investment in quality and a higher fertility rate. It is also proved that if parents cannot commit on their investment in quality, a small change of parameters may lead to a jump in fertility and education.
Keywords:	endogenous fertility; quasi-hyperbolic discounting
Date:	2013–07
URL:	http://d.repec.org/n?u=RePEc:hal:pseose:halshs-00823264&r=neu

Does More Detailed Information Mean Better Performance? An Experiment in Information Explicitness

By:	Zilu Shang (ICMA Centre, Henley Business School, University of Reading); Chris Brooks (ICMA Centre, Henley Business School, University of Reading); Rachel McCloy (University of Reading)
Abstract:	Investors are now able to analyse more noise-free news to inform their trading decisions than ever before. Their expectation that more information means better performance is not supported by previous psychological experiments which argue that too much information actually impairs performance. To test whether more information always means better performance in the stock markets, an experiment is conducted based on a trading simulation manipulated from a real market-shock. The results indicate that the explicitness of information neither improves nor impairs participants’ performance effectiveness from the perspectives of returns, share and cash positions, and trading volumes. However, participants’ performance efficiency is significantly affected by information explicitness. Although they need less time to implement their decisions when placing an order, explicitly informed investors are punished by making more mistakes.
Keywords:	explicitness of information, performance effectiveness, performance efficiency, individual investors, experimental finance
JEL:	C91 D82 G02
Date:	2013–06
URL:	http://d.repec.org/n?u=RePEc:rdg:icmadp:icma-dp2013-05&r=neu

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