nep-neu New Economics Papers
on Neuroeconomics
Issue of 2016‒07‒16
two papers chosen by

  1. Current Emotion Research in Economics By Klaus Wälde; Agnes Moors
  2. Multi-attribute decision by sampling: An account of the attraction, comprimise and similarity effects By Ronayne, David & Brown, Gordon D.A.

  1. By: Klaus Wälde (Johannes Gutenberg-University Mainz); Agnes Moors (KU Leuven)
    Abstract: Positive and negative feelings were central to the development of economics, especially in utility theory in classical economics. While neoclassical utility theory ignored feelings, behavioral economics more recently reintroduced feelings in utility theory. Beyond feelings, economic theorists use full-fledged specific emotions to explain behavior that otherwise could not be understood or they study emotions out of interest for the emotion itself. While some analyses display a strong overlap between psychological thinking and economic modelling, in most cases there is still a large gap between economic and psychological approaches to emotion research. Ways how to reduce this gap are discussed.
    Date: 2016–07
  2. By: Ronayne, David & Brown, Gordon D.A. (Department of Economics, University of Warwick & Department of Psychology, University of Warwick)
    Abstract: Consumers' choices are typically influenced by choice context in ways that standard models cannot explain. We provide a concise explanation of the attraction, compromise and similarity effects. Value is assumed to be determined by simple dominance relations between choice options and sampled comparators, and selection of comparators is assumed to be systematically influenced by the choice options. In one experiment, participants viewed differing selections of market options prior to choice. The classic context effects appeared and disappeared as predicted. In the second experiment, individuals' sampling distributions of market options were influenced by the choice set as predicted by the model.
    Keywords: consumer choice; decision-making; context effects; sampling.
    JEL: I30 I31
    Date: 2016

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