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on Neuroeconomics |
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Issue of 2016‒08‒07
four papers chosen by |
| By: | Ismaël Rafaï (Université Côte d'Azur, France; GREDEG CNRS); Sébastien Duchêne (Université Côte d'Azur, France; GREDEG CNRS); Eric Guerci (Université Côte d'Azur, France; GREDEG CNRS); Ariane Lambert-Mogiliansky (Paris School of Economics); Fabien Mathy (Université Côte d'Azur; BCL CNRS) |
| Abstract: | In this paper, we will put forward an original experiment to reveal empirical "anomalies" in the process of acquisition, elaboration and retrieval of information in the context of reading. We show that the acquisition and elaboration of information leads to the formation of a mental picture that may be incompatible with the information stored in memory. To answer some specific questions, individuals make use of a mental picture rather than combine their stored information appropriately. Our hypothesis is that quantum cognition theory provides a fruitful interpretative framework to account for these anomalies. Finally, we provide evidence that individuals with a low CRT (Cognitive Reflection Test) score tend to demonstrate, more often than not, this particular behavior. |
| Keywords: | quantum cognition, learning, experimental economics |
| JEL: | C91 C90 D83 C21 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2016-23&r=neu |
| By: | Chen, Daniel L. |
| Abstract: | Some theories about the positive impact of markets on morality suggest that competition increases empathy, not between competitors, but between them and third parties. However, empathy may be a necessary evolutionary antecedent to guile, which is when someone knows what the other person wants and intentionally deceives him or her, and deception may have evolved as a means of exploiting empathy. This paper examines how individuals primed for empathy behave towards third parties in a simple economic game of deception. It reports the results of a data entry experiment in an online labor market. Individuals enter data randomized to be a prime for empathy, for guile, or a control. Empathy is then measured using a Reading the Mind in the Eyes Test and guile is measured using a simple economic game. Individuals primed for empathy become less deceptive towards third parties. Individuals primed for guile become less likely to perceive that deceiving an individual is unfair in a vignette. These results are robust to a variety of controls and to restricting to workers who entered the prime accurately. These findings are inconsistent with the hypothesis that empathy causes guile and suggests that empathy may cause those who are making judgements to become less deceptive. |
| Keywords: | Normative Commitments, Other-Regarding Preferences, Empathy, Deception, Guile |
| JEL: | D03 D64 K00 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:tse:iastwp:30643&r=neu |
| By: | Laura Kudrna; Georgios Kavetsos; Chloe Foy; Paul Dolan |
| Abstract: | How achievement makes people feel depends upon counterfactual thoughts about what could have been. One body of evidence for this comes from studies of observer ratings of Olympians’ happiness, which suggests that category-based counterfactual thoughts affect the perceived happiness of Olympians. Silver medallists are less happy than bronze medallists, arguably because silver medallists think about how they could have won gold, and bronze medallists feel lucky to be on the podium at all. We contribute to this literature by showing that the effect of category-based counterfactual thoughts on Olympians’ happiness depends on the margin by which athletes secured their medal. Although gold and bronze medallists appeared happier the better they performed, silver medallists were less happy when they were closer to winning gold. This suggests silver medallists feel disappointed relative to gold medallists but that bronzes do not feel particularly fortunate relative to non-medal winners. Teams were rated as happier than individual athletes and Olympians happier than Paralympians. Observers’ ethnic and gender similarity to athletes negatively influence happiness ratings; whilst observers’ self-reported happiness has a negligible effect on ratings. We integrate these findings with prior literature on counterfactual thinking and the determinants of happiness, and suggest avenues for future research. |
| Keywords: | Counterfactual thinking, Close calls, Relative status, Happiness, Olympic Games |
| JEL: | D60 I31 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:66&r=neu |
| By: | Lin, Dajun (University of Virginia); Lutter, Randall (University of Virginia); Ruhm, Christopher J. (University of Virginia) |
| Abstract: | We use information from the National Longitudinal Survey of Youth 1979 (NLSY79) and supplementary data sources to examine how cognitive performance, measured at approximately the end of secondary schooling, is related to the labor market outcomes of 20 through 50 year olds. Our estimates control for a wide array of individual and family background characteristics, a limited set of non-cognitive attributes, survey year dummy variables and, sometimes, geographic place effects. The analysis reveals five main findings. First, cognitive performance is positively associated with future labor market outcomes at all ages. The relationship is attenuated but not eliminated by the addition of controls for non-cognitive characteristics, while the inclusion of place effects does not change the estimated associations. Second, the returns to cognitive skill increase with age. Third, the effect on total incomes reflects a combination of positive impacts of cognitive performance for both hourly wages and annual work hours. Fourth, the returns to cognitive skill are greater for women than men and for blacks and Hispanics than for non-Hispanic whites, with differential effects on work hours being more important than corresponding changes in hourly wages. Fifth, the average gains in lifetime incomes predicted to result from greater levels of cognitive performance are only slightly above those reported in prior studies but the effects are heterogeneous, with larger relative and absolute increases, in most models, for nonwhites or Hispanics than for non-Hispanic whites, and higher relative but not absolute returns for women than men. |
| Keywords: | cognitive performance, cognitive skill, labor market outcomes, labor income, earnings, work hours |
| JEL: | J23 J24 J31 J38 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10075&r=neu |