nep-neu New Economics Papers
on Neuroeconomics
Issue of 2017‒11‒19
three papers chosen by

  1. Facing Yourself - A Note on Self-image By Armin Falk
  2. Thinking fast, thinking badly By Natalia Jimenez; Ismael Rodriguez-Lara; Jean-Robert Tyran; Erik Wengström
  3. The Effect of Positive Mood on Cooperation in Repeated Interaction By Proto, Eugenio; Sgroi, Daniel; Mahnaz Nazneen, Mahnaz

  1. By: Armin Falk
    Abstract: Numerous signaling models in economics assume image concerns. These take two forms, as relating either to social image or self-image. While empirical work has identified the behavioral importance of the former, little is known about the role of self-image concerns. We exogenously vary self-image concerns in manipulating self-directed attention and study the impact on moral behavior. The choice context in the experiment is whether subjects inict a painful electric shock on another subject to receive a monetary payment. Three between-subjects conditions are studied. In the main treatment, subjects see their own face on the decision screen in a real-time video feed. In the two control conditions, subjects see either no video at all or a neutral video. We find that the exogenous increase in self-image concerns significantly reduces the fraction of subjects inflicting pain.
    Keywords: self-image, moral behavior
    JEL: D64 C91
    Date: 2017
  2. By: Natalia Jimenez (Universidad de Granada (Spain)); Ismael Rodriguez-Lara (Middlesex University London (United Kingdom)); Jean-Robert Tyran (Department of Economics, University of Copenhagen and University of Vienna (Austria)); Erik Wengström (University of Lund (Sweden))
    Abstract: We test for the construct validity of the cognitive reflection test (CRT) by eliciting response times. We find that incorrect answers to the CRT are quicker than correct answers. At the individual level, we classify subjects into impulsive and reflective, depending on whether they choose the incorrect intuitive answer or the correct answer the majority of the time. We show that impulsive subjects complete the test quicker than reflective subjects.
    Keywords: cognitive ability, cognitive reflection, response time, intuitive behavior, reflective behavior
    JEL: C91
    Date: 2017–11–02
  3. By: Proto, Eugenio (DepartmentofEconomics,University of Warwick, CAGE and IZA); Sgroi, Daniel (Department of Economics, University of Warwick,CAGE and Nuffield College, University of Oxford); Mahnaz Nazneen, Mahnaz (Department of Economics, University of Warwick)
    Abstract: Existing research supports two opposing mechanisms through which positive mood might affect cooperation. Some studies have suggested that positive mood produces more altruistic, open and helpful behavior, fostering cooperation. However, there is contrasting research supporting the idea that positive mood produces more assertiveness and inward-orientation and reduced use of information, hampering cooperation. We find evidence that suggests the second hypothesis dominates when playing the repeated Prisoner's Dilemma. Players in an induced positive mood tend to cooperate less than players in a neutral mood setting. This holds regardless of uncertainty surrounding the number of repetitions or whether pre-play communication has taken place. This finding is consistent with a text analysis of the pre-play communication between players indicating that subjects in a more positive mood use more inward-oriented, more negative and less positive language. To the best of our knowledge we are the rst to use text analysis in pre-play communication.
    Date: 2017

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