nep-neu New Economics Papers
on Neuroeconomics
Issue of 2019‒04‒08
five papers chosen by

  1. Personality Traits and Performance in Online Labour Markets By Mourelatos, Evangelos; Giannakopoulos, Nicholas; Tzagarakis, Manolis
  2. FINANCIAL ATTENTION AND THE DISPOSITION EFFECT By Nicolas Dierick; Dries Heyman; Koen Inghelbrecht; Hannes Stieperaere
  3. Theory of Mind and Strategic Decision-Making By Bose, Neha; Sgroi, Daniel
  4. Behavioural Change and Alcohol-Fuelled Violence: A Field Experiment By Long, Iain W; Matthews, Kent; Sivarajasingam, Vaseekaran
  5. How Time Constraint Affects the Disposition Effect? By Niu, Xiaofei; Li, Jianbiao

  1. By: Mourelatos, Evangelos; Giannakopoulos, Nicholas; Tzagarakis, Manolis
    Abstract: In this paper we investigate the impact of non-cognitive skills on the quality of task-specific outcomes by conducting a quasi-experiment on a well-known online crowdsourcing platform. We show that a worker’s performance varies with personality traits, gender, human capital, crowdsourcing experience and work effort. Regarding the effects of non-cognitive skills, we find that workers’ performance in online microtasks is positively related to extraversion and agreeableness. The positive impact of extroverts is also revealed when performance is adjusted for task completion time. These findings provide implications regarding the integration of selection mechanisms in online labour matching platforms aiming in uncovering microworkers soft skills to improve performance and consequently the allocation of resources in online microtasks.
    Keywords: Crowdsourcing,online labour,quality of work,cognitive abilities,personality traits,workers
    JEL: O33 J40 J24
    Date: 2019
  2. By: Nicolas Dierick; Dries Heyman; Koen Inghelbrecht; Hannes Stieperaere (-)
    Abstract: Using a novel brokerage dataset covering individual investors' login and stock trading behavior, we investigate the severity of the disposition effect as a function of attention. Our results show that more attentive investors trade less in line with the disposition effect, suggesting a comparative advantage in incorporating information into financial decision making. Furthermore, we find that high attention is related to a stronger tendency to sell moderate losses, as compared to large ones, while low attention increases an investor's likelihood to sell extreme, rather than moderate, profits. These results are in line with the theory of cognitive dissonance and saliency effects.
    Keywords: Investor behavior, Disposition effect, Attention allocation
    JEL: G11
    Date: 2019–03
  3. By: Bose, Neha (University of Warwick); Sgroi, Daniel (University of Warwick, CAGE and IZA)
    Abstract: In a laboratory experiment, 338 participants were asked to communicate in pairs and then play two games with their partners: the 11-20 money request game (a tool for assessing level-k reasoning) and a public goods game. The communication occurred prior to any knowledge of what was to follow but played an important role in allowing them to develop theories or mental models of their partners (“theory of mind”) which proved to be crucial explanatory factors for decision-making. We examine the players’ beliefs about the personality and intelligence of their partner, how they play in the games and analysed the language used during communication. The results indicate that beliefs about partner’s type is biased by own-type. In particular, extraverts, characterised by positive affect, projected their positivity onto their partners. The level-k strategy chosen in the 11-20 game increased with the perceived similarity between players and in the public goods game, players cooperated more when they believed their partners to be extraverted. An analysis of the text used during communication explains how it was possible for participants to draw inferences about other’s type: for instance, use of more words and more dominant words were associated with being an extravert.
    Keywords: theory of mind ; cheap talk ; communication ; level-k reasoning ; public goods game ; cooperation ; extraversion ; perceived similarity ; self-projection bias ; laboratory experiment ; text analysis.
    JEL: D91 D83 C92
    Date: 2019
  4. By: Long, Iain W (Cardiff Business School); Matthews, Kent (Cardiff Business School); Sivarajasingam, Vaseekaran
    Abstract: We conduct a field experiment to assess whether alcohol-induced behavioural changes explain participants' recent history of violence. We find that being in a drinking environment, rather than intoxication, reduces participants' cognitive ability but increases their overconfidence. Those who experience small reductions in ability or become much more overconfident tended to have been involved in more violent incidents. Since these behavioural changes were largely unanticipated, our results suggest that individuals underestimate their true likelihood of becoming involved in violence when making alcohol consumption decisions. This presents additional challenges when formulating policy designed to deter alcohol-fuelled violence.
    Keywords: Intoxication, over-optimism, violence
    JEL: C93 D91 I18
    Date: 2019–03
  5. By: Niu, Xiaofei; Li, Jianbiao
    Abstract: Time constraint is a central aspect of financial decision making. This paper experimentally examines the effect of time constraint on the disposition effect, which refers to the empirical fact that investors have a higher propensity to sell stocks with capital gains compared to stocks with capital losses. We distinguish time pressure from time constraint by implementing three treatments: no time constraint (NTC), 20 seconds time constraint (20TC), and 10 seconds time constraint (10TC). The experimental results show that time constraint affects the disposition effect at some conditions, i.e. the 10TC treatment, in which subjects perceive more time pressure, significantly reduces the disposition effect; this treatment effect, however, vanishes in 20TC treatment, where feelings of stress do not differ from the NTC treatment. Self-control is one of the psychological mechanisms that explains why time pressure reduces the disposition effect.
    Keywords: time pressure,disposition effect
    Date: 2019

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