nep-neu New Economics Papers
on Neuroeconomics
Issue of 2021‒04‒12
six papers chosen by

  1. Age at school transition and children’s cognitive and non-cognitive outcomes By Tushar Bharati; Thea Harpley Green
  2. Coevolution of actions, personal norms, and beliefs about others in social dilemmas By Gavrilets, Sergey
  3. Rationality and Emotions: A Model of Inner Games and Ego Identity By Liu, Fen
  4. Learning to hesitate By Descamps, Ambroise; Massoni, Sébastien; Page, Lionel
  5. Interpersonal conflict and counterproductive work behavior: the moderating roles of emotional intelligence and gender By Yasir Mansoor Kundi; Kamal Badar
  6. Linking performance pressure to employee work engagement: the moderating role of emotional stability By Yasir Mansoor Kundi; Shakir Sardar; Kamal Badar

  1. By: Tushar Bharati (Business School, The University of Western Australia); Thea Harpley Green (Business School, The University of Western Australia)
    Abstract: Can changing the age at which children transition from primary to secondary school mitigate the negative effects of the disruptive event? We attempt to provide an answer by examining the effect of a recent policy initiative that required schools in four Australian states to move year 7 from primary (‘7+5’ model) to secondary school (‘6+6’ model), bringing forward the transition by a year. ‘Combined schools’ that taught both primary and secondary school years were relatively undisturbed but others had to drop or pick an additional year. Using this difference across postcodes in the type of schools and variation in the timing when different states switched to the new model, we show that the switch to the new school model is negatively associated with aspects of cognition, locus of controls, and personality measured years after the transition. Worryingly, the effects appear more unfavourable for Indigenous Australians and female school students. Comparing respondents born in the same year who started school in different years, we find those who were relatively younger at the time of transition suffered more, suggesting that raising the age at transition could benefit children.
    Keywords: secondary school, school transition, cognition, locus of control, personality traits
    JEL: I24 I28 J24
    Date: 2021
  2. By: Gavrilets, Sergey
    Abstract: Human decision-making is affected by a diversity of factors including material cost-benefit considerations, normative and cultural influences, learning, and conformity with peers and external authorities (e.g., cultural, religious, political, organizational). Also important are their dynamically changing personal perception of the situation and beliefs about actions and expectations of others as well as psychological phenomena such as cognitive dissonance, and social projection. To better understand these processes, I develop a modeling framework describing the joint dynamics of actions and attitudes of individuals and their beliefs about actions and attitudes of their group-mates. I consider which norms get internalized and which factors control beliefs about others. I predict that the long-term average characteristics of groups are largely determined by a balance between material payoffs and the values promoted by the external authority. Variation around these averages largely reflects variation in individual costs and benefits mediated by individual psychological characteristics. The efforts of an external authority to change the group behavior in a certain direction can, counter-intuitively, have an opposite effect on individual behavior. I consider how various factors can affect differences between groups and societies in tightness/looseness of their social norms. I show that the most important factors are social heterogeneity, societal threat, effects of the authority, cultural variation in the degree of collectivism/individualism, the population size, and the subsistence style. My results can be useful for achieving a better understanding of human social behavior, historical and current social processes, and in developing more efficient policies aiming to modify social behavior
    Date: 2021–04–05
  3. By: Liu, Fen
    Abstract: This paper develops a framework of Inner Games with Ego Identity to discuss an individual’s rationality and emotions in decision making. Following previous efforts of taking psychological insights into economics, this paper dives into the multi-faceted human psychology and proposes a new framework of the decision maker’s Inner Games with Ego Identity in the context of a relationship, and integrates the components of beliefs about oneself and the other one in a relationship into the structure. Moreover, I assume that individuals are motivated mainly by their Ego Identity other than by direct pleasure from consumption, and the utility is derived from the inner state at the moment of decision making. As an application, I define and understand emotions in the framework, such as anger, guilt, and disappointment. For example, I distinguish five types of anger, such as healthy anger to protect one’s personal boundary, and anger to threaten others for some purpose. I end with a discussion of several directions for future research.
    Keywords: Bounded Rationality; Full Rationality; Psychological Game; Emotion
    JEL: C79 D03
    Date: 2021–01–05
  4. By: Descamps, Ambroise; Massoni, Sébastien; Page, Lionel
    Abstract: We investigate how people make choices when they are unsure about the value of the options they face and have to decide whether to choose now or wait and acquire more information first. In an experiment, we find that participants deviate from optimal information acquisition in a systematic manner. They acquire too much information (when they should only collect little) or not enough (when they should collect a lot). We show that this pattern can be explained as naturally emerging from Fechner cognitive errors. Over time participants tend to learn to approximate the optimal strategy when information is relatively costly.
    Date: 2021–03–29
  5. By: Yasir Mansoor Kundi (AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix Marseille Université); Kamal Badar (Victoria University of Wellington)
    Abstract: Purpose-This paper aims to examine how interpersonal conflict at work might enhance employees' propensity to engage in counterproductive work behavior (CWB), as well as how this relationship might be attenuated by emotional intelligence. It also considers how the attenuating role of emotional intelligence might depend on employees' gender. Design/methodology/approach-Survey data were collected from 193 employees working in different organizations in Pakistan. Findings-Interpersonal conflict relates positively to CWB, but this relationship is weaker at higher levels of emotional intelligence. The negative buffering role of emotional intelligence is particularly strong among women as compared to men. Practical implications-Given that individuals high in emotional intelligence are better at regulating their negative emotions, emotional intelligence training may be a powerful tool for reducing the hostility elicited among organizational members in response to interpersonal conflict and, consequently, their engagement in CWB. Originality/value-This study uncovered the emotional mechanism that underlies the interpersonal conflict-CWB relationship by gender and makes suggestions to managers on minimizing the harmful effects of interpersonal conflict.
    Keywords: Emotional intelligence,Gender,Interpersonal conflict,Counterproductive work behavior
    Date: 2021–02–26
  6. By: Yasir Mansoor Kundi (AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix Marseille Université); Shakir Sardar (AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix Marseille Université); Kamal Badar (Victoria University of Wellington)
    Abstract: Purpose-The purpose of this paper is to investigate the mediating role of threat and challenge appraisals in the relationship between performance pressure and employees' work engagement, as well as the buffering role of emotional stability, as a personal characteristic, in this process. Design/methodology/approach-Data were collected using a three-wave research design. Hypotheses were examined with a sample of 247 white-collar employees from French organizations. Findings-Performance pressure is appraised as either threat or challenge. Challenge appraisal positively mediated the performance pressure and work engagement relationship, whereas threat appraisal negatively mediated the performance pressure and work engagement relationship. Emotional stability moderated these effects, suggesting performance pressure was appraised as a challenge rather than a threat, which then enhanced employee work engagement. Practical implications-This study has shown that employees with high emotional stability who perceived performance pressure as a challenge achieved stronger employee work engagement. Originality/value-Building on Lazare's theory of stress and Mitchell et al. 's theorization, this research demonstrates mediating and moderating mechanisms driving the role of performance pressure on employee work engagement relationships.
    Keywords: Performance pressure,Threat appraisal,Challenge appraisal,Emotional stability,Work engagement Paper type Research paper
    Date: 2021–02–26

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