nep-neu New Economics Papers
on Neuroeconomics
Issue of 2022‒10‒03
four papers chosen by

  1. Beliefs, Learning, and Personality in the Indefinitely Repeated Prisoner's Dilemma By Gill, David; Rosokha, Yaroslav
  2. Why Don't We Sleep Enough? A Field Experiment Among College Students By Mallory L. Avery; Osea Giuntella; Peiran Jiao
  3. Stress, Ethnicity, and Prosocial Behavior By Johannes Haushofer; Sara Lowes; Abednego Musau; David M. Ndetei; Nathan Nunn; Moritz Poll; Nancy Qian
  4. Effects of Extending Paid Parental Leave on Children’s Socio-Emotional Skills and Well-Being in Adolescence By Mikkel Aagaard Houmark; Cecilie Marie Løchte Jørgensen; Ida Lykke Kristiansen; Miriam Gensowski

  1. By: Gill, David (Purdue University); Rosokha, Yaroslav (Purdue University)
    Abstract: We aim to understand the role and evolution of beliefs in the indefinitely repeated prisoner's dilemma (IRPD). To do so, we elicit beliefs about the supergame strategies chosen by others. We find that heterogeneity in beliefs and changes in beliefs with experience are central to understanding behavior and learning in the IRPD. Beliefs strongly predict cooperation, initial beliefs match behavior quite well, most subjects choose strategies that perform well given their beliefs, and beliefs respond to experience while becoming more accurate over time. Finally, we uncover a novel mechanism whereby trusting subjects learn to cooperate through their interaction with experience.
    Keywords: infinitely repeated prisoner’s dilemma, cooperation, optimism, belief elicitation, supergame strategies, experimentation, trust, experiment
    JEL: C72 C73 C91 D91
    Date: 2022–08
  2. By: Mallory L. Avery; Osea Giuntella; Peiran Jiao
    Abstract: This study investigates the mechanisms affecting sleep choice and explores whether commitment devices and monetary incentives can be used to promote healthier sleep habits. To this end, we conducted a field experiment with college students, providing them incentives to sleep and collecting data from wearable activity trackers, surveys, and time-use diaries. Monetary incentives were effective in increasing sleep duration with some evidence of persistence after the incentive was removed. We uncover evidence of demand for commitment. Our results are consistent with partially sophisticated time-inconsistent preferences and overconfidence, and have implications for the effectiveness of information interventions on sleep choice.
    JEL: B49 C93 I10
    Date: 2022–08
  3. By: Johannes Haushofer; Sara Lowes; Abednego Musau; David M. Ndetei; Nathan Nunn; Moritz Poll; Nancy Qian
    Abstract: While observational evidence suggests that people behave more prosocially towards members of their own ethnic group, many laboratory studies fail to find this effect. One possible explanation is that coethnic preference only emerges during times of stress. To test this hypothesis, we pharmacologically increase levels of the stress hormone cortisol, after which participants complete laboratory experiments with coethnics and noncoethnics. We find mixed evidence that increased cortisol decreases prosocial behavior. Coethnic preferences do not vary with cortisol. However, in contrast to previous studies, we find strong and robust evidence of coethnic preference.
    JEL: O12 Z10
    Date: 2022–08
  4. By: Mikkel Aagaard Houmark (Department of Economics and Business Economics and TrygFonden’s Centre for Child Research, Aarhus University); Cecilie Marie Løchte Jørgensen (Department of Economics and Business Economics, Aarhus University); Ida Lykke Kristiansen (Department of Economics and CEBI, University of Copenhagen); Miriam Gensowski (Rockwool Foundation Research Unit, and IZA, Bonn)
    Abstract: We study how children’s socio-emotional skills and well-being in adolescence are affected by an increase in the duration of parental care during infancy. Exploiting a Danish reform that extended paid parental leave in 2002 and effectively delayed children’s entry into formal out-of-home care, we show that longer leave increases adolescent well-being, conscientiousness and emotional stability, and reduces school absenteeism. The effects are strongest for children of mothers who would have taken short leave in absence of the reform. This highlights how time spent with a parent is particularly productive during very early childhood.
    Keywords: Parental Leave, Early Childhood, Skill Formation, Parental Investments, Socio-Emotional Skills, Personality, Well-Being, Adolescence
    JEL: J13 J18 J24 I31
    Date: 2022–09–11

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