nep-neu New Economics Papers
on Neuroeconomics
Issue of 2023‒08‒14
three papers chosen by

  1. Consumer behavior and decision making from officed- based doctors A systematic literature review By Claudia, Pitterle
  2. Persistent Overconfidence and Biased Memory: Evidence from Managers By Huffman, David B.; Raymond, Collin; Shvets, Julia
  3. The Oral Contraceptive Pill and Adolescents' Mental Health By Costa-Ramón, Ana; Daysal, N. Meltem; Rodríguez-González, Ana

  1. By: Claudia, Pitterle
    Abstract: The aim of this literature review is to systematically summarize the existing knowledge and theories on the subject of decision-making behavior in general and in particular, when doctors have to decide for or against insurance for their own practice. Publications on decision psychology, behavioral economics, consumer behavior and modern brain research were evaluated. Special interest was paid to studies with regard to insurance demand and the regulatory framework. Each branch of science deals with decisions that people make consciously and unconsciously. Conducted worldwide studies of insurance demand have been directed to try to confirm or disprove certain theories using experiments. In summary, research in recent years has been increasingly in the area of behavioral economics in particular behavioral patterns. It has been confirmed that decision behavior related to insurance demand is very much shaped by determinants such as risk, uncertainty, and cognitive systems. Insurance consulting must continue to take these determinants into account in a more targeted manner in the future.
    Keywords: decision-making, doctors in private practice, insurance demand, behavioral patterns
    JEL: D83 D86 D91
    Date: 2022
  2. By: Huffman, David B. (University of Pittsburgh); Raymond, Collin (Purdue University); Shvets, Julia (University of Cambridge)
    Abstract: A long-standing puzzle is how overconfidence can persist in settings characterized by repeated feedback. This paper studies managers who participate repeatedly in a high-powered tournament incentive system, learning relative performance each time. Using reduced form and structural methods we find that: (i) managers make overconfident predictions about future performance; (ii) managers have overly-positive memories of past performance; (iii) the two phenomena are linked at an individual level. Our results are consistent with models of motivated beliefs in which individuals are motivated to distort memories of feedback and preserve unrealistic expectations.
    Keywords: overconfidence, memory, tournament, motivated beliefs
    JEL: D82 D83 J33 L25 L81 M52 M54
    Date: 2023–07
  3. By: Costa-Ramón, Ana (University of Zurich); Daysal, N. Meltem (University of Copenhagen); Rodríguez-González, Ana (Lund University)
    Abstract: What is the impact of the oral contraceptive pill on the mental health of adolescent girls? Using administrative data from Denmark and exploiting the variation in the timing of pill initiation in an event study design, we find that the likelihood of a depression diagnosis and antidepressant use increases shortly after pill initiation. We then uncover substantial variation in primary care providers' tendency to prescribe the pill to adolescents, unrelated to patient characteristics. Being assigned to a high prescribing physician strongly predicts pill use by age 16 and leads to worse mental health outcomes between ages 16-18.
    Keywords: contraceptive pill, mental health, adolescents, prescribing practices
    JEL: I12 J13
    Date: 2023–07

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