nep-neu New Economics Papers
on Neuroeconomics
Issue of 2024‒01‒22
six papers chosen by

  1. How cognitive skills affect strategic behavior: Cognitive ability, fluid intelligence and judgment By David Gill; Zachary Knepper; Victoria Prowse; Junya Zhou
  2. Specifying the role of religion in entrepreneurial action : A cognitive perspective By Saulo Dubard-Barbosa; Brett Smith
  3. Sails and Anchors: The Complementarity of Exploratory and Exploitative Scientists in Knowledge Creation By Pierre Pelletier; Kevin Wirtz
  4. Name order and the top elite: Long-term effects of a hidden cur-riculum By Eiji Yamamura
  5. ERPs responses to dominance features from human faces By Chengguo Miao; Xiaojun Li; Edmund Derrington; Frederic Moisan; Yansong Li; Jean-Claude Dreher
  6. Using Generative Art from Brain Signals for Enabling Self Expression in the Differently Abled By Sharma, Anjali; Singh, Param Vir

  1. By: David Gill; Zachary Knepper; Victoria Prowse; Junya Zhou
    Abstract: We explore the influence of cognitive ability and judgment on strategic behavior in the beauty contest game. Using the level-k model of bounded rationality, cognitive ability and judgment both predict higher level strategic thinking. However, individuals with better judgment choose the Nash equilibrium action less frequently, and we uncover a novel dynamic mechanism that sheds light on this pattern. Taken together, our results indicate that fluid (i.e., analytical) intelligence is a primary driver of strategic level-k thinking, while facets of judgment that are distinct from fluid intelligence drive the lower inclination of high judgment individuals to choose the equilibrium action.
    Keywords: cognitive ability; judgment; fluid intelligence; matrix reasoning; beauty contest; strategic sophistication; level-k; experiment; game theory
    JEL: C92 C72 D91
    Date: 2023–11
  2. By: Saulo Dubard-Barbosa (EM - emlyon business school); Brett Smith
    Abstract: "Research on the relationship between religion and entrepreneurship has produced mixed findings. We argue such equivocal findings are partly the result of under-specification of the role of religion in entrepreneurial action. To address this issue, we build on the process perspective of entrepreneurial cognition by simultaneously incorporating mental representations and cognitive resources. Specifically, we theorize a cognitive process that incorporates both framing effects of opportunity cues and religious belief integration based on sanctification into the assessment of feasibility and desirability of entrepreneurial action. Through two within-subject experiments, we find (i) positively framed opportunity cues yield more favorable assessments of entrepreneurial action than negatively framed opportunity cues, and (ii) religious belief integration moderates the relationship between framing and assessments of entrepreneurial action, enhancing perceived feasibility and desirability when information framing is negative. We discuss the implications of our model to research the theological turn of entrepreneurship and a cognitive perspective of entrepreneurial action."
    Keywords: Opportunity evaluation, Entrepreneurial action, Religion, Religious belief integration, Theological turn, Information framing, Opportunity cues
    Date: 2023–11–24
  3. By: Pierre Pelletier; Kevin Wirtz
    Abstract: This paper investigates the relationship between scientists' cognitive profile and their ability to generate innovative ideas and gain scientific recognition. We propose a novel author-level metric based on the semantic representation of researchers' past publications to measure cognitive diversity both at individual and team levels. Using PubMed Knowledge Graph (PKG), we analyze the impact of cognitive diversity on novelty, as measured by combinatorial novelty indicators and peer labels on Faculty Opinion. We assessed scientific impact through citations and disruption indicators. We show that the presence of exploratory individuals (i.e., cognitively diverse) is beneficial in generating distant knowledge combinations, but only when balanced by a significant proportion of exploitative individuals (i.e., cognitively specialized). Furthermore, teams with a high proportion of exploitative profiles tend to consolidate science, whereas those with a significant share of both profiles tend to disrupt it. Cognitive diversity between team members appears to be always beneficial to combining more distant knowledge. However, to maximize the relevance of these distant combinations of knowledge, maintaining a limited number of exploratory individuals is essential, as exploitative individuals must question and debate their novel perspectives. These specialized individuals are the most qualified to extract the full potential of novel ideas and integrate them within the existing scientific paradigm.
    Date: 2023–12
  4. By: Eiji Yamamura
    Abstract: In Japanese primary and secondary schools, an alphabetical name list is used in various situations. Generally, students are called on by the teacher during class and in the cer-emony if their family name is early on the list. Therefore, students whose surname ini-tials are earlier in the Japanese alphabet acquire more experience. Surname advantages are considered to have a long-term positive effect on life in adulthood. This study ex-amines the surname effect. The data set is constructed by gathering lists of representative figures from various fields. Based on the list, we calculate the proportion of surname groups according to Japanese alphabetical column lists. The major findings are as follows: (1) people whose surnames are in the A-column (the first column among 10 Japanese name col-umns) are 20% more likely to appear among the ruling elite but are less likely to ap-pear in entertainment and sports lists. (2) This tendency is rarely observed in the Uni-versity of Tokyo entrance examination pass rate. Consequently, the A-column sur-names are advantageous in helping students succeed as part of the elite after graduating from universities but not when gaining entry into universities. The surname helps form non-cognitive skills that help students become part of the ruling elite instead of specif-ic cognitive skills that help students enter elite universities. Keywords: Surname, Education, Name order, Hidden curriculum, Cognitive skill, Non-cognitive skill, Elite, Vice Minister, Academic, Prestigious university, Enter-tainment, Sports.
    Date: 2023–12
  5. By: Chengguo Miao; Xiaojun Li; Edmund Derrington; Frederic Moisan (EM - emlyon business school); Yansong Li; Jean-Claude Dreher
    Abstract: "Social dominance is an important feature of social life. Dominance has been proposed to be one of two trait dimensions underpinning social judgments of human faces. Yet, the neural bases of the ability to identify different dominance levels in others based on intrinsically facial cues remains poorly understood. Here, we used event-related potentials to determine the temporal dynamics of facial dominance evaluation based on facial features signaling physical strength/weakness in humans. Twenty-seven participants performed a dominance perception task where they passively viewed faces with different dominance levels. Dominance levels did not modulate an early component of face processing, known as the N170 component, but did modulate the late positive potential (LPP) component. These findings indicate that participants inferred dominance levels at a late stage of face evaluation. Furthermore, the highest level of dominant faces and the lowest level of submissive faces both elicited higher LPP amplitudes than faces with a neutral dominance level. Taken together, the present study provides new insights regarding the dynamics of the neurocognitive processes underlying facial dominance evaluation."
    Date: 2022–12–02
  6. By: Sharma, Anjali (LIME Lab Low Proft LLC); Singh, Param Vir
    Abstract: The ability to express one’s emotions is a fundamental human need. However, people with disabilities may be unable to partake in even this most fundamental of human needs. This can lead to bottling up of emotions and adverse mental health effects. Recent developments in neuroscience and brain-computer-interfaces are now making it possible to detect emotional states from brain signals. In this study, we use these advances in emotion detection techniques to design and develop a system for enabling emotional expression by the disabled using abstract art generated from EEG brain signals.
    Date: 2022–01–18

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.