nep-neu New Economics Papers
on Neuroeconomics
Issue of 2024‒03‒04
four papers chosen by

  1. The Entrepreneur's Cognitive and Behavioral Journey: Understanding Heuristics and Bias under Risk and Uncertainty By Cucchiarini, Veronica; Scicchitano, Sergio; Viale, Riccardo
  2. The impact of insufficient sleep on the serial reproduction of information By David L. Dickinson; Sean P.A. Drummond
  3. How Do Surrogates Make Treatment Decisions for Patients with Dementia? An Experimental Survey Study By Lauren Hersch Nicholas; Kenneth M. Langa; Scott D. Halpern; Mario Macis
  4. Effects of Childhood Cognitive and Behavioral Disabilities on Adult Economic Outcomes By Hope Corman; Kelly Noonan; Nancy Reichman

  1. By: Cucchiarini, Veronica; Scicchitano, Sergio; Viale, Riccardo
    Abstract: The study of the entrepreneurial mindset has provided valuable insights into the cognitive strategies that impact entrepreneurial activities. Researchers have identified several biases and heuristics employed by entrepreneurs, which significantly influence their decision-making processes and actions, but the empirical evidence remains fragmented. To develop a more comprehensive understanding of the cognitive and behavioral mindset of entrepreneurs, it is important to consider the role of the context in which they operate. By analyzing the strengths and weaknesses of heuristics and biases within the context of risk or uncertainty, we can gain a deeper understanding of their influence on entrepreneurial outcomes.
    Keywords: Entrepreneurship, biases, heuristics, risk, uncertainty, labour policies
    Date: 2024
  2. By: David L. Dickinson; Sean P.A. Drummond
    Abstract: Story telling is part of life, and the retelling of stories is an important form of communication, cultural practice, and message transmission. Insufficient sleep is known to affect relevant cognitive skill areas necessary for story retelling or transmission fidelity. We conducted a preregistered study on n=118 young adults who were administered a week each of restricted and well-rested sleep levels in their home environment (37 additional control participants were well-rested both treatment weeks). A serial story reproduction task was administered online, and the content of story retells was examined regarding the preservation of characters, details, and the key story event. Chains of up to 3 retells of a given story were examined, which involved varied numbers of sleep restricted (SR) versus well-rested (WR) retellers. While all retells of a story showed an average decay in content, results show that additional SR retellers in a chain was associated with greater decay, which mostly resulted from the introduction of an initial SR reteller at the beginning of the chain. Supporting the group-level effect, individual-level analysis confirmed that both the number of details and the story’s key event were significantly less preserved after the SR compared to WR treatment week. Exploratory analysis showed an attenuation of this effect in those who reported a higher level of affective response (interest or surprise) in the story. This suggests that emotional engagement is important in combatting the deleterious effects of SR on successful story retelling, and perhaps on other types of content recollection Key Words: Sleep restriction, cognition, communication, information transmission
    JEL: C91 D90 D83
    Date: 2024
  3. By: Lauren Hersch Nicholas; Kenneth M. Langa; Scott D. Halpern; Mario Macis
    Abstract: Despite the growing need for surrogate decision-making for older adults, little is known about how surrogates make decisions and whether advance directives would change decision-making. We conducted a nationally representative experimental survey that cross-randomized cognitive impairment, gender, and characteristics of advance care planning among hospitalized older adults through a series of vignettes. Our study yielded three main findings: first, respondents were much less likely to recommend life-sustaining treatments for patients with dementia, especially after personal exposure. Second, respondents were more likely to ignore patient preferences for life-extending treatment when the patient had dementia, and choose unwanted life-extending treatments for patients without dementia. Third, in scenarios where the patient's wishes were unclear, respondents were more likely to choose treatments that matched their own preferences. These findings underscore the need for improved communication and decision-making processes for patients with cognitive impairment and highlight the importance of choosing a surrogate decision-maker with similar treatment preferences.
    JEL: C99 I12 J14
    Date: 2024–02
  4. By: Hope Corman; Kelly Noonan; Nancy Reichman
    Abstract: Developmental disabilities are not rare among U.S. children and rates have been increasing in recent decades. The increases have been driven by cognitive and behavioral disorders. While some studies have investigated the effects of specific childhood conditions, particularly ADHD, on adult economic outcomes, none has considered the overall effects of cognitive and behavioral disabilities. We address this key gap by rigorously estimating effects of cognitive and behavioral impairments in childhood, which account for the bulk and increasing share of child disability cases in the U.S., on a set of salient adult economic outcomes. Using the National Longitudinal Survey of Youth 79 Child Supplement, we estimate the effects of low cognitive test scores and high behavior problem scores in childhood on receipt of disability benefits, educational attainment, employment, wages, and access to transportation and credit in adulthood, using household fixed effects models to control for potentially confounding factors that are unobserved. We find significant effects in the expected direction for both cognitive and behavioral childhood disabilities on all outcomes. The findings have important implications for well-being over the life course for a non-trivial share of the U.S. population and their families, government expenditures, and public policy.
    JEL: I10 I14 I24 I30 J14 J20 J24
    Date: 2024–02

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