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on Neuroeconomics |
| By: | Dongwoo Lee; Gavin Kader |
| Abstract: | As Large Language Models (LLMs) are increasingly used for a variety of complex and critical tasks, it is vital to assess their logical capabilities in strategic environments. This paper examines their ability in strategic reasoning -- the process of choosing an optimal course of action by predicting and adapting to other agents' behavior. Using six LLMs, we analyze responses from play in classical games from behavioral economics (p-Beauty Contest, 11-20 Money Request Game, and Guessing Game) and evaluate their performance through hierarchical models of reasoning (level-$k$ theory and cognitive hierarchy theory). Our findings reveal that while LLMs show understanding of the games, the majority struggle with higher-order strategic reasoning. Although most LLMs did demonstrate learning ability with games involving repeated interactions, they still consistently fall short of the reasoning levels demonstrated by typical behavior from human subjects. The exception to these overall findings is with OpenAI's GPT-o1 -- specifically trained to solve complex reasoning tasks -- which consistently outperforms other LLMs and human subjects. These findings highlight the challenges and pathways in advancing LLMs toward robust strategic reasoning from the perspective of behavioral economics. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.13013 |
| By: | Meiling Huang; Ming Jin; Ning Li |
| Abstract: | Generative AI is rapidly reshaping creative work, raising critical questions about its beneficiaries and societal implications. This study challenges prevailing assumptions by exploring how generative AI interacts with diverse forms of human capital in creative tasks. Through two random controlled experiments in flash fiction writing and song composition, we uncover a paradox: while AI democratizes access to creative tools, it simultaneously amplifies cognitive inequalities. Our findings reveal that AI enhances general human capital (cognitive abilities and education) by facilitating adaptability and idea integration but diminishes the value of domain-specific expertise. We introduce a novel theoretical framework that merges human capital theory with the automation-augmentation perspective, offering a nuanced understanding of human-AI collaboration. This framework elucidates how AI shifts the locus of creative advantage from specialized expertise to broader cognitive adaptability. Contrary to the notion of AI as a universal equalizer, our work highlights its potential to exacerbate disparities in skill valuation, reshaping workplace hierarchies and redefining the nature of creativity in the AI era. These insights advance theories of human capital and automation while providing actionable guidance for organizations navigating AI integration amidst workforce inequalities. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.03963 |
| By: | Belfi, Barbara (Maastricht University); Borghans, Lex (Maastricht University) |
| Abstract: | In this paper, we explore the interplay between personality traits, socio-emotional skills, and key life outcomes across education, employment, social connectedness, health, and civic participation. Drawing on a rich body of research, we highlight the significant impact of socio-emotional skills, as defined by the Study on Social and Emotional Skills (SSES) framework developed by the Organization for Economic Co-operation and Development (OECD), on various aspects of life. From academic achievement to job performance, social relationships, health indicators, and civic engagement, socio-emotional skills emerge as crucial predictors of success and well-being. Moreover, we examine the effectiveness of educational interventions in fostering socio-emotional skills, considering optimal timing and intervention strategies. Through meta-analyses and empirical studies, we uncover insights into the developmental trajectory of these skills and their malleability over time. These findings have profound implications for policymakers, practitioners, and researchers, emphasizing the importance of integrating socio-emotional skill development into educational curricula and broader societal initiatives. By aligning interventions with the OECD framework and adopting evidence-based practices, stakeholders can empower individuals to navigate life's challenges with resilience and thrive in an increasingly complex world. |
| Keywords: | socio-emotional skills, personality traits, education, interventions, life outcomes |
| JEL: | I20 I31 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17595 |
| By: | Clémentine Bouleau (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Nicolas Jacquemet (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Maël Lebreton (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UNIGE - Université de Genève = University of Geneva) |
| Abstract: | Whether individuals feel confident about their own actions, choices, or statements being correct, and how these confidence levels differ between individuals are two key primitives for countless behavioral theories and phenomena. In cognitive tasks, individual confidence is typically measured as the average of reports about choice accuracy, but how reliable is the resulting characterization of within-and between-individual confidence remains surprisingly undocumented. Here, we perform a large-scale resampling exercise in the Confidence Database to investigate the reliability of individual confidence estimates, and of comparisons across individuals' confidence levels. Our results show that confidence estimates are more stable than their choice-accuracy counterpart, reaching a reliability plateau after roughly 50 trials, regardless of a number of task design characteristics. While constituting a reliability upper-bound for task-based confidence measures, and thereby leaving open the question of the reliability of the construct itself, these results characterize the robustness of past and future task designs. |
| Keywords: | Confidence, Accuracy, Reliability, Design of experiments, Multiple trials |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04893009 |
| By: | Janet Currie; N. Meltem Daysal; Mette Gørtz; Jonas Cuzulan Hirani |
| Abstract: | Mental health disorders are the leading cause of childhood disability worldwide. We examine the impact of a relatively common household stressor on child mental health: the presence of a younger sibling with a physical disability. Using Danish administrative data from families with at least 3 children, we focus on differences between first and second born children in families with and without a 3rd child with a disability. Second-born children in these families spend a larger fraction of their early childhood in families that may be under stress. We find that second-born children are 11 percent more likely to use mental health services than first-born children. There is a 19% increase in psychiatric visits and a 16% increase in use of psychiatric medications. These results are confirmed by matching models. |
| JEL: | I1 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33303 |