Questions tagged [behavioral-economics]
A branch of economics that incorporates insights from psychology by allowing for systematic deviations from idealised rational behaviour.
44
questions with no upvoted or accepted answers
5
votes
0
answers
77
views
In experiments of 2-by-2 games where the dominant action benefits both players, do people frequently choose the other action?
Sayers et al look in Some descriptive aspects of two-person non-zero-sum games at variations of the prisoner dilemma. They had two participants (α and β) pressing press either a black (1) or a red (2) ...
- 151
5
votes
0
answers
756
views
Fact-checking Dan Ariely (2008) on Duke basketball tickets story
In Predictably Irrational (2008, pp. 127-133), Dan Ariely describes the Krzyzewskiville phenomenon (Duke students camp for weeks to get basketball tickets), and how he and Ziv Camron used it to study ...
user18
5
votes
0
answers
63
views
Are charitable donations on someone's behalf generally an effective incentive?
A study done in Sweden on 153 female, would-be blood donors showed
surprising results. The women were divided into three groups–
voluntary donation, paid donation, and paid donation with the
...
- 291
4
votes
0
answers
68
views
Don't let me take the last bit
I believe everyone has experienced something like the following once in her or his life :
There is a cake on the table and three people to share it.
The three people each eat a quarter of the cake.
...
- 5,237
3
votes
0
answers
38
views
Experiments on expectations formation
I was reading about the debate between rational expectations and adaptive expectations in some intermediate macro notes. One of the arguments given to discard the adaptive expectations hypothesis drew ...
- 1,879
3
votes
0
answers
38
views
How to measure mental accounts of an individual?
I wonder whether its possible to identify mental accounts as defined by Richard Thaler https://www.jstor.org/stable/183904 given i observe consumption and/ or investment behavior of an individual? I ...
- 303
3
votes
0
answers
28
views
References? -- Coordination Between Groups
Can anyone provide references for research that focuses on coordination between groups of decision makers rather than within group coordination with individual decision makers? \
Edits given the ...
- 2,911
3
votes
0
answers
128
views
Causes of upward trend in median first marriage age in USA?
I found a chart here of median age at first marriage by year from 1890 to 2010. It looks like it dips to a low during the 60s then has an upward trend until 2010.
As an answer, I'm looking for any ...
user4207
2
votes
0
answers
33
views
Multi-Stage Voting Game in zTree
For a project that I am doing, I need to code up a mulit-stage voting game in zTree. I have never used the program before but I am slowly teaching myself through watching videos and reading manuals. ...
2
votes
0
answers
32
views
Limit of Certainty Equivalent for Cumulative Prospect Theory
I found a piece of code from a former colleague who seems to have copied it from another source (perhaps internet) that confused me a bit. Therein, the Certainty Equivalent (CE henceforth) for ...
- 303
2
votes
0
answers
15
views
Does the choice of rating scale affect the average percentage score?
Are there any differences in average percentage score when people are asked to judge things on different scales? Like for example rating something on 0/100 scale or a 0/5 scale or 0/10. Do different ...
2
votes
0
answers
52
views
Hyperbolic Discount function
I'm trying to determine my hyperbolic discount function for a given set of my own time preferences. I have determined that I am indifferent between {$}1000 today and {$}1004 tomorrow; {$}1000 today ...
2
votes
0
answers
85
views
What is the significance of the findings in Nagel's 1995 paper on Learning Theory?
This post concerns the findings in Nagel (1995). It is a bit outdated but nevertheless still relevant. She examines the Guessing Game, and how individual study-subjects behave in repeated games.
In ...
- 163
2
votes
0
answers
38
views
Intuition on cumulative prospect theory, based on equi-probable outcomes?
I am trying to build my intuition on the weighting/decision function in cumulative prospect theory. I have a hard time getting a clear picture for even the simple case of equi-probabilities.
Assume ...
- 121
2
votes
0
answers
129
views
Behavioral Dictator Game
I am doing a self study on behavioral economics and I am trying to solve behavioral version of the dictator game with following utilities for person 1 and 2.
$$ u_1( \sigma_1, \sigma_2 ) = \...
- 56.4k
2
votes
0
answers
52
views
Dominated lotteries in CPE
I have been looking into expectation-based loss aversion following Kőszegi-Rabin (2005, 2007). In particular, I find their choice-acclimating personal equilibrium (CPE) interesting, but it has a ...
- 5,290
2
votes
0
answers
34
views
Are there any experiments about financial games with just one player?
I was wondering if there are any experiments of financial games (laboratory games under controlled circumstances like Plott and Sunder's Rational Expectations and the Aggregation of Diverse ...
- 21
2
votes
0
answers
133
views
Framing effects and the use of subjective wellbeing measures in behavioural
In my first foray into behavioural economics I have encountered two themes;
- Self-reported subjective wellbeing (SWB) is commonly used as a measure of wellbeing. Survey based SWB measures are ...
- 361
2
votes
0
answers
29
views
Are there some guidelines/strategies for deciding between showing a list price vs "call for price"?
I suppose as a buyer many have been on the receiving end of "call for price" price discrimination or one of its less unpleasantly sounding synonyms. Now it's generally known that the average Joe hates ...
1
vote
0
answers
56
views
What stops the pay-what-you-want pricing strategy from being more popular?
The challenges or weaknesses that this strategy faces
From Pay what you want - Wikipedia:
Pay what you want (or PWYW, also referred to as value-for-value model is a pricing strategy where buyers pay ...
- 113
1
vote
0
answers
34
views
Ultimatum game where fair offers are automatically accepted
Has there been any experiments with a variant of the Ultimatum Game where a fair offer is automatically accepted?
For example, the game below, where rule 2 has been added to the classic ultimatum game:...
- 111
1
vote
0
answers
136
views
Nash equilibrium in p-beauty contest game where p=1
Setup: players must chose a number between 0 and 100. The winner of the game is the player whose chosen number is closest to the average of all chosen numbers multiplied by "p". Assume that ...
- 11
1
vote
0
answers
61
views
Does envy and identity fall under "social preferences"?
Social preferences refer to concepts such as reciprocatory, altruism, fairness and inequity aversion, as outlined in Fehr & Fischbacher (2002) and here.
Does greed or envy fall under "social ...
- 409
1
vote
0
answers
101
views
How to measure utility functions in the stock market
i am looking for some articles on how to identify and estimate utility functions in the stock market.
My own search results yielded some papers by Blackburn and Ukhov
https://www.researchgate.net/...
- 303
1
vote
0
answers
60
views
Utility of both players in St. Petersbourg paradox - behavioural economics
Im reading a paper by Karl Menger [1] about the St. Peterbourg paradox :
In the theory of probability, the "Petersburg Game" designates the
follow- ing gamei between two persons, A and B. ...
- 111
1
vote
0
answers
47
views
Estimating $\tau$ (cognitive hierarchy)
I am a little confused about how the parameter $\tau$ is usually estimated in a cognitive hierarchy model (recall that $\tau$ is the mean number of 'thinking steps'). For example, suppose that ...
- 856
1
vote
0
answers
42
views
Term for risk AND ambiguity
This question is related to References for particular definitions of risk and uncertainty, which offers an excellent description of risk and uncertainty.
Just as a recap: Knight (1921) described risk ...
- 105
1
vote
0
answers
20
views
Do you know any paper that discuss the effect of the deterrence of fines of individuals' behaviours? What is the difference between a fine a fee?
According to Gneezy and Rustichini the presence of an extrinsic reward in activities with a level of intrinsic motivation (e.g. volunteering) reduces intrinsic motivation, thus it may determine ...
1
vote
0
answers
29
views
What experiment could I run in order to test the 'Independence of Irrelevant Alternatives' axiom?
I need some help in designing an economics experiment to test the IIA axiom. My understanding of it is if you rank A above B then if you introduce C or D, you must still always rank A above B in any ...
- 11
1
vote
0
answers
186
views
Calculate power for multiple rounds of public goods experiment
I would like to calculate/simulate the a-priori necessary sample size for a repeated public goods experiment.
$N$ Participants play $R$ rounds of a public goods game (linear, voluntary contribution ...
- 111
1
vote
0
answers
51
views
«Behavioural economics is also useful in macroeconomics»
In this VOXEU article, the authors talk about a model in which behaviour economics is applied to macroeconomics.
I'm trying to understand fig.1, and the following sentence: «This means that if the ...
- 5,111
1
vote
0
answers
57
views
Terminology for separability in price and value
Take an agent with mean-variance utility over something that is uncertain:
$$
U(x) = \mu_x^\theta - \sigma_x^\lambda
$$
$A\in \{0,1\}$ happens if $U(x)>0$, and $x$ is a random variable
$$
A = \...
- 111
0
votes
0
answers
66
views
How do I calculate total utility under discounted utility framework
Suppose we are given an instantaneous utility function and discounted rate with budget constraint. Using the exponentially discounted utility function, we can find the optimal consumption stream of a ...
- 37
0
votes
0
answers
24
views
Estimation of learning model with finite horizon forward-looking individuals
I am stuck with the estimation of learning model where individuals are forward-looking in a finite horizon.
Specially, a user is watching a TV program containing many episodes, and he doesn't know the ...
- 11
0
votes
0
answers
26
views
Question about table in Credit Lines as Insurance: Evidence from Bangladesh
I am reading a paper for a seminar, titled "Credit Lines as Insurance: Evidence from
Bangladesh" authored by Gregory Lane.
In there, he describes part of his result refering to a table with ...
- 1
0
votes
0
answers
18
views
Mechanism Design with Quantal Best Response
I was wondering if there is a sensible definition of mechanism design (incentive compatibility and individual rationality) when the agent (bidder) is only boundedly rational. In the classical ...
- 101
0
votes
0
answers
86
views
What mathematical rule might eliminate .99 pricing?
What mathematical rule would effectively eliminate .99 pricing?
MOTIVATION
In the year 2013, the government of Canada stopped minting pennies
Suppose that the United States government wanted to ...
0
votes
0
answers
19
views
Whether companies and consumers are in-group and out-group in misperception?
Bursztyn (2021) says that
Misperceptions about others are widespread, asymmetric, much larger
when about out-group members, and positively associated with one’s own
attitudes.
Some examples of in-...
- 1,130
0
votes
0
answers
9
views
How does interest rates impact investment
How does a decrease in interest rates decrease investment rates? This is how I believe a liquidity trap works, not sure if it is correct.
Thank you
0
votes
0
answers
98
views
Analytically solvable examples of quantal response equilibrium
I have been reading up on quantal response equilibrium and am looking for some simple examples which can be solved analytically (in order to gain some intuition about how exactly QRE works). To be ...
user17900
0
votes
0
answers
35
views
To learn applied behavioural economics
Behavioural economics has offered many insights into decision-making processes, and experimentally, many cognitive biases have been identified, nudges have been tested etc. Reading all such literature,...
- 1,879
0
votes
0
answers
95
views
Is utility function used in customer data/profile analysis? What alternatives in practice?
Utility function is great theoretical concept but is it used in customer data analysis or in building customer profile (e.g. from Big data or cash register/checkout data, ecommerce history) or in ...
- 425
0
votes
1
answer
92
views
What is the best example social norm effect economy?
Here is my example.
I read the paper called "Social norms and Energy Conservation" (2010) by Hunt Allcott, about the energy conservation of households by providing them with the amount of energy ...
- 23
-2
votes
1
answer
71
views
Beta delta Agent - Consumption decision
I’m struggling with a problem regarding the beta delta agent.
Can someone give me a hint how I can come up with the levels of utility?
Thanks in advance!