Questions tagged [behavioral-economics]
A branch of economics that incorporates insights from psychology by allowing for systematic deviations from idealised rational behaviour.
26
questions with no upvoted or accepted answers
6
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335 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 ...
5
votes
0answers
59 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
...
4
votes
0answers
64 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.
...
3
votes
0answers
38 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 ...
3
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0answers
27 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 ...
3
votes
0answers
123 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 ...
2
votes
0answers
25 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 ...
2
votes
0answers
57 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 ) = \...
2
votes
0answers
30 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 ...
2
votes
0answers
25 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 ...
2
votes
0answers
126 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 ...
2
votes
0answers
27 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
0answers
32 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 ...
1
vote
0answers
17 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
0answers
22 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 ...
1
vote
0answers
67 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 ...
1
vote
0answers
44 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 ...
1
vote
0answers
49 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 = \...
0
votes
0answers
17 views
Decreasing performance pay in the risk-aversion of the principal
What is the intuition behind a decreasing performance pay ß if both principal and agent are risk averse compared to a principal being risk neutral and an agent being risk averse?
Actually, intuitively ...
0
votes
0answers
8 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
0answers
15 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 ...
0
votes
0answers
29 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,...
0
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0answers
12 views
Welfare Effects of Sophistication vs Naiveté on Present Bias
In lecture, we said that naive agents are better off than sophisticated agents in situations with current costs and future benefits, such as quitting smoking, while sophisticated agents are better off ...
0
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0answers
84 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 ...
0
votes
1answer
76 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 ...
-2
votes
1answer
55 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!
