Is There No “I” in “Team”? Interindividual-Intergroup Discontinuity Effect in a Cournot Competition Experiment
This study examines the empirical scope of the unitary player assumption (alternatively the “interindividual-intergroup discontinuity effect”) in the context of a Cournot competition experiment. In the first, standard, experiment (216 participants), we find no evidence for the discontinuity effect. Output choices of both individuals and teams are around the Cournot outcome. In a second experiment (198 participants), we use a recommendation to shift participants’ initial disposition towards the (off-equilibrium) collusive output. This triggers the discontinuity effect; individuals choose lower outputs and collude more...
Source: Journal of Economic Psychology - July 6, 2019 Category: Psychiatry & Psychology Source Type: research
Generous by Default: A Field Experiment on Designing Defaults that Align with Past Behaviour on Charitable Giving
Publication date: Available online 2 July 2019Source: Journal of Economic PsychologyAuthor(s): Guglielmo BrisceseAbstractDefaults can influence behaviour in many contexts, from savings to organ donations registrations, but can also reduce an individual’s perception of control if they don’t take into account individual preferences. This paper examines defaults in a charitable giving setting where a preference for control might limit the role of the default option. We run a field experiment with an NGO hosting an online peer-to-peer micro-lending platform. Lenders, who had their microloans fully repaid but had taken no a...
Source: Journal of Economic Psychology - July 2, 2019 Category: Psychiatry & Psychology Source Type: research
Responsibility and Limited Liability in Decision Making for Others - An experimental consideration
Publication date: Available online 29 June 2019Source: Journal of Economic PsychologyAuthor(s): Sascha Füllbrunn, Wolfgang J. LuhanAbstractAgency in financial markets has been claimed to foster excessive risk taking, ultimately leading to bubble formation. The main driving factor appears to be the skewed bonus system for agents who invest other people’s money. The resulting excessive risk taking on behalf of others would imply that such bonus systems crowds out responsible decision making for others in order to serve egoistic self-interest. To test this implication, we conduct laboratory experiments comparing decision m...
Source: Journal of Economic Psychology - June 30, 2019 Category: Psychiatry & Psychology Source Type: research
Publisher's Note
This study contributes to the understanding of how individuals make choices for themselves and on behalf of others in a risky environment. In a laboratory eye-tracking experiment, we investigate whether risk preferences, decision error, and information processing differ between decisions made for oneself and on behalf of others. While we find no differences in risk preferences when deciding for oneself or for someone else, individuals have a greater decision error when deciding for others. Process data partly explains these differences. Individuals spend less time, have less fixations, and inspect less information when dec...
Source: Journal of Economic Psychology - June 29, 2019 Category: Psychiatry & Psychology Source Type: research
Interpersonal risk assessment and social preferences: An experimental study
Publication date: Available online 15 June 2019Source: Journal of Economic PsychologyAuthor(s): Federico Fornasari, Matteo Ploner, Ivan SoraperraAbstractWe investigate interpersonal risk assessment, that is how individuals use either their own or their partner’s monetary resources to offset the risk that affects them or their partner. The observed behavior is in line with the predictions of a simple piecewise linear model of social preferences. Overall, individuals opportunistically draw from others’ resources to offset risk; furthermore, they display higher levels of risk aversion when delegated to choose for others r...
Source: Journal of Economic Psychology - June 26, 2019 Category: Psychiatry & Psychology Source Type: research
Decision making for others involving risk: A review and meta-analysis
Publication date: Available online 12 June 2019Source: Journal of Economic PsychologyAuthor(s): Evan Polman, Kaiyang WuAbstractAre choices for others riskier than choices people make for themselves? This question has been asked by economists, psychologists, and other researchers in the social sciences – which has generated a diversity of research accounts and results. For example, a number of studies have found strong instances of a risky shift in choices for others, while other studies have found no such effect or have found that choices for others instead generate a cautious shift. In a meta-analysis of 128 effects fro...
Source: Journal of Economic Psychology - June 21, 2019 Category: Psychiatry & Psychology Source Type: research
Conditioning Competitive Risk: Competitors’ Rank Proximity and Relative Ability
Publication date: Available online 18 June 2019Source: Journal of Economic PsychologyAuthor(s): Danny Miller, David Pastoriza, Jean-François PlanteAbstractWe study rank-order tournaments to examine how the influence of the opportunity/threat of gaining/losing rank on competitive risk taking is moderated by the ability of an actor vis-à-vis its contiguous competitors. Consistent with social comparison theory, we find that we are better able to predict competitive risk by taking into account the interaction between short-term rank proximity and enduring ability – risk taking is triggered mainly when contiguously ranked c...
Source: Journal of Economic Psychology - June 19, 2019 Category: Psychiatry & Psychology Source Type: research
Editorial Board
Publication date: June 2019Source: Journal of Economic Psychology, Volume 72Author(s): (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - June 19, 2019 Category: Psychiatry & Psychology Source Type: research
The asymmetric dominance effect: Reexamination and extension in risky choice – An experimental study
Publication date: August 2019Source: Journal of Economic Psychology, Volume 73Author(s): Oktay Sürücü, Behnud Mir Djawadi, Sonja ReckerAbstractThe asymmetric dominance effect refers to the phenomenon according to which the choice probability of a baseline alternative increases when an inferior alternative -the decoy- is included into the choice set. Even though the asymmetric dominance effect has been extensively studied and replicated many times, there is almost no research that investigates how the effect is related to individual preferences between the target and the competitor, and how the size of the effect is infl...
Source: Journal of Economic Psychology - June 16, 2019 Category: Psychiatry & Psychology Source Type: research
Interpersonal Risk Assessment and Social Preferences An Experimental Study
Publication date: Available online 15 June 2019Source: Journal of Economic PsychologyAuthor(s): Federico Fornasari, Matteo Ploner, Ivan SoraperraAbstractWe investigate interpersonal risk assessment, that is how individuals use either their own or their partner’s monetary resources to offset the risk that affects them or their partner. The observed behavior is in line with the predictions of a simple piecewise linear model of social preferences. Overall, individuals opportunistically draw from others’ resources to offset risk; furthermore, they display higher levels of risk aversion when delegated to choose for others r...
Source: Journal of Economic Psychology - June 15, 2019 Category: Psychiatry & Psychology Source Type: research
Gender Differences in Social Risk Taking
Publication date: Available online 13 June 2019Source: Journal of Economic PsychologyAuthor(s): Andreas Friedl, Andreas Pondorfer, Ulrich SchmidtAbstractWomen in Western societies are typically more risk averse than men in individual risk taking decisions. In real life, however, risk taking decisions are usually made in a social context. So far, empirical evidence whether gender differences are also present in the social risk taking domain is missing. We use a controlled experiment to analyze gender differences in socialrisk taking. We find that inequality aversion is the main driver for risk aversion in social risk taking...
Source: Journal of Economic Psychology - June 14, 2019 Category: Psychiatry & Psychology Source Type: research
Decision making for others involving risk: A review and metaanalysis
Publication date: Available online 12 June 2019Source: Journal of Economic PsychologyAuthor(s): Evan Polman, Kaiyang WuAbstractAre choices for others riskier than choices people make for themselves? This question has been asked by economists, psychologists, and other researchers in the social sciences – which has generated a diversity of research accounts and results. For example, a number of studies have found strong instances of a risky shift in choices for others, while other studies have found no such effect or have found that choices for others instead generate a cautious shift. In a meta-analysis of 128 effects fro...
Source: Journal of Economic Psychology - June 13, 2019 Category: Psychiatry & Psychology Source Type: research
Behavioral Economic Phenomena in Decision-Making for Others
Publication date: Available online 8 June 2019Source: Journal of Economic PsychologyAuthor(s): John Ifcher, Homa ZarghameeAbstractWe examine whether biases identified in the behavioral-economics literature apply in decision-making for others (DMfO). We conduct a laboratory experiment in which subjects make decisions on behalf of themselves and others in eighteen tasks that measure the following biases: present-bias in time preferences, reflection effect in risk preferences, compound risk aversion, decoy effect, anchoring bias, endowment effect, and identifiable-victim bias. In our experiment, DMfO is DMfO simpliciter: unin...
Source: Journal of Economic Psychology - June 10, 2019 Category: Psychiatry & Psychology Source Type: research
The Asymmetric Dominance Effect: Reexamination and Extension in Risky Choice - An Experimental Study
Publication date: Available online 8 June 2019Source: Journal of Economic PsychologyAuthor(s): Oktay Sürücü, Behnud Mir Djawadi, Sonja ReckerAbstractThe asymmetric dominance effect refers to the phenomenon according to which the choice probability of a baseline alternative increases when an inferior alternative -the decoy- is included into the choice set. Even though the asymmetric dominance effect has been extensively studied and replicated many times, there is almost no research that investigates how the effect is related to individual preferences between the target and the competitor, and how the size of the effect i...
Source: Journal of Economic Psychology - June 8, 2019 Category: Psychiatry & Psychology Source Type: research
The Effect of Pledges on the Distribution of Lying Behavior: an Online Experiment
In this study we are analyzing how a truth pledge changes the distribution of lying types which have been established in the literature, i.e. truth tellers, partial liars and extreme liars, to better understand whether truth pledges can affect the decision to lie or merely the extent of lies. For this purpose, we conduct a 2x2 experiment with 484 participants in which we apply a truth pledge in a gain and a loss frame. We introduce a novel “Even-Odd task” for online lying experiments, which is based on the well-established coin-toss design. The Even-Odd task takes into account that unbiased, physical randomization devi...
Source: Journal of Economic Psychology - June 7, 2019 Category: Psychiatry & Psychology Source Type: research
