When Charity Begins at Home: How Personal Financial Scarcity Drives Preference for Donating Locally at the Expense of Global Concerns
We present our results within the context of the broader conversation among psychologists and philosophers regarding optimal giving to achieve the greatest social good, suggesting that even a small change in donation allocation has substantial economic consequences for charities far away from home. (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - June 7, 2019 Category: Psychiatry & Psychology Source Type: research
The asymmetry of altruistic giving when givers outnumber recipients and vice versa: A dictator game experiment and a behavioral economics model
Publication date: Available online 5 June 2019Source: Journal of Economic PsychologyAuthor(s): Yen-Sheng Chiang, Yung-Fong HsuAbstractThe extent of altruistic giving is influenced by the numbers of givers and recipients available in a group. Two independent lines of research have addressed the effect. On the one hand, research on the bystander effect shows that a person gives less when givers outnumber recipients than if they are equal in number. On the other, studies of congestible altruism have found that a person gives more when recipients outnumber givers than if they are equal in size. An interesting question is wheth...
Source: Journal of Economic Psychology - June 6, 2019 Category: Psychiatry & Psychology Source Type: research
Income in Jeopardy: How Losing Employment Affects the Willingness to Take Risks
Publication date: Available online 1 June 2019Source: Journal of Economic PsychologyAuthor(s): Clemens Hetschko, Malte PreussAbstractIdentifying the determinants of risk-taking is crucial for our understanding of a variety of choices. Using German panel data, we find that people become more risk-averse when losing work. The immediate income loss does not mediate this effect. It seems also unrelated to the loss of non-monetary benefits of work and to changes of worker’s emotional state. However, we find that risk aversion responds the more strongly to losing work the more future income is at stake, and that the effect man...
Source: Journal of Economic Psychology - June 3, 2019 Category: Psychiatry & Psychology Source Type: research
Tracing Risky Decisions for Oneself and Others: The Role of Intuition and Deliberation
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 - May 31, 2019 Category: Psychiatry & Psychology Source Type: research
Top Incomes and Subjective Well-being
Publication date: Available online 25 May 2019Source: Journal of Economic PsychologyAuthor(s): Michal BrzezinskiAbstractWe use data from the World Wealth & Income Database, the European Values Surveys and World Values Surveys to estimate the relationship between income inequality as measured by top income shares and subjective well-being in a sample of 35 countries observed between 1980s and 2010s (139 surveys and more than 200,000 respondents). Results show that top 1% income shares are positively associated with happiness, while that the relationship with life satisfaction is less certain. The positive link between top i...
Source: Journal of Economic Psychology - May 25, 2019 Category: Psychiatry & Psychology Source Type: research
Guilt aversion in economics and psychology
Publication date: Available online 15 May 2019Source: Journal of Economic PsychologyAuthor(s): Charles Bellemare, Alexander Sebald, Sigrid SuetensAbstractWe investigate whether the concept of guilt aversion in economics is related to the psychological characterization of the same phenomenon. For trust games and dictator games we report correlations between the guilt sensitivity measured within a framework of psychological games most common in economics and the guilt sensitivity measured using a questionnaire common in psychology (TOSCA-3). We find that the two measures correlate well and significantly in the two settings. ...
Source: Journal of Economic Psychology - May 16, 2019 Category: Psychiatry & Psychology Source Type: research
Publisher's Note
Publication date: June 2019Source: Journal of Economic Psychology, Volume 72Author(s): AbstractAre 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 from 71 published and unpublished p...
Source: Journal of Economic Psychology - May 16, 2019 Category: Psychiatry & Psychology Source Type: research
Contagion of Pro- and Anti-Social Behavior Among Peers and the Role of Social Proximity
Publication date: Available online 11 May 2019Source: Journal of Economic PsychologyAuthor(s): Eugen DimantAbstractThis paper uses a novel experimental design to study the contagion of pro- and anti-social behavior and the role of social proximity among peers. Across systematic variations thereof, we find that anti-social behavior is generally more contagious than pro-social behavior. Surprisingly, we also find that social proximity amplifies the contagion of anti-social behavior more strongly than the contagion of pro-social behavior. Anti-social individuals are also most susceptible to the behavioral contagion of other a...
Source: Journal of Economic Psychology - May 12, 2019 Category: Psychiatry & Psychology Source Type: research
Equity versus Equality: Spectators, Stakeholders and Groups
Publication date: Available online 9 May 2019Source: Journal of Economic PsychologyAuthor(s): James Konow, Tatsuyoshi Saijo, Kenju AkaiAbstractJustice figures prominently in a wide variety of economically important contexts that involve both third parties and involved parties, i.e., in environmental regulation, international trade, and legal proceedings. The primary rivals for fairness rules over the distribution of a fixed good are equality and equity (i.e., allocations that are proportional to contributions). This paper reports the results of a dictator experiment in relation to a large variety of factors that might affe...
Source: Journal of Economic Psychology - May 10, 2019 Category: Psychiatry & Psychology Source Type: research
The Association Between Life Satisfaction and Affective Well-Being
Publication date: Available online 3 May 2019Source: Journal of Economic PsychologyAuthor(s): Martin Berlin, Filip Fors ConnollyAbstractWe estimate the correlation between life satisfaction and affect—two conceptually distinct dimensions of subjective well-being. We propose a simple model that distinguishes between a stable and a transitory component of affect, and which also accounts for measurement error in self-reports of both variables, including current-mood bias effects on life satisfaction judgments. The model is estimated using momentarily measured well-being data, from an experience sampling survey that we condu...
Source: Journal of Economic Psychology - May 3, 2019 Category: Psychiatry & Psychology Source Type: research
Historical Evidence for Anchoring Bias: The 1875 Cadastral Survey in Istanbul
Publication date: Available online 3 May 2019Source: Journal of Economic PsychologyAuthor(s): Burak Ünveren, Kazım BaycarAbstractIn experiments where participants value objects, it is well known that their appraisals can be systematically affected by irrelevant information; this is known as the anchoring effect. We ask whether the anchoring effect can be found in a real-world event that took place in 1875, involving real property appraisals for the first cadastral survey in Istanbul. After controlling for all the available features, such as rental price, size, region, number of rooms, construction material, type of build...
Source: Journal of Economic Psychology - May 3, 2019 Category: Psychiatry & Psychology Source Type: research
Risky health choices and the Balloon Economic Risk Protocol
In this study we focus on a risk task - the Balloon Analogue Risk Task (BART) - which is highly successful in predicting health-related risk behaviors such as alcohol use, drug use, smoking, unprotected sex, driving without a seatbelt, and stealing. The BART is not commonly used by economic scholars because of concerns that participants may not adequately comprehend uncertainty associated with the task and because of the resulting difficulty in relating participants’ choices to standard risk models. To answer these concerns and build on associations with real world risk, we designed a modified BART, which we will refer t...
Source: Journal of Economic Psychology - April 26, 2019 Category: Psychiatry & Psychology Source Type: research
Stock Price Reactions to News about Corporate Tax Avoidance and Evasion
This study examines stock market responses to news on corporate tax strategies. Our dataset includes 176 tax news items regarding listed German firms over the period from 2003 to 2016. In contrast to previous research, we distinguish between news about corporate tax strategies that are legal (tax avoidance) and illegal (tax evasion). We show that stock market responses differ significantly between news items concerning legal and illegal activities. We find negative abnormal returns for tax evasion news, while we find no general effect for tax avoidance news. Moreover, we do not observe any evidence of average reputation or...
Source: Journal of Economic Psychology - April 24, 2019 Category: Psychiatry & Psychology Source Type: research
Premature Infatuation and Commitment in Individual Investing Decisions
Publication date: Available online 19 April 2019Source: Journal of Economic PsychologyAuthor(s): Steven S. Posavac, Mark Ratchford, Nicolas P.B. Bollen, David M. SanbonmatsuAbstractThis research documents a premature infatuation effect in financial judgment and choice, and seeks to understand why it occurs. In many financial decisions, one potential investment choice becomes focal. The premature infatuation effect occurs when a focal investment possibility comes to be overvalued simply because it has come to the fore. Three experiments demonstrate that the premature infatuation effect influences financial judgments, choice...
Source: Journal of Economic Psychology - April 20, 2019 Category: Psychiatry & Psychology Source Type: research
Revisiting REVISE: (Re)Testing unique and combined effects of REminding, VIsibility, and SElf-engagement manipulations on cheating behavior
Publication date: Available online 13 April 2019Source: Journal of Economic PsychologyAuthor(s): Christoph Schild, Daniel W. Heck, Karolina Ścigała, Ingo ZettlerAbstractDishonest behavior poses a crucial threat to individuals and societies at large. To highlight situation factors that potentially reduce the occurrence and/or extent of dishonesty, Ayal, Gino, Barkan, and Ariely (2015) introduced the REVISE framework, consisting of three principles: REminding, VIsibility, and SElf-engagement. The evidence that the three REVISE principles actually reduce dishonesty is not always strong and sometimes even inconsistent, howev...
Source: Journal of Economic Psychology - April 15, 2019 Category: Psychiatry & Psychology Source Type: research
