Is there no ‘I’ in team? Strategic effects in multi-battle team competition
Publication date: Available online 2 May 2018Source: Journal of Economic PsychologyAuthor(s): Lu Dong, Lingbo HuangAbstractIndividuals may respond differently to their own past performance than to their teammates’ performance in a multi-battle competition. Using field data from professional squash team tournaments, we show that while previous individual success begets more success, teammates’ past performance has little impact on players’ immediate and overall battle performance. It could be argued that players follow the heuristic of doing their best for their teams while at the same time succumbing to a psychologic...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
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Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Does cognitive aging affect portfolio choice?
Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): Tae-Young Pak, Patryk BabiarzAbstractThe association between cognitive aging and portfolio reallocation towards riskless assets is well documented. Past studies have suggested several mechanisms such as rising information costs or preference changes to explain the shift away from financial risk. However, these narratives appear to be at odds with the evidence that some domains of cognitive functions improve with age, and many individuals are not cognizant of their intellectual decline. Using data from the Health and Retirement Study, thi...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Cigarette tax rates, behavioral disengagement, and quit ratios among daily smokers
We examined whether behavioral disengagement – the tendency to abandon goals when experiencing stress – modified the association between cigarette taxes and daily smoking behavior. We connected state-level cigarette tax rate data with individual-level behavioral data, including a national sample of 725 US adults who smoked daily at baseline and reported follow-up data approximately 10 years later, and 376 who were resampled a third time after another 10 years. Analyses involved multilevel logistic regression (with time as a nested variable and anonymized state codes as a grouping variable), where current smoking st...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Promotional formats and inaction inertia
Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): Hsin-Hsien Liu, Hsuan-Yi ChouAbstractInaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. Based on mental accounting theory and the comparability of the current and missed opportunities, this study explores how promotional formats influence consumers’ inaction inertia. The authors propose that when the missed and current promotions are monetary (vs. nonmonetary), consumers perceive that these opportunities are more comparable, which results...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Lower-rated publications do lower academics’ judgments of publication lists: Evidence from a survey experiment of economists
Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): Nattavudh Powdthavee, Yohanes E. Riyanto, Jack L. KnetschAbstractPublications in leading journals are widely known to have a positive impact on economists’ judgments of the value of authors’ contributions and professional reputations. While conjectures that publications in lower-rated journals likely have a negative impact on such judgments are common, there have been virtually no direct tests of their validity. Our intent is to provide results from such a test, one that involved asking economists from 44 universities throughout the ...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Testing strategies to increase saving in individual development account programs
Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): Cäzilia Loibl, Lauren Jones, Emily HaisleyAbstractA series of randomized field experiments tests whether saving rates in a federally funded, matched, savings program for low-income families – the Individual Development Account program – can be improved through insights from behavioral economics. We test the impact of: (a) holding savers accountable for making savings deposits, (b) increasing the frequency with which deposits are made, and (c) introducing a lottery-based incentive structure. We find small, positive effects of the fre...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Great expectations: Education and subjective wellbeing
Publication date: June 2018Source: Journal of Economic Psychology, Volume 66Author(s): Ingebjørg KristoffersenAbstractThis paper examines the association between education and subjective wellbeing. The evidence on this relationship is scarce, inconsistent and poorly understood, and reports of a negative association are common. Such results may appear counter-intuitive, but are in fact consistent with the idea that education is associated with higher expectations with respect to life circumstances. Consequently, education may be associated with greater subjective wellbeing only insofar as the ability to meet (or exceed) ex...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Is the disposition effect related to investors’ reliance on System 1 and System 2 processes or their strategy of emotion regulation?
We report research on investor susceptibility to the disposition effect, a financial decision-making bias where investors have a greater propensity to realize gains than realize losses. Despite theoretical arguments for the influence of emotions, research on susceptibility to this bias, on real investors, has relied primarily on socio-demographic explanations. Some experimental research on student populations has considered emotions more directly, but has not addressed differences in individual susceptibility and has not examined genuinely consequential investor behaviour in real markets. Our research addresses this gap by...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
No gain without pain: The psychological costs of dishonesty
We present a more direct test of the costs of lying. Specifically, if lying is psychologically costly, individuals should feel entitled to gains they obtained through dishonesty – similar to those they actually earned through getting lucky or even investing effort. Correspondingly, in three experiments, we compared individuals’ willingness to share in the dictator game, with varying mechanisms generating the to-be-shared endowment: getting lucky, exerting (cognitive) effort, and lying. We consistently found that individuals were at least as unwilling to share an endowment obtained through dishonesty as an endowment obt...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Decision-maker beliefs and the sunk-cost fallacy: Major League Baseball’s final-offer salary arbitration and utilization
Publication date: Available online 15 June 2018Source: Journal of Economic PsychologyAuthor(s): Quinn A.W. KeeferAbstractWe use Major League Baseball final-offer arbitration (FOA) to analyze how sunk costs affect high stakes decisions while controlling for the beliefs of the decision maker. FOA gives us an explicit measure of a team’s beliefs; the team’s final offer is a direct measure of its perceived value of the player. Using an instrumental variables approach, we find salary has a meaningful impact on player utilization, measured in plate appearances. FOA also allows us to directly compute the average treatment eff...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
On the impact of Honesty-Humility and a cue of being watched on cheating behavior
Publication date: Available online 23 June 2018Source: Journal of Economic PsychologyAuthor(s): Stefan Pfattheicher, Simon Schindler, Laila NockurAbstractThe present contribution examines two factors, as well as their interplay, prominently discussed in the literature on cheating: The basic personality trait of Honesty-Humility from the HEXACO personality model and cues of being watched when given the possibility to cheat. In two studies (Study 1 N = 192, Study 2 N = 957), we applied economically incentivized cheating paradigms (a dice-rolling paradigm and a coin-toss paradigm) and replicated the previously found n...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Taking shortcuts: Cognitive conflict during motivated rule-breaking
Publication date: Available online 25 June 2018Source: Journal of Economic PsychologyAuthor(s): Roland Pfister, Robert Wirth, Lisa Weller, Anna Foerster, Katharina SchwarzAbstractDeliberate rule violations have typically been addressed from a motivational perspective that asked whether or not agents decide to violate rules based on contextual factors and moral considerations. Here we complement motivational approaches by providing a cognitive perspective on the processes that operate during the act of committing an unsolicited rule violation. Participants were tested in a task that allowed for violating traffic rules by ex...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
Shades of narcissistic dishonesty: Grandiose versus vulnerable narcissism and the role of self-conscious emotions
Publication date: Available online 26 June 2018Source: Journal of Economic PsychologyAuthor(s): Michela Schröder-Abé, Ramzi FatfoutaAbstractHonesty is crucial to navigate the social realm, yet certain individuals – those high in narcissism – tend to engage in dishonesty. In two studies (total N = 910), we aimed to zoom in on the link between grandiose versus vulnerable narcissism and dishonesty, further clarifying the role of the key self-conscious emotions shame and guilt in mediating this link. Using behavioral indicators of dishonesty, namely, actual cheating in a math task (Study 1) and a coin-tossing task (S...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
We Should Totally Open a Restaurant: How Optimism and Overconfidence Affect Beliefs
Publication date: Available online 6 July 2018Source: Journal of Economic PsychologyAuthor(s): Stephanie A. Heger, Nicholas W. PapageorgeAbstractWishful thinking, defined as the tendency to over-estimate the probability of high-payoff outcomes, is a widely-documented phenomenon that can affect decision-making across numerous domains, including finance, management, and entrepreneurship. We design an experiment to distinguish and test the relationship between two easily-confounded biases, optimism and overconfidence, both of which can contribute to wishful thinking. We find that optimism and overconfidence are positively cor...
Source: Journal of Economic Psychology - July 10, 2018 Category: Psychiatry & Psychology Source Type: research
