Demand for Decision Autonomy and the Desire to Avoid Responsibility in Risky Environments: Experimental Evidence
Publication date: Available online 9 August 2019Source: Journal of Economic PsychologyAuthor(s): Seda Ertac, Mert Gumren, Mehmet Y. GurdalAbstractThis paper experimentally studies individuals’ willingness to pay for the authority to make risky decisions for themselves, and the willingness to take responsibility for others, as primary determinants of leadership willingness. We consider a setup involving a pair of individuals, where one individual is designated to make both parties’ decisions by default. Depending on treatment, either party can express a willingness to pay to change this situation. If one’s willingness...
Source: Journal of Economic Psychology - August 10, 2019 Category: Psychiatry & Psychology Source Type: research
The Reliability of Questionnaires in Laboratory Experiments: What Can We Do?
Publication date: Available online 8 August 2019Source: Journal of Economic PsychologyAuthor(s): Irenaeus WolffAbstractQuestionnaires eliciting personality traits and other characteristics of a person are important tools for many experimental economists. While a lot is known about how to run experiments and about how to construct and run field surveys, much less is known about how to administer such surveys in a post-experimental context. A short survey among experimental economists documents substantial heterogeneity in the procedures used, and in expectations about the effects of procedural details. I run an experiment o...
Source: Journal of Economic Psychology - August 9, 2019 Category: Psychiatry & Psychology Source Type: research
Worries of the Poor: The Impact of Financial Burden on the Risk Attitudes of Micro-entrepreneurs
Publication date: Available online 6 August 2019Source: Journal of Economic PsychologyAuthor(s): Patricio S. Dalton, Nguyen Nhung, Julius RüschenpöhlerAbstractWe randomly expose the owners of small retail businesses in Vietnam to scenarios that trigger financial worries and study the effect of this intervention on risk attitudes using an incentive-compatible elicitation method. We find that entrepreneurs exposed to financial worries behave less risk-averse than those assigned to a placebo treatment. This effect is stronger for owners of shops which are smaller and those less exposed to large income shocks in their everyd...
Source: Journal of Economic Psychology - August 7, 2019 Category: Psychiatry & Psychology Source Type: research
Risk preferences after a typhoon: an artefactual field experiment with fishers in the Philippines
Publication date: Available online 6 August 2019Source: Journal of Economic PsychologyAuthor(s): Anna Lou Abatayo, John LynhamAbstractWhen are risk preferences stable and when do they change? In general, individual preferences tend to be consistent across time and space but extreme shocks, such as natural disasters, appear to change how people make economic decisions. We conduct an artefactual field experiment with fishers on a remote island in the Philippines and investigate the effect of Typhoon Bopha on risk preferences, along with fairness and time preferences. The typhoon destroyed coral reefs and reduced populations ...
Source: Journal of Economic Psychology - August 7, 2019 Category: Psychiatry & Psychology Source Type: research
Replications in Economic Psychology and Behavioral Economics
Publication date: Available online 2 August 2019Source: Journal of Economic PsychologyAuthor(s): Thomas Schultze, Jürgen Huber, Michael Kirchler, Andreas Mojzisch (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - August 4, 2019 Category: Psychiatry & Psychology Source Type: research
Childhood exposure to the Second World War and financial risk taking in adult life
Publication date: Available online 31 July 2019Source: Journal of Economic PsychologyAuthor(s): Davide Bellucci, Giulia Fuochi, Pierluigi ConzoAbstractAdverse childhood experiences might have long-lasting effects on decisions under uncertainty in adult life. Merging the European Survey on Health, Ageing and Retirement with data on conflict events during the Second World War, and relying on region-by-cohort variation in war exposure, we show that warfare exposure during childhood is associated with lower financial risk taking in later life. Individuals who experienced war episodes as children hold less – and are less like...
Source: Journal of Economic Psychology - August 1, 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 - July 31, 2019 Category: Psychiatry & Psychology Source Type: research
The Role of Emotions in Tax Compliance Behavior: A Mixed-Methods Approach
Publication date: Available online 27 July 2019Source: Journal of Economic PsychologyAuthor(s): Janina Enachescu, Jerome Olsen, Christoph Kogler, Marcel Zeelenberg, Seger M. Breugelmans, Erich KirchlerAbstractTwo studies, using both qualitative and quantitative methods, showed that tax decisions elicit different emotions, which have an impact on compliance. Study 1 used focus groups with self-employed (N = 7) and employed (N = 9) taxpayers as well as tax auditors (N = 8) to identify the emotions that are relevant in the taxation context and to single out typical situations in which these emotions are elicited. Study 2 (N =...
Source: Journal of Economic Psychology - July 28, 2019 Category: Psychiatry & Psychology Source Type: research
Discretionary mechanisms and cooperation in hierarchies: An experimental study
Publication date: Available online 16 July 2019Source: Journal of Economic PsychologyAuthor(s): Stephan Billinger, Stephen Mark RosenbaumAbstractThis paper experimentally investigates the effects of managerial discretion over organizational inputs and –outputs on cooperation levels in a novel hierarchical public goods game. We observe treatment differences suggesting that while the introduction of hierarchy improves contribution levels vis-à-vis a baseline without hierarchy, certain combinations of discretionary contribution (the extent to which managers can contribute) and discretionary rewards (the type of share accru...
Source: Journal of Economic Psychology - July 17, 2019 Category: Psychiatry & Psychology Source Type: research
The Effects of Voice With(out) Punishment: Public Goods Provision and Rule Compliance
Publication date: Available online 16 July 2019Source: Journal of Economic PsychologyAuthor(s): Stephen N. Morgan, Nicole M. Mason, Robert S. ShuppAbstractWe investigate the effect of voice exercised through comment-based participation on individual public goods provision. We implement a modified linear public goods game with treatments along two dimensions. First, we introduce a comment mechanism where individuals can provide unstructured feedback to influence a third-party rule-maker who determines a minimum contribution rule (MCR) at the beginning of the game. Second, we implement a probabilistic sanctioning mechanism f...
Source: Journal of Economic Psychology - July 17, 2019 Category: Psychiatry & Psychology Source Type: research
Trust and power as determinants of tax compliance across 44 nations
Publication date: Available online 16 July 2019Source: Journal of Economic PsychologyAuthor(s): Larissa Batrancea, Anca Nichita, Jerome Olsen, Christoph Kogler, Erich Kirchler, Erik Hoelzl, Avi Weiss, Benno Torgler, Jonas Fooken, Joanne Fuller, Markus Schaffner, Sheheryar Banuri, Medhat Hassanein, Gloria Alarcón-García, Ceyhan Aldemir, Oana Apostol, Diana Bank Weinberg, Ioan Batrancea, Alexis Belianin, Felipe de Jesús Bello GómezAbstractThe slippery slope framework of tax compliance emphasizes the importance of trust in authorities as a substantial determinant of tax compliance alongside traditional enforcement tools l...
Source: Journal of Economic Psychology - July 16, 2019 Category: Psychiatry & Psychology Source Type: research
The Disposition Effect when Deciding on Behalf of Others
This article presents experimental evidence on the disposition effect for the case where a subject decides on behalf of another person. In our setting, trading effort can only be affected by subjects’ intrinsic motivation, since trading actions only influence the profits of a matched person. However, in our control treatment, trades have a direct influence on subjects’ profits. We find that trading on behalf of others amplifies disposition effects when subjects have no experience. By contrast, no significant differences exist when subjects are experienced. Inexperienced subjects, characterized by a greater concern for ...
Source: Journal of Economic Psychology - July 13, 2019 Category: Psychiatry & Psychology Source Type: research
Parenthood, risk attitudes and risky behavior
This study analyzes how risk attitudes change when individuals experience the major life event of becoming a parent by using longitudinal data for a large and representative sample of individuals from Germany. The analysis uses a survey-based measure of risk aversion. The estimation is based on an individual fixed effects model similar to an event study. On average, men and women experience a considerable increase in risk aversion around the time of first childbirth. This increase already starts as early as two years before they become parents, it is largest shortly after childbirth and it disappears when the child becomes...
Source: Journal of Economic Psychology - July 13, 2019 Category: Psychiatry & Psychology Source Type: research
Editorial Board
Publication date: August 2019Source: Journal of Economic Psychology, Volume 73Author(s): (Source: Journal of Economic Psychology)
Source: Journal of Economic Psychology - July 13, 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 - July 11, 2019 Category: Psychiatry & Psychology Source Type: research
