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When making judgments, individuals often utilize heuristics to interpret information. We report on a series of … experiments designed to test the ways in which incentive mechanisms influence the use of a particular heuristic in decision …
Persistent link: https://www.econbiz.de/10013316971
Does it matter if you speak with a regional accent? Speaking immediately reveals something of one's own social and cultural identity, be it consciously or unconsciously. Perceiving accents involves not only reconstructing such imprints but also augmenting them with particular attitudes and...
Persistent link: https://www.econbiz.de/10013043672
We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play … a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores … on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction …
Persistent link: https://www.econbiz.de/10013324818
People use information about their ability to choose tasks. If more challenging tasks provide more accurate information about ability, people who care about and who are risk averse over their perception of their own ability will choose tasks that are not sufficiently challenging. Overestimation...
Persistent link: https://www.econbiz.de/10013158056
In this paper we conduct a laboratory experiment to test the extent to which Moore and Repullo's subgame perfect …
Persistent link: https://www.econbiz.de/10013023778
We study and test a class of boundedly rational models of decision making which rely on sequential eliminative … heuristics. We formalize two sequential decision procedures, both inspired by plausible models popular among several … these procedures by few, simple and testable conditions on observed choice. Then we test the models (as well as the standard …
Persistent link: https://www.econbiz.de/10013317410
Using field and laboratory experiments, we demonstrate that the complexity of incentive schemes and worker bounded rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to over-provide effort relative to a fully rational...
Persistent link: https://www.econbiz.de/10014347039
We investigate one possible explanation for observed rates of corrupt behavior namely that individual decision makers who frequently engage in illegal actions may underestimate the overall probability of being caught. This might in particular be true for petty corruption where small amounts of...
Persistent link: https://www.econbiz.de/10013081828
We confront a representative sample of one 1,102 Dutch individuals with a series of incentivized investment decisions and also elicit their time preferences. There are two treatments that differ in the frequency at which individuals decide about the invested amount. The low frequency treatment...
Persistent link: https://www.econbiz.de/10013089008
of air pollution affecting cognitive test performance by type of cognitive tests, gender, window of exposure, age profile …
Persistent link: https://www.econbiz.de/10012907831