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Cognitive Ability and Paternalism
Saint-Paul, Gilles - 2002
This paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well...
Persistent link: https://www.econbiz.de/10010262616
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A model of overconfidence
Weinberg, Bruce A. - 2009
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/10010269111
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Biased probability judgment: evidence of incidence and relationship to economic outcomes from a representative sample
Dohmen, Thomas; Falk, Armin; Huffman, David; Marklein, Felix - 2009
Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...
Persistent link: https://www.econbiz.de/10010269033
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Narrow bracketing and dominated choices
Rabin, Matthew; Weizsäcker, Georg - 2007
An experiment by Tversky and Kahneman (1981) illustrates that people's tendency to evaluate risky decisions separately can lead them to choose combinations of choices that are first-order stochastically dominated by other available combinations. We investigate the generality of this effect both...
Persistent link: https://www.econbiz.de/10010268303
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Framing effects and impatience: Evidence from a large scale experiment
van der Heijden, Eline; Klein, Tobias J.; Müller, Wieland - 2012
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/10010291450
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The Impact of Risk Perception and Risk Attitudes on Corrupt Behavior: Evidence from a Petty Corruption Experiment
Djawadi, Behnud Mir; Fahr, René - 2013
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/10010319579
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The effect of incentive structure on heuristic decision making: the proportion heuristic
Oxoby, Robert J. - 2007
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/10010268187
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Cognitive dissonance, pessimism, and behavioral spillover effects
Dickinson, David L.; Oxoby, Robert J. - 2007
This paper reports results from a unique two-stage experiment designed to examine the spillover effects of optimism and pessimism. In stage 1, we induce optimism or pessimism onto subjects by randomly assigning a high or low piece rate for performing a cognitive task. We find that participants...
Persistent link: https://www.econbiz.de/10010268146
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Fungibility, labels, and consumption
Abeler, Johannes; Marklein, Felix - 2008
Fungibility of money is a central principle in economics. It implies that any unit of money is substitutable for another and that the composition of income is irrelevant for consumption. We find in a field experiment that even in a simple, incentivized setup many subjects do not treat money as...
Persistent link: https://www.econbiz.de/10010268624
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How do shocks to non-cognitive skills affect test scores?
Behncke, Stefanie - 2009
This paper investigates the extent to which test performance is affected by shocks to non-cognitive skills. 440 … students took a low stakes mathematics test. About half of them were exposed to positive affirmation while being given test … conducted at the tutorial level. Mean comparisons suggest that test scores were raised by the intervention. In particular …
Persistent link: https://www.econbiz.de/10010269120