Showing 1 - 10 of 46
Numerous laboratory studies find that minor nuances of presentation and description change behavior in ways that are inconsistent with standard economic models. How much do these context effect matter in natural settings, when consumers make large, real decisions and have the opportunity to...
Persistent link: https://www.econbiz.de/10013235304
The premise of this article is that an understanding of psychology and other social science disciplines can inform the effectiveness of the economic tools traditionally deployed in carrying out the functions of government, which include remedying market failures, redistributing income, and...
Persistent link: https://www.econbiz.de/10013050285
This paper synthesizes recent research in economics and psychology on the measurement and empirical importance of personality skills and preferences. They predict and cause important life outcomes such as wages, health, and longevity. Skills develop over the life cycle and can be enhanced by...
Persistent link: https://www.econbiz.de/10012859214
Prospect theory, loss aversion, mental accounts, hyperbolic discounting, cues, and the endowment effect can all be seen as examples of situationalism -- the view that people isolate decisions and overweight immediate aspects of the situation relative to longer term concerns. But outside of the...
Persistent link: https://www.econbiz.de/10012752691
We propose a theoretically-motivated factor model based on investor psychology and assess its ability to explain the cross-section of U.S. equity returns. Our factor model augments the market factor with two factors which capture long- and short-horizon mispricing. The long-horizon factor...
Persistent link: https://www.econbiz.de/10012931217
We examine the effect of hearing cases alongside female judicial colleagues on the probability that a federal judge hires a female law clerk. Federal judges are assigned to cases and to judicial panels at random and have few limitations on their choices of law clerks: these two features make the...
Persistent link: https://www.econbiz.de/10014101922
We study competitive equilibrium in a signaling economy with heterogeneously informed buyers. In terms of the classic Spence (1973) model of job market signaling, firms have access to direct but imperfect information about worker types, in addition to observing their education. Firms can be...
Persistent link: https://www.econbiz.de/10012947651
This paper develops a theory of promotion based on evaluations by the already promoted. The already promoted show some favoritism toward candidates for promotion with similar beliefs, just as beetles are more prone to eat the eggs of other species. With such egg-eating bias, false beliefs may...
Persistent link: https://www.econbiz.de/10012953979
We develop a framework to understand pre-employment credit screening through adverse selection in labor and credit markets. Workers differ in an unobservable characteristic that induces a positive correlation between labor productivity and repayment rates in credit markets. Firms therefore...
Persistent link: https://www.econbiz.de/10012911471
We provide the first nation-wide estimates on temperature effects on high-stakes cognitive performance in a developing country using data from the National College Entrance Examination (NCEE) in China. The NCEE is one of the most important institutions in China and affects hundreds of millions...
Persistent link: https://www.econbiz.de/10012914709