We show that personality traits mediate the effect of income on Life Satisfaction. The effect is strong in the case of Neuroticism, which measures the sensitivity to threat and punishment, in both the British Household Panel Survey and the German Socioeconomic Panel. Neuroticism increases the...

Neuroeconomics gives a material foundation to economics. The basic framework of this paper is one that takes into account cognitive psychology, economics, biology and neuroscience in general. Specifically, it is a review of findings which aim to make explicit the idea that it is the body and...

Intertemporal and probabilistic choices have been attracting attention in behavioral neuroeconomics. Although recent advances in neuroeconomics demonstrated neural processes underlying intertemporal and probabilistic choices, the roles of psychophysical effects on the choices have largely been...

For more than a century, careful readers of the Green Bag have known that “[t]here is nothing sacred in a theory of law...which has outlived its usefulness or which was radically wrong from the beginning...The question is What is the law and what is the true public policy?” Professor Orin...

We explore the influence of genetic variation on subjective well-being by employing a twin design and genetic association study. In a nationally-representative twin sample, we first show that about 33% of the variation in life satisfaction is explained by genetic variation. Although previous...

In this paper, we show that behavioral features can be obtained at a group level when the individuals of the group are heterogeneous enough. Starting from a standard model of Pareto optimal allocations, with expected utility maximizers and exponential discounting, but allowing for heterogeneity...

This short paper demonstrates that the claim of Cumulative Prospect Theory (CPT) that people are risk seeking for loss prospects appears to be merely a result of using a specific form of the probability weighting function to estimate the power factor of the value function. Using experimental...

This short paper shows that the Allais Paradox and the Common Ratio Effect - regarded as classic examples of the violation of the Expected Utility Theory Axioms - may be easily explained by assuming that changes in wealth (i.e. gains and losses) are perceived in relative terms. The preference...

The digit ratio (2D:4D) is considered a proxy for testosterone exposure in utero, and there has been a recent surge of studies testing whether 2D:4D is associated with economic preferences. Although the results are not conclusive, previous studies have reported statistically significant...

Although it is still controversial, neuromarketing remains the most promising area of marketing. Basically, the goal of neuromarketing is to study how human brain is affected by marketing stimuli. In neuromarketing, brain activity can be monitored and measured using state-of-the-art neuroimaging...