Who is 'Behavioral'? Cognitive Ability and Anomalous Preferences

Who is 'Behavioral'? Cognitive Ability and Anomalous Preferences

Author: Daniel J. Benjamin

Publisher:

Published: 2008

Total Pages: 0

ISBN-13:

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In this paper, we ask whether variation in preference anomalies is related to variation in cognitive ability. Evidence from a new laboratory study of Chilean high school students shows that small-stakes risk aversion and short-run discounting are less common among those with higher standardized test scores, although anomalies persist even among the highest-scoring individuals. The relationship with test scores does not appear to result from differences in parental education or wealth. A laboratory experiment shows that reducing cognitive resources using a cognitive load manipulation tends to exacerbate small-stakes risk aversion, with similar but statistically weaker effects on short-run impatience. Explicit reasoning about choice seems to reduce the prevalence of these anomalies, especially among the less skilled. Survey evidence suggests that the role of cognitive ability may extend to adult behaviors that are related to small-stakes risk preference and short-run time preference.


Handbook of Experimental Finance

Handbook of Experimental Finance

Author: Füllbrunn, Sascha

Publisher: Edward Elgar Publishing

Published: 2022-10-13

Total Pages: 451

ISBN-13: 1800372337

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With an in-depth overview of the past, present and future of the field, The Handbook of Experimental Finance provides a comprehensive analysis of the current topics, methodologies, findings, and breakthroughs in research conducted with the help of experimental finance methodology. Leading experts suggest innovative ways of designing, implementing, analyzing, and interpreting finance experiments.


Personality and Cognition in Economic Decision Making

Personality and Cognition in Economic Decision Making

Author: Aurora García-Gallego

Publisher: Frontiers Media SA

Published: 2017-08-22

Total Pages: 234

ISBN-13: 2889452360

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Psychologists studying cognitive processes and personality have increasingly benefited from the wealth of theory, methodology, and decision making paradigms used in economics and game theory. Similarly, for the economists, personality traits and basic cognitive processes offer a set of coherent explanatory constructs in economic behavior. Given the debate on preference invariance and behavioral consistency across contexts and domains, the papers in this topic shed light on the existence and effect of stable sets of idiosyncratic features on economic decision-making. While the effects of personality and cognition on economic decisions remain under-explored, the papers contributed in this topic offer more than a stimulus for further research. The general message could be that personality and cognitive processes offer the stable idiosyncratic ground on which individual decisions are made.


The Foundations of Behavioral Economic Analysis

The Foundations of Behavioral Economic Analysis

Author: Sanjit Dhami

Publisher: Oxford University Press

Published: 2020-07-15

Total Pages: 320

ISBN-13: 0192606492

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This seventh volume of The Foundations of Behavioral Economic Analysis covers a range of topics in behavioral economics. It is an essential guide for advanced undergraduate and postgraduate students seeking a concise and focused text that explores the key areas of emotions in economics, behavioral welfare economics, and neuroeconomics. This updated extract from Dhami's leading textbook allows the reader to pursue subsections of this vast and rapidly growing field and to tailor their reading to their specific interests in behavioral economics.


Behavioural and Experimental Economics

Behavioural and Experimental Economics

Author: Steven Durlauf

Publisher: Springer

Published: 2016-04-30

Total Pages: 279

ISBN-13: 0230280781

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Specially selected from The New Palgrave Dictionary of Economics 2nd edition, each article within this compendium covers the fundamental themes within the discipline and is written by a leading practitioner in the field. A handy reference tool.


The Wiley Blackwell Handbook of Judgment and Decision Making, 2 Volume Set

The Wiley Blackwell Handbook of Judgment and Decision Making, 2 Volume Set

Author: Gideon Keren

Publisher: John Wiley & Sons

Published: 2016-02-16

Total Pages: 1056

ISBN-13: 1118468392

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A comprehensive, up-to-date examination of the most important theory, concepts, methodological approaches, and applications in the burgeoning field of judgment and decision making (JDM) Emphasizes the growth of JDM applications with chapters devoted to medical decision making, decision making and the law, consumer behavior, and more Addresses controversial topics from multiple perspectives – such as choice from description versus choice from experience – and contrasts between empirical methodologies employed in behavioral economics and psychology Brings together a multi-disciplinary group of contributors from across the social sciences, including psychology, economics, marketing, finance, public policy, sociology, and philosophy 2 Volumes


The Foundations of Behavioral Economic Analysis

The Foundations of Behavioral Economic Analysis

Author: Sanjit S. Dhami

Publisher: Oxford University Press

Published: 2016

Total Pages: 1799

ISBN-13: 0198715528

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It considers the evidence against the exponential discounted utility model and describes several behavioral models such as hyperbolic discounting, attribute based models and the reference time theory. Part IV describes the evidence on classical game theory and considers several models of behavioral game theory, including level-k and cognitive hierarchy models, quantal response equilibrium, and psychological game theory. Part V considers behavioral models of learning that include evolutionary game theory, classical models of learning, experience weighted attraction model, learning direction theory, and stochastic social dynamics. Part VI studies the role of emotions; among other topics it considers projection bias, temptation preferences, happiness economics, and interaction between emotions and cognition. Part VII considers bounded rationality. The three main topics considered are judgment heuristics and biases, mental accounting, and behavioral finance.


Globalisation & Public Policy

Globalisation & Public Policy

Author: Kaoru Natsuda

Publisher: IJOPEC PUBLICATION

Published: 2019-10-01

Total Pages: 122

ISBN-13: 1912503786

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This book is one of the products of the 10th International Conference of Political Economy (ICOPEC), held at Marmara University in Istanbul, Turkey in June 2019 with the main theme “If Globalism is Dead – Long Live What?”. ICOPEC 2019 was co-organised by Marmara University and Batman University in Turkey, Panteion University and Greek Association of Political Economy in Greece, University of Belgrade in Serbia, and VUZF University in Bulgaria. This volume contains eight selected papers that benefited from comments and discussion during the conference. They analyse the relationship between globalisation and public policy.


Handbook of Behavioral Economics - Foundations and Applications 2

Handbook of Behavioral Economics - Foundations and Applications 2

Author:

Publisher: Elsevier

Published: 2019-02-11

Total Pages: 528

ISBN-13: 0444633960

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Handbook of Behavioral Economics, Volume 2, Foundations and Applications offers critical perspectives on theoretical work within behavioral economics, delivering a comprehensive, critical, up-to-date, and accessible review of the field that has always been missing. This literature summary of the conceptual foundations underlying behavioral economics is written by, and for, economists, with chapters covering Intertemporal choice, Reference-dependent preferences, Beliefs, Cognition, Social preferences, Behavioral game theory, Welfare, and Neuroeconomics. Helps academic and non-academic economists understand recent rapid changes in theoretical advances within behavioral economics Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics Written for those who wish to become quickly acquainted with behavioral economics


Innumeracy in the Wild

Innumeracy in the Wild

Author: Ellen Peters

Publisher: Oxford University Press

Published: 2020-04-29

Total Pages: 200

ISBN-13: 0190861118

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Our grasp of numbers and uncertainty is one of humankind's most distinctive and important traits. It is pivotal to our exceptional ability to control the world around us as we make short-term choices and forecast far into the future. But very smart people can struggle with numbers in ways that pose negative consequences for their decision making. Numeric ability equips individuals with vital tools that allow them to take charge of various aspects of their life. The more numerate enjoy superior health, wealth, and employment outcomes, while the innumerate remain more vulnerable. This book presents the logic, rules, and habits that highly numerate people use in decision making. Innumeracy in the Wild also introduces two additional ways of knowing numbers that complement and compensate for lower numeric ability and explores how numeric abilities develop and where mistakes are made. It offers a state-of-the-art review of the now sizeable body of psychological and applied findings that demonstrate the critical importance of numeracy in our world. With more than two decades of experience in the decision sciences, Ellen Peters demonstrates how intervention can foster adult numeric capacity, propel people to use numeric facts in decision making, and empower those with lower numeracy to reason better.