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Full-Text Articles in Behavioral Economics

Behavioral Impediments To Valuing Annuities: Complexity And Choice Bracketing, Jeffrey R. Brown, Arie Kapteyn, Erzo F. P. Luttmer, Olivia S. Mitchell, Anya Samek Oct 2019

Behavioral Impediments To Valuing Annuities: Complexity And Choice Bracketing, Jeffrey R. Brown, Arie Kapteyn, Erzo F. P. Luttmer, Olivia S. Mitchell, Anya Samek

Wharton Pension Research Council Working Papers

This paper examines two behavioral factors that diminish people’s ability to value a lifetime income stream or annuity, drawing on a survey of about 4,000 adults in a U.S. nationally representative sample. By experimentally varying the degree of complexity, we provide the first causal evidence that increasing the complexity of the annuity choice reduces respondents’ ability to value the annuity, measured by the difference between the sell and buy values people assign to the annuity. We also find that people’s ability to value an annuity increases when we experimentally induce them to think jointly about the ...


Plastic Bags And Bamboo Stools, Grace R. Bithell Oct 2019

Plastic Bags And Bamboo Stools, Grace R. Bithell

Marriott Student Review

This paper conducts a critical analyses of microfinance institutions. It gives an overview of the complexities of credit in developing countries and shows how microfinance fits into the equations. It discussed the successes and failures of microenterprises in trying to alleviate poverty. It also delves into best practices pertaining to lending to the poor and how microfinance is impacted by culture in developing nations.


Back To Beijing: The Future Of The Olympic Games, Jennifer Maynard Oct 2019

Back To Beijing: The Future Of The Olympic Games, Jennifer Maynard

Marriott Student Review

Just four years ago, the IOC made an unprecedented decision to award Beijing with the 2022 Winter Olympic Games bid, making China the first Asian country ever to host both the Summer and Winter Games. What’s more, prior to this second visit to China, the Olympics will have been held in Pyeongchang (2018) and Tokyo (2020). At the same time that this national superpower has the opportunity to capitalize once again on the all eyes-on-China phenomenon, the IOC has the chance to truly go global.


Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha Oct 2019

Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha

John Crespi

This paper examines how comparative advantages of major beef exporters changed following the 2003 bovine spongiform encephalopathy outbreak (BSE), which significantly disrupted the U.S. beef trade until approximately April 2007. Using longitudinal data on beef export values and constructed revealed comparative advantage measures, we show that while some measure of the long-run impacts of BSE on U.S. beef export competitiveness have returned to pre-2003 levels, the U.S.’s comparative advantage has not. We also examine a hypothetical scenario of no BSE event in 2003 and predict what exporters’ competitiveness would have looked like. The authors discuss the ...


Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha Oct 2019

Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha

Lee Schulz

This paper examines how comparative advantages of major beef exporters changed following the 2003 bovine spongiform encephalopathy outbreak (BSE), which significantly disrupted the U.S. beef trade until approximately April 2007. Using longitudinal data on beef export values and constructed revealed comparative advantage measures, we show that while some measure of the long-run impacts of BSE on U.S. beef export competitiveness have returned to pre-2003 levels, the U.S.’s comparative advantage has not. We also examine a hypothetical scenario of no BSE event in 2003 and predict what exporters’ competitiveness would have looked like. The authors discuss the ...


A New Cost-Benefit And Rate Of Return Analysis For The Perry Preschool Program: A Summary, James Heckman, Seong Moon, Rodrigo Pinto, Peter A. Savelyev Oct 2019

A New Cost-Benefit And Rate Of Return Analysis For The Perry Preschool Program: A Summary, James Heckman, Seong Moon, Rodrigo Pinto, Peter A. Savelyev

Peter Savelyev

Childhood Programs and Practices in the First Decade of Life presents research findings on the effects of early childhood programs and practices in the first decade of life and their implications for policy development and reform. Leading scholars in the multidisciplinary field of human development and in early childhood learning discuss the effects and cost-effectiveness of the most influential model, state, and federally funded programs, policies, and practices. These include Head Start, Early Head Start, the WIC nutrition program, Nurse Family Partnership, and Perry Preschool as well as school reform strategies. This volume provides a unique multidisciplinary approach to understanding ...


Summary: Universal Basic Income, Ioana Marinescu Sep 2019

Summary: Universal Basic Income, Ioana Marinescu

Wharton PPI B-School for Public Policy Seminar Summaries

Concern over massive structural unemployment, due to technological automation and globalization, is on the rise. Universal Basic Income (UBI) has attracted attention from both sides of the aisle as one potential solution to a scenario where a large number of people are not able to earn a livable wage. In order to understand the economic implications of UBI, economists have studied previous and current examples of UBI-type programs, analyzing their impact on consumption, labor force participation, education, health, and other key metrics.


Summary: Business Innovation Creates Policy Disruption, Sarah E. Light Sep 2019

Summary: Business Innovation Creates Policy Disruption, Sarah E. Light

Wharton PPI B-School for Public Policy Seminar Summaries

New forms of business in the sharing economy, and new technologies like autonomous vehicles, have the potential to “disrupt” existing regulatory structures. This seminar examined the challenges facing regulators and legislators, who must respond so as to both (a) promote innovation and (b) protect the public interest.


Summary: Insuring High Risks Fairly, Protecting Individuals Against Flood Losses, Howard Kunreuther Sep 2019

Summary: Insuring High Risks Fairly, Protecting Individuals Against Flood Losses, Howard Kunreuther

Wharton PPI B-School for Public Policy Seminar Summaries

The National Flood Insurance Program (NFIP) encompasses issues of risk transparency and fairness. There is general agreement that floodplain residents need to know their risk-based insurance premium-and with that information, how to make their homes safer and thus make flood insurance more affordable. In this B-School Seminar, Professor Howard Kunreuther focused on the importance of accurate mapping of flood risk, how to encourage investment in cost effective mitigation measures, and ways to deal with fairness and affordability in designing a flood insurance program for the future.


An Analysis Of The Effects Of Financial Education On Financial Literacy And Financial Behaviors, Jamie Wagner Sep 2019

An Analysis Of The Effects Of Financial Education On Financial Literacy And Financial Behaviors, Jamie Wagner

Jamie Wagner

This study estimates how financial education affects a person’s financial literacy score, short-term financial behaviors, and long-term financial behaviors using data from the 2012 National Financial Capability Study (NFCS). There are seven categories of financial education—high school, college, employer, high school and college, high school and employer, college and employer, and combinations of all three courses—to estimate the effectiveness of financial education. This course detail has not been studied in previous literature about financial education.

Financial education has a positive relationship with a person’s financial literacy score. Splitting the sample into groups based on education and ...


Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha Sep 2019

Long-Run Impacts Of Trade Shocks And Export Competitiveness: Evidence From The U.S. Bse Event, Chen-Ti Chen, John M. Crespi, William Hahn, Lee L. Schulz, Fawzi Taha

CARD Working Papers

This paper examines how comparative advantages of major beef exporters changed following the 2003 bovine spongiform encephalopathy outbreak (BSE), which significantly disrupted the U.S. beef trade until approximately April 2007. Using longitudinal data on beef export values and constructed revealed comparative advantage measures, we show that while some measure of the long-run impacts of BSE on U.S. beef export competitiveness have returned to pre-2003 levels, the U.S.’s comparative advantage has not. We also examine a hypothetical scenario of no BSE event in 2003 and predict what exporters’ competitiveness would have looked like. The authors discuss the ...


Watch Me Give: Narcissism As A Moderator To Donating To A Nonprofit, Austin Prewett, Charles Elliott, Paul A. Story Aug 2019

Watch Me Give: Narcissism As A Moderator To Donating To A Nonprofit, Austin Prewett, Charles Elliott, Paul A. Story

The Kennesaw Journal of Undergraduate Research

With increased online connectivity in the current generation, more non-for-profit organizations are focusing their efforts on producing online marketing appeals. It has, therefore, become necessary to identify the effect some appeals have on different people. The present study seeks to determine whether an organization offering increased recognition will result in a greater willingness to give by people with narcissistic personalities. Additionally, it will determine if “willingness” to give or “amount” given are different between genders or employment status, as prior research suggests. Results indicated that whether the organization offered increased recognition or not, narcissism did not affect willingness to give ...


The Exports Of Higher Education Services From Oecd Countries To Asian Countries. A Gravity Approach, John C. Beghin, Byung Yul Park Aug 2019

The Exports Of Higher Education Services From Oecd Countries To Asian Countries. A Gravity Approach, John C. Beghin, Byung Yul Park

Economics Working Papers

We analyze bilateral exports of higher education services between OECD countries and Asia, using a gravity equation approach, panel data from 1998 to 2016, and PPML regression. The approach treats higher education consumption by Asian countries as a consumable durable good. Asian Students come to OECD countries to obtain degrees from their universities. Structurally, the flow of students from Asian country j to OECD country i depends on bilateral transaction costs between i and j, the income per capita in j, school-age demographics in j, the higher-education capacity of i, the perceived quality of universities in i, and the usual ...


Measuring Impacts Of Uncertainty, Irreversibility, And Loss Aversion On The Adoption Of Crop Canopy Sensors Among Nebraska Corn Producers, Brooks Ronspies Aug 2019

Measuring Impacts Of Uncertainty, Irreversibility, And Loss Aversion On The Adoption Of Crop Canopy Sensors Among Nebraska Corn Producers, Brooks Ronspies

Dissertations and Theses in Agricultural Economics

Understanding barriers to adoption of Precision Agricultural Technologies (PATs) is important to the growth of agricultural productivity, efficiency, and sustainability. This thesis proposes and evaluates a model for estimating the impact of uncertainty, irreversibility, and loss aversion on producers’ adoption of crop canopy sensors in order to explain adoption behavior that contradicts previous expectations about the conditions necessary for technology adoption. The model is evaluated using estimated statistical distributions of price and field characteristics designed to match observations of actual corn and nitrogen prices, and of conventional and crop canopy sensor based nitrogen application. Results from this model using expected ...


Toward Car Free Key West, Mary Bishop Aug 2019

Toward Car Free Key West, Mary Bishop

Journal of Transportation Demand Management Research

This paper explores the transportation problems created by the large volume of tourist arrivals to the island of Key West, Florida. A survey of visitors to the island was conducted to uncover their perspectives related to the barriers and benefits of various transportation modes in hopes to inform City staff on the development of transportation options that will meet the needs and desires of tourists. The results from 398 respondents revealed a variety of trends, including varying travel choices depending on the number of visits, where visitors were from, and arrival types. From these trends, priority groups for behavior change ...


Designing Single-Family Residences: A Study Of The Positive Impact Of Interior Design In Creating New Home Value, Shawn M. Falcone Aug 2019

Designing Single-Family Residences: A Study Of The Positive Impact Of Interior Design In Creating New Home Value, Shawn M. Falcone

Interior Design Program: Theses

This study seeks to demonstrate that interior designers should be included as primary stakeholders in the home construction market. The market demand for new single-family homes in America is a relative constant. The primary stake and role that land developers, architects, draftsman, home builders, bankers, appraisers, real estate agents, and buyers have in the home construction market is clear. What is less clear is the role in value an interior designer has in the home construction market. This thesis examines the impact designers have on home value when their expertise is utilized in space planning (i.e.: layout, function, room ...


How Does Identifying As Gluten-Free Impact Information Choice Regarding The Gluten-Free Diet?, Pratiksha Baishya Aug 2019

How Does Identifying As Gluten-Free Impact Information Choice Regarding The Gluten-Free Diet?, Pratiksha Baishya

Dissertations and Theses in Agricultural Economics

The market for gluten-free products is a multi-billion-dollar industry in the United States and has seen tremendous growth in the recent years. The retail sales of gluten-free foods in the United States almost tripled between 2011 and 2015, although rates of diagnosed gluten-related health problems have not risen. In addition to people who suffer from Celiac Disease, Wheat Allergy and Non-Celiac Gluten Sensitivity, there is a category or people known as PWAG (people who avoid gluten) who seem to have significantly contributed to this boom in the market for gluten-free foods. With more people choosing to adopt the gluten-free diet ...


Essays On Human Capital Formation In Developing Countries, Alexander Sergeevich Ugarov Aug 2019

Essays On Human Capital Formation In Developing Countries, Alexander Sergeevich Ugarov

Theses and Dissertations

Differences in human capital explain approximately one-half of the productivity variation across countries. Therefore, we need to understand drivers of human capital accumulation in order to design successful development policies. My dissertation studies formation and use of human capital with emphasis on its less tangible forms, including skills, abilities and know-how.

The first chapter of my dissertation explores the effects of occupational and educational barriers on human capital stock and aggregate productivity. I find that students' academic skills have very small impact on occupational choice in most developing countries. This finding suggests a higher incidence of occupational barriers in developing ...


The Ultimatum Game: An Introduction To Quantitative Literacy In A Social Justice Context, Robert G. Root Jul 2019

The Ultimatum Game: An Introduction To Quantitative Literacy In A Social Justice Context, Robert G. Root

Numeracy

The Ultimatum Game is a two-person, multiple-strategy game widely used in the experimental social sciences to demonstrate the human propensity for costly punishment in response to inequitable treatment. The game serves to provide quantitative evidence for a diversity of fairness norms across cultures. The play of the game and its interpretation offer nuanced views of the nature and importance of quantitative literacy. Its use in a writing seminar connecting quantitative literacy and social justice is described.


A Transactive Energy Approach To Distribution System Design: Household Formulation, Swathi Battula, Leigh Tesfatsion, Zhaoyu Wang Jul 2019

A Transactive Energy Approach To Distribution System Design: Household Formulation, Swathi Battula, Leigh Tesfatsion, Zhaoyu Wang

Leigh Tesfatsion

A household model is formulated to facilitate careful performance testing of bid-based transactive energy system (TES) designs in advance of deployment. Household welfare is expressed by comfort minus cost. Household thermal dynamics are represented by an Equivalent Thermal Parameter (ETP) model based on appliance and house attributes. An optimal bid function is characterized for the household, conditional on its operating state. A method is developed for explicit derivation of this optimal bid function, given discretized forms for the household’s welfare and thermal dynamic functions. A method is also developed for constructing representative household types as correlated collections of welfare ...


Information Order In Monotone Decision Problems Under Uncertainty, Jian Li, Junjie Zhou Jul 2019

Information Order In Monotone Decision Problems Under Uncertainty, Jian Li, Junjie Zhou

Economics Working Papers

This paper examines the robustness of Lehmann’s ranking of experiments (Lehmann, 1988) for decisionmakers who are uncertainty-averse à la Cerreia- Vioglio et al. (2011). We show that, assuming commitment, for all uncertaintyaverse indices satisfying some mild assumptions, Lehmann’s informativeness ranking is equivalent to the induced uncertainty-averse value ranking of experiments for all agents with single-crossing vNM utility indices (Theorem 1). Moreover, Lehmann ranking can also be detected by varying the uncertainty-averse indices for a fixed finite collection of vNM utility indices (Theorem 2). Our findings suggest that Lehmann’s ranking can be a useful enrichment of Blackwell’s ...


Matching With Generalized Lexicographic Choice Rules, Orhan Aygün, Bertan Turhan Jul 2019

Matching With Generalized Lexicographic Choice Rules, Orhan Aygün, Bertan Turhan

Economics Working Papers

Motivated by the need for real-world matching problems, this paper formulates a large class of practical choice rules, Generalized Lexicographic Choice Rules (GLCR), for institutions that consist of multiple divisions. Institutions fill their divisions sequentially, and each division is endowed with a sub-choice rule that satisfies classical substitutability and size monotonicity in conjunction with a new property that we introduce, quota monotonicity. We allow rich interactions between divisions in the form of capacity transfers. The overall choice rule of an institution is defined as the union of the sub-choices of its divisions. The cumulative offer mechanism (COM) with respect to ...


A Transactive Energy Approach To Distribution System Design: Household Formulation, Swathi Battula, Leigh Tesfatsion, Zhaoyu Wang Jun 2019

A Transactive Energy Approach To Distribution System Design: Household Formulation, Swathi Battula, Leigh Tesfatsion, Zhaoyu Wang

Economics Working Papers

A household model is formulated to facilitate careful performance testing of bid-based transactive energy system (TES) designs in advance of deployment. Household welfare is expressed by comfort minus cost. Household thermal dynamics are represented by an Equivalent Thermal Parameter (ETP) model based on appliance and house attributes. An optimal bid function is characterized for the household, conditional on its operating state. A method is developed for explicit derivation of this optimal bid function, given discretized forms for the household’s welfare and thermal dynamic functions. A method is also developed for constructing representative household types as correlated collections of welfare ...


Barriers: An Exploration Of Architectural Structures As An Indication Of Wealth And Socioeconomic Status, Lisa Demoranville Jun 2019

Barriers: An Exploration Of Architectural Structures As An Indication Of Wealth And Socioeconomic Status, Lisa Demoranville

Honors Theses

I decided to explore the barriers and limitations of wealth through an investigation of architectural structures, focusing on popular industries and institutions on which our society commonly depends. I have noticed that places such as hospitals, schools, grocery stores, and restaurants differ dramatically depending on the neighborhoods in which they were located. This topic sparked my interest after living in Lima, Peru for a month, as I was able to observe the developing economy and dramatic division of wealth among the population. Certain questions about the divides and differences within a society and its culture started crossing my mind; not ...


Tax Uncertainty And Business Activity, Jungho Lee, Jianhuan Xu Jun 2019

Tax Uncertainty And Business Activity, Jungho Lee, Jianhuan Xu

Research Collection School Of Economics

We investigate the extent to which uncertainties about tax policies affect business activities. We develop a statewide tax-uncertainty measure (TU measure) and show that it captures state corporate tax uncertainty. By comparing adjacent counties across state borders, we show that increasing tax uncertainty by one standard deviation (a 30% increase in the TU measure) leads to a 0.17% point per-year decrease in the growth rate of establishments over two years. The result holds after conducting a variety of robustness checks and is not likely to be driven by general state-policy uncertainties.


Estimating Auction Equilibria Using Individual Evolutionary Learning, Kevin James May 2019

Estimating Auction Equilibria Using Individual Evolutionary Learning, Kevin James

Computational and Data Sciences (Ph.D.) Dissertations

I develop the Generalized Evolutionary Nash Equilibrium Estimator (GENEE) library. The tool is designed to provide a generic computational library for running genetic algorithms and individual evolutionary learning in economic decision-making environments. Most importantly, I have adapted the library to estimate equilibria bidding functions in auctions. I show it produces highly accurate estimates across a large class of auction environments with known solutions. I then apply GENEE to estimate the equilibria of two additional auctions with no known solutions: first-price sealed-bid common value auctions with multiple signals, and simultaneous first-price auctions with subadditive values


The Unpredictable Positive Effects Of Sports Gambling: Gamblers Think Losing Feels Worse Than It Actually Feels, Guy Voichek, Nathan Novemsky May 2019

The Unpredictable Positive Effects Of Sports Gambling: Gamblers Think Losing Feels Worse Than It Actually Feels, Guy Voichek, Nathan Novemsky

International Conference on Gambling & Risk Taking

Implications statement

Gamblers underestimate how much fun small wagers add to enjoying sports events. They think losing will feel worse than it really does. Simple reminder can correct this misprediction.

Abstract

When considering whether to gamble on a sporting event, people may ask themselves how winning or losing will affect their experience. In a series of four experiments, we find that people under-appreciate the positive effect of gambling on watching sporting events, in a way that causes them to under-value the opportunity to place a small stakes gamble. While participants predict that a gamble will enhance or diminish an experience ...


Does Near Win Affect People's Investment Behavior?, Jia Yuan May 2019

Does Near Win Affect People's Investment Behavior?, Jia Yuan

International Conference on Gambling & Risk Taking

Near win is a special kind of failure that comes closely to actual success. It shows up frequently in people’s investment behavior. Only a few studies have researched on the relation between near win and its impact on the future investment. And in the literature, there are conflicting results on this issue. In this paper, we examine the effect of near win on people’s investment amount by exploiting a unique panel individual level lottery purchase data with over 100,000 players which trace each of their purchases for several months. We find that people who have experienced a ...


Gambling Behavior In Controlled Laboratory Experiments, Don Ross, J. Todd Swarthout May 2019

Gambling Behavior In Controlled Laboratory Experiments, Don Ross, J. Todd Swarthout

International Conference on Gambling & Risk Taking

We designed a slot machine interface to study gambling behavior over real monetary amounts in a controlled laboratory environment. The interface allowed us to study the effect of multiple playlines compared to single playlines, the use of abstract tokens instead of allowing the gambler to see expenditures and payoffs in a natural currency, the effect of “near miss” displays on subjective beliefs about the chances of winning, and the effect of “wins disguised as losses” on gambling behavior. We measured the risk preferences of each subject, allowing for probability weighting and loss aversion, as well as the evolution of subjective ...


Competition And Cooperation In Polygynous & Monogamous Households: Experimental Evidence From Sierra Leone, Bethany Gerdemann May 2019

Competition And Cooperation In Polygynous & Monogamous Households: Experimental Evidence From Sierra Leone, Bethany Gerdemann

Master's Theses

Competition and cooperation in polygynous households have both been widely documented across various disciplines. There is contradictory evidence as to whether these interpersonal dynamics produce better or worse outcomes for the household. This study uses a competitiveness game and a series of dictator games to measure competition and cooperation within households and between marriage types. Results show that there are key differences between monogamy and polygyny. Monogamous women compete less with their husbands than stranger and less in comparison to polygynous women. Monogamous spouses are more likely to forgo economic opportunities than polygynous spouses and have a greater preference for ...