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on Neuroeconomics |
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Issue of 2015‒11‒21
five papers chosen by |
| By: | Giovanni Dosi; Luigi Marengo; Evita Paraskevopoulou; Marco Valente |
| Abstract: | This work analyzes and models the nature and dynamics of organizational memory, as such an essential ingredient of organizational capabilities. There are two sides to it, namely a cognitive side, involving the beliefs and interpretative frameworks by which the organization categorizes the states of the world and its own internal states, and an operational one, including routines and procedures that store the knowledge of how to do things. We formalize both types of memory by means of evolving systems of condition-action rules and investigate their performance in different environments characterized by varying degrees of complexity and non-stationarity. Broadly speaking, in simple and stable environments memory does not matter, provided it satisfies some minimal requirements. In more complex and gradually changing ones more memory is better. However there is some critical level of environmental instability above which forgetfulness is evolutionary superior from the point of view of long term performance. Moreover, above some (modest) complexity threshold stable and robust cognitive categorizations and routinized behavior emerge. |
| Keywords: | organizational memory, routines, cognitive categories, condition-action rules |
| Date: | 2015–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/28&r=neu |
| By: | Nobuyuki Hanaki (GREDEG, Université Nice Sophia Antipolis, and Skema Business School. 250 Rue Albert Einstein, 06560, Valbonne, France); Nicolas Jacquemet (Paris School of Economics and University Paris 1 Panthéon-Sorbonne. MSE, 106 Bd de l'hopital, 75013 Paris); Stéphane Luchini (Université de Lyon, F-69007, France; CNRS, GATE Lyon St Etienne, 93, Chemin des Mouilles, F-69130, Ecully, France; Université Lyon 2, Lyon, F-69007, France); Adam Zylbersztejn (Université de Lyon, F-69007, France; CNRS, GATE Lyon St Etienne, 93, Chemin des Mouilles, F-69130, Ecully, France; Université Lyon 2, Lyon, F-69007, France) |
| Abstract: | How is one’s cognitive ability related to the way one responds to strategic uncertainty? We address this question by conducting a set of experiments in simple 2 x 2 dominance solvable coordination games. Our experiments involve two main treatments: one in which two human subjects interact, and another in which one human subject interacts with a computer program whose behavior is known. By making the behavior of the computer perfectly predictable, the latter treatment eliminates strategic uncertainty. We find that subjects with higher cognitive ability are more sensitive to strategic uncertainty than those with lower cognitive ability. |
| Keywords: | Strategic Uncertainty, Bounded Rationality, Robot, Experiment |
| JEL: | C92 D83 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1529&r=neu |
| By: | Ambrosino, Angela; Fontana, Magda; Gigante, Anna Azzurra (University of Turin) |
| Abstract: | The paper proposes a critical interpretation of the development of new institutional economics and of its relationship with other economic fields. Consistently with the oil-spot dynamics model, new institutionalism can be described as an enlargement of the mainstream that, in time, seems to further expand towards heterodoxy by branching and specializing. Institutional cognitive economics positions itself at the borders between these two areas. With its focus on the cognitive processes underlying institutional genesis and evolution, it is the result of the integration process between the ideas of new (D.C. North’s in particular) and old institutionalism (T. Veblen’s in particular) plus the injection of F. Hayek’s theories on the link between mind and institutions. Institutional cognitive economics also represents an example of interdisciplinary cross-fertilization that is taking place at the border of social sciences and that might represent the future of our discipline. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201544&r=neu |
| By: | Francesco Bogliacino; Cristiano Codagnone; Giuseppe Alessandro Veltri; Amitav Chakravarti; Pietro Ortoleva; George Gaskell; Andriy Ivchenko; Francisco Lupiáñez-Villanueva; Francesco Mureddu; Caroline Rudisill |
| Abstract: | In this article we use data from a multi-country Randomized Control Trial study on the effect of anti-tobacco pictorial warnings on an individual’s emotions and behavior. By exploiting the exogenous variations of images as an instrument, we are able to identify the effect of emotional responses. We use a range of outcome variables, from cognitive (risk perception and depth of processing) to behavioural (willingness to buy and willingness to pay). Our findings suggest that the odds of buying a tobacco product can be reduced by 80% if the negative affect elicited by the images increases by one standard deviation. More importantly from a public policy perspective, not all emotions behave alike, as eliciting shame, anger, or distress proves more effective in reducing smoking than fear and disgust. |
| JEL: | C99 I18 |
| Date: | 2015–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:64127&r=neu |
| By: | Noussair, Charles (Tilburg University, Center For Economic Research); Habetinova, Lenka |
| Abstract: | We report an experiment to study the effect of defaults on charitable giving. In<br/>three different treatments, participants face varying default levels of donation. In<br/>three other treatments that are paired with the first three, they receive the same<br/>defaults, but are informed that defaults are thought to have an effect on their donation decisions. The emotional state of all individuals is monitored throughout the sessions using Facereading software, and some participants are required to report their emotional state after the donation decision. We find that the default level has no effect on donations, and informing individuals of the possible impact of defaults also has no effect. The decision to donate is independent of prior emotional state, unless specific subgroups of participants are considered. Donors experience a negative change in the valence of their emotional state subsequent to donating, when valence is measured with Facereading software. This contrasts with the selfreport data, in which donating correlates with a more positive reported subsequent emotional state. |
| Keywords: | charitable giving; emotion; default; facereading |
| JEL: | C91 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:76d93ea1-ef4a-4fc6-b6ef-d25a6f572d38&r=neu |