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on Neuroeconomics |
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Issue of 2018‒05‒07
three papers chosen by |
| By: | Grevenbrock, Nils; Groneck, Max; Ludwig, Alexander; Zimper, Alexander |
| Abstract: | This paper investigates the roles psychological biases play in empirically estimated deviations between subjective survival beliefs (SSBs) and objective survival probabilities (OSPs). We model deviations between SSBs and OSPs through age-dependent inverse S-shaped probability weighting functions (PWFs), as documented in experimental prospect theory. Our estimates suggest that the implied measures for cognitive weakness, likelihood insensitivity, and those for motivational biases, relative pessimism, increase with age. We document that direct measures of cognitive weakness and motivational attitudes share these trends. Our regression analyses confirm that these factors play strong quantitative roles in the formation of subjective survival beliefs. In particular, cognitive weakness is an increasingly important contributor to the overestimation of survival chances in old age. |
| Keywords: | Subjective Survival Beliefs,Probability Weighting Function,Confirmatory Bias,Cognition,Optimism |
| JEL: | D12 D83 I10 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:18015&r=neu |
| By: | Klaus Wälde |
| Abstract: | We present a psychological model of stress. Appraisal translates stressors into subjective stress. Stress reduces instantaneous utility of an individual directly and via cognitive load. Coping can be under the control of the individual or more automatic. We predict the occurrence of uncontrolled coping .emotional outbursts .as a function of an individual’s theory-consistent personality and environment. We explain when stressors reduce income. We also explain under which conditions rising income does not go hand in hand with rising stress. First steps towards a theory of therapy show how stressed individuals can improve their well-being beyond standard coping measures. |
| Keywords: | stress, coping, personality, controlled vs. automatic reaction, emotional outbursts, income. |
| JEL: | D03 D91 I12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6966&r=neu |
| By: | Abdul-Rasheed Amidu; David Boyd; Fernand Gobet |
| Abstract: | There is widespread interest in how cognitive reasoning is used in expert professional practice. However, little is known about the cognitive reasoning in relation to a property valuer decision making. This study utilised the CTA to identify and describe, the cognitive reasoning of property valuers during a valuation task. Six subjects (comprising two expert valuers, two intermediate valuers and two novice valuers) undertook a valuation of a commercial property in a simulated context while thinking aloud. Verbal protocol reports were transcribed and coded using a deductive method. Content and event-sequence analysis yielded the varied knowledge states that valuers of different level of expertise prioritised and the cognitive processes used to operationalised these knowledge states. Further mapping of thought sequence indicated that expert and intermediate valuers had better and well-structured patterns of thought which demonstrate greater degrees of cohesiveness and interrelatedness between cognitive processes. Expert and intermediate valuers used cognitive processes centred on data interpretation and meta-reasoning activities initially to schedule valuation analysis or establish valuation strategies, and latterly to re-interpret and diagnose previously acquired information to update the outcome of their past valuations. Novice valuers’ processes of solving the valuation problem show fewer linkages between cognitive processes, suggesting underdeveloped cognitive structure and quick disengagement from task. The methodology used for recording, analysing and interpreting verbal protocol reports of valuers is shown to be capable of providing insights on cognitive processes, which is useful for research on practitioner expertise and its development. |
| Keywords: | Cognition; Commercial Property; CTA; Valuation analysis; Valuers |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_368&r=neu |