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on Neuroeconomics |
| By: | Ahmad Shabir Faizi; Weerachart Kilenthong |
| Abstract: | This study investigates the role of parenting styles in child development in rural Thailand using early childhood panel data. Our results from various specifications indicate that authoritarian parenting style was negatively and significantly associated with the child’s non-cognitive skills, while the results for cognitive skills were generally insignificant. These results imply that parenting styles affect non-cognitive skills but not cognitive skills of children aged between five and eleven years. However, we found that the impact of authoritative parenting is less conclusive. |
| Keywords: | Parenting style; Cognitive; Non-cognitive; Human capital; Child development; Developing country |
| JEL: | D91 J24 O15 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:pui:dpaper:225 |
| By: | Christoph Huber; Felix Holzmeister; Magnus Johannesson; Christian König-Kersting; Anna Dreber; Jürgen Huber; Michael Kirchler |
| Abstract: | Experimental asset markets provide a controlled approach to studying financial markets. We attempt to replicate 17 key results from four prominent studies, collecting new data from 166 markets with 1, 544 participants. Only 3 of the 14 original results reported as statistically significant were successfully replicated, with an average replication effect size of 2.9% of the original estimates. We fail to replicate findings on emotions, self-control, and gender differences in bubble formation but confirm that experience reduces bubbles and cognitive skills explain trading success. Our study demonstrates the importance of replications in enhancing the credibility of scientific claims in this field. |
| JEL: | G12 G41 C91 C92 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:inn:wpaper:2024-12 |
| By: | Alexander Dzionara (Johannes-Gutenberg University, Germany); Niklas M. Witzig (Johannes-Gutenberg University, Germany) |
| Abstract: | In many economic contexts, people need to solve trade-offs between doing an activity (e.g., solving a task) faster and doing it better. While time choices in speed-accuracy trade-offs have been extensively studied in cognitive science for motor-response and perception tasks, little evidence is available for more deliberate economic decision-making, where people’s choices often fail to maximize payoffs. Conversely, the impact of behavioral biases – key explanans of said failure – on time choices has yet to be explored. We present a theoretical model linking time choices in speed-accuracy trade-offs to an agent’s abilities, subjective beliefs and uncertainty attitudes. We test the predictions of the model in an experiment for two distinct (but otherwise identical) environments: prospective time choices before solving a task and simultaneous time choices while solving a task. Correlational analyses indicate that overconfidence (in one’s ability) and uncertainty aversion affect time choices in the prospective but not in the simultaneous environment. Probabilistic structural estimations, aimed at capturing the optimization process on the individual level, support this conclusion. This suggests that long-known behavioral biases influence decisions beyond classical domains like risk and intertemporal choice, but may “play out“ differently in planned versus actual actions. |
| Keywords: | speed-accuracy trade-off, time allocation, beliefs, probability weighting |
| JEL: | C91 D01 D83 D90 D91 |
| Date: | 2024–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:jgu:wpaper:2416 |
| By: | Christian Belzil (CREST, CNRS, Paris Polytechnic Institute, IZA, and CIRANO); Tomáš Jagelka (University of Bonn, Dartmouth College, CREST-Ensae, and IZA) |
| Abstract: | We develop a framework for accounting for individuals’ effort and cognitive noise which confound estimates of preferences based on observed behavior. Using a large-scale experimental dataset we estimate that failure to properly account for decision errors due to (rational) inattention on a more complex, but commonly used, task design biases estimates of risk aversion by 50% for the median individual. Effort propensities recovered from preference elicitation tasks generalize to other settings and predict performance on an OECD-sponsored achievement test used to make international comparisons. Furthermore, accounting for endogenous effort allows us to empirically reconcile competing models of discrete choice. |
| Date: | 2024–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:crs:wpaper:2024-13 |