Behavioral Economics
Articles tagged with Behavioral Economics
Consumers willing to pay more for lobster harvested with ropeless technology, UMaine study finds
Missing information can misinform
Scrapped inheritance tax linked to stronger growth in private firms with heirs, Swedish study shows
Private firms with potential family successors in Sweden grew faster and invested more after the abolition of inheritance tax, which led to higher corporate taxes. The study suggests that rents from the tax abolition were shared with society through taxes and employee salaries.
Could glass be dethroned as wine’s top packaging? Researchers unbox consumer perceptions of wine packaging
Researchers found that consumers are willing to pay more for glass wine bottles, with Gen Z willing to spend $35.38. Providing sustainability information about packaging can influence willingness to pay, with a significant discount relative to glass packaging.
The structure of online reviews shapes their helpfulness
A study of nearly 200,000 Amazon reviews reveals that the structure of online product reviews plays a crucial role in their helpfulness. The researchers identified nine possible structures of online reviews and found that different review structures are more or less helpful depending on how highly the reviewer has rated the product.
Climate change and the private solution trap
A new study found that wealthier nations tend to invest more in private solutions, exacerbating climate change. The research involved over 7,500 participants from 34 countries, who took part in a simulation on how economic resources are allocated to address climate change.
Does online sports gambling affect substance use behaviors?
A new study found that legalizing online sports betting in the US has led to a significant rise in binge drinking frequency among young men, particularly those who already report binge drinking. The study's findings highlight the need for policymakers to consider the broader behavioral impacts of gambling liberalization.
New research offers businesses a playbook for surviving social media firestorms
A new study from Binghamton University School of Management provides a framework for organizations to anticipate, interpret, and respond to social media backlash. The toolkit identifies four phases of online social disapproval and offers guiding questions and analytical indicators to aid in early detection, response, and recovery.
Can ESG ratings be trusted? New study examines the fight against greenwashing
A new study finds that ESG rating providers play a crucial role in building and repairing trust in sustainable finance. By comparing EU and UK regulatory approaches, researchers show that 'enhanced self-regulation' combining public oversight with industry-led rules can support a credible market-led green transition.
USF study: firms 'build' or 'buy' talent based on resources, demand
A USF study finds that firms with more resources and senior staff develop talent internally, while those with unpredictable workloads hire experienced workers externally. The study highlights the importance of aligning talent strategy with both long-term goals and immediate operational pressures.
IPO pay gap hiding in plain sight: Study reveals hidden cost of ‘cheap stock’
A new study from the University of Notre Dame examines the prevalence, determinants and consequences of cheap stock options. The research found that firms granting more options, having larger public offerings and venture capital backing tend to have greater gaps between IPO prices and exercise prices.
Diabetes management in disadvantaged communities improves significantly with financial incentives, study finds
A new study found that providing financial vouchers to offset medication costs can significantly improve glycemic control among patients with uncontrolled Type 2 diabetes. After six months, participants receiving performance-based incentives saw a clinically substantial reduction in HbA1c levels.
Landmark FAU/CSU study: More paid time off keeps US workers from quitting
A landmark study by FAU and CSU found that offering six to 10 paid days off significantly lowers resignations, especially for men. Providing 11 or more days reduces quitting rates substantially for both men and women, highlighting the importance of meaningful time away from work.
Support stops at the checkout line: Consumer stigma undermines ‘impact hiring’ initiatives
A new study reveals that consumers who morally support companies hiring homeless individuals often drop purchase intentions due to irrational 'contagion concerns', triggered by emotional reactions linked to stereotypes about hygiene and safety. Social proof appeals can counteract this bias, increasing purchase likelihood.
Why a crowded office can be the loneliest place on earth
A comprehensive review of 233 studies identifies the connection between workplace conditions and loneliness, highlighting the importance of job quality, stress management, and social support. Chronic loneliness harms emotional and cognitive well-being, while interventions such as mindfulness and volunteering can provide relief.
New research reveals how dread shapes decision-making
A new study from the Universities of Bath and Waterloo finds that people are more emotionally affected by anticipating negative future outcomes than positive ones, shaping economic behaviour. Individuals with stronger negative anticipatory emotions are more likely to avoid risk and less willing to wait for delayed outcomes.
Farmers’ voices in European protests
A study of European farmers' protests reveals a wide range of concerns including environmental regulations, which differ between countries. Farmers in Germany criticized bureaucracy, while French farmers focused on financial pressures, Belgian farmers expressed a broad mix of concerns, and Dutch farmers voiced dissatisfaction with policy.
Time warp: How marketers express time can affect what consumers buy
A new study from the University of British Columbia found that the way marketers express time can change how people experience the past and future, influencing real consumer decisions. The 'year-length effect' shows that when time is described as a length, people tend to perceive it as longer than when using years.
Pocketbook realities reshape Americans’ commitment to democratic ideals
A new study from Northwestern University found that economic insecurity substantially declines support for democratic principles, even among those who claim strong support. The study's findings suggest that messaging focused on abstract democratic ideals may not resonate with voters unless tied to economic concerns.
How we decide when to shut out information and when to insist on knowing it all
A new study by Tel Aviv University researchers uncovers the psychology behind seeking or avoiding information, revealing a common emotional mechanism. The findings suggest that both behaviors stem from regulating emotions and managing psychological overload, rather than moral responsibility.
The suspension of the foreign corrupt practices act generated record gains for companies involved in overseas corruption cases
The suspension of the Foreign Corrupt Practices Act generated record gains for companies involved in overseas corruption cases. Companies that had been subject to investigations or sanctions under the FCPA collectively gained around $39 billion, with individual companies recording increases in market capitalization of billions of dollars.
Federal EITC has unexpected result, researchers say – it decreases domestic violence
Research found that the federal earned income tax credit decreases rates of intimate partner violence, particularly among low-educated and unmarried women. The study revealed a 9.73% decrease in physical and sexual violence and a 21% decline in counts of such violence.
Legal sports betting linked to sharp increases in violent crime, study finds
A new study by Rice University researchers links legal sports betting to a measurable rise in violent and impulsive crime on game days. Crime levels surge when betting outcomes defy expectations, such as underdog wins, especially during games with close or tied scores that extend into overtime
Kids’ behavioral health is a growing share of family health costs
The study found that behavioral health care accounted for $41.8 billion of overall health spending in 2022, with families paying an average of $2.9 billion out-of-pocket. The costs have grown more than twice as fast as other types of medical care, with telehealth visits increasing by 99% per year.
Taxing homes in an economic boom and subsidising them in a crash could prevent the next housing crisis
Researchers argue that taxing housing purchases during economic booms and providing temporary subsidies on housing during recessions could help prevent the next housing crisis. The study found that this approach can lift house prices exactly when the system is at greatest risk, preventing fire sales and severe price collapses.
When socially responsible investing backfires
A new study by University of Rochester finance professors argues that socially responsible investors' capital can inadvertently create incentives for firms to postpone green reforms. The researchers suggest public commitments and binding principles of responsible investing could overcome this issue, making impact investing more effective.
What your Hogwarts house reveals about your inner entrepreneur
A new study using the Harry Potter Personality Quiz found that regions with more Gryffindors and Slytherins have higher start-up activity. This suggests that rule-challenging behavior, driven by moral conviction or ambition, is closely linked to entrepreneurial action.
A new study finds high-narcissism CEOs pursue more acquisitions in response to strong firm performance
A new study finds that high-narcissism CEOs are more likely to make risky moves, such as acquisitions, when firm performance exceeds expectations. In contrast, low-narcissism CEOs tend to avoid acquisitions during periods of high performance.
Shopping for two is stressful
A University of California - Riverside study found that purchasing goods or services to be shared generates significantly more anxiety. Learning about others' preferences can reduce stress and increase confidence, but not if there are differing expectations.
Night workers face inequalities in pay, health, safety and dignity
A major new study by UCL researchers reveals the challenges faced by London’s 1.3 million night workers, including pay inequality, health problems, transport difficulties, safety concerns, and a lack of workplace dignity. The study provides personal stories and policy recommendations to inform UK employment law reforms.
Filipinos eating more but growing less
The Philippines faces a widening rice gap due to stagnant farms, with national output remaining largely unchanged since 2017. Regionally tailored strategies are needed to boost production and reduce dependence on imported grain.
The most effective online fact-checkers? Your peers
A recent study by researchers from the University of Rochester, University of Illinois Urbana–Champaign, and University of Virginia found that publicly displayed community notes can effectively curb misinformation on social media platforms. The study analyzed 264,600 posts on X that received at least one community note and found that p...
Study shows people support higher taxes after understanding benefits of public goods
Researchers found that providing information on the benefits of public goods increases support for higher taxation, with effects observed across income levels and political stances. The study suggests that investment in public goods can act as a 'political foundation' to enhance citizens' support for government and enable redistribution.
Experts find £90K “sweet spot” for crowdfunding success
A new study by University of East Anglia researchers identified key factors contributing to successful crowdfunding campaigns on Seedrs. Setting a £90K target, having around 19 team members, and using specific phrases in campaign pitches all helped attract investors.
Dangers of direct selling and network marketing are rarely mentioned in research
Researchers from Radboud University identified eight legal risks associated with MLMs, including false income promises and pyramid scheme-like structures. Studies funded by the MLM industry often downplay these risks, creating a false impression that MLMs are safe business models.
Study: Arrival of boll weevils in U.S. South in early 20th century brought long-term benefits for Black sons born after the agricultural shock
A new study found that the arrival of boll weevils in the US South in the early 20th century led to improved economic outcomes for Black sons born after the agricultural shock. The researchers examined changes in earnings, occupations, and residences for Black males before and after the boll weevil's appearance.
What factors determine the severity and outcomes of cyberwarfare between countries?
A game theoretical model of cyberwarfare assesses Attacker and Defender costs, revealing that networks with fewer attack vectors benefit Defenders. Converging technological capabilities amplify conflicts, while centralized government control can provoke more aggressive attacks.
Brains and stock markets follow the same rules in crisis, study finds
Researchers discovered that brains and economies follow similar rules in crisis, using physics principles to predict collapse and recovery. The study found that networks closer to first-order transition show faster collapse and slower recovery after a crisis.
New study: Contrary to common belief, tipping is not an effective incentive for improving service
A new study by Tel Aviv University researchers challenges the common belief that tipping is a key motivator for better service. The study reveals that tipping rates are driven more by social pressure than genuine appreciation for the service. As a result, average tipping rates tend to rise over time in societies with stronger norms.
People don’t worry about losing jobs to AI, even when told it could happen soon
A recent survey-based study found that even with forecasts of near-term job automation, Americans remain cautious but not panicked about losing their jobs to AI. Respondents showed modest increases in concern about technological unemployment, but policy preferences and economic outlooks remained unchanged.
Why it’s not just about money: Who goes to the ballet, opera and symphony
A new study from UC San Diego's Rady School of Management found that education and social connections play a more significant role in participating in highbrow culture than income. The research used large-scale survey data to compare the UK and US, finding cultural capital dominated in the UK while social capital led in the US.
Households’ hunt for better savings rates can deepen recessions, finds new study
When economies falter, households become more vigilant in searching for high-interest savings accounts, which can exacerbate recessions. This collective behavior amplifies economic fluctuations by 14%, pulling more money out of the economy when it's already struggling.
Testosterone doesn’t affect men’s economic decisions, large study shows
A large-scale study examining the impact of testosterone on economic decision-making has found no significant effects. The study, which involved 1,000 men, used a double-blind trial to test the influence of testosterone on risk-taking, generosity, and competitiveness.
Happiness is not found in fast fashion – reducing consumption improves body image and well-being
A new study from the University of Vaasa finds that reducing clothing consumption improves body image and overall well-being. By extending the lifespan of clothes, individuals can reduce social comparison and increase self-esteem.
Energy flexibility is reshaping Finland’s electricity market
A new study from the University of Vaasa examines how Finnish households are becoming more flexible with their energy consumption, driven by digitalisation and financial incentives. The research finds that material and monetary benefits are the most effective motivators for adopting flexible energy habits.
Cambridge scientist uncovers cunning way to double the sales of the famous Greggs Vegan Sausage Roll – and in an open letter, shares the technique with key people at Greggs
A new strategy to increase low-emission food consumption has been found effective in controlled choice experiments with 3,000 participants. The 'nudge by proxy' approach highlights consumer motivations rather than environmental impacts, significantly outperforming traditional carbon footprint labelling.
New study reveals critical gap: 45% of experienced professionals lack structured decision-making habits despite high confidence in their own skills
A groundbreaking study by the Global Association of Applied Behavioural Scientists found a significant gap between professionals' confidence and actual preparedness in workplace decision-making. The research identified 24 specific challenges, including training gaps, experience myths, and seeking help in the wrong places.
New book explores agent-based modeling, multi-agent systems
The book provides an overview of agent-based modeling and multi-agent systems, highlighting their application in understanding economic crises. It integrates machine learning to enhance adaptation and behavior of agents in dynamic environments.
How nations balanced health and economy in the COVID-19 pandemic: A global review
Researchers analyzed multiple countries' performance in achieving infection control and economic recovery, highlighting the impact of risk attitudes, patience, and trust on policy decisions. Countries with high levels of trust and patience managed to limit deaths and resuming production, while those with low trust and higher risk toler...
Research project on behaviorally informed organizations led by Rotman School professor is a finalist for an Impact Award from the Social Sciences and Humanities Research Council
Dilip Soman's Behaviourally Informed Organizations (BI-Org) partnership examined how behavioural insights can improve organizational processes and stakeholder engagement. The project led to significant direct impacts, including increasing pension contributions in Mexico and redesigning Ontario's organ donation system.
Competition in the classroom: When incentive systems change character
A study found that intense competition for four years significantly reduced helpfulness and trust among students, affecting their personality development. The researchers suggest changing the rules of competition or creating cooperation instead to potentially counteract these negative consequences.
Data visualization as a key driver of decision-making at organizational and community levels
The study reveals data visualization primarily facilitates decision-making at the organizational and community levels, particularly for semi-structured problems. Recent trends indicate increasing support for broader types of decision-making, including individual-level and unstructured problems.
Walkable communities lowered mental health stressors during COVID-19 pandemic
A study by University of New Hampshire researchers found that communities with higher walkability scores experienced a 4% reduction in average pandemic-related mental health deterioration. The study analyzed national census and survey data to measure the impact of walking on mental health during the pandemic.
Social media videos could boost HIV prevention among teens and young adults
A new study found that short informational videos on social media can effectively promote HIV prevention among teens and young adults. The study suggests that public health campaigns should combine social media distribution with in-clinic viewing, use positive framing, and involve young people in content development.
Job opportunities are more important to refugees from Ukraine than social benefits
A recent study by ifo Institute and LMU Munich found that Ukrainian refugees prefer countries with better job opportunities to those with higher social benefits. The survey of over 3,300 refugees showed that wage differences play a significant role in their choice of destination country.
No credit history? You might have another way to prove creditworthiness
Researchers found that retail transaction data can significantly improve credit access for consumers without a formal credit history, increasing approval rates from 16% to 48%. This alternative approach breaks the classic catch-22 in lending by using everyday shopping habits to build credit scores.
The ultra-wealthy’s concealment of finances offshore is influenced by politics at home
A new study reveals how political conditions in ultra-wealthy elites' home countries influence their offshore finance strategies. Elites from countries with high corruption and unfair law application used blacklisted financial centers, while those from risk of government confiscation employed identity-concealing strategies.
The patterns of elites who conceal their assets offshore
A Dartmouth study reveals distinct patterns associated with offshore secrecy, tied to home country governance. Elites from authoritarian countries use a 'confetti strategy,' while those from transparent democracies employ 'concealment' and 'hybrid' strategies to hide assets.
US vacation renters waste $2 billion worth of food annually
A new study estimates US vacation renters waste $2.3 billion worth of food each year due to grocery and leftovers going uneaten. The average nightly rental fee comes with a 5.1% surcharge for wasted food, equivalent to an additional lodging tax.