Articles tagged with Behavioral Economics
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.
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 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.
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.
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.
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.
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.
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...
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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...
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
A study found that CEOs with Machiavellian personalities, characterized by self-interest and manipulation, earn significantly more than their counterparts. These leaders often secure higher pay through negotiation skills, benefiting both the company and themselves.
A new study explores how cousin marriage traditions shape informal businesses in Africa, finding that firms operating in areas with a historical tradition of cousin marriage prioritize hiring relatives and experience greater employment increases but smaller gains in revenue.
Researchers found that higher VIX levels are associated with more robust returns, suggesting that investors should hold onto stocks during times of high volatility. In contrast, a proposed strategy to reduce equity exposure during high VIX periods underperformed the market, according to the study.
A study analyzing 20 years of credit data finds that younger households with lower education levels are more likely to carry balances and struggle with payments. Meanwhile, those with university degrees or savings tend to stay current on their payments.
A new study by Boston University's Richard A. Currie explores the impact of workplace nosiness on employee performance and satisfaction. Researchers found that employees react to nosiness by pulling down their privacy boundaries, leading to higher stress levels and lower task performance.
A study by the University of Texas at Austin reveals that car dealers provide implicit subsidies to subprime borrowers. The dealers incur a loss of an average of $301 when arranging loans for these buyers.
A new study from the University of Notre Dame finds that returnless returns can increase brand support by up to 25%. The strategy involves allowing customers to keep returned items and receive a refund, rather than processing returns. This approach fosters goodwill and customer loyalty.
A new study reveals that fatal school shootings have far-reaching consequences, altering daily life and disrupting economies in affected communities for months. Anxiety about public safety drives a measurable decline in consumer activity, particularly in grocery stores and restaurants.
Renowned economist Michael Weber is nominated to join ESMT Berlin with a €5 million Humboldt Professorship, establishing the first business school in Germany to receive this distinction. The appointment aims to strengthen research in economics and policy at ESMT, exploring how households' expectations shape real-world decisions.
A study of nearly 20,000 employees found that workers care more about wage fairness than wage equality. When underpaid, they respond with a slight decrease in output, while being overpaid leads to a significant increase in productivity. This challenges companies' concerns about the impact of salary transparency on aggregate productivity.
A new study reveals that tech workers' values are complex and diverse, with developers exhibiting a strongly liberal worldview. Non-developer tech workers tend to share more in common with other occupational elites. Understanding these values is crucial for shaping the ethics and impact of the tech industry.
A new analysis from UC Davis suggests that lithium-ion battery recycling could play a big role in meeting growing global demand for lithium, potentially reducing the need for new mines. Recycling could mitigate supply constraints and reduce carbon emissions associated with combustion engine vehicles.
A study by Osaka Metropolitan University reveals six neighborhood-units in Kyoto's southeastern area have a disrupted balance between residences and accommodations, with hotspot locations near transportation hubs. Effective zoning policies are recommended to address overtourism's adverse social effects.
A new study from the University of Surrey found that cultural values significantly impact consumers' acceptance of mobile payments. The research identified five key cultural orientations that shape technology adoption, highlighting the need for businesses to develop targeted marketing messages.
Research from Cornell University found that consumers tend to overestimate fractional star ratings and underestimate numeric ratings, which can lead to companies overpromising and underdelivering. The study's findings highlight the need for new industry standards on rating formats.
A new study found that AI-driven reminders can significantly reduce overdraft fees, especially for users with fair to good credit. The research also highlights the importance of designing interventions that are both behaviorally informed and grounded in real-world financial constraints.
A new study from the Hebrew University explores middle-class parents in Israel who choose to live car-free due to personal values like promoting children's independence and maintaining a healthy lifestyle. These 'outlier' families offer valuable insights into reducing society's dependence on private vehicles, highlighting instrumental ...
A two-point rating scale was found to eliminate racial disparities in evaluations, resulting in more equitable pay for non-white workers. The system simplifies the evaluation process by focusing on whether something was good or bad, reducing bias and income inequality.
Researchers identified a distinct group of modest green consumers in Finland who value ecological production but not luxury brands. In contrast to premium green consumers, these individuals are more likely to be older females with lower incomes.
Researchers from the University of Surrey warn that manufacturers who fail to adopt digital transformation will be left behind. By harnessing emerging technologies like chatbots, digital twins, and AR/VR, manufacturers can improve customer centricity and enhance their value proposition.
Higher wealth taxes significantly reduce charitable donations in Norway, according to new research from the University of Texas at Austin. The study finds that allowing larger income tax deductions can increase giving by 4.4%. This suggests a possible solution to soften the impact of wealth taxes on philanthropy.
A new study by the University of Bath found that London's Low Emission Zones significantly reduced harmful pollutants, resulting in lower sick leave rates and improved mental well-being. The introduction of Ultra Low Emission Zones also delivered substantial cost savings.
Researchers found that most people are open to their friends asking to join plans, but hesitate to self-invite due to concerns about offending others. The study's findings suggest that people tend to underestimate the likelihood of getting invited and overestimate how much others consider them.
A recent study found that many professions follow a nested structure in job skills, where advanced skills depend on prior mastery of broader skills. This has significant implications for wage inequality and career mobility. Basic educational skills are essential for developing higher-order reasoning and can lead to higher wage premiums.
A groundbreaking database of over 55,000 housing measurements from around the globe supports research on correlations between housing size and inequality. The study examines patterns of inequality and their social consequences in human society.
A large-scale program in Turkey reduced disciplinary problems and improved academic achievement among disadvantaged middle school students. The program's success was attributed to buy-in from challenging adolescents who crave status and social recognition.