Articles tagged with Behavioral Economics
Researchers propose a new and more effective way to gauge earnings quality, identifying companies that may be using accounting tricks to cover up problems. The Earnings Quality Score (EQSCORE) model has been shown to outperform existing approaches in predicting fraud, providing valuable insights for investors and regulators.
Researchers found a pattern in how people interpret new information, overreacting to weak signals and underreacting to strong ones. This bias holds true across various settings, including financial markets, according to a study analyzing millions of betting transactions and prices on options contracts.
A cross-national study found that partisan selective exposure is more prevalent in the US, fueled by its polarized environment and partisan news outlets. In contrast, Japan's less polarized climate and Hong Kong's unique media environment resulted in weaker selective exposure tendencies.
The book uses a 'history from below' approach to center the voices of petitioners, revealing how they framed their demands using language like justice, rights, and equity. Through over 4,000 petitions, Dr. Bright Alozie shows the significance of this genre in shaping colonial society and influencing decision-making.
A new study reveals gentrification's complex impact on residential communities in Seoul, Korea, finding that state-led urban change can lead to emotional displacement of residents. Meanwhile, property-led redevelopment has resulted in direct displacement and replacement of industrial clusters with high-rise residential construction.
A new study by Carnegie Mellon University researchers reveals that auditors with high honesty-humility scores are more likely to report financial misstatements, while those with low scores do not. This suggests that screening auditors for honesty-humility could enhance monitoring quality and prevent costly oversight failures.
A new study found that individuals' willingness to cooperate in one-time situations is remarkably stable, regardless of the potential benefits. Across two experiments involving over 2,000 participants, the researchers found no significant change in cooperation rates when benefits were increased.
Researchers introduce the 'prosocial market economy' as a model embedding cooperation, ethical behavior, and sustainability into organizational practices. This approach prioritizes collaboration and collective well-being, fostering long-term economic success and sustainability.
A new study by Tel Aviv University reveals that 27% of respondents withhold inventions due to reasons such as emotional attachment, fear of credit, or lack of trust in management. The study aims to shed light on this phenomenon and develop effective management tools to increase employees' willingness to disclose their inventions.
Researchers found that people's dislike of both advantageous and disadvantageous inequality influences their support for redistribution policies. Those who strongly dislike both types of inequality are more likely to support policies aimed at reducing income gaps.
A new study from the University of Notre Dame finds that Big Tech privacy policies can decrease consumer engagement and satisfaction with ads, leading to reduced performance and revenue. The study explores how data minimization and other policies affect ad variety and consumer behavior.
A study by MIT researchers found that EV charging stations increase annual spending at nearby businesses by an average of $1,500 in 2019 and $400 from 2021 to 2023. The impact is particularly pronounced for businesses within 100 yards of charging stations and in low-income areas.
Monthly gamblers in Massachusetts report increased gambling intensity and harms, as well as negative attitudes towards gambling. The proportion of those experiencing problem gambling jumps to 25.6% from 12.7% in 2014.
Researchers found that effective evidence-based decision making requires extensive communication with others, including researchers, stakeholders, and communities of practice. The study identified three networks - decision maker-researcher, decision maker-stakeholder, and decision maker-community of practice - as crucial for success.
A new study reveals that eco-friendly activewear companies' post-consumer circular economy policies are hindered by geography, making them ineffective for global customers. The research found that many companies have take-back schemes but restrict them to domestic customers or specific locations, limiting their environmental impact.
A new study using COVID-19 lockdown data in Australia found that physical isolation made little difference to reported feelings of loneliness. Instead, the quality of social interactions and supportive networks were key factors in alleviating loneliness. Young people and extroverts showed increased loneliness during lockdowns.
A study published in Nature Human Behaviour found that prehistoric Europeans spent on small everyday expenses more often than large ones, consistent with modern Western economies. The researchers also discovered metal fragments circulated as money around 1,500 BC, supporting the idea of a market economy from an early stage.
A new study found that consumers value counterfeit luxury products for their 'egalitarian value', a sense of restoring equality in society. The research, involving over 2000 participants from Sweden and the US, suggests that perceived income inequality is a major driver behind people buying fake luxury items.
A new study by Heidelberg University researchers found that asking for units of relief supplies rather than money can significantly increase donation returns. The study involved 8,700 participants and showed that unit-based campaigns achieved 57% higher donation returns than traditional monetary donation campaigns.
Research shows that gamified investing platforms can lead to more frequent trading among novice investors, who are often susceptible to 'fun trading' and make ill-advised strategies. Meanwhile, knowledgeable investors prefer neutral platforms with fewer features.
A study of 2,001 American adults found that cryptocurrency ownership is associated with belief in conspiracy theories, support for political extremism, and the 'Dark Tetrad' of personality traits. Fringe social media sources are also a key predictor of crypto ownership.
A new article suggests that local firms in emerging markets should adopt a balanced approach to contend with the competition challenges brought by inward foreign direct investment. The authors argue that relying solely on political connections may not be effective, and instead recommend combining market and nonmarket strategies.
In the early 1600s, English clergy used discounting calculations to finesse finances amid rising prices and inflation. This adaptation of mathematical formulas resolved decades-long disagreements over rent and lease terms.
Researchers developed a new theory on how market dynamics can lead consumers to make risky purchases despite being cautious. The study found that social information and the desire for low prices can create collective ignorance of risks, leading to spiraling risk and poor decision-making.
Researchers found that free-delivery subscription plans offer financial benefits to everyone involved, including retailers and customers. They do this by increasing average annual purchases, locking in customers, and adding value through perks such as exclusive sales and online entertainment.
ESMT Berlin researchers identified three key customer types: fans who demand immediate access, skeptics who require convincing, and middle-ground customers seeking information. The findings suggest firms should adapt their strategies based on market dynamics to achieve success.
The prevalence of problem and at-risk gambling in Massachusetts has remained steady since casinos were introduced in 2015, according to a statewide survey. The research team attributes this to the state's robust problem gambling prevention programs, including GameSense and voluntary self-exclusion.
A University of Florida study found that national elections significantly impact consumer sentiment and spending intentions. Floridian consumers exhibit greater confidence about economic conditions when their favored political party is in charge. The research analyzed monthly sentiments data collected by the UF Survey Research Center, ...
A study by MIT scholars finds that workers in lower-paying firms are highly susceptible to underestimating wages at other companies. Providing correct information about salaries can increase the likelihood of workers leaving their current jobs and improve wages.
A study found that companies with top management from Shiga Prefecture exhibited better environmental, social, and governance (ESG) performances. The Sanpo-yoshi values promoted inclusivity and elevated ESG metrics, suggesting a global standard for responsible business practices.
Gossiping provides a social benefit by disseminating information about people's reputations, helping recipients connect with cooperative individuals while avoiding selfish ones. This allows gossipers to gain an evolutionary advantage as their actions influence others' behavior and encourage cooperation.
A team of researchers at Max Planck Institute for Evolutionary Anthropology developed a new simulation model to study the cultural evolution of collective property rights. The model shows that these institutions critically depend on clearly defined and enforced access rights.
Researchers at Indiana University Kelley School of Business found that AI-driven products with human-like features, such as eyes and speech, can influence consumers' perceptions and decision-making. The study suggests that complex products are more likely to trigger anthromorphism, leading to increased willingness to pay.
A new study found that digital collateral programs lead to positive selection, increased loan repayment, and profitability. Securing loans with digital collateral also increased school enrollment and attendance in developing countries.
Christi Bergin's research focuses on improving prosocial behavior in classrooms and communities, leading to better student engagement, academic achievement, and relationships. Her approach aims to reduce teacher stress and burnout by promoting empathy and kindness among students.
A study by WVU researcher Nancy McIntyre reveals that individuals with ADHD tend to use routines and patterns to store stimuli from their environment, allowing them to make connections and file away resources for future use. This helps entrepreneurs with ADHD excel in qualities such as alertness, adaptability, and entrepreneurial intent.
A new study led by Oregon Health & Science University found that integrating physical and behavioral health services in Medicaid managed care did not lead to improved access or outcomes for patients. Despite the expectation that such integration would drive positive changes, the research revealed no statistically significant improvemen...
A study by Carnegie Mellon University found that using alternative data from smartphones is more effective in improving financial inclusion (23% better) and business profitability (42% better) compared to social media data. This approach can help microloan companies adopt cost-effective solutions and offset potential economic loss.
Researchers found that patients who scheduled their own mammograms through an online patient portal had a 13 percentage point increase in screening completions. This simple intervention doubled the number of mammogram completions, resulting in approximately 4,500 more people getting screened.
Researchers at Rensselaer Polytechnic Institute found that frequency pictograms can induce optimism when presented in a sorted way. This could have implications for attribute framing in marketing and public policy. Sorted verses unsorted pictograms should be used strategically to make consumers feel favorably or negatively.
Researchers found that participants preferred 60-70 options from ChatGPT, citing high perceived accuracy and increased intent to purchase. This contradicts traditional choice overload theories, highlighting the impact of personalized recommendations on consumer decision-making.
A new study found that negative behavior can spill over to unrelated third parties, regardless of the initial intent. When individuals face resource loss due to negative action, they are inclined to seek compensation from both immediate offenders and unrelated third parties.
Research finds that English hospitals meeting NHS 18-week waiting list target often only treat patients who are close to the threshold, rather than those in need. The study suggests that some trusts may prioritize compliance over clinical need.
Researchers found that gig workers' lack of traditional workplace interaction leads to less trust, but this may not negatively impact their performance. Instead, gig workers tend to rebound more quickly from issues with managers.
Brands leveraging quality reputation to pay employees less erode profits due to negative effects on productivity and retention. Unique brands, which tend to pay more, have a positive impact on profits. Managers should consider brand differentiation in pay benchmarking.
Environmental regulators should use scientific experimentation to inform natural resource policy, according to an international group of economists. By conducting experiments and analyzing results, policymakers can create more effective programs and reduce uncertainty about what works and what doesn't.
A new study finds that severe behavioral symptoms in older adults are associated with a higher likelihood of divorce, while those with more advanced dementia are less likely to end their marriages. The research analyzed data from 263 married couples and found a positive correlation between neuropsychiatric symptoms and divorce risk.
A new study by Ben-Gurion University researchers measures effort in football teams, finding that peer effort positively affects individual effort. Teammates' social connections also contribute to positive effects. The findings suggest that managers should consider workers' compensation based on effort, not just performance.
The article explores how export diversification and ICT shape employment patterns, with research highlighting the importance of diversified trade baskets to minimize economic uncertainties. Tailored trade policies can unlock employment opportunities for both high-skilled and low-skilled workers, fostering sustainable growth.
A new University of Colorado Boulder study finds that reducing food loss and waste could lead to increased access to affordable food worldwide, but at the cost of reduced environmental benefits. The study suggests that more food availability would result in lower prices, leading to changes in consumer behavior.
Researchers found that customers tend to consider money spent as already lost, making it easier for retailers to cross-sell products. However, customers are less likely to buy an item outside their original category when expecting to return it.
Researchers found that stocks with thin tails, indicating low tail risk, exhibit left-tail momentum, contradicting previous assumptions. The phenomenon is driven by investors overvaluing these stocks, suggesting a complex relationship between risk and return.
Researchers from CHOP and Penn found that cancer patients who continued to smoke after diagnosis were more likely to receive tobacco treatment when nudges were directed at clinicians through electronic health records. This study strengthens the case for using behavioral economics to improve outcomes for cancer patients.
A study found that consumers incorrectly assume low-fat products contain less sugar, affecting purchasing behavior. Manufacturers' labeling practices can deceive consumers, leading to decreased willingness to buy.
A new study suggests that more women should be aware of the potential for revision surgery after cosmetic breast augmentation. The researchers found that those who consider themselves healthier and have higher levels of education are less likely to undergo or recommend the procedure.
Researchers ran survey experiments to assess the effectiveness of microtargeting in politics, finding that targeted ads can be 70% more persuasive than general campaigns. However, using multiple attributes for targeting did not add further benefit, suggesting a 'one ad does not fit all' approach.
A recent study published in PLOS ONE found that individuals with higher incomes tend to be more generous when living in areas with high levels of economic inequality. In contrast, the lowest-income groups show less generosity in more unequal areas. The researchers used local data from the US and UK to examine this relationship.
A study of 142 nations found a strong link between access to formal financial services and lower COVID-19 mortality rates. Access to bank accounts, credit cards, or loans from a financial institution is a key predictor of lower mortality risk, even stronger than comorbidities.
The researchers developed a Revealed Preference Argumentation framework and an Integrated Preference Argumentation framework, which unify two main approaches to RPT. They also created comprehensive algorithms for IPA frameworks and tested the tool on RPT-based consumer behavior analysis.
A study by Anglia Ruskin University found that Madoff's business dealings, trial, and prison time revealed a high score on psychopathy scales. The research warns companies to identify and prevent corporate psychopaths who can bring down organizations and economies through recklessness and greed.