Articles tagged with Behavioral Economics
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 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 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 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.
A new UNLV study reveals that CEOs' use of language and format in communicating future plans can shape investor judgments. Written messages are more effective in conveying likelihood, whereas video or audio diminishes the impact.
A study by Frontiers found that cultural dimensions influence price endings, with individualistic cultures preferring round prices, uncertain cultures choosing just-below prices, and long-term oriented cultures opting for precise prices. These findings have implications for retailers operating in global markets.
A study by Tepper School researchers found that tax cuts did not lead to increased investments in capital expenditures, employment, research and development, or mergers and acquisitions. Instead, companies used the repatriated funds primarily for shareholder payouts and cash retention, challenging existing financial theories.
Historical analysis of bureaucracy suggests that quality nation-building holds more importance than democratic institutions in economic growth. The study found a negative correlation between universal suffrage and the quality of current institutions in nations with low-quality bureaucracies.
A literature review reveals that our intuitions about success are often misleading, with failure being a predictor of future success and early successes reinforcing inequalities. The study also shows that persuading 'bridge' individuals in social networks is more effective at driving mass adoption than celebrity endorsements.
A new study from the University of Texas at Austin finds that AI can create high-quality business plans and even critique existing strategies. The research suggests that AI can enhance the speed, quality, and scale of strategic decision-making, potentially giving companies a competitive edge and enhancing performance.
A Cornell University study found that people who go against their better judgment feel greater feelings of control and culpalibility, even if they received input from an adviser. This effect may extend beyond small decisions to major life choices.
A recent study by the University of Georgia found that financial stress can contribute to burnout and reduce job satisfaction. The researchers surveyed over 200 employees and discovered that current worries about money management increased levels of burnout, while expected future financial security improved views on one's job.
Research by West Virginia University expert Kylie Vo found that consumers who believe in karma are more likely to forgive companies that behave immorally and less likely to boycott them. In contrast, non-moral transgressions like defective products or misleading claims can severely damage consumer-brand relationships and brand value.
Understanding how dominance and tribal instincts fuel division is critical to addressing global conflicts and economic inequality. Professor Jorge A. Colombo argues that fundamental behavioural drives are hardwired into our species and continue to shape human behaviour today.
A recent survey of 2,100 US customers found that the price of meat alternatives is the most decisive factor for their acceptance. When both options were priced the same, respondents often favored the animal product, but significantly cheaper alternatives made them more attractive.
A large-scale study analyzing over three million job postings finds that Generative AI tools like ChatGPT are accelerating the transformation of the job market. While demand for partly substitutable skills reduces, new jobs are created in areas such as chatbot development and machine learning.
A new study from Ohio State University finds that freezing food can lead to less waste, with households that practice home freezing exhibiting lower levels of total food waste. The study also highlights the importance of proper food storage techniques and education on reducing food waste, particularly among consumers.
A new study by Dr. Ohad Raveh and Dr. Nathan Goldstein finds that UAP sightings are positively correlated with economic conditions across regions but display counter-cyclical patterns within those regions over time. The research suggests that shifts in attention to extraordinary phenomena may reflect broader fluctuations in public focus.
A QUT-led study found that surgeons are slow to adopt newly developed biomaterials or tissue-engineered solutions for treating bone defects. The researchers surveyed 337 surgeons and 99 scientists, revealing a significant gap between their optimism about future advancements and the slow adoption of these innovations in clinical practice.
A study by Curtin University found that when cigarette prices increased, cannabis use among older Australians (aged over 50) rose, with 68,000 people expected to start using cannabis. Researchers used data from the Australian National Drug Strategy Household Survey and ran simulations to predict the impact of price increases.
Researchers found a 28% decline in social acceptability of drinking sugar-sweetened beverages, with attitudes changing after tax increases and media attention. The shift in social norms has major implications for public health efforts.
New research from Indiana University finds that accepting funding from family and friends can lead entrepreneurs to make more conservative venture growth decisions. This 'funding-source-induced bias' can result in anticipated guilt, prompting founders to prioritize lower-risk strategies.
Researchers found that brief scientific literacy interventions can undermine conspiracy beliefs, particularly those built on faulty reasoning. These interventions were most effective against novel conspiracies and among high-conspiracy groups.
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 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.
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.
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.
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.