Articles tagged with Behavioral Economics
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.
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.
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.
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.
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 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.
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.
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.
Research from Indiana University suggests that married couples who merge their finances are happier and fight less over money. The study found a causal relationship between joint bank accounts and improved relationship quality, including higher levels of communality within the marriage.
Researchers found that women tend to accept job offers earlier and are more likely to accept lower-paying offers compared to men. The study suggests that risk tolerance and salary expectations may account for a significant proportion of the observed gender difference in earnings.
A UBC study found that employee layoffs have a strong impact on voluntary turnover among remaining employees, especially when high performers are let go without clear justification. The research suggests that organizations should prioritize clear communication and compassionate decision-making to avoid destabilizing their workforce.
Central bank balance sheet policies are effective if investors behave according to a plausible alternative behavioral assumption to rational expectations. Professors Iovino and Sergeyev's new paper finds that level-k thinking breaks away with the demanding assumption of rational expectations, allowing agents to have varying degrees of ...
A study found that people offer bribes above average to officials from countries with a reputation for corruption. Citizens tend to over- or underestimate the acceptance rates of officials from different countries. Overcoming biases about certain nations could help fight corruption globally.
A groundbreaking study published in Nature Neuroscience shows that monkeys can think deeply about problems, consider multiple factors, and find optimal outcomes. This discovery challenges traditional views on animal intelligence and highlights the complexity of monkey cognition.
Researchers at Cornell University found that employees who are not in positions of power can become more creative when given time to warm up to a task by engaging in it multiple times. This challenges the idea that power boosts creativity and suggests a simple intervention to empower all employees.
A new machine learning study found that habit formation varies in time for different behaviors, such as gym-going and hand-washing. The study analyzed data from over 30,000 gymgoers and 3,000 hospital workers, revealing factors like past behavior and time since last visit played significant roles.
Research shows that SEC challenges can influence how CEOs and CFOs communicate with investors and analysts in private meetings. A study found that the effectiveness of regulatory enforcement depends on perception of the SEC's ability to enforce regulations.
Researchers led by Nicolas Ajzenman found that immigrants don't increase crime rates, but people's perception of crime does. In Chile, migrants' presence sparked concerns among citizens, with those exposed to immigration inflows more likely to rank crime as a top concern.
A new analysis shows that the US has substantially higher death rates at all but the oldest ages compared to five high-income European countries. The excess death gap widened during the Covid-19 pandemic, with the number of excess deaths nearly doubling between 2019 and 2021.
A new study found that consumers prefer conventional spelling over unconventional ones for brand names. In various studies, participants showed less positive responses to brands with misspelled names, perceiving them as less sincere and more gimmicky. Established brands may still benefit from non-standard spellings in certain contexts.
A new study by researchers from Penn and Princeton reveals that, on average, larger incomes are associated with ever-increasing levels of happiness. However, an unhappy cohort within each income group shows a sharp rise in happiness up to $100,000 annually before plateauing.
Researchers found that deposit insurance motivates people to keep deposits immediately below the insured threshold, leading to 'bunching' behavior. An increase in insured deposits also causes savers to change their asset allocation and increase their deposits.
A new study by Cornell University found that customers who use one-click checkout spend more on average, visiting the site 7% more often and buying a wider range of merchandise. One-click buyers also spent more time on the site per visit.
A new study by WVU economist Zachary Porreca found that gentrification can displace organized criminal activity, leading to a surge in gun violence in nearby neighborhoods. The study analyzed data on shootings and real estate across Philadelphia neighborhoods between 2011-2020.
Men are more likely to interpret uncertain information optimistically and make riskier financial decisions, especially with increasing amounts of available information. Women, on the other hand, show a more cautious approach in uncertain situations, with missing information bothering them more than men.
This project aims to identify conditions necessary for abandoning climate-damaging social norms and test their effectiveness on representative samples in different countries. The goal is to find solutions for large-scale sustainable changes in individual and social behavior.
A new game theory study by Professor Claudius Gros finds that unregulated competition can lead to catastrophic poverty for investors, with profits scaling as 1/N². Cooperation among investors can avoid this damage, resulting in a net profit corresponding to the number of investors.
A new study suggests that Thai confectioners can gain a competitive advantage by using their country's local heritage and culture. The research found that youngsters in Thailand still enjoy local confectionary as well as Western brands, but local products have strong emotional value to them.
A study from Oregon State University found that consumers are willing to pay more for familiar cheese varieties if they have an award sticker or sensory information about the taste. The researchers identified two groups of consumers: those who prefer unfamiliar foods and those who prefer familiar ones, with different priorities for the...
A USC study found that notifying clinicians about fatal opioid overdoses through letters from medical examiners reduces opioid prescribing over the next three months. The study shows these notifications have a lasting impact, with a 7% reduction in prescriptions after one year.