Articles tagged with Behavioral Economics
A new study led by MIT economist Amy Finkelstein found that for every nine adults who gained access to Medicaid in Oregon, one previously eligible child was added to the Medicaid rolls. The effect is modest but economically meaningful, with children costing four times less to cover than adults.
A new study by Columbia University Mailman School of Public Health found that sustained low wages during working years are associated with significantly faster memory decline in older age. Low-wage earners experienced approximately one excess year of cognitive aging per a 10-year period compared to those who never earned low wages.
Researchers say stereotypes and stigma surrounding mental illness can lead to poor workplace behavior. Employees with mental illnesses may face fear of discrimination, which drives inauthenticity and counterproductive work behaviors.
A study suggests that an automated unemployment insurance policy could provide more clarity to workers during economic stress. The policy would not cost more or less than existing packages, but would resolve uncertainty and potentially prevent household financial crises.
Researchers found young adults living alone experienced negative mental and physical health impacts from job loss, while those with parents fared better. Fathers' job losses also led to worse outcomes for young adults living at home.
A study of over 1000 consumers from Australia and NZ found that 27% would pay nearly double the price for 'healthy' drinks with low/no sugar, natural/no additives, or vitamins and minerals. Younger consumers (18-24 years) are more likely to be interested in healthy drinks.
Research shows that default options on carbon offsetting websites can lead to faster CO2 compensation, even at higher costs. The study found that as costs increase, the effectiveness of these defaults decreases. This suggests that people are price-sensitive when it comes to high-cost defaults.
A study by WVU researcher Ednilson Bernardes found that supplier pool pressure contributed to the oversupply of prescription opioids like oxycodone and hydrocodone. The researchers analyzed transactions from 2006-2012, revealing that over 90% of supply came from just three generics manufacturers.
A new theory of decision-making proposes that people often use relative thinking when they should use absolutes, and vice-versa. This theory, developed by Mina Mahmoudi, aims to capture the behavior of boundedly rational decision-makers who struggle with optimal choices.
A new study by Carnegie Mellon University analyzed the impact of the COVID-19 pandemic and George Floyd's murder on crime rates in 28 US cities. The study found that homicides and auto thefts increased, while robberies and larcenies declined. The authors suggest that social unrest, economic conditions, and changed police behavior may b...
New research suggests that official vaccine mandates can motivate hesitant individuals to seek vaccination, with announcements of mandates having a significant impact on vaccination rates. The study used Canadian provinces and European countries to explore the relationship between mandates and vaccine uptake.
Wealthy individuals are more likely to purchase unsustainable products with higher price tags, feeling entitled to the benefits despite environmental costs. However, when encouraged to think about equality, this effect is diminished.
Institutional landlords have raised rent prices in neighborhoods where they own properties, but also improved neighborhood quality and safety. However, these improvements come at a cost to affordability, as rents increased by an average of 0.51% in overlapped neighborhoods.
A new framework for understanding animal societies emerges from a review of wealth inequality research in humans and animals. Wealth is found to be distributed equally or unequally across species, with material goods, individual attributes, and social connections being critical sources.
Researchers found that speeding can decrease fuel economy by 7% and result in an extra 28 cents per gallon at current US fuel prices. They also studied human behavior during the early days of COVID-19 and simulated cosmic collisions to better understand X-ray emissions.
A new study published in the Chinese Medical Journal assessed mortality risk in middle-aged and older Chinese individuals with multiple diseases. The study identified four multimorbidity patterns, with cardiometabolic being the most common, and found that individuals with these patterns had a significantly increased mortality risk.
A $1000 cash incentive significantly increased COVID-19 vaccination rates among hesitant individuals, reaching 87 percent. The study highlights the effectiveness of monetary incentives in addressing collective action problems like vaccine hesitancy and climate change.
New research suggests that plant-based meat alternatives have grown in market share but are not replacing traditional meat, instead serving as an add-on. The study found that consumers buy both plant-based and animal products, with plant-based meats accounting for only 0.4% of total fresh meat expenditures.
A novel experimental design study reveals cronyism is profitable for those who engage in it, driven by beliefs in reciprocity and favoritism. Shared identity motivates even low-quality workers to reciprocate trust with greater effort.
Researchers at Rensselaer Polytechnic Institute found that alternative delivery locations can help offset the negative impacts of increased home deliveries. The study suggests that these locations may be more appealing to underrepresented groups who don't receive many packages, increasing their willingness to use them.
A study found that crowdfunding campaigns are most successful when promoted on social media during the first 10 days. The researchers analyzed data from GoFundMe and found that donation patterns follow three phases, with a surge in donations as the goal is approached. However, they also discovered that slacktivism can occur when people...
Research from Indiana University reveals that cash assistance is a double-edged sword, harming both refugees and local residents if not implemented correctly. Humanitarian organizations can extend cash assistance to host regions with market power by partnering with local governments.
A new study by Thomas Pepinsky challenges the idea that language shapes thought and behavior, finding no evidence that linguistic differences affect social and economic outcomes. The study reveals that statistical methodologies used in previous research are prone to producing false positives.
Research from Rensselaer Polytechnic Institute found a significant drop in traffic accidents during the COVID-19 pandemic, with accidents involving males, nonwhite drivers, and individuals in the 25-64 age group showing smaller reductions.
A new study found that a higher minimum wage was associated with fewer people defaulting on their rent payments, particularly among those at the lower end of the housing expense market. However, landlords responded by increasing rent payments, offsetting some but not all of the increased income.
A study published in PNAS found that risk-tolerant and impatient individuals are more likely to commit crimes. The research used data from economic experiments involving over 7,000 young Danish men, who were shown to be more prone to theft and other property offenses.
Researchers at the University of Pennsylvania found that changing social strategies between settings can lead to more cooperative behavior in a society. In a model with spillover between domains, cooperation is favored when actors can observe and imitate each other's behaviors in different contexts.
A recent study found that individuals often identify with both their Planner and Doer selves, valuing spontaneity and flexibility in their attitudes towards resolutions. The research challenges the common assumption that people prioritize self-control over spontaneity.
A new study published in PNAS reveals that border walls damage a country's international image, with real implications for soft power. The study found that participants had negative perceptions of countries with border walls, regardless of their political views or distance from the border.
A field experiment in China found that people tend to increase activity when informed that others are themselves increasing activity, suggesting a low-cost intervention for promoting economic activity during the pandemic. The study suggests that social cues can be a useful signal for evaluating risks and making decisions about activities.
A new study found that older Europeans who underestimate their health are more likely to adapt their behavior in response to COVID-19 concerns. This group may face increased social isolation and feelings of loneliness as a result.
Researchers found that standard shopping carts, which activate triceps muscles, may constrain buying and result in missed sales. In contrast, alternative cart designs with parallel handles activate biceps muscles, leading to increased purchasing and spending.
Research conducted in rural and urban Chinese villages found that residents of Jincheng gave more tokens to strangers than those from Liangang, suggesting increased trust in out-group members. Effective governance was also linked to higher levels of out-group trust, contradicting concerns about urbanization eroding community bonds.
Researchers found that consumers are willing to pay a small discount for imperfect carrots, maxing out at 40% of misshapen carrots. Marketing messages promoting the nutritional quality and societal benefits of ugly produce were more effective in convincing consumers to buy.
A new study by Ohio State University found that a token donation program reduced plastic bag use by about 30% at two convenience stores on a college campus. The program, which offered customers a 5-cent token in exchange for declining a disposable bag, was effective in nudgeing shoppers away from single-use plastics.
Research in Japan found a link between financial knowledge, age, and gender, suggesting potential policy targets to improve financial health. While men had higher financial literacy, women reported more sound financial behaviors, indicating that policies may need to focus on supporting women's financial decision-making.
A new study by the University of Kent's School of Economics found that religious competition substantially increases the probability of conflict-related violence in Colombia. The presence of a new religion group makes potential contributors or soldiers more scared, leading to violent action from armed groups.
A study by University of Cologne researchers found that COVID-19 has a particularly negative impact on young people from economically disadvantaged and less educated backgrounds. They exhibit decreased prosocial behavior, including lower generosity, altruism, and cooperation, as well as reduced trust in others.
A recent study by Indiana University Kelley School of Business reveals that students who choose low-cost, low-return colleges are more likely to default on their student loans and experience a higher chance of bankruptcy after graduation. In contrast, high-cost, high-return colleges result in lower lifetime income but also fewer defaults.
A study from the University of Texas at Dallas found that governments downplay pandemic severity if they prioritize economy over public health, while exaggerating it when prioritizing public health. The researchers suggest transparent information policies are key for balanced objectives.
A recent study in Indonesia found that full subsidies increased enrollment by 18.6 percentage points, while registration assistance alone boosted signups by 3.5 percent. The experiment also highlighted the importance of infrastructure and administrative capacity in addressing the challenges of universal health insurance.
A new study suggests that women are just as competitive as men in competitions, and that their reluctance to take risks is not the cause of the gender wage gap. Researchers found that when given the option to share winnings with losers, women were more likely to compete and excel.
A 51-country survey reveals that people who feel invincible to COVID-19 are less likely to get vaccinated and believe in the importance of individual actions. The study suggests that messaging emphasizing collective action is crucial in individualistic cultures.
A new approach to measuring financial and digital literacy is proposed by a team of researchers led by Angela Lyons. The study finds that while promoting literacy is important, it may not be enough to ensure resilience, particularly for vulnerable groups such as women and those living in poverty.
A study published in the Atlantic Journal of Communication analyzed Instagram posts from 20 celebrity influencers about COVID-19 between March and May 2020. The researchers found that celebrities initially modeled guidance from health experts, normalizing suggested behaviors such as staying home and practicing hand hygiene.
A new study found that most people maintain their pre-retirement level of social support after retirement, with women and those with high social support experiencing an improvement in mental wellbeing. The research also shows an increase in life satisfaction for couples where either the man or woman retired.
Researchers propose targeted interventions to contain outbreaks in cities like Hong Kong, minimizing economic and social costs. By controlling a small percentage of grids, the virus can be largely contained, offering a balance between risk reduction and human mobility.
Assistant Professor Kang Hao Cheong and his team discovered that chaotic switching for quantum coin Parrondo's games has similar underlying ideas to encryption. They found that using pre-generated chaotic sequences enhances the work, making it easier to invert the encrypted message to obtain the original state.
A new study aggregates evidence from experiments on performance incentives globally, finding that men and women respond similarly to rewards for achieving performance objectives. The study suggests that performance pay boosts productivity for both genders across various contexts and program designs.
Researchers found that emotional expressions of anger in negative reviews influence consumer attitudes and choices, counterintuitively increasing the negative impact. Online retailers and review platforms should take angry reviews seriously and address them promptly to mitigate their effects.
A Seattle ordinance requiring more notice in scheduling for hourly workers resulted in improved worker well-being, sleep quality, and economic security. Researchers found that predictable shifts led to measurable changes in workers' schedules and positive effects on happiness, sleep quality, and material hardship.
A study by University of Georgia researchers found that BlackRock's 'Dear CEO' letters have a significant effect on portfolio firms, influencing their language in financial disclosures. The research suggests that institutional investors are impacting corporate decisions through broad-based public engagement.
A study by University of Cologne economists found that social distancing measures reduced people's mobility by 30% and prevented over 80% of COVID-19 infections and 60% of deaths in Germany within the first three weeks, saving an estimated 500,000 infections and 5,400 deaths
Researchers found that a low opening offer can be effective if it's within a 'fair game' window, avoiding negative emotions, but not so low that it backfires. A balance must be struck to achieve a better outcome in negotiations.
A new study analyzes how micro (income) and macro (business cycle) conditions influence grocery shopping behavior, finding that households adjust their spending without changing budget constraints. Micro conditions primarily affect basket value, while macro conditions impact both basket value and allocation to store formats.
A study of over 2,000 European retirees found that internet usage after retirement is associated with better cognitive scores. Specifically, female retirees who regularly surfed the internet recalled more words on a word recall test compared to their non-internet-using counterparts.
A study by University of Texas at Dallas researcher Dr. Sheen S. Levine found that white Americans are prone to making poor decisions when they ignore their Black peers. When given the opportunity to witness Black peers' accomplishments, however, the racial attention deficit subsides, suggesting a remedy for diversity efforts.
An Australian study found that trust in government approval of safe COVID-19 vaccines is the primary driver of vaccine uptake. Perceived effectiveness in protecting others was also a significant factor. The study revealed lower rates of vaccine uptake among younger, unemployed individuals and those with lower altruistic beliefs.
A study by researchers at Mainz University found that digital presence of service employees improves customer loyalty. The study, published in the Journal of Marketing Research, showed that customers perceive websites with images or videos of service employees as more attractive and memorable, leading to increased customer loyalty.
A new five-year research project led by Thomas Neeson aims to model the impacts of conservation incentives on farmers in the Red River basin. The study will help understand how voluntary, incentive-based conservation programs can be effectively designed to promote sustainable water use.