{"title":"Is ambiguity aversion a preference? Ambiguity aversion without asymmetric information","authors":"Daniel L. Chen","doi":"10.1016/j.socec.2024.102218","DOIUrl":"10.1016/j.socec.2024.102218","url":null,"abstract":"<div><p>Ambiguity aversion is the interpretation of the experimental finding (the Ellsberg paradox) that most subjects prefer betting on events whose probabilities are known (objective) to betting on events whose probabilities are unknown (subjective). However in typical experiments these unknown probabilities are known by others. Thus the typical Ellsberg experiment is a situation of asymmetric information. People may try to avoid situations where they are the less informed party, which is normatively appropriate. We find that eliminating asymmetric information in the Ellsberg experiment while leaving ambiguity in place, makes subjects prefer the ambiguous bet over the objective one, reversing the prior results.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141144728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kene Boun My , Marielle Brunette , Stéphane Couture , Sarah Van Driessche
{"title":"Are ambiguity preferences aligned with risk preferences?","authors":"Kene Boun My , Marielle Brunette , Stéphane Couture , Sarah Van Driessche","doi":"10.1016/j.socec.2024.102237","DOIUrl":"https://doi.org/10.1016/j.socec.2024.102237","url":null,"abstract":"<div><p>Decisions under risk and ambiguity are frequently encountered in our daily lives, and the associated preferences are often quantified. This article deals with the relationship between individuals’ preferences towards risk and ambiguity. In particular, we question the correlation of the preferences and their alignment. For that purpose, we analyze experimental data that measures individuals’ risk and ambiguity preferences through a lottery choice experiment. The results indicate that most of the subjects are risk-loving and ambiguity-averse. We also show that risk preferences and ambiguity preferences are negatively correlated. Finally, we prove that the majority of subjects have preferences towards ambiguity that are aligned with those towards risk, either perfectly or weakly. Thirty-four percent of the sample has preferences towards ambiguity that are the opposite of those towards risk.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141097665","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does waste management policy crowd out social and moral motives for recycling?","authors":"Ida Ferrara , Paul Missios","doi":"10.1016/j.socec.2024.102233","DOIUrl":"https://doi.org/10.1016/j.socec.2024.102233","url":null,"abstract":"<div><p>Social and moral motivations can influence households’ decisions regarding pro-environmental behavior, such as recycling. In a theoretical framework that allows for these motivations, we analyze how policies such as unit pricing and mandatory recycling affect whether and, in the presence of heterogeneous households, the extent to which a society recycles. We show that unit pricing enhances the effect of intrinsic motivation while mandatory recycling can erode it (depending on the marginal utility of self-image and the recycling cost-to-benefit ratio). We empirically investigate the relationship between policy and intrinsic motivation, using different cutoffs for recyclers and non-recyclers, and find support for our theoretical predictions.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480084","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intergenerational transmission of financial biases","authors":"Gizem Turna Cebeci","doi":"10.1016/j.socec.2024.102234","DOIUrl":"https://doi.org/10.1016/j.socec.2024.102234","url":null,"abstract":"<div><p>The aim of this study is to test the intergenerational transmission of frequently observed financial biases. We elicited financial biases of first-year university students and their parents. Results indicate the intergenerational transmission of illusion of control, loss-aversion, and overconfidence from parents to children as well as transmission of affinity bias only from parents to daughters. Financial knowledge and saving habits of students have a strong influence on the transmission of financial biases. In addition, we found a moderate effect of economic preferences in the transmission process.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141095859","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Simplify and Deter: Nudging waste collection fee debtors","authors":"Matúš Sloboda, Patrik Pavlovský , Emília Sičáková-Beblavá","doi":"10.1016/j.socec.2024.102225","DOIUrl":"10.1016/j.socec.2024.102225","url":null,"abstract":"<div><p>A field quasi-experiment was conducted in cooperation with the local public administration on the waste collection agenda, testing two versions of a standard notice were tested against a control notice targeted at debtors. Both simplified versions, which included a deterrence message, were more effective than the control notice in promoting compliance. However, the version that emphasized the negative consequences of nonpayment, specifically the risk of high interest rates, was more effective in increasing tax compliance than the version that included a descriptive social norm to soften the communication toward fee debtors. The study suggests that adding a social norm to a simplified notice with deterrence does not further increase tax compliance. In addition, the notice had a greater positive effect on fee debtors who had missed only one payment than on those who had missed multiple payments of waste collection fee.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141053665","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Choice heuristics and livestock farmers' preference heterogeneity for Rift Valley fever vaccines in Uganda","authors":"Marsy Asindu , Awudu Abdulai , Bernard Bett , Kristina Roesel , Emily Ouma","doi":"10.1016/j.socec.2024.102226","DOIUrl":"10.1016/j.socec.2024.102226","url":null,"abstract":"<div><p>Rapid spread and erratic outbreaks of Rift Valley fever (RVF) disease across the African continent continues to pose serious threat to animal, public health, and regional livestock trade. Failure to institute timely control measures will have serious implications on food security and livelihoods. Among existing control options for the disease, vaccines are reported to be the most cost-effective. However, no RVF vaccines are currently registered for use in Uganda. Prior to approval, reservations exist concerning the uptake of vaccines by farmers as they have to weigh in several features and associated risks before acceptance. This study utilizes data from 444 livestock farming households in Uganda to elicit farmers’ preference heterogeneity and the influence of choice heuristics on their preferences for RVF vaccines. The empirical results reveal that two livestock farmer segments exist with respect to RVF vaccine preference. The single dose vaccine attribute is the most highly valued by farmers. Further, livestock farmers’ conditional perceptions and risk attitudes play a major role in vaccine choice decisions. The paper highlights the need for careful consideration of livestock farmers’ preference heterogeneities and intrinsic motivations such as risk attitudes and conditional perceptions when designing policy instruments for the promotion of RVF vaccination programmes.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214804324000648/pdfft?md5=1de6a64014e75d3072ea137519a5ac4e&pid=1-s2.0-S2214804324000648-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141035716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Elena Keller , Andreas Ortmann , Georgina Mary Chambers
{"title":"Exploring the demand for elective egg freezing: A laboratory experiment","authors":"Elena Keller , Andreas Ortmann , Georgina Mary Chambers","doi":"10.1016/j.socec.2024.102224","DOIUrl":"10.1016/j.socec.2024.102224","url":null,"abstract":"<div><p>We conducted a proof-of-concept analysis to demonstrate that government funding decisions can be studied within a lab experiment: We explore the effects of government funding levels, information level, and various participant characteristics on the demand for elective egg freezing (EEF) and in vitro fertilization (IVF), two types of fertility treatment, and determine price and income elasticities of demand within an incentive-compatible experiment.</p><p>We recruited 217 female participants without children aged 20–29 years. Participants were assigned to one of three between-subjects experimental treatments that varied income endowment and information provided. Additionally, the experiment consisted of 3 within-subjects conditions corresponding to different levels of government funding for IVF and EEF with 2 decision periods (‘planning period’ and ‘family-formation period’) and participants had to indicate their treatment choice aiming to achieve a live birth.</p><p>The demand for EEF and IVF were shown to be price-inelastic. We found that the increase in the price for EEF and IVF through restrictions in government funding significantly reduced demand for such treatments. However, demand did not significantly change with income level, suggesting a high value associated with fertility treatment.</p><p>Overall, our study shows that government funding decisions for medical interventions can be explored within an experimental setting.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214804324000624/pdfft?md5=1d1a9ecddc67596e4a43148da0c4a20b&pid=1-s2.0-S2214804324000624-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141026046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A novel experimental test of truthful bidding in second-price auctions with real objects","authors":"Antonio Rosato , Agnieszka A. Tymula","doi":"10.1016/j.socec.2024.102221","DOIUrl":"10.1016/j.socec.2024.102221","url":null,"abstract":"<div><p>We present experimental evidence on bidding in second-price auctions with real objects. Our novel design, combining a second-price auction with an individual-specific binary-choice task based on the outcome of the auction, allows us to directly identify over- and under-bidding. We analyze bidding in real-object and induced-value auctions, and find significant deviations from truthful bidding in both. Overall, under-bidding is somewhat more prevalent than over-bidding; yet, the latter has a bigger magnitude, especially with induced values. At the individual level, however, we find that participants who over-bid in induced-value auctions are equally likely to over- or under-bid in real-object ones; moreover, there is no association in the size of the deviations from truthful bidding across the two types of auctions. Hence, we conclude that there is no relation between the tendency to deviate from truthful bidding in induced-value vs. real-object auctions.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141048421","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Picture this: Making health insurance choices easier for those who need it","authors":"Ana Cecilia Quiroga Gutierrez","doi":"10.1016/j.socec.2024.102223","DOIUrl":"10.1016/j.socec.2024.102223","url":null,"abstract":"<div><p>Informed health insurance choices are important since they have significant health and financial consequences. Personalized information has been found to improve health insurance decision quality, and ensuring that it benefits vulnerable groups is essential. This study uses experimental data and random forests, to investigate heterogeneous treatment effects of optional personalized information for health insurance decision-support. During the experiment, participants with lower levels of Health Insurance Literacy and less accumulated wealth were less likely to access personalized information when multiple sources were available. Simultaneously, these participants were also found to benefit the most from personalized information, especially when presented using a graphical format, reducing their expected costs significantly. These results hold important implications for policy and practice. Integration of graphical elements into health insurance choice environments, can help individuals make better-informed choices. Additionally, concerted efforts should be made to ensure vulnerable groups have access to the information and support they need.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214804324000612/pdfft?md5=391118a73a9442d0cbb7289e1616bf18&pid=1-s2.0-S2214804324000612-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141059112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Antonios Proestakis , Ginevra Marandola , Joana S. Lourenço , René van Bavel
{"title":"Testing a policy intervention in the lab: differences between students and non-students in switching bank accounts","authors":"Antonios Proestakis , Ginevra Marandola , Joana S. Lourenço , René van Bavel","doi":"10.1016/j.socec.2024.102220","DOIUrl":"10.1016/j.socec.2024.102220","url":null,"abstract":"<div><p>The reliance on student samples has long been a subject of debate in experimental approaches to studying behaviour. We contribute to this discussion by looking at differences in financial behaviour between a student and a non-student sample in three sets of lab experiments conducted in Spain, Germany and Poland (n=857). Participants from both samples switched more often and made better financial decisions after they received a message encouraging them to switch financial service providers. While the size of the effect on switching frequency was comparable between the two samples, the effect on switching quality was significantly stronger on non-students. Further analysis suggests this is due to a better performance of students before the prompt leaving less room for improvement by the reminder. Results suggest that experimental evidence derived from students should be generalized with caution.</p></div>","PeriodicalId":51637,"journal":{"name":"Journal of Behavioral and Experimental Economics","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2024-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214804324000582/pdfft?md5=4e6efb031e1e900ed9b742e53f951d27&pid=1-s2.0-S2214804324000582-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141045054","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}