Behavioral Economics Commons^™

The Perceived Return On College Investment In Relation To Economic Expectations Of Students At The University Of Maryland, Joshua S. Roston

Undergraduate Economic Review

This paper presents the results of a survey conducted in the spring semester of 2017 of University of Maryland students. The results illustrate how University of Maryland students weigh the decision to attend college in terms of their perceived current economic situation and future expectations as well as predicted return on investment. A body of economic literature on the perception of return on investment from attending college exists already and this study hopes to add to the discussion as its results are unexpected. The results imply that the current generation of college students feels uncertain over the worthwhileness of higher …

A Cross-Sectional Exploration Of Household Financial Reactions And Homebuyer Awareness Of Registered Sex Offenders In A Rural, Suburban, And Urban County., John Charles Navarro

Electronic Theses and Dissertations

As stigmatized persons, registered sex offenders betoken instability in communities. Depressed home sale values are associated with the presence of registered sex offenders even though the public is largely unaware of the presence of registered sex offenders. Using a spatial multilevel approach, the current study examines the role registered sex offenders influence sale values of homes sold in 2015 for three U.S. counties (rural, suburban, and urban) located in Illinois and Kentucky within the social disorganization framework. Homebuyers were surveyed to examine whether awareness of local registered sex offenders and the homebuyer’s community type operate as moderators between home selling …

Advancing Rationality With Sustainability: An Analysis Of Agent-Based Simulation, Osman Goktug Tanrikulu

Hatfield Graduate Journal of Public Affairs

Today, falling trends of species and ecosystem in the world due to overconsumption and destruction of natural resources are at critical levels. It is vital for humanity to operate with sustainable and resilient modes of production and consumption. In this regard, this paper examines the basic premise of rationality and introduces sustainability as an advancement to the theoretical concept of rationality. Thus, a rational mindset and a sustainable mindset are compared under depletion of environmental resources. The understanding of rationality in the analysis is based on Garett Hardin’s (1968) ‘the tragedy of the commons’ model, in which actors are self-interested …

A Dual-Role Analysis Of Game Form Misconception And Cognitive Bias In Financial And Economic Decision Making, Chinedum D. Nwadiora

University of New Orleans Theses and Dissertations

The endowment and the framing effect are widely examined cognitive biases. The experimental economics literature, using choice data gathered through an elicitation device, commonly finds evidence of these biases. Recent work by Cason & Plott (2014) shows that the interpretation of choice data as consistent with biases related non-standard preference theory could also be consistent with confusion or misconception of the game type used to elucidate preferences. I use the Cason and Plott card auction framework to analyze offers of buyers and sellers in an experimental setting with subjects from the University of New Orleans simulating 97 sellers and 90 …

Unemployment, Does It Really Hurt?, Claudia Vargas

Theses and Dissertations

This paper analyzes the consequences of changes in the unemployment rate in Colombia on the level of education attained for adolescents. Increases in the unemployment rate are associated with an increase in the average number of years of education. No significant effect was found for men of the same age.

Consequences Of Information Asymmetry On Corporate Risk Management, Howard J. Merrill Iii

Applied Economics Theses

This paper will demonstrate the impact information asymmetry has on risk management. There is a noticeable impact within the context of consumer credit risk. If a firm is able to recognize this, they can make improved credit decisions that will reduce the consequences. The theoretical impact will be presented while depicting areas of risk management that are susceptible to information asymmetry. We find a direct impact on the development of scoring models, credit policies, and origination volume. These results hold for banks with portfolios consisting of consumer credit products and small business loans. Once known, banks can better tailor their …

A Process For Field Studies In Behavioral Economics, Victoria Ferraro

Senior Honors Projects

Field experiments enable economists to test whether theory adequately captures behavior in natural settings, or whether evidence supports reevaluating the reasoned abstractions comprising the theory. Economics, and social science more generally, has increasingly valued the evidence provided by field studies. These studies typically require a relationship with an external partner site providing the environment for the study, but existent research offers little guidance for developing these relationships and designing procedures for effective collaboration. The purpose of this paper is to provide greater insight into what is necessary to conduct field experiments in economics, particularly behavioral economics in private market settings. …

Does A Better Running Back Mean More Rushing? Game Theory And The Nfl, Eric Lofquist

Honors Scholar Theses

In this paper I attempt to answer the question of whether or not teams in the National Football League (NFL) rush less with a better running back. This seems counterintuitive, but game theory supposes that this is true. Defenses facing a better running back will generally expect the offense to rush more and therefore defend the run more often. The offense, foreseeing the defense’s actions, will choose to pass more to counteract the run defense. This is the basis of the difference between the strategic effect and the direct effect in mixed strategies. The direct effect is when a player …

I Share, Therefore It's Mine, Donald J. Kochan

Donald J. Kochan

Coordination When There Are Restricted And Unrestricted Options, Shaun P. Hargreaves Heap, David Rojo Arjona, Robert Sugden

Economics Faculty Articles and Research

One might expect that, in pure coordination games, coordination would become less frequent as the number of options increases. Contrary to this expectation, we report an experiment which found more frequent coordination when the option set was unrestricted than when it was restricted. To try to explain this result, we develop a method for eliciting the general rules that subjects use to identify salient options in restricted and unrestricted sets. We find that each such rule, if used by all subjects, would generate greater coordination in restricted sets. However, subjects tend to apply different rules to restricted and unrestricted sets.

Are Fair Weather Fans Affected By Weather? Rainfall, Habit Formation And Live Game Attendance, Qi Ge, Brad Humphreys, Kun Zhou

Economics Faculty Working Papers Series

We analyze habit formation in sports attendance utilizing rainfall as an unexpected, transitory shock to attendance costs. Using attendance data from Major League Baseball (MLB) and NOAA weather data, we analyze the impact of variation in game day weather conditions on current and future MLB attendance. The empirical strategy permits identification of both the formation and persistence of habit from exogenous weather shocks. Past adverse weather shocks increase future attendance by about 200 fans per game. Our study contributes to the literature developing empirical evidence of habit formation in the field and provides policy implications for optimal ticket pricing strategies.

Revenue Incentives And Referee Propensity To Make Foul Calls In The Nba Finals, Daniel Fallon-Cyr

CMC Senior Theses

In this study I examine foul calls by NBA referees alongside the difference in aggressiveness of twelve NBA basketball teams as they compete for the Championship Title. I aim to identify referee biases that increase the likelihood of the NBA Finals ending in a later game due to league revenue incentives. My data consists of 91 individual NBA Finals games played between the 2001 and 2016 NBA Finals. After controlling for changes in play as well as the difference in aggressiveness, I find that NBA referee’s foul calls are more dependent on a call on the opposing team in situations …