Behavioral Economics Commons^™

Behind Closed Doors: How Remittance Flows Changed Repression Dynamics In Beneficiary States During Covid-19, Ketevan Tsurtsumia

Senior Projects Spring 2023

The COVID-19 pandemic affected the global world in a lot of ways. Extensive research has been done on its effect on the economic growth of states, the effectiveness of government responses, the efficacy of different vaccines, and vaccine diplomacy. However, changes in state repression have been a neglected topic in research focused on understanding and analyzing the processes that took place during the pandemic. This paper will take on the topic of state repression dynamics during COVID-19 and further develop this relationship using remittances as an additional variable that affects state repression, taking state repression as a dependent variable. Finally, …

Philosophy Of Agency In Studies Of Alcoholism: A Generalizable Paradigm For Overcoming Spiraling Habits, Paul Patrick De Tournemire

Senior Projects Fall 2023

This study considers several of the most successful attempts to understand alcoholism and some of the more successful rehabilitation strategies from the perspective of the philosophy of agency. Puzzling behaviors of the alcoholic are clarified by considering how an individual’s associations between behavior and reward are impacted by the delay of the particular reward, and how this relation is situated by the sober life that serves as a motivation for the alcoholic to drink. Far from being niche interventions, George Ainslie and Hanna Pickard present notable rehabilitation strategies that could have broad applications, particularly in relation to behaviors that involve …

The Foundations Of Behavioral Finance: A Case Study Of Robinhood Users And The Impact Of Biases In Financial Markets, Robert Michael Arciola

Senior Projects Spring 2022

Financial markets play a vital role in economies around the world. They facilitate the interactivity between those who are in need of capital and those with capital to invest. While its own separate entity, the stock market is correlated with the economy in various ways in which one may significantly impact the other on a regular basis. Thus, investors and firms participating in markets have much power in influencing the economy. Human behavior is prone to biases that are not accounted for in standard finance theory but is the subject of behavioral economics by utilizing psychology and sociology to aid …

How We Value Future Generations, Elias Connors Dorf

Senior Projects Fall 2020

This project examines how we value future generations. From looking at different ways we value future and present wellbeing we are able to see a tension that arises from having a high value on both. When looking at examples of ways we value future wellbeing we can see that if you value future wellbeing highly it will devalue current wellbeing. Then we look for a justification for valuing one over the other. This leads us into two ways of how we justify valuing either valuation of wellbeing and a discussion of the average and the classical principles of utility. We …

An Ethical Examination Of Libertarian Paternalism: The Impact Of Retirement Savings Nudges On Autonomy And Welfare, Edward E. Dunn V

Senior Projects Spring 2019

Behavioral economists have recommended the use of nudges to promote welfare through public and private policies as a form of ‘libertarian paternalism’. It remains a controversial topic and opponents of nudging claim that it violates individual liberty and autonomy. Even so, nudging has found success in helping people save more for retirement. Automatic enrollment and the Save More Tomorrow™ plan use defaults to encourage higher participation and contribution rates in 401(k) retirement savings plans. I argue that these policies violate individual autonomy and fail to determine individuals’ preferences. Ethical interventions prioritize the intelligibility of preferences, enhance individual autonomy, and promote …

Value(S) Based Diversification: Environmental, Social, And Governance Investing Sub-Issue Preferences Mapping Through Forced Trade-Offs, Sophia Justine Logan

Senior Projects Spring 2019

Using empirical evidence on consumer preferences for environmental, social, and governance (ESG) investing issues, this author builds upon the economic literature that agents have pro-social inclinations. Evidence from the study shows that ESG preferences are nuanced and heterogeneous, unlike the assumptions in academia and the financial services world today of homogenous preferences across ESG issue categories. This author employs the relatively new methodology of MaxDiff to analyze preferences by forcing trade-offs. A survey with 1,000 respondents was administered to create a rank ordering of ESG issue preferences. The project finds that the highest ranked issues fall within the “social” category …

If The Shoe Fits: A Historical Exploration Of Gender Bias In The U.S. Sneaker Industry, Rodney M. Miller Jr

Senior Projects Spring 2019

In its short history, which barely spans 100 years, sneakers have quickly become a polarizing and captivating commodity, gaining the attention of consumers, fashion houses and major retailers everywhere. Unfortunately, the sneaker industry also has a history of implicit, unconscious bias towards women. A thorough examination of the history of sneakers has discovered three major social movements that can be identified as the key contributors to the growth of the sneaker industry: (1) physical activity, (2) professional sports, and (3) Hip-Hop—the culture not the music genre. Upon further examination, it became evident that each of these social factors have their …

Fair Pay To Play: The Compensation Debate And The Exploitation Of Black Student-Athletes, Wynn S. Miller

Senior Projects Fall 2019

The National Collegiate Athletics Association (NCAA), which is the governing board for intercollegiate athletics in the United States, earns large amounts of revenue from major college sports like Division I football and men’s basketball but does not provide any compensation beyond basic athletic scholarships to the student-athletes who generate the revenue. In recent years, the NCAA has come under increased scrutiny due to what is perceived as hypocrisy—that is, the NCAA using its student-athletes to generate hundreds of millions of dollars in revenue but refusing to provide fair compensation to the student-athletes. Because a majority of student-athletes on Division I …

Understanding The Shifting U.S Retail Environment: A Theoretical Economic Cause And Affect Analysis (1996-2018), John P. Palermo

Senior Projects Spring 2018

Senior Project submitted to The Division of Social Studies of Bard College.

In this paper is a theoretical analysis that provides rationalization to identifying and understanding the main determinants that have led to a shifting retail environment. Effectively over the last 20 years the traditional retail industry has had to modify its traditional ways of businesses strategy to better accommodate the latest behavioral pattern shifts of consumer spending in retail environments and non-retail environment externalities. Some of the major factorial determinants that have and are producing retail shifts are; the developments of new technology being introduced into the retail environment, …

To Nudge Or Not To Nudge: Promoting Environmentally Beneficial Behaviors, Emma Jean Cooper

Bard Center for Environmental Policy

In order to mitigate the effects of climate change, humans need to change how they act toward the environment. Unfortunately, as much as we may want to act in ways that would be best for us and for the environment, we often struggle to do just that due to cognitive biases. Nudge theory attempts to remedy this problem by helping us make the decision that would be in our best interests. To explore this issue, I conduct an extended review of the literature to examine how well nudge theory can be applied to the realm of environmental policy. Specifically, I …

Gender Empowerment In The Development Economics Literature: The Language Of Choice, Preferences And Agency, Pranay Panday

Senior Projects Spring 2017

In my project, I try to trace how our present understanding of gender empowerment is formed, and how mainstream economics literature has accommodated feminist contributions to the concept. I look at neoclassical household models, feminist critiques of the same models, foundational ideas on gender empowerment, and finally the current development economics literature on empowerment. I find that the concept of choices and preferences, and in particular the formation of preferences, is central to understanding gender empowerment. I deduce that a) empowerment is both a process and an outcome, b) that the end goal of empowerment is the access to resources …

Before 'It' Happens Again: Identifying Financial Fragility In The Financial Sector, John Henry Glascock Iii

Senior Projects Spring 2017

The project builds extensively on the theoretical foundations of Minsky’s financial instability hypothesis. A Minskian framework is integrated with both behavioral and human rights theory. The goal is to develop a more holistic view of market dynamics which includes psychological and human rights considerations. In developing this framework, we establish an indicator that can be used to track fragility at the sector and firm levels. This work can be applied to macroprudential policy to more adequately equip regulators whose responsibility it is to tame an unpredictable market.

Persistent Asset Mispricing: Variations On A Simultaneous Move Game, Arjun Kavi Brara

Senior Projects Spring 2016

The purpose of this paper will be to demonstrate instances of persistent asset mispricing. By persistent we mean the existence and achievement of a stable equilibrium where market prices deviate from an underlying fundamental value. These equilibria will be demonstrated through three variations on a general model in which agents make investment decisions on an initial public offering (IPO), given imperfect information on a stock’s true, fundamental value. The first variation holds agents’ beliefs fixed, and trades are conducted “blindly” through a market maker who clears the market by adjusting the stock price. The model establishes a case for initial …

Beneath The Human Capital Investment: Modelling Student Debt Awareness And A Critical Examination Of Financial Aid Materials Using Construal-Level Theory, Sophia Alecia Sutcliffe

Senior Projects Spring 2015

As student loans are increasingly utilized to invest in higher education, it is important to consider how students perceive and understand their loan commitments. Study 1 surveyed a sample of 147 Bard students on their attitudes towards debt and how much they knew about their loan commitments. Over half of the students sampled could not report how much they currently owed in student loans (N=76, 51.4%), 23.8% (N=35) could not identify the types of loans they held, 25.2% of participants could not provide an estimate of how much debt they expect to graduate with within a range of $5,000- $10,000, …

The Macroeconomics Of The Declining U.S. Labor Share: A Debt-Led Explanation, Alex Jianan Xu

Senior Projects Spring 2015

This paper aims to answer two major conundrums in macroeconomic theory with regards to the U.S. economy. First, standard macroeconomic models such as Harrod-Domar and Solow theoryze that factor shares are constant; however, actual measures of the U.S. labor share have been on a downward trend since the early 1980s. The second conundrum relates to the Post-Kaleckian wage-led or profit-led view of economic growth. It indicates that a fall in the labor share in a wage-led economy will result in a fall in aggregate demand (due to deceases in consumption), and an increase in aggregate demand in a profit-led economy …

Incidental Emotions And Trust Decisions: Visceral Influences On Economic Behavior, Idan Aviv Elmelech

Senior Projects Spring 2014

In recent years, trust has emerged as a key concept in the understanding of cooperation between individuals and organizations. It has been implicated as an important variable in topics ranging from individual decision-making in finance, to macroeconomic growth and stability in developing countries. This thesis employs an experimental design to investigate the impact of emotions on trust behavior. In the experiment, emotion was induced in participants who then played a basic trust game originally proposed by Berg, Dickhaut, & McCabe (1995). Results indicate that emotions do impact trust, with anger decreasing trust behavior. However, the data also reveal that individual …

Reflexivity In Financial Markets: A Neuroeconomic Examination Of Uncertainty And Cognition In Financial Markets, Steven Pikelny

Senior Projects Spring 2011

Financial markets exist to disperse the risks of an unknown future in an economy. But for this process to work in an optimal fashion, investors – and subsequently markets – must have a way to interpret uncertainty. The investor rationality and market efficiency literature utilizes a methodology inadequate to address this fact, so I supplement it with the perspectives of epistemology, economic sociology, neuroscience, cognitive science, and philosophy of mind. This approach suggests that what is commonly viewed as market “inefficiency” is not necessarily caused by investor irrationality, but rather by the inherent nature of the epistemological problem faced by …