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Behavioral Economics Commons

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Full-Text Articles in Behavioral Economics

Are Women Really More Risk-Averse Than Men? A Re-Analysis Of The Literature Using Expanded Methods, Julie Nelson Aug 2013

Are Women Really More Risk-Averse Than Men? A Re-Analysis Of The Literature Using Expanded Methods, Julie Nelson

Julie A. Nelson

While a substantial literature in economics and finance has concluded that “women are more risk averse than men,” this conclusion merits investigation. After briefly clarifying the difference between making generalizations about groups, on the one hand, and making valid inferences from samples, on the other, this essay suggests improvements to how economists communicate our research results. Supplementing findings of statistical significance with quantitative measures of both substantive difference (Cohen's d, a measure in common use in non-­‐Economics literatures) and of substantive overlap (the Index of Similarity, newly proposed here) adds important nuance to the discussion of sex differences. These measures …


Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz Aug 2013

Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz

Justin Schwartz

Why are most capitalist enterprises of any size organized as authoritarian bureaucracies rather than incorporating genuine employee participation that would give the workers real authority? Even firms with employee participation programs leave virtually all decision-making power in the hands of management. The standard answer is that hierarchy is more economically efficient than any sort of genuine participation, so that participatory firms would be less productive and lose out to more traditional competitors. This answer is indefensible. After surveying the history, legal status, and varieties of employee participation, I examine and reject as question-begging the argument that the rarity of genuine …


Not-So-Strong Evidence For Gender Differences In Risk, Julie Nelson Jan 2013

Not-So-Strong Evidence For Gender Differences In Risk, Julie Nelson

Julie A. Nelson

In their article "Strong Evidence for Gender Differences in Risk Taking," Gary Charness and Uri Gneezy (2012) review a number of experimental studies regarding investments in risky assets, and claim that these yield strong evidence that females are more risk averse than males. This study replicates and extends their article, demonstrating that its methods are highly problematic. While the methods used would be appropriate for categorical, individual-­‐level differences, the data reviewed are not consistent with such a model. Instead, modest differences (at most) exist only at aggregate levels, such as group means. The evidence in favor of gender difference is …


The Power Of Stereotyping And Confirmation Bias To Overwhelm Accurate Assessment: The Case Of Economics, Gender, And Risk Aversion, Julie A. Nelson Dec 2012

The Power Of Stereotyping And Confirmation Bias To Overwhelm Accurate Assessment: The Case Of Economics, Gender, And Risk Aversion, Julie A. Nelson

Julie A. Nelson

Behavioral research has revealed how normal human cognitive processes can tend to lead us astray. But do these affect economic researchers, ourselves? This article explores the consequences of stereotyping and confirmation bias using a sample of published articles from the economics literature on gender and risk aversion. The results demonstrate that the supposedly “robust” claim that “women are more risk averse than men” is far less empirically supported than has been claimed. The questions of how these cognitive biases arise and why they have such power are discussed, and methodological practices that may help to attenuate these biases are outlined.


Consumer Preference Of Semi-Professional Trumpet Players, Mario Yuuji Harper Dec 2012

Consumer Preference Of Semi-Professional Trumpet Players, Mario Yuuji Harper

Mario Yuuji Harper

This project has taken data on the performance and price of trumpet players in the USU Caine college of performing arts. We analyzed this to see the instrument preferences of aspiring professional trumpet players. We have chosen two primary variables to determine this from. First, we find the sound signature produced by the instrument and the player. Second, we look at the type of music that the player is interested in. This is a seemingly simple relationship, but we have found it to be fraught with complication.