Behavioral Economics Commons^™

How Portable Is Level-0 Behavior? A Test Of Level-K Theory In Games With Non-Neutral Frames, Shaun Hargreaves Heap, David Rojo Arjona, Robert Sugden

Economics Faculty Articles and Research

We test the portability of level‐0 assumptions in level‐k theory in an experimental investigation of behavior in Coordination, Discoordination, and Hide and Seek games with common, non‐neutral frames. Assuming that level‐0 behavior depends only on the frame, we derive hypotheses that are independent of prior assumptions about salience. Those hypotheses are not confirmed. Our findings contrast with previous research which has fitted parameterized level‐k models to Hide and Seek data. We show that, as a criterion of successful explanation, the existence of a plausible model that replicates the main patterns in these data has a high probability of …

Economic Impact Of Legalizing Retail Alcohol Sales In Craighead, Faulkner, And Saline Counties, Katherine A. Deck, Mervin Jebaraj

Publications and Presentations

Converting from dry county to wet county status would have a number of tangible and intangible economic benefits for Craighead, Faulkner, and Saline counties. Legal retail alcohol sales are a signal of a contemporary economic development environment. Quantifying the value of that perception is quite difficult, but it is entirely possible to estimate sales effects, tax collections, and other economic impacts of becoming a wet county. This study was conducted by the Center for Business and Economic Research to assess the magnitude of those economic effects.

Musical Missteps: The Severity Of The Sophomore Slump In The Music Industry, Shane M. Zackery

Scripps Senior Theses

This study looks at alternative models of follow-up album success in order to determine if there is a relationship between the decrease in Metascore ratings (assigned by Metacritic.com) between the first and second album for a musician or band and the 1) music genre or 2) the number of years between the first and second album release. The results support the dominant thought, which suggests that neither belonging to a certain genre of music nor waiting more or less time to drop the second album makes an artist more susceptible to the Sophomore Slump. This finding is important because it …

Crime In Game Theoretic Models: An Exploration Of The Rational Criminal In A Variety Of Frameworks, Benjamin A. Chalmers

Student Scholarship

There is as much contention over the cause of crime as there is about how to solve it, and the two issues are inextricable from one another. While the idea of studying such a deeply social and humanistic issue through the ‘cold lens’ of mathematics may seem unorthodox or even unproductive to the layperson, the practice has become commonplace since Gary Becker’s introduction of the ‘rational criminal’ model in his paper Crime and Punishment: An Economic Approach in 1968. The rational criminal model is a method of explaining the actions of a criminal not by attributing them to an inherent …

Impact Of Natural Disaster Exposure On Prosocial Preferences And Public Goods Provision: Evidence From The Solomon Islands, Heather Belfor

Master's Theses

Natural disaster exposure can impact prosocial preferences, which indicate the level of social capital, as well as create a shift in investments from public to private goods. Both are important mechanisms to study in order to create optimal climate change adaptation policies. This study evaluates the impact of natural disaster exposure on prosocial preferences and public goods provision in the evaluated communities. The data used in this research comes from a process evaluation that was carried out in the Solomon Islands on the Rural Development Program (RDP) and a Structured Community Activity (SCA) experiment, which took place in 80 villages …

Handling Risk: Testosterone And Risk Preference, Evidence From Dhaka, Bangladesh, Tobias Sytsma

Master's Theses

The relationship between testosterone and risk aversion is of increasing interest in the experimental economics. Using the ratio of the second digit to the fourth digit (2D:4D) as a rough indicator of level of prenatal testosterone exposure, this study attempts to replicate recent results from Garbarino et al., (2011), which found that individuals with digit ratios above the sample average were significantly more risk averse, and individuals with digit ratios one standard deviation below the sample average were significantly more risk seeking in a subject pool of male and female Caucasian students. Here, a subject pool from Dhaka, Bangladesh, is …

Experimental Evidence For Heterogeneous Expectations In A Simple New Keynesian Framework, Atticus David Holm Graven

Business and Economics Honors Papers

This paper is a two-dimensional analysis of agent behavior in a standard New Keynesian (NK) Macroeconomic model. On the dimension of pure mathematics, we analyze the parameters of the NK model and of possible prediction rules. On the other dimension we continue a practice of empirical study of heterogeneous expectations with an experiment. The experiment will ask participants to make predictions of future output and inflation. Their responses will create a data-set upon which analysis will be performed to illuminate and corroborate current theories of economic decision making. The literature has shown that most agents' forecasting rules can be modeled …

Moving Ahead By Thinking Backwards, Conner Lewis, Amanda Wiener

Undergraduate Research Symposium 2014

Although some research exists regarding collegiate GPAs, little is known about which individual student characteristics predict college graduation. We study 100 students from the University of Minnesota Morris. Information collected includes demographics, standard personality traits (known in Psychology as the “Big Five”), two economic preferences (risk aversion and patience), and three cognitive skills (numeracy, non-verbal IQ, “Hit15”).“Hit 15” is a game played against the computer in which each player must add 1, 2, or 3 on each turn. Winning is exactly hitting fifteen first; players take turns going first and the starting point total varies (game theory calls solving this …

Credit Card System In Ghana: An Investigation Of Why Credit Cardsare Not Widely Used In Ghana And How Widespread Use May Be Implemented, Emmanuel Andoh

Masters Theses

Credit card systems offer economic advantages to many families and individuals across the globe. In economically developed countries and most emerging ones, the credit card system helps individuals, businesses, and even government agencies, speed up business transactions and access to short term loans. However in developing countries such as Ghana this is not the case. The result is that many people find it very difficult to buy goods and services without having cash at hand. Moreover a vast majority of people have to carry bags of money to travel across cities, towns and villages in the country to trade and …

Valuation Bias And Profit Opportunities In Financial Markets, Jayendra Gokhale, Elizabeth Schroeder, Victor J. Tremblay

Accounting, Economics, Finance, and Information Sciences - Daytona Beach

Recent work by Gokhale et al. (2013) proposes a method for detecting misvalued stocks. This paper applies the method to look for profitable investment opportunities by identifying undervalued stocks. Using data on companies in the S&P 100 over a period of 22 years, we test several specifications of our investment strategy for robustness. We find that investing in undervalued stocks significantly outperforms benchmark indices over time, and that this strategy can lead to risk-adjusted excess returns that are positive and statistically significant.

Evaluating Conformity And Reciprocity In University Alumni Donation, Guanyi Yang

Undergraduate Economic Review

Alumni donation has a significant impact on the function of liberal arts institutions across the U.S. Specific factors relating to alumni donation behavior have been identified in previous research; however few studies systematically utilize existing theories of motivation for voluntary contributions to evaluate the effectiveness of alumni donation factors. This research classifies specific factors into reciprocity and conformity and surveys Ohio Wesleyan University (OWU) alumni about donation attitudes. The logistic regression model and the linear regression model complement each other and provide support for the hypothesis that the more one subjects to conformity, the more likely one tends to donate …

Reinterpreting King Solomon's Problem: Malice And Mechanism Design, Brishti Guha

Research Collection School Of Economics

I argue for an alternative interpretation of King Solomon's problem in terms of one of the two claimants being “malicious”. A “malicious” claimant places no intrinsic value on the object but derives utility from depriving the rival claimant. This new interpretation permits a simpler solution than those considered in the literature; I derive a mechanism that induces truthful revelation where the equilibrium involves a single round of elimination of weakly dominated strategies, and no monetary transfers. I consider extensions which allow for the malicious claimant to also place some low but positive intrinsic valuation on the object; I also discuss …

Consumer Credit: Too Much Or Too Little (Or Just Right)?, Jonathan Zinman

Dartmouth Scholarship

The intersection of research and policy on consumer credit often has a Goldilocks feel. Some researchers and policy makers posit that consumer credit markets produce too much credit. Other researchers and policy makers posit that markets produce too little credit. I review theories and evidence on inefficient consumer credit supply. For each of eight classes of theories I sketch some of the leading models and summarize any convincing empirical tests of those models. I also discuss more circumstantial evidence that does not map tightly onto a particular model but has the potential to shed light on, or obscure, answers to …

The Effect Of Crossing The $100 Million Jackpot Threshold On Ticket Sales, Stanton Hudja

Undergraduate Economic Review

There has been little research done on how consumers react to jackpots that first cross the $100 million threshold. Using two sets of time series data, I measure the effect on demand of being the first jackpot in a series of jackpots to cross the $100 million threshold. In both datasets, there is an additional increase in the growth of lottery ticket sales based solely on being the first jackpot to equal or surpass $100 million. These findings are not consistent with the principle of diminishing marginal utility and suggest a psychological significance of the number 100.

Stewardship In The Interests Of Systemic Stakeholders: Re-Conceptualizing The Means And Ends Of Anglo-American Corporate Governance In The Wake Of The Global Financial Crisis, Zhong Xing Tan

Journal of Business & Technology Law

No abstract provided.

Analysis Of Visitor Spending At The Bikes, Blues & Bbq Rally, Katherine A. Deck, Mervin Jebaraj

Publications and Presentations

• 59.9 percent of the 2013 Bikes, Blues & BBQ rally attendees came from outside the Northwest Arkansas region. 57.6 percent of all attendees were from outside Northwest Arkansas and primarily visiting to attend the motorcycle rally.
• The average spending of each motorcycle rally visitor from outside Northwest Arkansas was $401.86.
• Visitor spending generated at least $36.17 in state and local sales taxes per person.
• The average out-of-town visitor stayed in the Northwest Arkansas region for 3.8 days and occupied 0.7 room nights.
• Each visitor ate an average of 9.6 meals in Northwest Arkansas. On average, 8.9 meals were consumed in …

Extended Preferences And Interpersonal Comparisons: A New Account, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Book Review, Matthew D. Adler

Faculty Scholarship

No abstract provided.

Pay-As-You-Go Electricity: The Impact Of Prepay Programs On Electricity Consumption, William M. Martin

Theses and Dissertations--Agricultural Economics

Prepay or pay-as-you-go programs are an increasingly popular type of rate plan offered by electric utilities. Under these plans, ratepayers must keep a positive balance at all times to avoid being automatically disconnected, they are charged daily for their usage, and they are provided with a means to monitor their consumption. One of the suggested benefits of these plans is that they allow electricity consumers to better manage their usage. Using household level monthly usage data from customers enrolled in prepay programs at two Kentucky rural electric cooperatives, we investigate whether there is a change in consumption after these customers …

Developing An Efficient High-Trust Model Within Audit Teams, Julian James L. Laguisma

CMC Senior Theses

An examination into dyadic trust relationships within an audit engagement team and development of a model to efficiently optimize trust.