Behavioral Economics Commons^™

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 …

The Lure Of Musical Comfort: An Analysis Of How Consumer Preferences In Popular Music Change Depending On The State Of The U.S. Economy Using Billboard Hot 100, Spotify Api, & Economic Data, Lindsey A. Larson

CMC Senior Theses

This paper examines data from Spotify’s Web API for all songs that have been on the Billboard Hot 100 chart from the first chart’s release in August 1958 to May 2021 to determine the relationship between music misery and economic misery. Twelve dependent variables– duration, danceability, energy, key, acousticness, speechiness, mode, loudness, instrumentalness, liveness, valence, and tempo– are used to measure the impact of Arthur Okun’s U.S. economic misery index on each characteristic. Using 12 individual linear regressions– one for each dependent variable– I find that during times of increased economic hardship, consumers are likely to choose to listen to …

Invited Perspective - Engaging Aspirations To Nurture Communities, Kentaro Toyama

Subsistence Marketplaces

For subsistence communities, the question is whether aspirations can be applied to motivate behavior that is, on the one hand consistent with people’s aspirations, but which might otherwise be difficult to elicit. Could poorer households be encouraged to save, to spend more on their children’s education, or to act against unhealthy social norms? A couple of examples suggest this is not only possible, but highly successful in contexts where other appeals fail.

Análisis De La Relación Entre Las Actitudes De Consumo Y Endeudamiento Y Los Procesos De Contabilidad Mental En Jóvenes Universitarios En La Ciudad De Bogotá, Mario Andrés Espejo Ariza

Economía

La presente investigación tiene como objetivo responder a la manera en que los procesos de contabilidad mental se relacionan con el proceso de toma de decisiones de consumo y endeudamiento, y la forma en que las actitudes comportamentales influyen en estos. Para dicho propósito. se realizó un estudio descriptivo-correlacional de corte transversal, en el cual se utilizó una muestra no probabilística-intencionada conformada por 273 individuos de ambos géneros, estudiantes de diferentes universidades y carreras en Bogotá: aplicando un cuestionario con escalas actitudinales como actitud hacia la compra y el endeudamiento. Asimismo, se realizaron réplicas de ejercicios de contabilidad mental para …

Jue Insight: Migration, Transportation Infrastructure, And The Spatial Transmission Of Covid-19 In China, Bingjing Li, Lin Ma

Research Collection School Of Economics

This paper evaluates the impacts of migration flows and transportation infrastructure on the spatial transmission of COVID-19 in China. Prefectures with larger bilateral migration flows and shorter travel distances with Hubei, the epicenter of the outbreak, experienced a wider spread of COVID-19. In addition, richer prefectures with higher incomes were better able to contain the virus at the early stages of community transmission. Using a spatial general equilibrium model, we show that around 28% of the infections outside Hubei province can be explained by the rapid development in transportation infrastructure and the liberalization of migration restrictions in the recent decade.

Trauma Of The Past: The Impact Of Adverse Childhood Experiences On Adult Attachment, Money Beliefs And Behaviors, And Financial Transparency, D.Bruce Ross, Ed Coambs, Emily Johnson

Journal of Financial Therapy

Adverse childhood experiences (ACEs) can have a strong, lasting impact on our mental and relational outcomes as adults. They may also impact how we address financial beliefs and behaviors. The current study utilizes 500 participants from Amazon MTurk and structural equation modeling (SEM) to explore the relationships between ACEs and relational financial transparency behaviors through attachment style and money beliefs and behaviors. Findings indicated significant direct and indirect associations across these pathways, particularly for experiences of reported neglect, verbal, and sexual abuse on less security in adult attachment styles. In turn, insecure attachment styles were linked to increased maladaptive financial …

The Effect Of Magnitude And Probability On Plea Bargain Decision-Making, Megan L. Small

Electronic Theses and Dissertations

Decision-making is studied in various aspects of life and can be especially vital in the context of the criminal justice system, such as plea bargains. Previous research in this area used a less commonly used task (fill-in-the-blank) in addition to a student sample (Falligant & Pence, 2019). The current study uses probability discounting to study the choice between accepting a plea bargain for a shorter incarceration sentence or risking a trial with a longer sentence on a sample of adults with experience in the criminal justice system. Three sentence durations, or magnitudes, were used (1 year, 5 years, and 25 …

Signals From On High And The Power Of Growth Mindset: A Natural Field Experiment In Attracting Minorities To High-Profile Position, Jeffrey A. Flory, Andreas Leibbrandt, Christina Rott, Olga B. Stoddard

Faculty Publications

We conduct a large-scale natural field experiment with a Fortune 500 company to test several approaches to attract minorities to high-profile positions. 5,000 prospective applicants were randomized into treatments varying a portion of recruiting materials. We find that self-selection at two early-career stages exhibits a substantial race gap. Importantly, we show that this gap can be strongly influenced by several treatments, with some increasing application rates by minorities by 40 percent and others being particularly effective for minority women. The heterogeneities we find by gender, race, and career stage shed light on the underlying drivers of self-selection barriers among minorities.

Does A District Mandate Matter For The Behavior Of Politicians? An Analysis Of Roll-Call Votes And Parliamentary Speeches, Andreas Born, Aljoscha Janssen

Research Collection School Of Economics

In most democracies, members of parliament (MPs) are elected either through a party list or by a district. We use a discontinuity in the German electoral system to investigate the causal effect of a district election on an MP’s conformity with the party line. A district election does not affect roll-call voting behavior causally, possibly due to overall high adherence to party-line voting. Analyzing the parliamentary speeches of each MP allows us to overcome the high party-line discipline with regard to parliamentary voting. Using textual analysis and machine learning techniques, we create two measures of closeness of an MP’s speeches …

Three Essays In Experimental And Network Economics, John D. Mcmahan

Doctoral Dissertations

This dissertation consists of the three essays in network and experimental economics. The first essay explores the importance of endogenous bilateral connections and punishment networks in public good settings. I conduct a laboratory experiment that varies the incentive to form links among participants in a traditional Voluntary Contribution Mechanism game. I find that when link benefits are zero very few connections are formed, and very little punishment takes place. When link benefits are positive many links are formed and cooperation levels are increased. In general, we find evidence that participants strategically use the bilateral linking process to avoid punishment and …

Economic Impact Of Targeted Government Responses To Covid-19: Evidence From The Large-Scale Cluster In Seoul, Kim, Kanghyock Koh, Jinwook Shin

Research Collection School Of Economics

We estimate the economic impact of South Korea's targeted responses to the first large-scale COVID-19 cluster in Seoul. We find that foot traffic and retail sales decreased only within a 300 meter radius of the cluster and recovered to its pre-outbreak level after four weeks. The reductions appear to be driven by temporary business closures rather than the risk avoidance behavior of the citizens. Our results imply that less intense, but more targeted COVID-19 interventions, such as pin-pointed, temporary closures of businesses, can be a low-cost alternative after lifting strict social distancing measures.

Does Precise Case Disclosure Limit Precautionary Behavior? Evidence From Covid-19 In Singapore, Aljoscha Janssen, Matthew H. Shapiro

Research Collection School Of Economics

Limiting the spread of contagious diseases can involve both government-managed and voluntary efforts. Governments have a number of policy options beyond direct intervention that can shape individuals’ responses to a pandemic and its associated costs. During its first wave of COVID-19 cases, Singapore was among a few countries that attempted to adjust behavior through the announcement of detailed case information. Singapore's Ministry of Health maintained and shared precise, daily information detailing local travel behavior and residences of COVID-19 cases. We use this policy along with device-level cellphone data to quantify how local and national COVID-19 case announcements trigger differential behavioral …

Tourism And Terrorism- A Study Of Jammu And Kashmir, Altaf Ahmd Kumar

Journal of Tourism Insights

Abstract

Purpose - This research article analyzes terrorism and its impacts on tourism in Jammu and Kashmir. This article aims to know what terrorism is and how it impacts the tourism sector in the three geographical regions of erstwhile Jammu and Kashmir bifurcated into two union territories by the Indian government after the abrogation of Article 370 of the Indian constitution.

Methodology - Secondary data sources have been used, collected from Director Tourism Kashmir, Director Tourism Jammu, Jammu, and Kashmir Coalition of Civil Societies, and Home Ministry of India. In this research paper, the Vector Error Correction Model (VECM) of …

Life Satisfaction And Tax Morale In Azerbaijan: Mediating Role Of Institutional Trust And Financial Satisfaction, Orkhan Nadirov, Khatai Aliyev, Bruce Dehning, Ilaha Sharifzada, Rafiga Aliyeva

Accounting Faculty Articles and Research

This paper examines the relationship between life satisfaction (measured as the self-reported satisfaction of each individual with their past life and goal achievements) and tax morale (measured as the likelihood of an individual’s intrinsic motivation to pay taxes). Using a large-scale survey dataset from Azerbaijan, it is documented that life satisfaction is positively associated with tax morale. Life satisfaction plays a significant role in increasing tax compliance practices. It is also important to note that there is a positive mediating effect of life satisfaction on tax morale through financial satisfaction and institutional trust. In line with our hypotheses, the results …

Municipal Optimization Of Short-Term Rental Regulations: The Reality Of Airbnb In South Texas Communities, Kenneth M. Culbreth Iii

St. Mary's Law Journal

Abstract forthcoming.

The Giver: Vision & Memory, Alexander J. Dontre

All Faculty and Staff Scholarship

A memory hole is the banishment of problematic thoughts. We exile that which we prefer not to exist. Enter the perilous Memory Hole: The Psychology of Dystopia, to explore a legion of social and psychological themes through the lens of dystopian literature. The crushing fist of 1984 annihilating thoughts from existence as a means of persuasion. The exquisite seduction of addiction as an agent of control in Brave New World. Incineration of the written word to bask in the embers of peace of mind in Fahrenheit 451. Each chapter weaves in and out of the dystopian realms forged …

Oil Price Fluctuations Impact On The Lebanese Economic Well Being, Hanadi Taher

BAU Journal - Health and Wellbeing

This paper investigates the impact of oil price fluctuation on the Lebanese economic well being during the period from 1988 to 2018 using multivariable ordinary least square method with annual time series. taking the Lebanese GDP per capita as proxy for the economic wellbeing as dependent variable and the crud oil average annual prices as proxy for oil price fluctuations with Labor and gross fixed capital formation as two control variables. The test results show a significant and positive impact for the oil price fluctuations on the Lebanese economic well being and the significant results for control variables. In testing …

Improving Youth Financial Literacy: A Profile Of Middle School Camp Attendees, Jamie Lynn Byram, John Grable, Kenneth J. White, Michael Thomas, Kimberly Watkins

The Journal of Extension

The purpose of this paper is to present a profile of middle-school-age youth who participated in a week-long experiential residential camp focused on helping campers learn about and interact with money, personal finance topics, and mainstream financial service providers. Based on pre- and post-test data, it was determined an experiential real-world camp experience can increase the financial confidence and goal-setting abilities of young people.

Projected Versus Actual On-Campus Student Enrollment During The Covid-19 Pandemic For Fall 2020 At Purdue University: A Quantitative Analysis Of Purdue Office Of Enrollment Management Data, Max Bebekoski

The Journal of Purdue Undergraduate Research

No abstract provided.

Other-Regarding Expert Behavior - Economics Experiments, Erik Darwin Hille

Economics Theses and Dissertations

This thesis analyzes two experiments where experts are facing other-regarding versus self-interested choices on behalf of their clients. The experimental models isolate and examine singular aspects of the complex varied transactions that transpire between experts and their clients every day. Prior literature modeling experts in dictator games or expert advice games shows that given a clear choice with direct culpability that experts are willing to make “fair” other regarding decisions that sacrifice some of their own monetary outcome to increase the outcome for others. However, in these same experiments with the same subject, experts are willing to hide behind many …