Search results for "Behavioral economics"
showing 8 items of 28 documents
Revisiting the Trade-off Between Risk and Incentives: The Shocking Effect of Random Shocks?
2019
Despite its central role in the theory of incentives, empirical evidence of a trade-off between risk and incentives remains scarce. We reexamine this trade-off in a workplace lab environment and find that, in line with theory, principals increase fixed pay while lowering performance pay when the relationship between effort and output is noisier. Unexpectedly, agents produce substantially more in the noisy environment than in the baseline despite weaker incentives. In addition, principals’ earnings are significantly higher in the noisy environment. We show that these findings can be accounted for when agents maximize a non-CARA utility function or when they exhibit loss aversion. Data and t…
Mental Account Barriers and Transaction Purpose: A Romanian Point of View
2013
Abstract The present study encompasses the behavioral model of decision making. Using the models provided by scientific literature, the relationship between the basic structure of mental accounts, transaction utility and consumer decision, together with perceived comfortability. The procedure was carried out using undergraduate students of Lucian Blaga University of Sibiu, with similar proportions of sexes and with resembling ages. Results have shown that influence of mental accounting structuring and transaction utility on decision and perceived comfortability is insignificant, taken into account the differences between sexes. The presented results bring knowledge into the economic behavio…
Toward a Behavioral Corporate Governance Theory: An Exploratory View
2005
The objective of this article is to show how behavioral theories, in particular behavioral finance, can help to build a corporate governance theory allowing to fill the many gaps of the dominant law and finance theory. In particular, we underline the problems raised by the concept of behavioral bias and its integration in the corporate governance theory.
Cenu uztveres psiholoģiskie aspekti.
2017
Bakalaura darba tēma ir “Cenu uztveres psiholoģiskie aspekti”. Bakalaura darba mērķis ir balstoties uz cenu psiholoģiskās uztveres teorētisko aspektu izpēti mārketinga literatūrā, analizēt enkurošanas efekta izpausmi un novērtēt tā izmantošanas lietderību, veidojot bāru dzērienkartes; izstrādāt priekšlikumus. Bakalaura darbā tiks aplūkota cenas nozīme uzņēmējdarbībā un cenas interpretācija uzvedības ekonomikā, tai skaitā cenu uztveres psiholoģiskie aspekti. Tiks aplūkotas arī alkohola patēriņa tendences Latvijā un bāru/naktsklubu dinamika Latvijā. Praktiskajā daļā tiks intervēti eksperti un ar aptaujām veikts pētījums, lai noskaidrotu kā cenu uztveres psiholoģisko aspektu izmantošana uzņēmē…
Development and validation of the Perceived Investment Value (PIV) scale
2013
This study aims to develop a complementary and more comprehensive measurement to assess the nature of investment value affecting consumers’ investment behavior. Recent research suggests that consumers may desire and obtain certain outcomes from investments that have not been anticipated in mainstream finance and economics literature. These benefits might be hedonistic or altruistic, self-expressive or emotional and experiential. Yet, while an increasing amount of attention has been paid to this topic, little effort has been made to develop an appropriate measurement scale for the subjective consumer perceptions of investments. To address this gap in the literature, this study introduces the…
Is Sentiment Risk Priced By Stock Market?
2012
International audience; This study tests if the financial markets price the investors sentiment risk. We construct portfolios based upon the stock returns exposure to sentiment. Our results show that the portfolio returns are positively correlated with the exposure of stocks to sentiment. The strategy that consists of buying stocks with the highest exposure to sentiment and selling stocks with the lowest exposure to sentiment generates a significant raw profit. Exploring the sources of profit, we find that neither the traditional risk factors nor the momentum factor can account for the profit. However, we find that the addition of the sentiment risk premium contributes to explain the profit.
Expectations as Reference Points: Field Evidence from Professional Soccer
2015
We show that professional soccer players and their coaches exhibit reference-dependent behavior during matches. Controlling for the state of the match and for unobserved heterogeneity, we show on a minute-by-minute basis that players breach the rules of the game, measured by the referee’s assignment of cards, significantly more often if their teams are behind the expected match outcome, measured by preplay betting odds of large professional bookmakers. We further show that coaches implement significantly more offensive substitutions if their teams are behind expectations. Both types of behaviors impair the expected ultimate match outcome of the team, which shows that our findings do not si…
Unfair play? Video games as exploitative monetized services: An examination of game patents from a consumer protection perspective
2019
Video games as a consumer product have changed significantly with the advent of in-game purchasing systems (e.g., microtransactions, ‘loot boxes’). This review examines consumer protections related to in-game purchasing by anticipating some of the potential design strategies that might contribute to higher risk consumer behavior. Attention was directed towards the analysis of patents for potential in-game purchasing systems, with 13 identified on Google Patents. The design features were analysed in relation to the consumer rights and guarantees described in the terms of use agreements of the patent assignees. The analysis revealed that some in-game purchasing systems could be characterized …