An expected utility maximizer walks into a bar...

Burghart, Daniel R.; Glimcher, Paul W.; Lazzaro, Stephanie C.

doi:10.1007/s11166-013-9167-7

Cited by 45 publications

(52 citation statements)

References 52 publications

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“…We do so providing causal evidence gathered by means of a laboratory experiment that substantially reduces self-selection into the treatment and excludes the possibility that results are driven by reverse causality. Our results confirm the findings of [16] that males' risk aversion is not affected by alcohol intoxication, even using a different elicitation method and in an experimental setting that is designed to control for self-selection. By contrast, we find some evidence that female's risk aversion increases with alcohol intoxication.…”

Section: Discussionsupporting

confidence: 87%

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Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences

2014

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We report results from an incentivized laboratory experiment undertaken with the purpose of providing controlled evidence on the causal effects of alcohol consumption on risk-taking, time preferences and altruism. Our design disentangles the pharmacological effects of alcohol intoxication from those mediated by expectations, as we compare the behavior of three groups of subjects: those who participated in an experiment with no reference to alcohol, those who were exposed to the possibility of consuming alcohol but were given a placebo and those who effectively consumed alcohol. All subjects participated in a series of economic tasks administered in the same sequence across treatments. After controlling for both the willingness to pay for an object and the potential misperception of probabilities as elicited in the experiment, we detect no effect of alcohol in depleting subjects' risk tolerance. However, we find that alcohol intoxication increases impatience and makes subjects less altruistic.

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Section: Discussionsupporting

confidence: 87%

“…[16] find that alcohol makes women more riskprone but that it has no effect on the risk propensity of male subjects. By contrast, [17] find that females' risk aversion increases with both measured and perceived alcohol concentration, while only the latter has a positive correlation with males' risk aversion.…”

Section: Alcohol Risk and Impatiencementioning

confidence: 77%

Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences

2014

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“…2) consistency in choices: the economic rational behavior (GARP task) was previously used and described in detail in 21 . 3) delay of gratification: the temporal discounting task was previously used and described in 22 .…”

Section: Methodsmentioning

confidence: 99%

Impairment of decision-making in multiple sclerosis: A neuroeconomic approach

et al. 2016

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Objective To assess the decision-making impairment in patients with multiple sclerosis (MS) and how they relate to other cognitive domains. Methods We performed a crossectional analysis in 84 patients with MS and 21 matched healthy controls using four tasks taken from behavioral economics: 1) risk preferences, 2) choice consistency, 3) delay of gratification, and 4) rate of learning. All tasks were conducted using real-world reward outcomes (food or money) in different real-life conditions. Participants underwent cognitive examination using the Brief Repeatable Battery-Neuropsychology. Results Patients showed higher risk aversion (general propensity to choose the lottery was 0.51 vs 0.64, p=0.009), a trend to choose more immediate rewards over larger but delayed rewards (p=0.108) and had longer reactions times (p=0.033). Choice consistency and learning rates were not different between groups. Progressive patients chose slower than relapsing patients. In relation to general cognitive impairments, we found correlations between impaired decision-making and impaired verbal memory (r= 0.29, p=0.009), visual memory (r=-0.37, p=0.001) and reduced processing speed (r=-0.32, p=0.001). Normalized grey matter volume correlated with deliberation time (r=-0.32, p=0.005). Conclusion Patients with MS suffer significant decision-making impairments, even at the early stages of the disease, and may affect patients' quality and social life.

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“…The closest paper to ours is that of Burghart et al, (2012), who examine behavioral effects of alcohol intake but conclude that it does not impair rational decision-making. In our data, we do identify a change in risk preference in spite of no difference in rationality.…”

Section: Introductionmentioning

confidence: 98%

Sleepiness, choice consistency, and risk preferences

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACT Sleepiness, Choice Consistency, and Risk PreferencesWe investigate the consistency and stability of individual risk preferences by manipulating cognitive resources. Participants are randomly assigned to an experiment session at a preferred time of day relative to their diurnal preference (circadian matched) or at a nonpreferred time (circadian mismatched) and choose allocations between two risky assets (using the Choi et al., 2007, design). Consistency of behavior of circadian matched and mismatched subjects is statistically the same, however mismatched subjects tend to take more risks. We conclude that, consistent with several theories, preferences are rational yet can change depending on state-level cognitive resources. NON-TECHNICAL SUMMARYIt is generally known that sleepiness affects one's choices when facing risk. It is not known, however, whether behavioral changes due to sleepiness imply a change in the frequency of irrational or inconsistent choices, or whether the changes are due to a basic change in preference towards risk. We manipulate sleepiness by altering the time of day when we administer a monetary risk task to validated morning-type and evening-type individuals. We find that decisions at off-peak times in one's circadian cycle show an increased preference for risk, but the consistency of choices (i.e., rationality) does not differ. This result has important implications. Those who must make decisions while sleepy, such as shift workers, may be susceptible to this tendency to favor risk.JEL Classification: C91, D81

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An expected utility maximizer walks into a bar...

Cited by 45 publications

References 52 publications

Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences

Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences

Impairment of decision-making in multiple sclerosis: A neuroeconomic approach

Sleepiness, choice consistency, and risk preferences

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