• rationality
  • Subjects exhibited rationality along some dimensions of behavior and irrationality along others. (rff.org)
  • Our analysis reveals that, while the behavior of many subjects is consistent with Bayesian rationality, a considerable number of subjects exhibited ‘reverse confirmation bias’: they place less weight on information from others that agrees with their private signal and more weight on conflicting information. (repec.org)
  • risky
  • Taken together, our results indicate that cocaine users who increased their consumption over a period of 1 year show deficits in the processing of risky information accompanied with increased risk-taking. (frontiersin.org)
  • We elicit and estimate risk preferences for a pool of young adults in the UK, and explore their links with healthy eating and risky health behaviours. (degruyter.com)
  • More broadly, flight-to-quality refers to a sudden shift in investment behaviors in a period of financial turmoil whereby investors seek to sell assets perceived as risky and instead purchase safe assets. (wikipedia.org)
  • A new study linked hormone levels to risky investment behavior of traders. (i4u.com)
  • outcome
  • When an unusual and unexpected event incurs losses, investors find that they do not have a good understanding about the tail outcome that they are facing and treat the risk as Knightian uncertainty. (wikipedia.org)
  • For instance, when a somatic marker associated with a positive outcome is perceived, the person may feel happy and thereby motivated to pursue that behavior. (wikipedia.org)
  • cognition
  • Therefore, to examine risk-taking behavior, 31 chronic cocaine users and 26 stimulant-naïve healthy controls who were part of the Zurich Cocaine Cognition Study, performed the Randomized Lottery Task (RALT) with winning lotteries consisting of an uncertain and a certain prospect. (frontiersin.org)
  • For instance, Cornwall, Albrecht, Cunningham and Pitcher (1986) identify six dimensions of religiosity based on the understanding that there are at least three components to religious behavior: knowing (cognition in the mind), feeling (effect to the spirit), and doing (behavior of the body). (wikipedia.org)
  • For each of these components of religiosity, there were two cross classifications resulting in the six dimensions: Cognition traditional orthodoxy particularistic orthodoxy Effect Palpable Tangible Behavior religious behavior religious participation Other researchers have found different dimensions, ranging generally from four to twelve components. (wikipedia.org)
  • decisions
  • By submitting a questionnaire to 200 American individuals, we find that financial literacy plays a role in risk taking decisions, positively affecting how much risk individuals are willing to take. (repec.org)
  • As financial literacy affects positively the amount of risk taken by individuals, but only partially the diversification strategies pursued, there might be a dangerous pitfall in today's financial education programs promoted by governments and regulators, which, though they make investors more aware of their investment decisions, they eventually push them to assume more risks than they are able to manage. (repec.org)
  • A great deal of research has focused on the risk/return spectrum that is considered in most decisions. (wikipedia.org)
  • Throughout, the dynamism of risk-taking and business decisions is emphasized as a distinguishing characteristic of the dynamic new world vis-à-vis the old financial regime. (wikipedia.org)
  • Understanding voters' behavior can explain how and why decisions were made either by public decision-makers, which has been a central concern for political scientists, or by the electorate. (wikipedia.org)
  • The actor maintains behaviors that are irrational, but align with previous decisions and actions. (wikipedia.org)
  • Most of our decisions are made under some conditions of risk. (wikipedia.org)
  • Researchers
  • In exploring the benefits of affect on voting, researchers have argued that affective states such as anxiety and enthusiasm encourage the evaluation of new political information and thus benefit political behavior by leading to more considered choices. (wikipedia.org)
  • Many believe that what researchers have done thus far to explain this behavior is best analyzed and tested through situational development and resource allocation. (wikipedia.org)
  • strongly
  • Cocaine use disorder is associated with maladaptive decision-making behavior, which strongly contributes to the harmful consequences of chronic drug use. (frontiersin.org)
  • Professor Joe Herbert, a co-author of this study from the Department of Clinical Neurosciences at the University of Cambridge, reported in an earlier field study that traders made significantly higher profits on days when their morning testosterone levels were above their daily average, and that increased variability in profits and uncertainty in the market were strongly correlated with elevations in their cortisol levels. (i4u.com)
  • emotions
  • The differential effect of several specific emotions have been studied on voting behavior: Surprise - Recent research suggests that the emotion of surprise may magnify the effect of emotions on voting. (wikipedia.org)
  • This led Antonio Damasio to hypothesize that decision-making deficits following vmPFC damage result from the inability to use emotions to help guide future behavior based on past experiences. (wikipedia.org)
  • Entrepreneurship
  • While entrepreneurship is often associated with new, small, for-profit start-ups, entrepreneurial behavior can be seen in small-, medium- and large-sized firms, new and established firms and in for-profit and not-for-profit organizations, including voluntary-sector groups, charitable organizations and government . (like2do.com)
  • individual
  • They then make a decision under risk on behalf of the group using a random dictatorship mechanism, as well as an individual decision. (repec.org)
  • Prior methods used to assess individual differences related to risk have not focused on an important component of risk management: how willing individuals are to pay for or take actions to insure what they already have. (jove.com)
  • It is not clear whether this type of protective risk management taps into the same individual differences as does risk taking propensity measured by existing risk taking tasks. (jove.com)
  • Our results reveal that behavior on the BAIT taps into a number of individual differences that are not related to behavior on another measure of risk taking. (jove.com)
  • Comparing group and individual choices under risk and ambiguity: an experimental study. (springer.com)
  • In line with this reasoning, macroprudential policy addresses the interconnectedness of individual financial institutions and markets, as well as their common exposure to economic risk factors. (wikipedia.org)
  • This paradigm, however, assumes that risk arises from individual malfeasance, and hence it is at odds with the emphasis on the system as a whole which characterizes the macroprudential approach. (wikipedia.org)
  • The beliefs, affiliations, and behaviors of any individual are complex activities that have many sources including culture. (wikipedia.org)
  • Males
  • While for females we find no significant association between the BMI and risk preferences, males with high BMI appear more risk-seeking. (degruyter.com)
  • For males, the HEI is significantly associated with risk preferences. (degruyter.com)
  • Males smoking status is not associated with risk preferences. (degruyter.com)
  • There are different rates of completed suicides and suicidal behavior between males and females. (wikipedia.org)
  • While females show higher rates of non-fatal suicidal behavior and suicide ideation (thoughts), and reportedly attempt suicide more frequently than males do, males have a much higher rate of completed suicides. (wikipedia.org)
  • periods
  • Our view is that hormonal changes can help us understand traders' behavior, particularly during periods of financial instability," said Dr Carlos Cueva, one of the lead authors of the study, from the Department of Economics at the University of Alicante. (i4u.com)
  • Processes
  • Organizational Behavior and Human Decision Processes , 38 (2), 230-256. (springer.com)
  • Damasio formulated the somatic marker hypothesis (SMH), that proposes a mechanism by which emotional processes can guide (or bias) behavior, particularly decision-making. (wikipedia.org)
  • Innovation
  • Newly adopted financial innovation meant that market participants had only a short time to formulate valuation, and did not have enough history to refer to in their risk management and hedging models. (wikipedia.org)
  • A role for a forward-looking macroprudential supervisor, moderating uncertainty and alert to the risks of financial innovation, is therefore justified. (wikipedia.org)
  • Measure
  • Similarly, a common measure of prefrontal cortex dysfunction, the FrSBe, is correlated with multiple different measures of economic attitudes and behavior, supporting the idea that brain activation can display important aspects of the decision process. (wikipedia.org)
  • mitigate
  • An experiment using financial stakes to simulate an infrequent environmental disaster reveals how people learn about and mitigate disaster risk. (rff.org)
  • economic
  • Misery loves company: Social regret and social interaction effects in choices under risk and uncertainty ," Games and Economic Behavior , Elsevier, vol. 73(1), pages 91-110, September. (repec.org)
  • Tilman proposes that the basic key to understanding the behavior of modern financial institutions and capital markets lies in the recognition of the fact that the process of economic value creation in finance has undergone a fundamental transformation. (wikipedia.org)
  • In order to demonstrate this, the book introduces the concept of risk-based economic performance that helps depart from the outdated accounting-earnings-inspired mental paradigm. (wikipedia.org)
  • Together, the decision-making framework, the evolutionary thesis, and the risk-based economic performance equation filter out the complexity of the financial world and give financial executives a set of tools and choices on how to create or enhance economic value. (wikipedia.org)
  • It studies how economic behavior can shape our understanding of the brain, and how neuroscientific discoveries can constrain and guide models of economics. (wikipedia.org)
  • Many economic behaviors are not fully explained by these models, such as heuristics and framing. (wikipedia.org)
  • Neuroeconomics adds another layer by using neuroscientific methods in understanding the interplay between economic behavior and neural mechanisms. (wikipedia.org)
  • profits
  • This is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits. (wikipedia.org)
  • tend
  • Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e. a bias towards finding new possibilities and seeing unmet market needs) and a tendency towards risk-taking that makes them more likely to exploit the opportunity. (wikipedia.org)
  • attitudes
  • The effect of these influences on voting behavior is best understood through theories on the formation of attitudes, beliefs, schema, knowledge structures and the practice of information processing. (wikipedia.org)
  • market
  • The paper then provides an empirical analysis that suggests that debt-like compensation for executives is believed by the market to reduce risk for financial institutions. (ox.ac.uk)
  • A flight-to-quality is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as US Treasuries or gold. (wikipedia.org)
  • Worsening of initial impacts developed into a flight-to-quality pattern, as the unusual and unexpected features of the events made market participants more risk and uncertainty averse, incurring more aggressive reactions compared to responses during other shocks. (wikipedia.org)
  • An International Monetary Fund policy study argues that risk externalities between financial institutions and from them to the real economy are market failures that justify macroprudential regulation. (wikipedia.org)
  • The greater market discipline and more stringent corporate governance are exercised as a result of shareholders' direct risk of stock dilution in case conversion was triggered. (wikipedia.org)
  • investors
  • A defining feature of flight-to-quality is insufficient risk-taking by investors. (wikipedia.org)
  • In a 2012 European Financial Review article, he redefined risk intelligence and designated it "new essential competence" for financial institutions and investors who aspire to create lasting value and contribute to economies and societies. (wikipedia.org)
  • psychological
  • Decades of anthropological, sociological, and psychological research have established that "religious congruence" (the assumption that religious beliefs and values are tightly integrated in an individual's mind or that religious practices and behaviors follow directly from religious beliefs or that religious beliefs are chronologically linear and stable across different contexts) is actually rare. (wikipedia.org)
  • participants
  • Study participants who experienced "frustrated anger" were more likely to choose a high risk, high reward option in a lottery - a choice the authors categorize as "self-defeating. (wikipedia.org)
  • positively
  • The amount of insurance purchased on the BAIT was positively correlated with scores on the Intolerance of Uncertainty Scale and on the Checking scale of the revised Obsessive Compulsive Inventory. (jove.com)
  • role
  • The role that gender plays as a risk factor for suicide has been studied extensively. (wikipedia.org)
  • Additionally, social influence and peer effects, as originating from family and friends, also play an important role in elections and voting behavior. (wikipedia.org)
  • A growing literature on the significance of affect in politics finds that affective states play a role in public voting behavior that can be both beneficial and biasing. (wikipedia.org)
  • economics
  • Risk Taking and Information Aggregation in Groups ," Discussion Papers 2014-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. (repec.org)
  • Risk taking and information aggregation in groups ," LSE Research Online Documents on Economics 64085, London School of Economics and Political Science, LSE Library. (repec.org)
  • Risk Taking in Social Settings: Group and Peer Effects ," Discussion Papers 2013-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. (repec.org)
  • In it, Friedman argues that unrealistic or even obviously untrue assumptions-especially, the core assumption used throughout much of contemporary economics (including much of behavioral economics) that all behavior can be modeled as resulting from decision makers solving constrained optimization problems-are perfectly legitimate, so long as they produce accurate predictions. (scribd.com)
  • Business and Economics portal Risk management Capital structure Financial crisis of 2007-08 Fixed Income Investments Pazarbasioglu et al. (wikipedia.org)
  • thus
  • Cantillon emphasized the willingness of the entrepreneur to assume the risk and to deal with uncertainty, thus he drew attention to the function of the entrepreneur and distinguished between the function of the entrepreneur and the owner who provided the money. (wikipedia.org)
  • principle
  • Research and experience uncovered a wide range of expected utility anomalies and common patterns of behavior that are inconsistent with the principle of utility maximization - for example, the tendency to overweight small probabilities and underweight large ones. (wikipedia.org)
  • research
  • However, research following the Cypriot referendum of 2004, identified four distinct voting behaviors depending on the election type. (wikipedia.org)
  • make
  • To make inferences and predictions about behavior concerning a voting decision, certain factors such as gender, race, culture or religion must be considered. (wikipedia.org)
  • explain
  • However, Walters believed that juvenile behavior could also explain the density dependent relationship that Beverton and Holt and Barrowman and Myers described. (wikipedia.org)
  • Walters thought that juvenile behavior, in conjunction with habitat, could explain the density dependency seen when foraging for prey and avoiding predators. (wikipedia.org)
  • Utility maximization, first proposed by Daniel Bernoulli in 1738, is used to explain decision making under risk. (wikipedia.org)
  • social
  • Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by self-expression. (wikipedia.org)
  • decision
  • He shows that a risk-neutral decision maker may learn to prefer a sure thing to an uncertain alternative with identical expected value and a symmetric distribution, even if the decision maker follows an optimal policy of learning. (ox.ac.uk)
  • However, to what extent cocaine users show impaired decision-making under risk without feedback has not yet been investigated systematically. (frontiersin.org)
  • high
  • When the trigger is well chosen, automatic conversion reduces leverages precisely when the bank faces high incentives for risk shifting. (wikipedia.org)
  • Walters uses mathematical modeling to understand how to successfully manage harvestable fisheries in a time of high uncertainty. (wikipedia.org)
  • effect
  • The same change in price framed differently has a significant effect on consumer behavior. (wikipedia.org)
  • Accordingly, this feature ensures a preventive effect on endogenous risk creation, unlike any other form of bank debt. (wikipedia.org)
  • For example, the death of a spouse and divorce are risk factors for suicide in both genders, but the effect is somewhat mitigated for females. (wikipedia.org)
  • dimensions
  • Entrepreneurial Orientation (EO) is defined as the strategy-making practices that firms utilize to identify and launch corporate ventures and consists of five dimensions ( autonomy, innovativeness, proactiveness, competitive aggressiveness, and risk-taking ). (pepperdine.edu)
  • particularly
  • Frontal lobe damage, particularly to the Ventromedial prefrontal cortex (vmPFC), results in impaired abilities to organize and plan behavior and learn from previous mistakes, without affecting intellect in terms of working memory, attention, and language comprehension and expression. (wikipedia.org)