Wednesday, June 14, 2017

Customers increase consumption in response to more frequent information (monthly billing)

Information provision and consumer behavior: A natural experiment in billing frequency. By Casey Wichman
Journal of Public Economics, August 2017, Pages 13–33
http://www.rff.org/research/publications/information-provision-and-consumer-behavior-natural-experiment-billing

Abstract: In this study, I estimate a causal effect of increased billing frequency on consumer behavior. I exploit a natural experiment in which residential water customers switched exogenously from bimonthly to monthly billing. Customers increase consumption by 3.5–5 percent in response to more frequent information. This result is reconciled in models of price and quantity uncertainty, where increases in billing frequency reduce the distortion in consumer perceptions. Using treatment effects as sufficient statistics, I calculate consumer welfare gains equivalent to 0.5–1 percent of annual water expenditures. Heterogeneous treatment effects suggest increases in outdoor water use.

Bag "Leakage": The Effect of Disposable Carryout Bag Regulations on Unregulated Bags

Bag "Leakage": The Effect of Disposable Carryout Bag Regulations on Unregulated Bags. By Rebecca Taylor
University of California Working Paper, May 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2964036

Abstract: Governments often regulate the consumption of products with negative externalities (e.g., gasoline, tobacco, sugar). Leakage occurs when partial regulation results in increased consumption of products in unregulated parts of the economy. If unregulated consumption is easily substituted for regulated consumption, basing the success of a regulation solely on reduced consumption in the regulated market overstates the regulation’s welfare gains. This article quantifies leakage from an increasingly popular environmental policy — the regulation of disposable carryout bags (DCB). In California, DCB policies prohibit retail food stores from providing customers with thin plastic carryout bags at checkout and require stores to charge a minimum fee for paper carryout bags. However, all remaining types of disposable bags are unregulated (e.g., garbage bags, food storage bags, paper lunch sacks). Using quasi-random variation in local government DCB policy adoption in California from 2008-2015, I employ an event study design to quantify the effect of bag regulations on the consumption of plastic and paper carryout bags, as well as the consumption of other disposable bags sold. This article brings together two data sources: (i) weekly retail scanner data with product-level price and quantity information from 201 food stores in California, and (ii) observational data collected at checkout in seven Californian supermarkets. The main results show that a 40 million pound reduction of plastic from the elimination of plastic carryout bags is offset by an additional 16 million pounds of plastic from increased purchases of garbage bags (i.e., sales of small, medium, and tall garbage bags increase by 67%, 50%, and 5%, respectively). Additionally, DCB policies lead to a 69 million pound increase in paper carryout bags used annually. Altogether, I show that DCB policies are shifting consumers towards fewer but heavier bags. This bag "leakage" is an unintended consequence of DCB policies that offsets the benefits of reduced plastic carryout bag use. I conclude by discussing the environmental implications of policy-induced changes in the composition of plastic and paper bags, with respect to carbon footprint, landfilling, and marine pollution.

Improving the Electability of Atheists in the United States: A Preliminary Examination

Improving the Electability of Atheists in the United States: A Preliminary Examination. By Andrew Franks
Politics and Religion, https://www.cambridge.org/core/journals/politics-and-religion/article/improving-the-electability-of-atheists-in-the-united-states-a-preliminary-examination/DE3D18F6C40AD6863F75A59674053133#

Abstract: Decades of polling data and recent research have demonstrated the magnitude of anti-atheist prejudice in the United States and its relationship to perceptions of atheists as immoral and untrustworthy. Across three studies, I examine the malleability of bias against atheists in the context of election politics. Informational manipulations of an atheist candidate's stated values (Study 1) and popularity (Study 2) improve participants’ perceptions of the morality and trustworthiness of and likelihood of voting for that atheist candidate, but religiously affiliated participants still prefer a similarly situated Christian candidate. Study 3 shows that participants are more likely to vote for an atheist when the opposing candidate was described as a theocrat. Implications of this research for ameliorating the under-representation of non-religious individuals in government are discussed.
Deception and Reception: The Behavior of Information Providers and Users. By Roman Sheremeta & Timothy Shields
Journal of Economic Behavior & Organization, May 2017, Pages 445–456
http://www.sciencedirect.com/science/article/pii/S0167268117300823

Highlights
•    We find significant proportions of both deceptive and non-deceptive information providers.
•    Users glean information from providers’ reports.
•    Users are overly optimistic of providers’ honesty.
•    Subjects who are deceptive providers and receptive users earn the highest payoffs.

Abstract: We investigate the behavior of information providers (underwriters) and users (investors) in a controlled laboratory experiment where underwriters have incentives to deceive and investors have incentives to avoid deception. Participants play simultaneously as underwriters and investors in one-shot information transmission games. The results of our experiment show a significant proportion of both deceptive and non-deceptive underwriters. Despite the presence of deceptive underwriters, investors are receptive to underwriters’ reports, gleaning information content, albeit overly optimistic. Within our sample, deception by underwriters and reception by investors are the most profitable strategies. Moreover, participants who send deceptive reports to investors, but at the same time are receptive to reports of underwriters, earn the highest payoffs. These results call into question the characterization of duped investors being irrational.

Investors react more favorably to disclosures containing self-inclusive language

Managers' Self-Inclusive Language in Conference Calls: Multi-Method Evidence. By Zhenhua Chen & Serena Loftus
Tulane University Working Paper, March 2017
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2950702

Abstract: We investigate whether a subtle, but common, element of managers’ language, self-inclusive language (SIL), influences investors’ reactions to earnings conference calls. SIL is language that explicitly includes the speaker, and includes first-person singular and plural pronouns. We predict that investors react positively to managers’ SIL regardless of firm performance because SIL increases investors’ impression that managers can influence firm outcomes. To isolate the ceteris paribus effect of SIL on investors’ reactions, we use an experiment where we vary SIL and firm performance. Results of the experiment suggest that investors react more favorably to disclosures containing SIL than disclosures without SIL regardless of firm performance, consistent with our prediction. In a supplemental experiment, we find evidence suggesting that investors may be unaware of the effect of SIL. We also use the archival method to analyze over 50,000 earnings conference call transcripts, and find that market reactions to SIL are consistent with our experiment results. Taken together, our findings contribute to a growing literature on the influence of managers’ language choices on investors by offering multi-method evidence of the impact of a subtle and easily-overlooked component of managers’ language on investors’ judgments and decisions.

Political climate, optimism, and investment decision

Political climate, optimism, and investment decisions. By Yosef Bonaparte, Alok Kumar & Jeremy Page
Journal of Financial Markets, http://www.sciencedirect.com/science/article/pii/S1386418117301155

Abstract: We show that people's optimism towards financial markets and the macroeconomy is dynamically influenced by their political affiliation and the current political climate. Individuals become more optimistic and perceive markets to be less risky and more undervalued when their preferred party is in power. Accordingly, investors increase allocations to risky assets and exhibit a stronger preference for high market beta, small-cap, and value stocks, and a weaker preference for local stocks. The differences in optimism and portfolio choice across political regimes are not explained by shifts in economic conditions or differential response to economic conditions by Democrat and Republican investors.

Would you choose to be happy? Tradeoffs between happiness and the other dimensions of life

Would you choose to be happy? Tradeoffs between happiness and the other dimensions of life in a large population survey. By Matthew Adler, Paul Dolan & Georgios Kavetsos
Journal of Economic Behavior & Organization, July 2017, Pages 60–73, http://www.sciencedirect.com/science/article/pii/S0167268117301270

Abstract: A large literature documents the determinants of happiness. But is happiness all that people want from life; and if so, what type of happiness matters to them? Or are they willing to sacrifice happiness (however it is defined) for other attributes in their lives? We show direct evidence that individuals trade-off levels of happiness with levels of income, physical health, family, career success and education in a large sample of UK and US individuals. On average, all types of happiness are preferred to other attributes except health. People prefer affective happiness (feeling good) over evaluative (life satisfaction) and eudaimonic (worthwhileness) components. This result is robust to methodological innovations, such as the use of vignettes and judgements of the lives described.
Implicit Self and the Right Hemisphere: Increasing Implicit Self-Esteem and Implicit Positive Affect by Left Hand Contractions. By Markus Quirin, Stephanie Fröhlich & Julius Kuhl European
Journal of Social Psychology, http://onlinelibrary.wiley.com/doi/10.1002/ejsp.2281/abstract

Abstract: Unilateral hand contraction typically activates the contralateral hemisphere and has led to changes in psychological states and performances in previous research. Based on a right hemisphere model of the implicit self, we hypothesized and found that left hand contraction increases momentary levels of implicit self-esteem (Studies 1 and 2) and implicit positive affect (Study 3). The findings are discussed with respect to potential differences between the hemispheres in implicit and explicit affective processing and how they can be integrated in the existing literature on hemisphere asymmetries.

Cultural Patterns of Suicide in the United States: The Role of Honor Culture

New Insights on Cultural Patterns of Suicide in the United States: The Role of Honor Culture. By Marisa Crowder & Markus Kemmelmeier
Cross-Cultural Research, http://journals.sagepub.com/doi/abs/10.1177/1069397117712192

Abstract: Cultural differences in suicide can be indicative of varying social pressures placed on individuals. High suicide rates in U.S. honor cultures have been proposed to reflect pressures associated with maintaining one’s reputation. We extend this argument by highlighting that honor concerns differentially impact individuals based on gender, ethnicity, and age. Controlling for relevant confounds, we show that suicide rates were highest among older European American men from honor cultures, presumably because aging may render these men less capable of conforming to cultural ideals of masculinity. We discuss the need for process-focused and subgroup analyses when examining the effects of culture on suicide.

Variation in the Serotonin Transporter Polymorphism (5-HTTLPR) and Inertia of Negative and Positive Emotions

Variation in the Serotonin Transporter Polymorphism (5-HTTLPR) and Inertia of Negative and Positive Emotions in Daily Life. By Eeske van Roekel et al.
Emotion, doi: 10.1037/emo0000336
https://www.ncbi.nlm.nih.gov/m/pubmed/28569537/

Abstract: An important element of understanding the genotype–phenotype link in psychiatric disorders lies in identifying the psychological mechanisms through which genetic variation impacts mental health. Here we examined whether emotional inertia, the tendency for a person’s emotions to carry over from 1 moment to the next and a prospective predictor of the development of depression, is associated with a known genetic risk factor for emotional dysregulation, a polymorphism in the serotonin transporter gene (5-HTTLPR). Two hundred thirty-six adolescents recorded their positive and negative emotions in daily life 9 times a day for 6 consecutive days using smartphones, completed a depression questionnaire, and were genotyped for the 5-HTTLPR polymorphism. Carriers of the short 5-HTTLPR were characterized by higher inertia for negative emotions, even after controlling for depressive symptoms. These findings suggest a possible psychological pathway how the serotonin transporter gene contributes to risk for depression.

Dying Is Unexpectedly Positive

Dying Is Unexpectedly Positive. By Amelia Goranson et al.
Psychological Science, http://journals.sagepub.com/doi/abs/10.1177/0956797617701186

Abstract: In people’s imagination, dying seems dreadful; however, these perceptions may not reflect reality. In two studies, we compared the affective experience of people facing imminent death with that of people imagining imminent death. Study 1 revealed that blog posts of near-death patients with cancer and amyotrophic lateral sclerosis were more positive and less negative than the simulated blog posts of nonpatients — and also that the patients’ blog posts became more positive as death neared. Study 2 revealed that the last words of death-row inmates were more positive and less negative than the simulated last words of noninmates — and also that these last words were less negative than poetry written by death-row inmates. Together, these results suggest that the experience of dying — even because of terminal illness or execution — may be more pleasant than one imagines.

Child Gender Influences Paternal Behavior, Language, and Brain Function

Child Gender Influences Paternal Behavior, Language, and Brain Function. By Jennifer Mascaro et al.
Behavioral Neuroscience, June 2017, Pages 262-273
http://www.apa.org/pubs/journals/releases/bne-bne0000199.pdf

Abstract: Multiple lines of research indicate that fathers often treat boys and girls differently in ways that impact child outcomes. The complex picture that has emerged, however, is obscured by methodological challenges inherent to the study of parental caregiving, and no studies to date have examined the possibility that gender differences in observed real-world paternal behavior are related to differential paternal brain responses to male and female children. Here we compare fathers of daughters and fathers of sons in terms of naturalistically observed everyday caregiving behavior and neural responses to child picture stimuli. Compared with fathers of sons, fathers of daughters were more attentively engaged with their daughters, sang more to their daughters, used more analytical language and language related to sadness and the body with their daughters, and had a stronger neural response to their daughter's happy facial expressions in areas of the brain important for reward and emotion regulation (medial and lateral orbitofrontal cortex [OFC]). In contrast, fathers of sons engaged in more rough and tumble play (RTP), used more achievement language with their sons, and had a stronger neural response to their son's neutral facial expressions in the medial OFC (mOFC). Whereas the mOFC response to happy faces was negatively related to RTP, the mOFC response to neutral faces was positively related to RTP, specifically for fathers of boys. These results indicate that real-world paternal behavior and brain function differ as a function of child gender.