Tuesday, August 8, 2017

In the Red: The Effects of Color on Investment Behavior

In the Red: The Effects of Color on Investment Behavior. William Bazley, Henrik Cronqvist & Milica Mormann. University of Miami Working Paper, June 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2992812

Abstract: Financial decisions in today's society are made in environments that involve color stimuli. In this paper, we perform an empirical analysis of the effects of color on investment behavior. First, we find that when investors are displayed potential losses in red, risk taking is reduced. Second, when investors are shown past negative stock price paths in red, expectations about future stock returns are reduced. Consistent with red causing "avoidance behavior," red color reduces investors' propensity to purchase stocks. The findings are robust to a series of checks involving colorblind investors and alternative colors to control for salience effects. Finally, the effects are muted in a cultural setting, e.g., China, where red is not used to visualize financial losses. A contribution of this study is to introduce hypotheses from color psychology and visual science to enhance our understanding of the behavior of individual investors.

Keywords: Investment behavior; Color psychology
JEL Classification: G02, G11

Does Subjective SES Moderate the Effect of Money Priming on System Support? A Replication of Schuler and Wänke (2016)

Does Subjective SES Moderate the Effect of Money Priming on System Support? A Replication of Schuler and Wänke (2016). Jarret Crawford & Allison Fournier, https://osf.io/preprints/psyarxiv/c43bk/

Vohs, Mead, and Goode (2006) reported that subtle money cues impacted a range of behaviors, including working independently without asking for assistance, contributing less to charity, and providing less assistance to experimenters and confederates. Other research found that money priming effects decreased empathy, compassion, and people’s willingness to volunteer and donate time and money (Chatterjee, Rose, & Sinha, 2013; Molinsky, Grant, & Margolis, 2012; Pfeffer & DeVoe, 2009).

Further, Caruso, Vohs, Baxter, and Waytz (2013) reasoned that because money is a symbol of American free-market capitalism, subtle money reminders would make people more accepting of free-market and other belief systems that justify existing structural inequality. They reported five studies suggesting that money priming increased support for such beliefs systems (i.e., System Justification, Belief in a Just World [BJW], Social Dominance Orientation, and Fair Market Ideology).

These findings have been called into question by notable failed replication attempts.
[...]
We conclude that the original findings may have been the result of sampling error, and the findings of “small telescopes” analyses are consistent with this conclusion. We discuss implications for money priming effects, and replication attempts in general.


Keywords: money priming; system justification; BJW; priming effects; replication

My Spanish commentary: many who I know are supportive of free markets and do not contribute less to charities or help less coworkers (being very, very competitive at the same time)... They just re-orient my contributions from organizations perceived as failures or corrupt ones (an example is any European Red Cross society, which brags about their universal, impartial, neutral, etc., character, but does not deliver) to others perceived as less crooked in their conduct codes and actual behavior (American Red Cross). Or don't give to child cancer research, which produces very scant results in disorganized societies, but contribute to medical organizations that are the best in their city and are in the first position in the place they live in (Mount Sinai Hospital, Barcelona Clinic Hospital, La Paz Hospital). Or do not contribute to museums or libraries in disorganized societies, but contribute to others perceived as with top-notch credentials (Library of Congress). Or do not volunteer for traditional parties, but help and contribute to other parties and organizations (e.g., Libertarian ones). This is just a bunch of anecdotes, but many people with lots of money and assets contribute a lot. Obviously those non-replicable studies are quite defective... too many exceptions.

Monday, August 7, 2017

How Linguistic Metaphor Scaffolds Reasoning

How Linguistic Metaphor Scaffolds Reasoning. Paul H. Thibodeau, Rose K. Hendricks, Lera Boroditsky. Trends in Cognitive Sciences, Aug 05 2017, https://doi.org/10.1016/j.tics.2017.07.001

Abstract: Language helps people communicate and think. Precise and accurate language would seem best suited to achieve these goals. But a close look at the way people actually talk reveals an abundance of apparent imprecision in the form of metaphor: ideas are ‘light bulbs’, crime is a ‘virus’, and cancer is an ‘enemy’ in a ‘war’. In this article, we review recent evidence that metaphoric language can facilitate communication and shape thinking even though it is literally false. We first discuss recent experiments showing that linguistic metaphor can guide thought and behavior. Then we explore the conditions under which metaphors are most influential. Throughout, we highlight theoretical and practical implications, as well as key challenges and opportunities for future research.

Keywords: analogy; decision making; framing; language and thought; metaphor; reasoning

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Linguistic metaphors describe a topic of discussion in terms of a semantically unrelated domain [1–8]. Recent work in cognitive science has demonstrated that metaphors can shape the way people think (Table1). For instance, in one study, Alan Turing was seen as more of a genius with more exceptional inventions when his ideas were described as lightbulbs rather than as seeds [9]. In an other study, people were more likely to support reform, rather than enforcement-oriented, approaches to crime reduction when crime was described as a virus than as a beast. Experiments have also shown that personifying changes in stock prices (‘climbing’ and ‘slipping’), rather than objectifying them (‘increasing’ and ‘decreasing’ in value), makes people more likely to think recent price trajectories will continue into the future. And framing cancer as an ‘enemy’ in a ‘war’ has been found to reduce people’s intentions to engage in self-limiting preventative behaviors (e.g., eating less red meat, smoking less; [14]) and to think that it would be harder for cancer patients to come to terms with their situation [15]. Metaphors have also beens hown to affect behavior [16–20]. For instance, metaphor-based interventions – describing the brain as a ‘muscle’ that ‘grows’ with practice – can encourage students to adopt an incremental, rather than fixed, theory of intelligence [21]. In turn, an incremental theory of intelligence leads students to be more committed to their learning goals and persistent in the face of adversity.

[...] Neuroimaging studies have shown that vivid sensorimotor metaphors engage neural networks that represent the corresponding sensation or action. For example, hearing 'she grasped the idea' activates [the] motor cortex; hearing 'she is sweet' activates gustatory areas...

[...] One meta-analysis estimated that metaphorical language is about 6 percent more persuasive than comparable literal language...

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My Spanish commentary: demagogues know about this and use it constantly. And I detect the use of these techniques in daily newspapers, like the NY Times, Financial Times and the Washington Post, or non-daily publications like The Economist, Nature/Science (especially regarding climate) or Scientific American. I guess that advertising uses this too, like images of tasty steaks in a grill, etc.

Global evidence of extreme intuitive moral prejudice against atheists

Global evidence of extreme intuitive moral prejudice against atheists. Will M. Gervais et al. Nature Human Behavior, 1, Article number: 0151 (2017). https://www.nature.com/articles/s41562-017-0151

Mounting evidence supports long-standing claims that religions can extend cooperative networks. However, religious prosociality may have a strongly parochial component. Moreover, aspects of religion may promote or exacerbate conflict with those outside a given religious group, promoting regional violence, intergroup conflict and tacit prejudice against non-believers. Anti-atheist prejudice—a growing concern in increasingly secular societies —affects employment, elections, family life and broader social inclusion. Preliminary work in the United States suggests that anti-atheist prejudice stems, in part, from deeply rooted intuitions about religion’s putatively necessary role in morality. However, the cross-cultural prevalence and magnitude—as well as intracultural demographic stability—of such intuitions, as manifested in intuitive associations of immorality with atheists, remain unclear. Here, we quantify moral distrust of atheists by applying well-tested measures in a large global sample (N = 3,256; 13 diverse countries). Consistent with cultural evolutionary theories of religion and morality, people in most—but not all— of these countries viewed extreme moral violations as representative of atheists. Notably, anti-atheist prejudice was even evident among atheist participants around the world. The results contrast with recent polls that do not find self-reported moral prejudice against atheists in highly secular countries, and imply that the recent rise in secularism in Western countries has not overwritten intuitive anti-atheist prejudice. Entrenched moral suspicion of atheists suggests that religion’s powerful influence on moral judgements persists, even among non-believers in secular societies.

How short is too short? An ultra-brief measure of the big-five personality domains implicates “agreeableness” as a risk for all-cause mortality

How short is too short? An ultra-brief measure of the big-five personality domains implicates “agreeableness” as a risk for all-cause mortality. Benjamin P Chapman, Ari J Elliot
Journal of Health Psychology, Aug 03 2017, http://journals.sagepub.com/doi/abs/10.1177/1359105317720819

Abstract: Controversy exists over the use of brief Big Five scales in health studies. We investigated links between an ultra-brief measure, the Big Five Inventory-10, and mortality in the General Social Survey. The Agreeableness scale was associated with elevated mortality risk (hazard ratio = 1.26, p = .017). This effect was attributable to the reversed-scored item “Tends to find fault with others,” so that greater fault-finding predicted lower mortality risk. The Conscientiousness scale approached meta-analytic estimates, which were not precise enough for significance. Those seeking Big Five measurement in health studies should be aware that the Big Five Inventory-10 may yield unusual results.

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"Those reporting that they often criticized others lived longer."

Third-person self-talk facilitates emotion regulation without engaging cognitive control: Converging evidence from ERP and fMRI

Third-person self-talk facilitates emotion regulation without engaging cognitive control: Converging evidence from ERP and fMRI. Jason Moser et al. Scientific Reports, July 2017, https://www.nature.com/articles/s41598-017-04047-3

Abstract: Does silently talking to yourself in the third-person constitute a relatively effortless form of self control? We hypothesized that it does under the premise that third-person self-talk leads people to think about the self similar to how they think about others, which provides them with the psychological distance needed to facilitate self control. We tested this prediction by asking participants to reflect on feelings elicited by viewing aversive images (Study 1) and recalling negative autobiographical memories (Study 2) using either “I” or their name while measuring neural activity via ERPs (Study 1) and fMRI (Study 2). Study 1 demonstrated that third-person self-talk reduced an ERP marker of self-referential emotional reactivity (i.e., late positive potential) within the first second of viewing aversive images without enhancing an ERP marker of cognitive control (i.e., stimulus preceding negativity). Conceptually replicating these results, Study 2 demonstrated that third-person self-talk was linked with reduced levels of activation in an a priori defined fMRI marker of self-referential processing (i.e., medial prefrontal cortex) when participants reflected on negative memories without eliciting increased levels of activity in a priori defined fMRI markers of cognitive control. Together, these results suggest that third-person self-talk may constitute a relatively effortless form of self-control.

Buying time promotes happiness

Buying time promotes happiness. Ashley V. Whillans et al. Proceedings of the National Academy of Sciences, http://www.pnas.org/content/early/2017/07/18/1706541114.full

Significance: Despite rising incomes, people around the world are feeling increasingly pressed for time, undermining well-being. We show that the time famine of modern life can be reduced by using money to buy time. Surveys of large, diverse samples from four countries reveal that spending money on time-saving services is linked to greater life satisfaction. To establish causality, we show that working adults report greater happiness after spending money on a time-saving purchase than on a material purchase. This research reveals a previously unexamined route from wealth to well-being: spending money to buy free time.

Abstract: Around the world, increases in wealth have produced an unintended consequence: a rising sense of time scarcity. We provide evidence that using money to buy time can provide a buffer against this time famine, thereby promoting happiness. Using large, diverse samples from the United States, Canada, Denmark, and The Netherlands (n = 6,271), we show that individuals who spend money on time-saving services report greater life satisfaction. A field experiment provides causal evidence that working adults report greater happiness after spending money on a time-saving purchase than on a material purchase. Together, these results suggest that using money to buy time can protect people from the detrimental effects of time pressure on life satisfaction.

The Psychological Health Benefits of Accepting Negative Emotions and Thoughts: Laboratory, Diary, and Longitudinal Evidence

The Psychological Health Benefits of Accepting Negative Emotions and Thoughts: Laboratory, Diary, and Longitudinal Evidence. Brett Ford et al. Journal of Personality and Social Psychology, https://www.ncbi.nlm.nih.gov/pubmed/28703602

Abstract: Individuals differ in the degree to which they tend to habitually accept their emotions and thoughts without judging them — a process here referred to as habitual acceptance. Acceptance has been linked with greater psychological health, which we propose may be due to the role acceptance plays in negative emotional responses to stressors: acceptance helps keep individuals from reacting to — and thus exacerbating — their negative mental experiences. Over time, experiencing lower negative emotion should promote psychological health. To test these hypotheses, Study 1 (N = 1,003) verified that habitually accepting mental experiences broadly predicted psychological health (psychological well-being, life satisfaction, and depressive and anxiety symptoms), even when controlling for potentially related constructs (reappraisal, rumination, and other mindfulness facets including observing, describing, acting with awareness, and nonreactivity). Next, in a laboratory study (Study 2, N = 156), habitual acceptance predicted lower negative (but not positive) emotional responses to a standardized stressor. Finally, in a longitudinal design (Study 3, N = 222), acceptance predicted lower negative (but not positive) emotion experienced during daily stressors that, in turn, accounted for the link between acceptance and psychological health 6 months later. This link between acceptance and psychological health was unique to accepting mental experiences and was not observed for accepting situations. Additionally, we ruled out potential confounding effects of gender, ethnicity, socioeconomic status, and life stress severity. Overall, these results suggest that individuals who accept rather than judge their mental experiences may attain better psychological health, in part because acceptance helps them experience less negative emotion in response to stressors.

Does a Culture of Happiness Increase Rumination Over Failure? It does.

Does a Culture of Happiness Increase Rumination Over Failure? Lucy McGuirk et al. Emotion, https://www.ncbi.nlm.nih.gov/pubmed/28714701

Abstract: Promoting happiness within society is good for health, but could the overpromotion of happiness have a downside? Across 2 studies, we investigate 2 emotion norms associated with an emphasis on happiness — the importance of (a) seeking positive emotion, and (b) avoiding negative emotion — and whether these norms have implications for how people respond to, and seek to regulate, their negative emotional experiences. In Study 1, we used an experimental design to show that emphasizing the importance of happiness increased rumination in response to failure. In Study 2, we drew on cross-sectional evidence to investigate the other side of this equation, finding that emphasizing the importance of not experiencing negative emotional states (e.g., depression and anxiety) was also associated with increased rumination, and that this had downstream consequences for well-being. Together, the findings suggest that the overpromotion of happiness, and, in turn, the felt social pressure not to experience negative emotional states, has implications for maladaptive responses to negative emotional experiences.

To Err Is Robot: How Humans Assess and Act toward an Erroneous Social Robot

To Err Is Robot: How Humans Assess and Act toward an Erroneous Social Robot. Nicole Mirnig et al. Front. Robot. AI, 31 May 2017. https://doi.org/10.3389/frobt.2017.00021

We conducted a user study for which we purposefully programmed faulty behavior into a robot’s routine. It was our aim to explore if participants rate the faulty robot different from an error-free robot and which reactions people show in interaction with a faulty robot. The study was based on our previous research on robot errors where we detected typical error situations and the resulting social signals of our participants during social human–robot interaction. In contrast to our previous work, where we studied video material in which robot errors occurred unintentionally, in the herein reported user study, we purposefully elicited robot errors to further explore the human interaction partners’ social signals following a robot error. Our participants interacted with a human-like NAO, and the robot either performed faulty or free from error. First, the robot asked the participants a set of predefined questions and then it asked them to complete a couple of LEGO building tasks. After the interaction, we asked the participants to rate the robot’s anthropomorphism, likability, and perceived intelligence. We also interviewed the participants on their opinion about the interaction. Additionally, we video-coded the social signals the participants showed during their interaction with the robot as well as the answers they provided the robot with. ***Our results show that participants liked the faulty robot significantly better than the robot that interacted flawlessly***. We did not find significant differences in people’s ratings of the robot’s anthropomorphism and perceived intelligence. The qualitative data confirmed the questionnaire results in showing that although the participants recognized the robot’s mistakes, they did not necessarily reject the erroneous robot. The annotations of the video data further showed that gaze shifts (e.g., from an object to the robot or vice versa) and laughter are typical reactions to unexpected robot behavior. In contrast to existing research, we assess dimensions of user experience that have not been considered so far and we analyze the reactions users express when a robot makes a mistake. Our results show that decoding a human’s social signals can help the robot understand that there is an error and subsequently react accordingly.

Prenatal Exposure to Progesterone Affects Sexual Orientation in Humans

Prenatal Exposure to Progesterone Affects Sexual Orientation in Humans. June Reinisch, Erik Lykke Mortensen & Stephanie Sanders. Archives of Sexual Behavior, July 2017, Pages 1239-1249, https://www.ncbi.nlm.nih.gov/pubmed/28374065

Abstract: Prenatal sex hormone levels affect physical and behavioral sexual differentiation in animals and humans. Although prenatal hormones are theorized to influence sexual orientation in humans, evidence is sparse. Sexual orientation variables for 34 prenatally progesterone-exposed subjects (17 males and 17 females) were compared to matched controls (M age = 23.2 years). A case-control double-blind design was used drawing on existing data from the US/Denmark Prenatal Development Project. Index cases were exposed to lutocyclin (bioidentical progesterone = C21H30O2; MW: 314.46) and no other hormonal preparation. Controls were matched on 14 physical, medical, and socioeconomic variables. A structured interview conducted by a psychologist and self-administered questionnaires were used to collect data on sexual orientation, self-identification, attraction to the same and other sex, and history of sexual behavior with each sex. Compared to the unexposed, fewer exposed males and females identified as heterosexual and more of them reported histories of same-sex sexual behavior, attraction to the same or both sexes, and scored higher on attraction to males. Measures of heterosexual behavior and scores on attraction to females did not differ significantly by exposure. We conclude that, regardless of sex, exposure appeared to be associated with higher rates of bisexuality. Prenatal progesterone may be an underappreciated epigenetic factor in human sexual and psychosexual development and, in light of the current prevalence of progesterone treatment during pregnancy for a variety of pregnancy complications, warrants further investigation. These data on the effects of prenatal exposure to exogenous progesterone also suggest a potential role for natural early perturbations in progesterone levels in the development of sexual orientation.

Is the Lone Scientist an American Dream? Perceived Communal Opportunities in STEM Offer a Pathway to Closing U.S.–Asia Gaps in Interest and Positivity

Is the Lone Scientist an American Dream? Perceived Communal Opportunities in STEM Offer a Pathway to Closing U.S.–Asia Gaps in Interest and Positivity. Elizabeth Brown et al. Social Psychological and Personality Science, http://journals.sagepub.com/doi/abs/10.1177/1948550617703173

Abstract: The United States lags behind many Asian countries in engagement in science, technology, engineering, and mathematics (STEM). An unexplored factor in these country-level differences may be U.S.–Asia gaps in perceptions of the goal opportunities provided by STEM. Across four studies, U.S. students perceived fewer communal opportunities (working with/helping/relationships with others) in STEM than Asian students; this differential perception contributed to U.S.–Asia gaps in STEM interest. Perceptions of communal opportunities in STEM did not follow from a general orientation to perceive that all careers provided communal opportunities but from communal engagement in STEM. Perceptions about communal opportunities in STEM predicted STEM interest, and communal experience in STEM predicted STEM interest beyond quantity of STEM exposure. Experimentally highlighting the perceived communal opportunities in science closed the cultural gap in positivity toward a scientist career (Study 5). Perceptions of communal opportunities in STEM provide a new vantage point to improve U.S. engagement in STEM.

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at "the private California Institute of Technology, which by choice does not consider race as a factor, more than 40% of students were Asian-American in 2013, up from 26% in 1993"†)

"the share at University of California campuses at Berkeley and Los Angeles tops 30%."†

"In 1993 about 20% of Harvard students were Asian-American [...] now it is 22% Asian-American," approx. the same "at Princeton, Yale and other Ivy League schools."†



†  What Is Harvard Hiding? Wall Street Journal Editorial, Aug. 6, 2017. https://www.wsj.com/articles/what-is-harvard-hiding-1501888626

‡  From official data: https://en.wikipedia.org/wiki/Historical_racial_and_ethnic_demographics_of_the_United_States#Asian_and_Pacific_Islander_.28including_of_Hispanic_origin.29: from approx 11 million people in 2000 to approx 20 million en 2015.

Non-official: www-personal.umich.edu/~yuxie/Research/brief/Tables.pdf > year 1990: 6 908 638; year 2000: 11 070 913.

Are Individualistic Societies Less Equal? Evidence from the Parasite Stress Theory of Values

Are Individualistic Societies Less Equal? Evidence from the Parasite Stress Theory of Values. Boris Nikolaev, Rauf Salahodjaev and Christopher Boudreaux. March 23, 2017. https://mpra.ub.uni-muenchen.de/78557/

Abstract: It is widely believed that individualistic societies, which emphasize personal freedom, award social status for accomplishment, and favor minimal government intervention, are more prone to higher levels of income inequality compared to more collectivist societies, which value conformity, loyalty, and tradition and favor more interventionist policies. The results in this paper, however, challenge this conventional view. Drawing on a rich literature in biology and evolutionary psychology, we test the provocative Parasite Stress Theory of Values, which suggests a possible link between the historical prevalence of infectious diseases, the cultural dimension of individualism-collectivism and differences in income inequality across countries. Specifically, in a two-stage least squares analysis, we use the historical prevalence of infectious diseases as an instrument for individualistic values, which, in the next stage, predict the level of income inequality, measured by the net GINI coe cient from the Standardized World Income Inequality Database (SWIID). Our findings suggest that societies with more individualistic values have significantly lower net income inequality. The results are robust even after controlling for a number of confounding factors such as economic development, legal origins, religion, human capital, other cultural values, economic institutions, and geographical controls.

In Plain Sight: The Neglected Linkage between Brideprice and Violent Conflict

In Plain Sight: The Neglected Linkage between Brideprice and Violent Conflict. Valerie M. Hudson and Hilary Matfess. August 02, 2017. International Security, v 42 | Issue 1 | Summer 2017, p.7-40
doi: 10.1162/ISEC_a_00289

Abstract: Approximately seventy-five percent of the world's population lives in countries where asset exchange upon marriage is obligatory. Rising brideprice—money or gifts provided to a woman's family by the groom and his family as part of marriage arrangements—is a common if overlooked catalyst of violent conflict. In patrilineal (and some matrilineal) societies where brideprice is practiced, a man's social status is directly connected to his marital status. Brideprice acts as a flat tax that is prone to sudden and swift increases. As a result, rising brideprice can create serious marriage market distortions that prevent young men, especially those who are poor or otherwise marginalized, from marrying. This phenomenon is especially evident in polygamous societies, where wealthy men can afford more than one bride. These distortions incentivize extra-legal asset accumulation, whether through ad hoc raiding or organized violence. In such situations, rebel and terror groups may offer to pay brideprice—or even provide brides—to recruit new members. Descriptive case studies of Boko Haram in Nigeria and various armed groups in South Sudan demonstrate these linkages, while an examination of Saudi Arabia's cap on brideprice and its efforts to arrange low-cost mass weddings illustrates the ways in which governments can intervene in marriage markets to help prevent brideprice-related instability. The trajectory of brideprice is an important but neglected early indicator of societal instability and violent conflict, underscoring that the situation and security of women tangibly affect national security.

Saturday, August 5, 2017

Nationalism and Ethnic-Based Trust: Evidence From an African Border Region

Nationalism and Ethnic-Based Trust: Evidence From an African Border Region. Amanda Lea Robinson. Comparative Political Studies, Feb 2016. journals.sagepub.com/doi/abs/10.1177/0010414016628269

In diverse societies, individuals tend to trust coethnics more than non-coethnics. I argue that identification with a territorially defined nation, common to all ethnic groups, reduces the degree to which trust is ethnically bounded. I conduct a “lab-in-the-field” experiment at the intersection of national and ethnic boundaries in Malawi, which measures strength of national identification, experimentally manipulates national identity salience, and measures trust behaviorally. I find that shared nationality is a robust predictor of trust, equal in magnitude to the impact of shared ethnicity. Furthermore, national identification moderates the degree to which trust is limited to coethnics: While weak national identifiers trust coethnics more than non-coethnics, strong national identifiers are blind to ethnicity. Experimentally increasing national identity salience also eliminates the coethnic trust advantage among weak nationalists. These results offer micro-level evidence that a strong and salient national identity can diminish ethnic barriers to trust in diverse societies.

Social Desirability Bias and Polling Errors in the 2016 Presidential Election

Social Desirability Bias and Polling Errors in the 2016 Presidential Election. Andy Brownback and Aaron Novotny. University of Arkansas Working Paper, July 2017, https://ssrn.com/abstract=3001360

Abstract: Social scientists have observed that socially desirable responding (SDR) often biases unincentivized surveys. During the 2016 presidential campaign, we conducted three list experiments to test the effect SDR has on polls of agreement with presidential candidates. We elicit a subject's agreement with either Hillary Clinton or Donald Trump using explicit questioning or an implicit elicitation that allows subjects to conceal their individual responses. We find evidence that explicit polling overstates agreement with Clinton relative to Trump. Dividing subjects by party identification, we find that SDR significantly diminishes explicit statements of agreement with the opposing party's candidate. Democrats are significantly less likely to explicitly state agreement with Trump. This threatens the predictive validity of polling, negatively impacts the ability of markets to accurately price assets, and exaggerates disagreements between Democrats and Republicans. We measure economic policy preferences and find no evidence that ideological agreement drives SDR. We find suggestive evidence that SDR correlates with county-level voting patterns.

Keywords: Polling, Politics, Social Desirability, List Experiment, Behavioral Economics
JEL Classification: D02, D72

Thursday, August 3, 2017

A Cross-Cultural Study of Risky Online Self-Presentation

White Claire M., Cutello Clara A., Gummerum Michaela, and Hanoch Yaniv: A Cross-Cultural Study of Risky Online Self-Presentation. Cyberpsychology, Behavior, and Social Networking. June 2017, https://doi.org/10.1089/cyber.2016.0660

Abstract: The use of social media is pervasive among young adults. However, not all posted content is beneficial to their self-presentation, but can have negative and damaging consequences. This study investigated how individual differences in self-monitoring and impulsiveness influence risky online self-presentation in British and Italian samples. British participants (n = 88) were more likely to post comments and images related to their alcohol and drug use, whereas Italian (n = 90) participants posted more offensive content and personal information. High self-monitoring and high impulsiveness was positively predictive of risky self-presentation online regardless of nationality, highlighting the normative influence of social media culture, and the influence of both spontaneous and deliberative behavior on posting inappropriate content online. These novel insights regarding the way young adults present themselves on social network sites could help explain differences in self-presentation.

Free will beliefs predict attitudes toward unethical behavior and criminal punishment

Free will beliefs predict attitudes toward unethical behavior and criminal punishment. Nathan Martin, Davide Rigoni & Kathleen Vohs. Proceedings of the National Academy of Sciences, 11 July 2017, Pages 7325–7330, http://www.pnas.org/content/114/28/7325.abstract

Significance: Understanding the bases of moral judgment has been a longstanding goal of social science. Factors undergirding morality are argued to be both globally uniform and regionally variable. The current study found evidence of both. For residents of countries with low levels of corruption and transparent systems of governance, free will beliefs predicted greater support for harsh criminal punishment and an intolerance of unethical behavior. For residents of countries beset with corruption and obfuscation, free will beliefs predicted greater support for criminal punishment but were decoupled from judgments of unethical behavior. These findings confirm causal conclusions from experimental research about the influence of free will beliefs on moral judgments and demonstrate variation by sociopolitical context.

Abstract: Do free will beliefs influence moral judgments? Answers to this question from theoretical and empirical perspectives are controversial. This study attempted to replicate past research and offer theoretical insights by analyzing World Values Survey data from residents of 46 countries (n = 65,111 persons). Corroborating experimental findings, free will beliefs predicted intolerance of unethical behaviors and support for severe criminal punishment. Further, the link between free will beliefs and intolerance of unethical behavior was moderated by variations in countries’ institutional integrity, defined as the degree to which countries had accountable, corruption-free public sectors. Free will beliefs predicted intolerance of unethical behaviors for residents of countries with high and moderate institutional integrity, but this correlation was not seen for countries with low institutional integrity. Free will beliefs predicted support for criminal punishment regardless of countries’ institutional integrity. Results were robust across different operationalizations of institutional integrity and with or without statistical control variables.

Keywords: free will, beliefs, morality, criminal punishment, transparent governance, corruption

Natural Disaster Risk and Collectivism

Natural Disaster Risk and Collectivism. Shigehiro Oishi and Asuka Komiya. Journal of Cross-Cultural Psychology, http://journals.sagepub.com/doi/abs/10.1177/0022022117719496

Abstract: Previous research found that low levels of national wealth and high levels of historical pathogen prevalence are associated with collectivism. The main idea is that harsh economic and physical environments present a psychological threat, which evokes collectivism or the priority of protecting in-group members. To the extent that natural disasters pose a major threat, we hypothesized that natural disaster risk is also associated with collectivism. Consistent with our hypothesis, nations with higher levels of natural disaster risk were more collectivistic than those with lower risk using both Hofstede’s individualism–collectivism scores and Taras, Steel, and Kirkman’s meta-analytic individualism–collectivism scores from 1970 to 2010, and Taras et al.’s meta-analytic individualism–collectivism scores from the 2000s. This association remained significant when controlling for other climatic factors such as historical pathogen prevalence, climatic harshness, and distance from the equator, respectively, when Hofstede’s individualism–collectivism scores and Taras et al.’s scores from 1970 to 2010 were used. The association became marginal when Taras et al.’s scores from the 2000s were used. A multiple regression analysis showed that natural disaster risk was not a predictor of collectivism, above and beyond gross domestic product (GDP) per capita, pathogen prevalence, climatic harshness, and distance from the equator simultaneously. Finally, we found the interaction between GDP per capita and natural disaster such that the link between natural disaster risk and collectivism was present among wealthy but not among poorer nations.

Frogs, Ponds, and Culture: Variations in Entry Decisions

Frogs, Ponds, and Culture: Variations in Entry Decisions. Kaidi Wu, Stephen Garcia & Shirli Kopelman. Social Psychological and Personality Science, journals.sagepub.com/doi/abs/10.1177/1948550617706731

Abstract: Would you rather be the big frog in a small pond or the small frog in a big pond? In three studies, we demonstrate that the entry preference depends on culture. Study 1 found a higher big pond preference for East Asian, versus European American, students. Studies 2A and 2B replicated this big pond preference in behavioral intent across educational and organizational settings for Chinese, as compared to United States, working adults. Study 3 demonstrated cultural variation in frog–pond decisions was not explained by comparison processes that characterize postentry self-regard but rather by concerns for prestige. Together, findings highlight how a cultural lens informs psychological processes that shape entry decision-making.

Egg White or Sun-Kissed: A Cross-Cultural Exploration of Skin Color and Women’s Leisure Behavior

Egg White or Sun-Kissed: A Cross-Cultural Exploration of Skin Color and Women’s Leisure Behavior. Hsin-Yu Chen et al. Sex Roles, https://link.springer.com/article/10.1007/s11199-017-0785-4

Abstract: The present study explores how culture-based meanings and values toward skin color, which are associated with women’s body image ideals and gender-role expectations, profoundly influence women’s leisure behaviors. Using in-depth interviews with East Asian, Asian American, and Euro-American women (n = 43), results revealed how leisure behaviors are tied to cultural perceptions of skin color. People from different cultural backgrounds construct meanings and values pertaining to skin color, including beauty-related standards, social class, gender roles, and lifestyles. Culture-based values, such as the preference for tanned skin among Euro-Americans and for lighter skin among East Asians, affect a wide range of daily behaviors. These behaviors include conscious as well as subtle daily decision-making regarding sun-seeking, sun-avoidance, and sun-protection behaviors; indoor versus outdoor leisure participation; and appearance modifications. The study’s results add knowledge to how perceptions and attitudes toward skin color and appearance manifest in women's daily behavior in general and leisure behavior in particular. In addition, the current study shows how individual behaviors reflect cultural meanings and values toward body image, specifically skin color, by emphasizing the links between cultural values and women’s day-to-day lives.

Keywords: Colorism, Body image, Cultural perceptions and values, Skin color, Daily behaviors, Leisure

Neurocultural evidence that ideal affect match promotes giving

Neurocultural evidence that ideal affect match promotes giving. BoKyung Park et al. Social Cognitive and Affective Neuroscience, July 2017, Pages 1083-1096, https://www.ncbi.nlm.nih.gov/pubmed/28379542

Abstract: Why do people give to strangers? We propose that people trust and give more to those whose emotional expressions match how they ideally want to feel (“ideal affect match”). European Americans and Koreans played multiple trials of the Dictator Game with recipients who varied in emotional expression (excited, calm), race (White, Asian) and sex (male, female). Consistent with their culture’s valued affect, European Americans trusted and gave more to excited than calm recipients, whereas Koreans trusted and gave more to calm than excited recipients. These findings held regardless of recipient race and sex. We then used fMRI to probe potential affective and mentalizing mechanisms. Increased activity in the nucleus accumbens (associated with reward anticipation) predicted giving, as did decreased activity in the right temporo-parietal junction (rTPJ; associated with reduced belief prediction error). Ideal affect match decreased rTPJ activity, suggesting that people may trust and give more to strangers whom they perceive to share their affective values.

Keywords: Culture; Dictator Game; Emotion; Giving; fMRI

Mere Gifting: Liking a Gift More Because It Is Shared

Mere Gifting: Liking a Gift More Because It Is Shared. Evan Polman and Sam Maglio. Personality and Social Psychology Bulletin, http://journals.sagepub.com/doi/abs/10.1177/0146167217718525

Abstract: We investigated a type of mere similarity that describes owning the same item as someone else. Moreover, we examined this mere similarity in a gift-giving context, whereby givers gift something that they also buy for themselves (a behavior we call “companionizing”). Using a Heiderian account of balancing unit-sentiment relations, we tested whether gift recipients like gifts more when gifts are companionized. Akin to mere ownership, which describes people liking their possessions more merely because they own them, we tested a complementary prediction: whether people like their possessions more merely because others own them too. Thus, in a departure from previous work, we examined a type of similarity based on two people sharing the same material item. We find that this type of sharing causes gift recipients to like their gifts more, and feel closer to gift givers.

Asian Americans Respond Less Favorably to Excitement (vs. Calm)-Focused Physicians Compared to European Americans

Asian Americans Respond Less Favorably to Excitement (vs. Calm)-Focused Physicians Compared to European Americans. Tamara Sims et al. Cultural Diversity and Ethnic Minority Psychology, https://www.ncbi.nlm.nih.gov/pubmed/28714709

OBJECTIVES: Despite being considered a "model minority," Asian Americans report worse health care encounters than do European Americans. This may be due to affective mismatches between Asian American patients and their European American physicians. We predicted that because Asian Americans value excitement (vs. calm) less than European Americans, they will respond less favorably to excitement-focused (vs. calm) physicians.

METHOD: In Study 1, 198 European American, Chinese American, and Hong Kong Chinese community adults read a medical scenario and indicated their preference for an excitement-focused versus calm-focused physician. In Study 2, 81 European American and Asian American community college students listened to recommendations made by an excitement-focused or calm-focused physician in a video, and later attempted to recall the recommendations. In Study 3, 101 European American and Asian American middle-aged and older adults had multiple online encounters with an excitement-focused or calm-focused physician and then evaluated their physicians' trustworthiness, competence, and knowledge.

RESULTS: As predicted, Hong Kong Chinese preferred excitement-focused physicians less than European Americans, with Chinese Americans falling in the middle (Study 1). Similarly, Asian Americans remembered health information delivered by an excitement-focused physician less well than did European Americans (Study 2). Finally, Asian Americans evaluated an excitement-focused physician less positively than did European Americans (Study 3).

CONCLUSIONS: These findings suggest that while physicians who promote and emphasize excitement states may be effective with European Americans, they may be less so with Asian Americans and other ethnic minorities who value different affective states.

The Cultural Origin of CEOs’ Attitudes Towards Uncertainty: Evidence from Corporate Acquisitions

The Cultural Origin of CEOs’ Attitudes Towards Uncertainty: Evidence from Corporate Acquisitions. Yihui Pan, Stephan Siegel & Tracy Yue Wang. University of Utah Working Paper, June 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2987623

Abstract: We examine how U.S. CEOs’ attitudes towards uncertainty as well as their corporate investment decisions are shaped by their cultural heritage – a potentially important aspect of their upbringing and early life environment. We find that CEOs with a more uncertainty avoiding cultural heritage are less likely to engage in corporate acquisitions. Conditional on making an acquisition, more uncertainty avoiding CEOs prefer targets in industries that they are familiar with and targets that can be integrated more easily. The impact of culturally transmitted uncertainty attitudes on M&A decisions is stronger when CEOs’ parents put more emphasis on the family’s cultural heritage. Finally, cultural differences with respect to uncertainty attitudes persist over multiple generations, but become less pronounced over time. Overall, our results highlight an important role of cultural heritage in shaping decisions under uncertainty by U.S. CEOs as well as of parents in transmitting cultural values, in particular attitudes towards uncertainty, to their children.

Keywords: culture, cultural heritage, uncertainty avoidance, uncertainty aversion, Hofstede, CEO, corporate acquisition, social transmission of preference

Does culture create craving? Evidence from the case of menstrual chocolate craving

Does culture create craving? Evidence from the case of menstrual chocolate craving. Julia Hormes & Martha Niemiec. PLoS One, July 2017, https://www.ncbi.nlm.nih.gov/pubmed/28723930

Abstract: Craving is considered a key characteristic of diverse pathologies, but evidence suggests it may be a culture-bound construct. Almost 50% of American women crave chocolate specifically around the onset of menstruation. Research does not support popular accounts implicating physiological factors in menstrual chocolate craving etiology. We tested the novel hypothesis that greater menstrual craving prevalence in the U.S. is the product of internalized cultural norms. Women of diverse backgrounds (n = 275) reported on craving frequency and triggers and completed validated measures of acculturation. Foreign-born women were significantly less likely to endorse menstrual chocolate craving (17.3%), compared to women born to U.S.-born parents (32.7%, p = .03) and second generation immigrants (40.9%, p = .001). Second generation immigrant and foreign-born women endorsing menstrual chocolate craving reported significantly greater U.S. acculturation and lower identification with their native culture than non-menstrual cravers (all p < .001). Findings inform our understanding of food cravings, with important implications for the study of cravings in other domains.

Corruption, Social Judgment and Culture: An Experiment

Corruption, Social Judgment and Culture: An Experiment. Timothy Salmon & Danila Serra. Journal of Economic Behavior & Organization, October 2017, Pages 64-78, http://www.sciencedirect.com/science/article/pii/S0167268117301622

Highlights
•    We examine the ability of social observability to limit bad behavior.
•    We use a sample with a diverse background to investigate the interaction with culture.
•    We find social observability can limit bad behavior.
•    The effect is stronger for individuals who culturally identify with Low Corruption countries.

Abstract: Modern societies rely on both formal and social mechanisms to enforce social norms of behavior. Formal enforcement mechanisms rely on monetary or other tangible incentives while social enforcement mechanisms rely on some form of social judgment involving informal sanctions. We experimentally investigate the extent to which social observability and the possibility of social judgment affect individuals’ decisions to engage in corruption at the expense of others. We are also interested in the degree to which culture matters. We use a laboratory experiment with a sample of individuals who live in the U.S. but is also characterized by cultural heterogeneity due to the immigration of their ancestors to the U.S. We find that the possibility of social judgment reduces corruption only among individuals who identify culturally with countries characterized by low levels of corruption. Our findings suggest that the effectiveness of social enforcement mechanisms is at least partly dependent on the sociocultural norms prevailing in the target population.

JEL classification: C90 D73 K42 Z10

Keywords: Corruption, Social enforcement, Culture, Experiments

Global Increases in Individualism

Global Increases in Individualism. Henri Santos, Michael Varnum & Igor Grossmann. Psychological Science, https://www.academia.edu/31723600/Global_Increases_in_Individualism

Abstract: Individualism appears to have increased over the past several decades, yet most research documenting this shift has been limited to the study of a handful of highly developed countries. Is the world becoming more individualist as a whole? If so, why? To answer these questions, we examined 51 years of data on individualist practices and values across 78 countries. Our findings suggest that individualism is indeed rising in most of the societies we tested. Despite dramatic shifts toward greater individualism around the world, however, cultural differences remain sizable. Moreover, cultural differences are primarily linked to changes in socioeconomic development, and to a lesser extent to shifts in pathogen prevalence and disaster frequency.

Did Strategic Bombing in the Second World War Lead to ‘German Angst’? A Large-scale Empirical Test Across 89 German Cities

Did Strategic Bombing in the Second World War Lead to ‘German Angst’? A Large-scale Empirical Test Across 89 German Cities. Martin Obschonka et al. European Journal of Personality, May/June 2017, Pages 234–257, http://onlinelibrary.wiley.com/doi/10.1002/per.2104/full

Abstract: A widespread stereotype holds that the Germans are notorious worriers, an idea captured by the term German angst. An analysis of country-level neurotic personality traits (trait anxiety, trait depression, and trait neuroticism; N = 7 210 276) across 109 countries provided mixed support for this idea; Germany ranked 20th, 31st, and 53rd for depression, anxiety, and neuroticism, respectively, suggesting, at best, the national stereotype is only partly valid. Theories put forward to explain the stereotypical characterization of Germany focus on the collective traumatic events experienced by Germany during World War II (WWII), such as the massive strategic bombing of German cities. We thus examined the link between strategic bombing of 89 German cities and today's regional levels in neurotic traits (N = 33 534) and related mental health problems. Contrary to the WWII bombing hypothesis, we found negative effects of strategic bombing on regional trait depression and mental health problems. This finding was robust when controlling for a host of economic factors and social structure. We also found Resilience × Stressor interactions: Cities with more severe bombings show more resilience today (lower levels of neurotic traits and mental health problems in the face of a current major stressor—economic hardship).

Understanding Cultural Persistence and Change

Understanding Cultural Persistence and Change. Paola Giuliano & Nathan Nunn. NBER Working Paper, July 2017. https://scholar.harvard.edu/nunn/publications/understanding-cultural-persistence-and-change

Abstract: When does culture persist and when does it change? We examine a determinant that has been put forth in the anthropology literature: the variability of the environment from one generation to the next. A prediction, which emerges from a class of existing models from evolutionary anthropology, is that following the customs of the previous generation is relatively more beneficial in stable environments where the culture that has evolved up to the previous generation is more likely to be relevant for the subsequent generation. We test this hypothesis by measuring the variability of average temperature across 20-year generations from 500–1900. Looking across countries, ethnic groups, and the descendants of immigrants, we find that populations with ancestors who lived in environments with more stability from one generation to the next place a greater importance in maintaining tradition today. These populations also exhibit more persistence in their traditions over time.

Cultures differ in the ability to enhance affective neural responses

Cultures differ in the ability to enhance affective neural responses. Michael Varnum & Ryan Hampton. Social Neuroscience, September/October 2017, Pages 594-603, www.tandfonline.com/doi/abs/10.1080/17470919.2016.1209239

Abstract: The present study (N = 55) used an event-related potential paradigm to investigate whether cultures differ in the ability to upregulate affective responses. Using stimuli selected from the International Affective Picture System, we found that European-Americans (N = 29) enhanced central-parietal late positive potential (LPP) (400–800 ms post-stimulus) responses to affective stimuli when instructed to do so, whereas East Asians (N = 26) did not. We observed cultural differences in the ability to enhance central-parietal LPP responses for both positively and negatively valenced stimuli, and the ability to enhance these two types of responses was positively correlated for Americans but negatively for East Asians. These results are consistent with the notion that cultural variations in norms and values regarding affective expression and experiences shape how the brain regulates emotions.

KEYWORDS: Culture, emotion regulation, cultural neuroscience, ERP, LPP

Gender: An Historical Perspective

Gender: An Historical Perspective. Paola Giuliano. NBER Working Paper No. 23635
NBER Program: POL. http://www.nber.org/papers/w23635

To explore this hypothesis, Giuliano (2015) looks at the correlation between historical plough use and whether the dowry is the most prevalent mode of marriage, whether the inheritance rule in a society is matrilineal, and if polygamy is prevalent5. She finds that in societies that used the plough, (a) inheritance rules appear to be less favorable to women—as indicated by the fact that matrilineality is less common, (b) there is less polygamy, and (c) a dowry is paid by the bride’s family. After establishing a correlation for the past, the author shows that differences in agricultural technology have a persistent effect on social norms, lasting until today. [...] she finds that societies that historically used the plough are characterized by higher parental authority granted to the father, by inheritance rules that favor male heirs, and by less freedom for women to move outside the house. She also finds that, in these societies, women are more likely to wear a veil in public.

Reflection Increases Costly (but Not Uncostly) Charitable Giving

Giving, Fast and Slow: Reflection Increases Costly (but Not Uncostly) Charitable Giving. Kellen Mrkva. Journal of Behavioral Decision Making, http://onlinelibrary.wiley.com/doi/10.1002/bdm.2023/abstract

Abstract: Are people intuitively generous or stingy? Does reflection make people more willing to give generous amounts to charity? Findings across the literature are mixed, with many studies finding no clear relationship between reflection and charitable giving (e.g., Hauge, Brekke, Johansson, Johansson-Stenman, & Svedsäter, 2016; Tinghög et al., 2016), while others find that reflection negatively affects giving (e.g., Small, Loewenstein, & Slovic, 2007), and still others find that reflection is positively associated with giving (e.g., Lohse, Goeschl, & Diederich, 2014). I demonstrate that reflection consistently increases costly giving to charity. In Study 1, people were initially reluctant to give costly amounts of money to charity, but those who reflected about the decision were more willing to give. In Studies 2–3, I isolated the role of costly stakes by randomly assigning people to either an uncostly donation ($0.40) or costly donation condition (e.g., $100), and randomly assigning them to decide under time pressure or after reflecting. Reflection increased their willingness to give costly amounts, but did not influence their willingness to give uncostly amounts. Similarly, the relationship between decision time and giving was positive when the stakes were costly but was relatively flat when the stakes were uncostly (Study 4)

Tuesday, August 1, 2017

A Chinese Threat to Australian Openness. By Merriden Varrall

A Chinese Threat to Australian Openness. By Merriden Varrall
https://www.nytimes.com/2017/07/31/opinion/australia-chinese-students.html
The New York Times, July 31, 2017

SYDNEY, Australia — Australians are increasingly concerned about China’s growing influence in the country. Chinese money is being funneled to politicians. Beijing-run media outlets buy ads in Australian newspapers to promote the Communist Party view on local and regional issues. Chinese companies are buying Australian farms and natural resources.

The push extends to Australia’s universities. Chinese agents are said to monitor Chinese students and report on those who fail to toe the Communist Party line. And in another troubling trend, many of the 150,000 visiting Chinese students are importing a pro-Beijing approach to the classroom that is stifling debate and openness.

In 2008-9 I taught international relations to undergraduates at a Chinese university in Beijing, giving me a window into Chinese students’ attitudes and behavior. I was struck by the tendency for students to align themselves with the government view.

I was not given any guidance or warnings about the topics I could cover in the classroom. But throughout the year, I was offered hints that my approach to teaching was inappropriate. Those warnings came not only from the administration but from the students themselves.

On several occasions, students suggested I use a different style of teaching. They found critical analysis and picking apart expert opinion uncomfortable. This was particularly true for readings and class discussions that could be construed as critical of China.

Most students, for example, would reject anything that suggested China had not always been peaceful. The majority of students would react angrily to any reading material implying that Japan was not an inherently aggressive and expansionist country.

Some students told me in private that they were afraid to express their views in class. They feared that their peers would report on them and that they would receive a black mark on their record. The minority of students who showed interest in open discussion were shut down by classmates who parroted Beijing’s talking points.

In one session, students gave a presentation that, unsurprisingly, painted the Japanese in a negative light. One of their classmates wondered aloud whether Chinese people still needed to hate Japan. Another suggested that China also publishes textbooks with self-serving interpretations of history, as Japan does. Outrage erupted. One student furiously accused the two of “not loving China enough.”

At my midyear review, I was told firmly by my department leadership that my approach of “trying to teach through rumor and hearsay” was unsuitable. When I refused to change my methods, I was told that I would not receive my bonus and that my contract would not be renewed.

Chinese students are taking this approach into the Australian classroom.

A recent ABC-Fairfax report gave the example of Lupin Lu, head of the Chinese Students and Scholars Association chapter at the University of Canberra. Ms. Lu said she would not hesitate to inform officials at the Chinese Embassy if she heard of Chinese students organizing, for example, protests against Beijing.

Even here in Australia, Chinese students have said they fear speaking up in class because they worry their compatriots will report them to embassy authorities. Some students ask to be placed in tutorial groups without other Chinese citizens so they can speak openly.

Sally Sargeson, an associate professor at the Australian National University, said to Forbes magazine that every Chinese student she asked about this problem “said they know they are being monitored and adjust their speech so they will not get into trouble.”

When Chinese students self-censor or monitor and report on their peers, it is not necessarily because the Chinese state is bearing down on them. Rather, many Chinese students believe that speaking out against the officially approved view, on any topic, is inappropriate. The anthropologist Erika Evasdottir describes this as “self-directed control.” Monitoring and reporting on peers who diverge from the party line is seen as the right thing to do.

Universities have not adequately addressed this threat to debate and openness. Officials may be reluctant to take action because overseas students bring a lot of money to underfunded Australian universities.

Because many Chinese students have internalized the need to align with official views, maintaining Australia’s standards for free and open debate will remain a daunting challenge. Australian universities could start by facing up to the problem.

Merriden Varrall is the director of the East Asia Program at the Lowy Institute.

Statehood experience, legal traditions, and climate change policies

Ang, J. B. and Fredriksson, P. G. (2017), Statehood experience, legal traditions, and climate change policies. Economic Inquiry, 55: 1511–1537. doi:10.1111/ecin.12441

Abstract: This study investigates how the implementation of modern climate change policies is related to former colonies' length of state history and their legal heritage. We argue that countries with longer statehood experience around the time of colonization were better equipped to implement the legal philosophies transplanted by their colonial powers. Therefore, the implications of receiving British common law versus French civil law should be particularly important in countries with a greater accumulated history of statehood. Using a cross-section of up to 78 former colonies, our results provide support for this hypothesis. In particular, our estimates demonstrate that common law countries have weaker modern climate change policies than civil law countries and the difference is inflated by a longer statehood experience, measured by the length of state history from 1 to 1800 AD. Legal origin has no effect in areas which, by the time of colonization, had no statehood experience. Finally, we report similar results for the pattern of labor market regulations. (JEL K15, K31, K32, O44, Q54, Q58)

The Helping Behavior Helps Lighten Physical Burden

The Helping Behavior Helps Lighten Physical Burden. Xilin Li and Xiaofei Xie. Basic and Applied Social Psychology, http://www.tandfonline.com/doi/abs/10.1080/01973533.2017.1320762

Abstract: It is often believed that helping behaviors benefit the recipients at the expense of the performers. However, we propose that costly helping behaviors could alleviate feelings of physical burden experienced by the performers. In support of the proposal, we found in five studies that both imaginary and real helping behaviors led the performers to perceive physically challenging tasks as less demanding (Studies 1, 2, 3, 5), such as perceiving a steep mountain road as less steep (Study 2), a heavy carton as lighter (Study 4), and a long path as shorter (Study 5). These results challenge the conventional wisdom that helping behaviors always come at the cost of the helper and corroborate a growing body of literature showing that helping others could benefit the performer.

Ethnic politics and the diffusion of mobile technology in Africa

Ethnic politics and the diffusion of mobile technology in Africa. Roland Hodler and Paul Raschky. Economics Letters, October 2017, Pages 78-81, http://www.sciencedirect.com/science/article/pii/S0165176517302914

Highlights
•    Ethnic power-sharing depends on groups’ population shares (Francois et al. 2015).
•    Study on the effect of population shares on mobile phone infrastructure.
•    Identification strategy exploits artificial drawing of African borders.
•    Larger ethnic groups have more and better mobile phone infrastructure.
•    Ethnic power-sharing thus affects the diffusion of mobile technology in Africa.

Abstract: We analyze the effect of an ethnic group’s country-level population share on the mobile phone infrastructure in Africa. Consistent with the African power-sharing arrangements documented by Francois et al. (2015), we find that larger ethnic groups benefit from a higher concentration of mobile phone infrastructure and a higher fraction of UMTS cell sites.

Keywords: Power sharing, Mobile phones, Technology diffusion, Africa

The Economic Impact of China's Anti-Corruption Campaign

The Economic Impact of China's Anti-Corruption Campaign. Nan Chen and Zemin (Zachary) Zhong. University of California Working Paper, June 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2996009

Abstract: Political corruption is a major problem in governance and is pervasive especially in developing countries. Depending on pre-existing distortions, corruption may benefit economic growth by "greasing the wheel", or it may distort supply of public goods and create inefficiency. Empirically testing the effect of corruption on efficiency and distribution is difficult due to the evasive nature of corruption. We take an alternative approach by investigating the economic impacts of governments' anti-corruption efforts. Our analysis is performed in the context of China's recent anti-corruption campaign under the new president Xi Jinping, the largest of its kind in recent history. As an important initiative of this campaign, the CPC's Provincial Committee of Discipline Inspection (PCDI) send inspection teams to investigate county-level government for potential corruption. The variation in the timing of PCDI visit allows us to use a difference-in-difference design to identify the impact of anti-corruption on local economy. Using a unique administrative dataset of vehicle registration, we find that PCDI visits cause car sales to drop by 3.4% at county level. The effect is surprisingly uniformly distributed across different price tiers. Luxury brands exhibit a similar drop as domestic brands, suggesting corruption's impact permeates a wide income spectrum. Over time, the effect is strengthening: We observe a 2% drop in the first three months of PCDI visit, and a 10% drop one year afterwards. The especially large impact cannot be explained by decline in government officials' consumption behavior, suggesting anti-corruption efforts also affect the private sector.

We validate our empirical strategy by showing that:

(1) the timing of PCDI visits cannot be predicted by observable county characteristics and,
(2) car registrations exhibit parallel pre-treatment trends.

The results are robust to placebo tests and alternative specifications. We find that the effect of PCDI visit on car sales cannot be explained by local economic indicators or monitoring cost as measured by distances to provincial/prefectural governments.

Keywords: Corruption, Political Economy, China
JEL Classification: D73, P16, H70, L62

Painting too “Rosie” a picture: The impact of external threat on women’s economic welfare

Painting too “Rosie” a picture: The impact of external threat on women’s economic welfare. Jaroslav Tir and Maureen Bailey. Conflict Management and Peace Science, http://www.colorado.edu/polisci/2017/04/19/painting-too-rosie-picture-impact-external-threat-womens-economic-welfare

Abstract: Why is the economic status of women better in one country than another? We maintain that the answer lies in part in the extent of external threat to the homeland territory a country faces. To respond to the threat, states centralize their decision-making, invest more in the military and decrease citizens’ liberties. Associated restrictions and emphases on more “masculine” values create an environment where women’s welfare takes a back seat to the ostensible priority of defending the homeland. Utilizing measures of women’s unemployment from across the world, 1981-2001, we demonstrate that higher levels of territorial threat decrease women’s economic welfare.

China's Lost Generation: Changes in Beliefs and their Intergenerational Transmission

China's Lost Generation: Changes in Beliefs and their Intergenerational Transmission. Gerard Roland and David Yang. NBER Working Paper, May 2017, http://www.nber.org/papers/w23441

Abstract: Beliefs about whether effort pays off govern some of the most fundamental choices individuals make. This paper uses China’s Cultural Revolution to understand how these beliefs can be affected, how they impact behavior, and how they are transmitted across generations. During the Cultural Revolution, China’s college admission system based on entrance exams was suspended for a decade until 1976, effectively depriving an entire generation of young people of the opportunity to access higher education (the “lost generation”). Using data from a nationally representative survey, we compare cohorts who graduated from high school just before and after the college entrance exam was resumed. We find that members of the “lost generation” who missed out on college because they were born just a year or two too early believe that effort pays off to a much lesser degree, even 40 years into their adulthood. However, they invested more in their children’s education, and transmitted less of their changed beliefs to the next generation, suggesting attempts to safeguard their children from sharing their misfortunes.

People work less hard for others

People work less hard for others. Michael Inzlicht & Cendri A. Hutcherson. Nature Human Behaviour 1, Article number: 0148 (2017). doi:10.1038/s41562-017-0148

Effort is costly. People devalue personal rewards that require some measure of physical or even mental effort. Laboratory studies now suggest that physical effort is especially costly when engaged to benefit others. Even when people are willing, however, their efforts are often superficial, with people doing what is necessary but no more.

Corrupting cooperation and how anti-corruption strategies may backfire

Corrupting cooperation and how anti-corruption strategies may backfire. Michael Muthukrishna et al.
Nature Human Behaviour, July 2017, https://www.nature.com/articles/s41562-017-0138

Abstract: Understanding how humans sustain cooperation in large, anonymous societies remains a central question of both theoretical and practical importance. In the laboratory, experimental behavioural research using tools like public goods games suggests that cooperation can be sustained by institutional punishment - analogous to governments, police forces and other institutions that sanction free-riders on behalf of individuals in large societies. In the real world, however, corruption can undermine the effectiveness of these institutions. Levels of corruption correlate with institutional, economic and cultural factors, but the causal directions of these relationships are difficult to determine. Here, we experimentally model corruption by introducing the possibility of bribery. We investigate the effect of structural factors (a leader’s punitive power and economic potential), anti-corruption strategies (transparency and leader investment in the public good) and cultural background. The results reveal that (1) corruption possibilities cause a large (25%) decrease in public good provisioning, (2) empowering leaders decreases cooperative contributions (in direct opposition to typical institutional punishment results), (3) growing up in a more corrupt society predicts more acceptance of bribes and (4) anti-corruption strategies are effective under some conditions, but can further decrease public good provisioning when leaders are weak and the economic potential is poor. These results suggest that a more nuanced approach to corruption is needed and that proposed panaceas, such as transparency, may actually be harmful in some contexts.

Sentimental Value and Gift Giving: Givers' Fears of Getting It Wrong Prevents Them from Getting It Right

Sentimental Value and Gift Giving: Givers' Fears of Getting It Wrong Prevents Them from Getting It Right. Julian Givi and Jeff Galak. Journal of Consumer Psychology, https://www.journals.elsevier.com/journal-of-consumer-psychology/forthcoming-articles/sentimental-value-and-gift-giving-givers

Abstract: Sentimental value is the value derived from an emotionally-laden item's associations with significant others, or special events or times in one's life. The present research demonstrates that when faced with the choice between sentimentally valuable gifts and gifts with superficial attributes that match the preferences of the recipient, givers give the latter much more often than recipients would prefer to receive such gifts. This asymmetry appears to be driven by givers feeling relatively certain that preference-matching gifts will be well-liked by recipients, but relatively uncertain that the same is true for sentimentally valuable gifts. Three studies demonstrate this gift-giving mismatch and validate the proposed mechanism across a variety of gift-giving occasions and giver-receiver relationship types. The contribution of these findings to the gift-giving literature, as well as directions for future research, are discussed.

Illusory Increases in Font Size Improve Letter Recognition

Illusory Increases in Font Size Improve Letter Recognition. Martin Lages, Stephanie Boyle & Rob Jenkins. Psychological Science, https://www.ncbi.nlm.nih.gov/pubmed/28677992

Abstract: Visual performance of human observers depends not only on the optics of the eye and early sensory encoding but also on subsequent cortical processing and representations. In two experiments, we demonstrated that motion adaptation can enhance as well as impair visual acuity. Observers who experienced an expanding motion aftereffect exhibited improved letter recognition, whereas observers who experienced a contracting motion aftereffect showed impaired letter recognition. We conclude that illusory enlargement and shrinkage of a visual stimulus can modulate visual acuity.

Physical Proximity Increases Persuasive Effectiveness through Visual Imagery

Physical Proximity Increases Persuasive Effectiveness through Visual Imagery. Yanli Jia et al. Journal of Consumer Psychology, https://www.journals.elsevier.com/journal-of-consumer-psychology/forthcoming-articles/physical-proximity-increases-persuasive-effectiveness

Abstract: Six experiments converged on the conclusion that consumers' physical distance from the verbal description of an event or a product can influence their beliefs in its implications. For example, participants' proximity to information about the likelihood of surviving an airline crash can influence their expectations that there would be survivors of a real-life airplane accident, and being close to the description of a commercial product can influence beliefs that the product would be effective. These and other effects are mediated by the vividness of the mental image that participants form on the basis of the information. Consequently, the effects were attenuated when participants are under high cognitive load or when the verbal description lacks the detail necessary for forming a clear mental image. Alternative interpretations in terms of task involvement, perceptual fluency and construal levels are evaluated.
Firm Performance in the Face of Fear: How CEO Moods Affect Firm Performance. Ali Akansu et al. Journal of Behavioral Finance, http://www.tandfonline.com/doi/abs/10.1080/15427560.2017.1338704?journalCode=hbhf20

Abstract: The authors use facial emotion recognition software to quantify CEO mood. Anger or disgust motivates a CEO to work harder to improve his or her situation; thus firm profitability improves in the subsequent quarter. Happy CEOs are less likely to work on hard or unpleasant tasks; thus profitability decreases in the subsequent quarter. In the short term, fear explains the firm's announcement period market performance. However, fear is transient and performance improvement is short term.

KEYWORDS: Corporate governance, CEO, Firm performance, Moods, Affect, Emotions, Nonverbal information, Facial recognition, Emotion recognition, Soft information

Getting the Rich and Powerful to Give

Getting the Rich and Powerful to Give. Judd Kessler, Katherine Milkman & Yiwei Zhang. University of Pennsylvania Working Paper, June 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2994367

Abstract: What motivates the rich and powerful to exhibit generosity? We explore this important question in a large field experiment. We solicit donations from 32,174 alumni of an Ivy League university, including thousands of rich and powerful alumni. Consistent with past psychology research, we find that the rich and powerful respond dramatically, and differently than others, to being given a sense of agency over the use of donated funds. Gifts from rich and powerful alumni increase by 200-300 percent when they are given a sense of agency. Results suggest that motivating the rich and powerful to act may require tailored interventions.

Keywords: charitable giving, agency, natural field experiment, wealth

The world looks better together: How close others enhance our visual experiences

The world looks better together: How close others enhance our visual experiences. Erica Boothby et al. Personal Relationships, http://onlinelibrary.wiley.com/doi/10.1111/pere.12201/abstract

Abstract: People derive a number of benefits from sharing experiences with close others. However, most research on this topic has been restricted to forms of sharing involving explicit socializing, including verbal communication, emotion expression, and behavioral interaction. In two studies, these complexities were eliminated to find out whether merely experiencing visual stimuli (photographs) simultaneously with a close other - without communicating - enhances people's evaluations of those stimuli relative to coexperiencing the same stimuli with a stranger or alone. Compared to when viewers were alone, visual scenes were enhanced (better liked and seen as more real) when coexperienced with a close other and were liked less when coexperienced with a stranger. Implications for close relationships are discussed.

Shareholder Protection and Agency Costs: An Experimental Analysis

Shareholder Protection and Agency Costs: An Experimental Analysis. Jacob LaRiviere, Matthew McMahon & William Neilson. Management Science, http://onlinelibrary.wiley.com/doi/10.1002/bdm.2023/abstract

Abstract: Two competing principal-agent models explain why firms pay dividends. The substitute model proposes that corporate insiders pay dividends to signal and build trust with outside shareholders who lack legal protection. The outcome model, in contrast, surmises that when shareholders have legal protection, they demand dividends from insiders to prevent them from expropriating corporate funds. Either way, dividends represent an agency cost paid to align the interests of shareholders and insiders. Expropriations by insiders and reduced investment by shareholders are also agency costs, but they are difficult to identify with archival data. Using a laboratory experiment, we identify the impact of strengthened shareholder protection on all three types of agency costs. Dividend payout ratios are five times larger with stronger investor protection, insider expropriation ratios are twice as high, and outsider investment falls by 45%. Thus, we find evidence that strengthening shareholder protection introduces previously unidentified agency costs into the insider-investor relationship.

Retirement, Consumption of Political Information, and Political Knowledge

Retirement, Consumption of Political Information, and Political Knowledge. Marcel Garz. European Journal of Political Economy, https://doi.org/10.1016/j.ejpoleco.2017.07.004

Abstract: Democratic societies depend on citizens being informed about candidates and representatives, to allow for optimal voting and political accountability. As the Fourth Estate, news media have a crucial role in this context. However, due to selective exposure, media bias, and endogeneity it is not a priori clear if news consumption increases voter information. Focusing on the increase in leisure time that is associated with retirement, this study investigates whether changes in the consumption of political information affect campaign-related knowledge. For that purpose, I use survey data pertaining to the 2000, 2004, and 2008 US presidential elections. Instrumenting with eligibility for old age benefits, the results show that retirement improves respondents' performance in answering knowledge questions. The effect is mostly driven by additional exposure to newscasts and newspapers. There is also evidence of increasing polarization due to retirement.

JEL classification: D12; D83; J14; J26

Keywords: Learning; Media effects; News consumption; Political knowledge; Retirement

The dark side of the sublime: Distinguishing a threat-based variant of awe

Gordon, A. M., Stellar, J. E., Anderson, C. L., McNeil, G. D., Loew, D., & Keltner, D. (2017). The dark side of the sublime: Distinguishing a threat-based variant of awe. Journal of Personality and Social Psychology, 113(2), 310-328. http://dx.doi.org/10.1037/pspp0000120

Abstract: Theoretical conceptualizations of awe suggest this emotion can be more positive or negative depending on specific appraisal processes. However, the emergent scientific study of awe rarely emphasizes its negative side, classifying it instead as a positive emotion. In the present research we tested whether there is a more negative variant of awe that arises in response to vast, complex stimuli that are threatening (e.g., tornadoes, terrorist attack, wrathful god). We discovered people do experience this type of awe with regularity (Studies 1 & 4) and that it differs from other variants of awe in terms of its underlying appraisals, subjective experience, physiological correlates, and consequences for well-being. Specifically, threat-based awe experiences were appraised as lower in self-control and certainty and higher in situational control than other awe experiences, and were characterized by greater feelings of fear (Studies 2a & 2b). Threat-based awe was associated with physiological indicators of increased sympathetic autonomic arousal, whereas positive awe was associated with indicators of increased parasympathetic arousal (Study 3). Positive awe experiences in daily life (Study 4) and in the lab (Study 5) led to greater momentary well-being (compared with no awe experience), whereas threat-based awe experiences did not. This effect was partially mediated by increased feelings of powerlessness during threat-based awe experiences. Together, these findings highlight a darker side of awe.

The Limits of Partisan Prejudice

The Limits of Partisan Prejudice. Yphtach Lelkes and Sean Westwood. Journal of Politics, April 2017, Pages 485-501, http://www.journals.uchicago.edu/doi/abs/10.1086/688223

Abstract: Partisanship increasingly factors into the behavior of Americans in both political and nonpolitical situations, yet the bounds of partisan prejudice are largely unknown. In this paper, we systematically evaluate the limits of partisan prejudice using a series of five studies situated within a typology of prejudice. We find that partisan prejudice predicts suppression of hostile rhetoric toward one's own party, avoidance of members of the opposition, and a desire for preferential treatment for one's own party. While these behaviors may cause incidental or indirect harm to the opposition, we find that even the most affectively polarized - those with the strongest disdain for the opposition - are no more likely to intentionally harm the opposition than those with minimal levels of affective polarization.

Genetic and environmental sources of individual differences in views on aging

Kornadt, A. E., & Kandler, C. (2017). Genetic and environmental sources of individual differences in views on aging. Psychology and Aging, 32(4), 388-399. http://dx.doi.org/10.1037/pag0000174

Abstract: Views on aging are central psychosocial variables in the aging process, but knowledge about their determinants is still fragmental. Thus, the authors investigated the degree to which genetic and environmental factors contribute to individual differences in various domains of views on aging (wisdom, work, fitness, and family), and whether these variance components vary across ages. They analyzed data from 350 monozygotic and 322 dizygotic twin pairs from the Midlife Development in the U.S. (MIDUS) study, aged 25–74. Individual differences in views on aging were mainly due to individual-specific environmental and genetic effects. However, depending on the domain, genetic and environmental contributions to the variance differed. Furthermore, for some domains, variability was larger for older participants; this was attributable to increases in environmental components. This study extends research on genetic and environmental sources of psychosocial variables and stimulates future studies investigating the etiology of views on aging across the life span.

Photographic Memory: The Effects of Volitional Photo Taking on Memory for Visual and Auditory Aspects of an Experience

Photographic Memory: The Effects of Volitional Photo Taking on Memory for Visual and Auditory Aspects of an Experience. Alixandra Barasch et al. Psychological Science, https://www.ncbi.nlm.nih.gov/pubmed/28650721

Abstract: How does volitional photo taking affect unaided memory for visual and auditory aspects of experiences? Across one field and three lab studies, we found that, even without revisiting any photos, participants who could freely take photographs during an experience recognized more of what they saw and less of what they heard, compared with those who could not take any photographs. Further, merely taking mental photos had similar effects on memory. These results provide support for the idea that photo taking induces a shift in attention toward visual aspects and away from auditory aspects of an experience. Additional findings were in line with this mechanism: Participants with a camera had better recognition of aspects of the scene that they photographed than of aspects they did not photograph. Furthermore, participants who used a camera during their experience recognized even nonphotographed aspects better than participants without a camera did. Meta-analyses including all reported studies support these findings.

Our own action kinematics predict the perceived affective states of others

Our own action kinematics predict the perceived affective states of others. Rosanna Edey et al.
Journal of Experimental Psychology: Human Perception and Performance, July 2017, Pages 1263-1268, https://www.ncbi.nlm.nih.gov/pubmed/28639823

Abstract: Our movement kinematics provide useful cues about our affective states. Given that our experiences furnish models that help us to interpret our environment, and that a rich source of action experience comes from our own movements, in the present study, we examined whether we use models of our own action kinematics to make judgments about the affective states of others. For example, relative to one's typical kinematics, anger is associated with fast movements. Therefore, the extent to which we perceive anger in others may be determined by the degree to which their movements are faster than our own typical movements. We related participants' walking kinematics in a neutral context to their judgments of the affective states conveyed by observed point-light walkers (PLWs). As predicted, we found a linear relationship between one's own walking kinematics and affective state judgments, such that faster participants rated slower emotions more intensely relative to their ratings for faster emotions. This relationship was absent when observing PLWs where differences in velocity between affective states were removed. These findings suggest that perception of affective states in others is predicted by one's own movement kinematics, with important implications for perception of, and interaction with, those who move differently.

Social Distance Increases Perceived Physical Distance

Social Distance Increases Perceived Physical Distance. Andrea Stevenson Won, Ketaki Shriram & Diana Tamir. Social Psychological and Personality Science, http://journals.sagepub.com/doi/abs/10.1177/1948550617707017

Abstract: Proximity, or spatial closeness, can generate social closeness - the closer people are together, the more they interact, affiliate, and befriend one another. Mediated communication allows people to bridge spatial distance and can increase social closeness between conversational partners, even when they are separated by distance. However, mediated communication may not always make people feel closer together. Here, we test a hypothesis derived from construal theory, about one way in which mediated communication might increase spatial distance, by imposing social distance between two texting partners. In three studies, the social distance generated by a text conversation correlated with estimates of spatial distance. Conversations designed to generate social distance increased estimates of spatial distance. We discuss this relationship in light of the rise in computer-mediated communication.

The Dark Side of Fluency: Fluent Names Increase Drug Dosing

The Dark Side of Fluency: Fluent Names Increase Drug Dosing. Simone Dohle and Amanda Montoya. Journal of Experimental Psychology: Applied, https://www.ncbi.nlm.nih.gov/pubmed/28639797

Abstract: Prior research has demonstrated that high processing fluency influences a wide range of evaluations and behaviors in a positive way. But can high processing fluency also lead to potentially hazardous medical behavior? In 2 controlled experiments, we demonstrate that increasing the fluency of pharmaceutical drug names increases drug dosage. Experiment 1 shows that drugs with fluent names are perceived as safer than those with disfluent names and this effect increases drug dosage for both synthetically produced and herbal drugs. Experiment 2 demonstrates that people chose a higher dosage for themselves and for a child if the drug bears a fluent (vs. disfluent) name. Using linear regression based mediation analysis, we investigated the underlying mechanisms for the effect of fluency on risk perception in more detail. Contrary to prior research, we find that affect, but not familiarity, mediates the fluency-risk link. Our findings suggest that a drug name's fluency is a powerful driver of dosing behavior.

Great Works: A Reciprocal Relationship Between Spatial Magnitudes and Aesthetic Judgment

Great Works: A Reciprocal Relationship Between Spatial Magnitudes and Aesthetic Judgment. Angelika Seidel and Jesse Prinz. Psychology of Aesthetics, Creativity, and the Arts, https://www.researchgate.net/publication/317668868_Great_Works_A_Reciprocal_Relationship_Between_Spatial_Magnitudes_and_Aesthetic_Judgment

Abstract: Inspired by the work of the great aestheticians of the 1700s and modern psychological work in spatial cognition, we sought to test the bidirectional relationship between spatial magnitudes and aesthetic value. In a series of 5 experiments, we show that changing the size and position of a painting can impact judgments of its aesthetic value, and conversely. The same painting is believed to be larger when presented as a master artist's versus as a student's work (Experiment 1). Increasing the size of painting makes it seem better (Experiment 2). A painting presented as a master's work appears larger, closer, and better than when presented as a fake (Experiment 3). Master artists' paintings are recommended to be placed higher on the wall than students' paintings (Experiment 4). Finally, when hung high, a painting is judged better than when it is presented at eye level, and worse when it is presented below eye level (Experiment 5). Together these findings demonstrate a reciprocal relationship between the greatness of a work and its spatial position and scale.

Babies and math: A meta-analysis of infants’ simple arithmetic competence

Christodoulou, J., Lac, A., & Moore, D. S. (2017). Babies and math: A meta-analysis of infants’ simple arithmetic competence. Developmental Psychology, 53(8), 1405-1417.
http://dx.doi.org/10.1037/dev0000330

Abstract: Wynn’s (1992) seminal research reported that infants looked longer at stimuli representing “incorrect” versus “correct” solutions of basic addition and subtraction problems and concluded that infants have innate arithmetical abilities. Since then, infancy researchers have attempted to replicate this effect, yielding mixed findings. The present meta-analysis aimed to systematically compile and synthesize all of the primary replications and extensions of Wynn (1992) that have been conducted to date. The synthesis included 12 studies consisting of 26 independent samples and 550 unique infants. The summary effect, computed using a random-effects model, was statistically significant, d = +0.34, p < .001, suggesting that the phenomenon Wynn originally reported is reliable. Five different tests of publication bias yielded mixed results, suggesting that while a moderate level of publication bias is probable, the summary effect would be positive even after accounting for this issue. Out of the 10 metamoderators tested, none were found to be significant, but most of the moderator subgroups were significantly different from a null effect. Although this meta-analysis provides support for Wynn’s original findings, further research is warranted to understand the underlying mechanisms responsible for infants’ visual preferences for “mathematically incorrect” test stimuli.

Monday, July 31, 2017

Status goods: experimental evidence from platinum credit cards

Bursztyn, Leonardo A.; Ferman, Bruno; Fiorin, Stefano; Kanz, Martin; Rao, Gautam. 2017. Status goods: experimental evidence from platinum credit cards. Policy Research working paper; no. WPS 8064. Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/432691494944222346/Status-goods-experimental-evidence-from-platinum-credit-cards

This paper provides novel evidence on status goods, using a series of field experiments with an Indonesian bank that markets platinum credit cards to high-income customers. In a first experiment, the paper shows that demand for the platinum card greatly exceeds demand for a nondescript control product with identical benefits, suggesting demand for the pure status aspect of the card. Transaction data reveal that platinum cards are more likely to be used in social contexts, implying social image motivations. Combining price variation with information on the use of the card sheds light on the magnitude of the demand for social status. A second experiment provides evidence of positional externalities from the consumption of these status goods. The final experiment shows that increasing self-esteem causally reduces demand for status goods. This suggests that part of the demand for status is psychological in nature, and that social image is a substitute for self-image.