The economics of cognitive effort

2013 ◽  
Vol 36 (6) ◽  
pp. 704-705 ◽  
Author(s):  
John Andrew Westbrook ◽  
Todd S. Braver
Keyword(s):  
Behavioral Economics ◽  
Economic Value ◽  
Cognitive Effort ◽  
Opportunity Costs ◽  
Behavioral Economic ◽  
Cost Factors

AbstractIf cognitive effort indexes opportunity costs, it should be investigated like other cost factors including risk and delay. We discuss recent methodological advances in behavioral economics and neuroeconomics, highlighting our own work in measuring the subjective (economic) value of cognitive effort. We discuss the implications of Kurzban et al.'s proposal and how some of its predictions may be untestable without behavioral economic formalisms.

Economics and Epicycles

2020 ◽  
pp. 174569162095378
Author(s):  
Satoshi Kanazawa
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Evolutionary Biology ◽  
Cognitive Biases ◽  
Behavioral Economic ◽  
Nonhuman Animals ◽  
Human Actors ◽  
Economic Studies

I aver that standard economics as a model of human behavior is as incorrect in 2017 (after Thaler) as geocentrism was as a model of celestial behavior in 1617 (after Galileo). Behavioral economic studies that have exposed the paradoxes and anomalies in standard economics are akin to epicycles on geocentrism. Just as no amount of epicycles could salvage geocentrism as a model of celestial behavior because it was fundamentally incorrect, no amount of behavioral economic adjustments could salvage standard economics as a model of human behavior because it is fundamentally incorrect. Many of the cognitive biases exhibited by humans are shared by other species, so not only are human actors Humans (as opposed to Econs), but nonhuman animals as phylogenetically distant from humans as ants and locusts are also Humans. Evolutionary biology as a model of human behavior can explain many of the hitherto unexplained cognitive biases and provide a unifying model of human behavior currently lacking in behavioral economics.

scholarly journals The Value of Behavioral Economics for EU Judicial Decision-Making

2020 ◽  
Vol 21 (2) ◽  
pp. 240-264
Author(s):  
Christoph K. Winter
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Hindsight Bias ◽  
Judicial Decision ◽  
Behavioral Economic ◽  
Judicial Decision Making ◽  
Fundamental Freedoms ◽  
Cognitive Illusions ◽  
Proportionality Test ◽  
The Impact

AbstractThis Article analyzes the value of behavioral economics for EU judicial decision-making. The first part introduces the foundations of behavioral economics by focusing on cognitive illusions, prospect theory, and the underlying distinction between different processes of thought. The second part examines the influence of selected biases and heuristics, namely the anchoring effect, availability bias, zero-risk bias, and hindsight bias on diverse legal issues in EU law including, among others, the scope of the fundamental freedoms, the proportionality test as well as the roles of the Advocate General and Reporting Judge. The Article outlines how behavioral economic findings can be taken into account to improve judicial decision-making. Accordingly, the adaptation of judicial training concerning cognitive illusions, the establishment of a de minimis rule regarding the scope of the fundamental freedoms, and the use of economic models when determining the impact of certain measures on fundamental freedoms is suggested. Finally, an “unbiased jury” concentrating exclusively on specific factual issues such as causal connections within the proportionality test is necessary, if the hindsight bias is to be avoided. While it is of great importance to take behavioral economic findings into account, judicial decision-making is unlikely to become flawless based on natural intelligence. Despite bearing fundamental risks, artificial intelligence may provide means to achieve greater fairness, consistency, and legal certainty in the future.

scholarly journals On the use of opportunity costs in deriving the economic value of herd life

1997 ◽  
Vol 65 (3) ◽  
pp. 335-341 ◽  
Author(s):  
A. F. Groen ◽  
J. A. M. van Arendonk ◽  
M. E. Goddard ◽  
A. R. Vollema
Keyword(s):  
Genetic Improvement ◽  
Economic Value ◽  
Opportunity Costs ◽  
Economic Values ◽  
Future Production ◽  
Breeding Goals ◽  
Economic Perspectives ◽  
Reduction Of Costs

AbstractThis paper presents the economic perspectives applied when either using or not using opportunity costs of postponed replacement in deriving the economic value of herd life. Results show the equivalence of the rescaling method and the correction for opportunity costs. In economic terms, using rescaling or correction for opportunity costs forces the value of genetic improvement to change from revenues of increased output to reduction of costs per unit of (fixed) ouput. Under the zero profit theory, the economic value of herd life is equal when either using or not using correction for opportunity costs. In deriving economic values to define breeding goals, the choice of a method and price parameters will have to depend on foreseen future production circumstances for the system under study.

scholarly journals Quantifying the Impact of Public Perceptions on Vaccine Acceptance Using Behavioral Economics

2020 ◽  
Vol 8 ◽  
Author(s):  
Steven R. Hursh ◽  
Justin C. Strickland ◽  
Lindsay P. Schwartz ◽  
Derek D. Reed
Keyword(s):  
Behavioral Economics ◽  
Vaccine Efficacy ◽  
Development Process ◽  
Vaccine Development ◽  
Rapid Development ◽  
Public Perceptions ◽  
Mixed Effect ◽  
Behavioral Economic ◽  
Vaccine Acceptance ◽  
The Impact

This study was conducted to evaluate the impact of public perceptions of vaccine safety and efficacy on intent to seek COVID-19 vaccination using hypothetical vaccine acceptance scenarios. The behavioral economic methodology could be used to inform future public health vaccination campaigns designed to influence public perceptions and improve public acceptance of the vaccine. In June 2020, 534 respondents completed online validated behavioral economic procedures adapted to evaluate COVID-19 vaccine demand in relation to a hypothetical development process and efficacy. An exponential demand function was used to describe the proportion of participants accepting the vaccine at each efficacy. Linear mixed effect models evaluated development process and individual characteristic effects on minimum required vaccine efficacy required for vaccine acceptance. The rapid development process scenario increased the rate of decline in acceptance with reductions in efficacy. At 50% efficacy, 68.8% of respondents would seek the standard vaccine, and 58.8% would seek the rapid developed vaccine. Rapid vaccine development increased the minimum required efficacy for vaccine acceptance by over 9 percentage points, γ = 9.36, p < 0.001. Past-3-year flu vaccination, γ = −23.00, p < 0.001, and male respondents, γ = −4.98, p = 0.037, accepted lower efficacy. Respondents reporting greater conspiracy beliefs, γ = 0.39, p < 0.001, and political conservatism, γ = 0.32, p < 0.001, required higher efficacy. Male, γ = −4.43, p = 0.013, and more conservative, γ = −0.09, p = 0.039, respondents showed smaller changes in minimum required efficacy by development process. Information on the vaccine development process, vaccine efficacy, and individual differences impact the proportion of respondents reporting COVID-19 vaccination intentions. Behavioral economics provides an empirical method to estimate vaccine demand to target subpopulations resistant to vaccination.

scholarly journals Opportunity Costs of REDD+ to the Communities of Mufindi District, Iringa, Tanzania

2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
Faraji Nuru ◽  
Jumanne Moshi Abdallah ◽  
Yonika Mathew Ngaga
Keyword(s):  
Economic Value ◽  
Tree Planting ◽  
Unit Price ◽  
Opportunity Costs ◽  
Land Uses ◽  
Forest Reserve ◽  
Aboveground Carbon ◽  
Key Informant ◽  
Key Informant Interview ◽  
Carbon Dioxide Equivalent

The study was done to assess the opportunity costs of REDD+ to the communities of Mufindi District which is located in the Southern Highlands of Tanzania. The specific objectives were, to identify and assess the economic value of alternative land uses, the aboveground carbon stock of Idewa Forest Reserve (IFR), and the profitability of each land use as compared to REDD+ incentives. Data were collected using questionnaire survey, key informant interview, and forest inventory and data were analyzed using the Excel programme. Results showed that the main land uses were agriculture and tree planting with economic values of $2958.52 and $3272.94 per ha per year, respectively. The total aboveground carbon was 39.23 t/ha (143.97/ha). The opportunity costs of REDD+ was varying depending on the price per ton of carbon. The opportunity costs of REDD+ will be profitable if the price per tCO2e will be at least $23. It can therefore be concluded that there is no general unit price per ton of carbon dioxide equivalent (tCO2e), as it depends on REDD+ opportunity cost when compared with alternative land uses within a particular place. Therefore we recommend opportunity costs of REDD+ to communities be used to guide decision making on unit prices of carbon.

The behavioral economics of addiction: A comprehensive alternative

1996 ◽  
Vol 19 (4) ◽  
pp. 578-579 ◽  
Author(s):  
Edmund Fantino
Keyword(s):  
Behavioral Economics ◽  
Behavioral Approach ◽  
Economic Approach ◽  
Behavioral Economic ◽  
Strong Case ◽  
Target Article

AbstractHeyman's target article makes a strong case for a behavioral approach to addiction, yet some important assumptions require justification, and promising behavioral alternatives to the author's melioration approach should be considered. In particular, the behavioral economic approach to addiction appears well developed and comprehensive. How does the melioration approach complement or improve on a behavioral economic account?

scholarly journals Feasibility of implementing a behavioral economics mobile health platform for individuals with behavioral health conditions

2021 ◽  
Vol 11 (3) ◽  
pp. 505-510
Author(s):  
Barry Granek ◽  
Aja Evans ◽  
Jorge Petit ◽  
Mary Crawford James ◽  
Yixuan (Matt) Ma ◽  
...  
Keyword(s):  
Economic Theory ◽  
Behavioral Economics ◽  
Behavioral Health ◽  
Mobile Technology ◽  
Mobile Health ◽  
Financial Incentives ◽  
Health Conditions ◽  
Health Habits ◽  
Behavioral Economic ◽  
Behavioral Economic Theory

AbstractCoordinated Behavioral Care’s (CBC) Pathway Home™ (PH) program partnered with Wellth, Inc., a mobile health platform grounded in behavioral economics theory, to help individuals with behavioral health conditions build and reinforce health habits by providing daily reminders to take medication, requiring tasks (photos demonstrating remembrance), and providing financial incentives tied to behaviors. CBC made Wellth, Inc. available to individuals enrolling in its PH program for the purpose of demonstrating the feasibility of implementing a novel mobile technology grounded in behavioral economic theory to increase habits of health activities, such as taking medication, among adults with behavioral health conditions.

scholarly journals Behavioral Economical Ethics

2020 ◽  
Vol 25 ◽  
pp. 181-196
Author(s):  
Elmar Nass ◽  
Keyword(s):  
Behavioral Economics ◽  
Social Ethics ◽  
Economic Science ◽  
Behavioral Economic ◽  
Social Doctrine ◽  
Science Models

Catholic social ethics with its understanding of humanity challenges social and economic science models to uncover the underlying image of man and thus the underlying idea of ethics. It can take on a pioneering role in areas lacking such discussions so far. This is why I question the understanding of the fundamental cohesiveness of ethical and economical thinking that is challenged by behavioral economics. The article seeks to spark the discussion, outlining several essential behavioral-economic challenges in the process. The encounter with Catholic Social Doctrine identifies areas of conflict and opens a new chapter on the ethics of Behavioral Economics.

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