scholarly journals Shortcomings of experimental economics to study human behavior: a reanalysis of Cohn et al. 2014, Nature 516, 86–89, ‘‘Business culture and dishonesty in the banking industry’’

2018 ◽  
Author(s):  
Jean-Michel Hupé
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Business Culture ◽  
Evidence Based ◽  
Modeling And Simulations ◽  
Multiple Selves ◽  
Data Set ◽  
Financial Scandals ◽  
Bank Employees ◽  
Main Message

In the wake of financial scandals, Cohn and collaborators published a headline-grabber study in the field of behavioral economics. M.C. Villeval (2014) summarized the main message as follows, in News and Views of the Nature issue where the Cohn study was published: the “experiment shows that although bank employees behave honestly on average, their dishonesty increases when they make decisions after having been primed to think about their professional identity.” Cohn et al. thus provide evidence that “the incentives and the business culture developed in the financial sector may undermine the honesty norms of ordinary employees.” This study may have important consequences for policy, since, Villeval continues, “it is crucial to ensure a business culture of honesty in this industry to restore trust in it.” Villeval also argues that “from a scientific perspective, this study […] supports the economic theory of social identity […], links this theory with the economic analysis of lying behavior [… and] shows how behavioural economists can contribute to a broader reflection in science about how people manage their 'multiple selves' ”. Here I show that the use of flawed statistics methods, yet employed routinely in so-called “evidence-based” science, led the authors to distort the “evidence”. I am also using this data-set as an interesting example to explore how we can use modeling and simulations to provide a fair account of the information and uncertainty conveyed by the data, based on Confidence Intervals. I provide the R-code. Based on this paper, I question the contribution of behavioral economics to the understanding of human behavior and conclude with considerations on honesty and science.

A New Model of Man in Economics

2011 ◽  
pp. 78-98
Author(s):  
M. Storchevoy
Keyword(s):  
Behavioral Economics ◽  
Human Behavior ◽  
Social Factors ◽  
Rational Behavior ◽  
New Model ◽  
Common Framework

The paper draws on the most recent research in the field of behavioral economics, neuroscience, and other disciplines and shows how biological and social factors interact and co-determine real human behavior. The author considers in detail various affects and forms of non-rational behavior. He proposes a common framework for such analysis, where each of those forms of behavior becomes the result of conscious or evolutionary-driven choice.

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.

An Exploration of Bank Confirmation Process Automation: A Longitudinal Study

2020 ◽  
Author(s):  
Paul Caster ◽  
Randal J. Elder ◽  
Diane J. Janvrin
Keyword(s):  
Technology Use ◽  
Exploratory Study ◽  
Error Rates ◽  
Third Party ◽  
Future Research ◽  
Process Automation ◽  
Data Set ◽  
Big 4 ◽  
Bank Employees ◽  
The U.S

This exploratory study examines automation of the bank confirmation process using longitudinal data set from the largest third-party U.S. confirmation service provider supplemented with informal interviews with practitioners. We find a significant increase in electronic confirmation use in the U.S. and internationally. Errors requiring reconfirmation were less than two percent of all electronic confirmations. Errors made by auditors were almost five times more likely than errors by bank employees. Most auditor errors involved use of an invalid account number, although invalid client contact, invalid request, and invalid company name errors increased recently. Big 4 auditors made significantly more confirmation errors than did auditors at non-Big 4 national firms. Error rates and error types do not vary between confirmations initiated in the U.S. and those initiated internationally. Three themes emerged for future research: authentication of evidence, global differences in technology use, and technology adoption across firms of different sizes.

Measuring Municipal Participation in Homeless Governance

2021 ◽  
pp. 52-66
Author(s):  
Charley E. Willison
Keyword(s):  
Housing Policy ◽  
Urban Areas ◽  
The United States ◽  
Supportive Housing ◽  
The Political ◽  
Evidence Based ◽  
Housing Policies ◽  
Chronic Homelessness ◽  
Data Set ◽  
Municipal Level

Chapter 4 examines national variation in municipal responses to chronic homelessness, identifying the prevalence of municipal-level supportive housing policies among municipalities affected by homelessness in the United States and identifying and examining factors associated with the presence of a municipal-level supportive housing policy. The presence of municipal-level supportive housing policies is an indication of evidence-based policy adoption to address chronic homelessness effectively in urban areas. To date, there has been almost no research on the political predictors of the adoption of these evidence-based policies. Results demonstrate that most municipalities facing homelessness challenges do not have supportive housing policies. Of the municipalities in the data set, only 40% had a municipal-level supportive housing policy. These municipalities tend to be: more liberal; sanctuary cities; have fewer but better funded nonprofit health organizations; lower rates of municipal governmental fragmentation; and located in states without Medicaid expansion.

Honesty in Regional Cooperative Banks

2019 ◽  
Vol 52 (3) ◽  
pp. 423-444
Author(s):  
Kai-Oliver Maurer
Keyword(s):  
Banking Industry ◽  
Jel Classification ◽  
Small Sample ◽  
Control Group ◽  
Business Culture ◽  
Ethical Dimension ◽  
Corporate Scandals ◽  
International Bank ◽  
Bank Employees ◽  
Cooperative Banks

Abstract Corporate scandals are not a phenomenon that is unique to the banking industry. However, the examples of misconduct of individual bank employees or even of entire banks that popped up in recent years have promoted the interest in business culture and business ethics in the banking industry. Honesty is one important cultural and ethical dimension. Based on their results of a survey in a large, international bank Cohn et al. (2014a), for example, conclude that the banking industry’s business culture favours dishonest behaviour of employees. The present paper applies the design of Cohn et al. (2014a) to a small sample of regional cooperative banks in Germany in order to verify their outcome. The results of Cohn et al. (2014a) cannot be confirmed. There is no evidence of more dishonesty among employees of the banks in the sample relative to a control group. Business culture in the banking industry differs between banks or group of banks, a fact that needs to be considered e.g. by legislators. JEL Classification: C12, M14, G21, G41

Towards an evidence-based 3D conformal radiotherapy prostate protocol: what is the role of spiral CT?

2000 ◽  
Vol 1 (4) ◽  
pp. 179-189 ◽  
Author(s):  
John Newnham
Keyword(s):  
Conformal Radiotherapy ◽  
Spiral Ct ◽  
Target Volume ◽  
Three Dimensions ◽  
Evidence Based ◽  
Data Set ◽  
3D Conformal Radiotherapy ◽  
Treatment Planning Systems ◽  
3D Crt

Aim: To define the role of spiral CT in evolving an evidence-based 3D Conformal Radiotherapy (CRT) prostate protocol at Lincoln, UK.Discussion: Tumour doses traditionally prescribed at this centre to the prostate planning target volume (PTV) (64 Gy in 32 fractions) cannot be further escalated without modification of existing technique and may currently be inadequate to obtain the highest probability of local control. Prostate CRT has been demonstrated to be well tolerated with both conventional and escalated doses, however as 3D CRT PTV margins are tightened, prostate position has to be reliably predicted to avoid geographic misses or unacceptable normal tissue toxicity. The question of prostate position variability might be addressed by sequential on-treatment spiral CT scans at this centre. Spiral CT offers specific advantages of speed, small detail conspicuity, and arbitrary axial reconstruction compared to conventional CT with no attached dose penalty. Spiral CT coupled to the next generation of radiotherapy treatment planning systems (RTPs) may soon replace the CT virtual-simulator. There are significant hardware discrepancies between some present generation CT couch tops and linac couch tops. Recently published CT studies that consider prostate position variability may be fundamentally and significantly flawed due to these couch top differences. Due to a paucity of reported evidence regarding immobilisation methods, a spiral CT study is warranted to assess efficacy of immobilization method for an evidence-based prostate protocol. Confirmative spiral CT research at this centre into prostate position variability is required to select adequate margins to form the PTV for an evidence-based 3D CRT prostate protocol. Such a spiral CT study could be integrated with the immobilisation study and may separate or define the correlation (which at present is both unclear and unreported) between pelvic immobilization and prostate position variability. Initial PTV margins defined by expanding the CTV in three dimensions using an ellipsoid with major axes 1.65 times one standard deviation of prostatic displacement reported in initial studies to obtain margins of 0.7 cm laterally, 0.7 cm cranio-caudally and 1.1 cm in the AP direction are presently indicated for this centre's evidence-based prostate protocol.Conclusion: Spiral CT will provide the essential data set for 3D CRT planning for an evidence-based prostate protocol at Lincoln. Confirmative research using spiral CT is also warranted to assess daily prostate position variability and help define the prostate PTV for an evidence based prostate protocol at this centre.

An Intelligent Security Camera System for Kidnapping Detection

2013 ◽  
Vol 17 (5) ◽  
pp. 746-752 ◽  
Author(s):  
Akira Miyahara ◽  
◽  
Itaru Nagayama
Keyword(s):  
Human Behavior ◽  
Moving Objects ◽  
Video Stream ◽  
Training Data ◽  
Video Streams ◽  
Camera System ◽  
Data Set ◽  
Motion Characteristics ◽  
Key Techniques ◽  
Intelligent Security

In this paper, we propose an automated video surveillance system for kidnapping detection using featurebased characteristics. The localization of moving objects in a video stream and human behavior estimation are key techniques adopted by the proposed system. Some motion characteristics are determined from video streams, and using metrics such as a feature vector, the system automatically classifies the video streams into criminal and non-criminal scenes. The proposed system is called an intelligent security camera. We consider many types of scenarios for the training data set. After constructing the classifier, we use test sequences that are continuous video streams of human behavior consisting of several actions in succession. The experimental results show that the system can effectively detect criminal scenes, such as a kidnapping, by distinguishing human behavior.

Research Note: Personalism and Corporate Networks in Singapore

1999 ◽  
Vol 20 (5) ◽  
pp. 861-877 ◽  
Author(s):  
Xiaowei Zang
Keyword(s):  
Southeast Asia ◽  
Family Ownership ◽  
Business Culture ◽  
Business Networks ◽  
Chinese Firms ◽  
Data Set ◽  
Corporate Networks ◽  
Chinese Business ◽  
East And Southeast Asia ◽  
Different Levels

Using a data set on 107 large Chinese firms, I examine inter-firm connectedness in Singapore. The analysis shows that firms in Singapore exhibit different levels of networking activities. Chinese firms that are owned by family have huge assets, good financial standing and are at the centre of business networks in Singapore. Big Chinese firms interlock with one another under the influence of Chinese business culture that stresses the importance of reputation and family ownership in networking activities. Personalism is a useful framework for gaining a good understanding of inter-firm relations in East and Southeast Asia.

Meanings and Functions of Money in Different Cultural Milieus

2019 ◽  
Vol 70 (1) ◽  
pp. 475-497 ◽  
Author(s):  
Dov Cohen ◽  
Faith Shin ◽  
Xi Liu
Keyword(s):  
Behavioral Economics ◽  
Ethnic Groups ◽  
Human Behavior ◽  
Human Psychology ◽  
The Family ◽  
The World ◽  
The Individual ◽  
Economic Need ◽  
Different Cultures ◽  
Descriptive Models

We explore the psychological meanings of money that parallel its economic functions. We explore money's ability to ascribe value, give autonomy, and provide security for the future, and we show how each of these functions may play out differently in different cultural milieus. In particular, we explore the meanings and uses of money across ethnic groups and at different positions on the socioeconomic ladder, highlighting changes over the last 50 years. We examine the dynamics of redistribution between the individual, the family, and the state in different cultures, and we analyze the gendering of money in the world of high finance and in contexts of economic need. The field of behavioral economics has illustrated how human psychology complicates the process of moving from normative to descriptive models of human behavior; such complexity increases as we incorporate the great diversity within human psychology.

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