Advertising as a Major Source of Human Dissatisfaction: Cross-National Evidence on One Million Europeans. Chloe Michel, Michelle Sovinsky, Eugenio Proto and Andrew J Oswald. Warwick Univ Economics Working Papers, 397. Jan 2019. https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/397-2019_chloe_sovinsky_proto-oswald.pdf
Abstract: Advertising is ubiquitous in modern life.Yet might it be harmful to the happiness of nations? This paper blends longitudinal data on advertising with large-scale surveys on citizens well-being.The analysis uses information on approximately 1 million randomly sampled European citizens across 27 nations over 3 decades. We show that increases in national advertising expenditure are followed by significant declines in levels of life satisfaction.This finding is robust to adjustments for a range of potential confounders -- including the personal and economic characteristics of individuals, country fixed-effects, year dummies, and business-cycle influences.Further research remains desirable. Nevertheless, our empirical results are some of the first to be consistent with the hypothesis that, perhaps by fostering unending desires, high levels of advertising may depress societal well-being.
Thursday, January 10, 2019
Germany, WWII: When a particular fighter pilot received public recognition, both the victory rate & the death rate of his former peers increased, depending on the intensity of prior interactions & social distance
Killer Incentives: Relative Position, Performance and Risk-Taking Among German Fighter Pilots, 1939-45. Philipp Ager, Leonardo Bursztyn, Lukas Leucht, Hans-Joachim Voth. http://home.uchicago.edu/~bursztyn/KillerIncentivesMarch2018.pdf
Abstract: How far are people willing to go to improve their relative standing? We examine the effects of public recognition on the performance and risk-taking among fighter pilots, using newly-collected data on death rates and victory claims of more than 5,000 German pilots during World War II. When a particular fighter pilot received public recognition, both the victory rate and the death rate of his former peers increased. The strength of this spillover depends on the intensity of prior interactions and social distance. Our results suggest that an intrinsic concern about relative standing, beyond instrumental consequences associated with public recognition, was a prime motivating force.
Abstract: How far are people willing to go to improve their relative standing? We examine the effects of public recognition on the performance and risk-taking among fighter pilots, using newly-collected data on death rates and victory claims of more than 5,000 German pilots during World War II. When a particular fighter pilot received public recognition, both the victory rate and the death rate of his former peers increased. The strength of this spillover depends on the intensity of prior interactions and social distance. Our results suggest that an intrinsic concern about relative standing, beyond instrumental consequences associated with public recognition, was a prime motivating force.
Heuristics and Trading Performance of Institutional Investors: Selling Fast and Buying Slow
Akepanidtaworn, Klakow and Di Mascio, Rick and Imas, Alex and Schmidt, Lawrence, Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors (December 2018). http://dx.doi.org/10.2139/ssrn.3301277
Abstract: Most research on heuristics and biases in financial decision-making has focused on non-experts, such as retail investors who hold modest portfolios. We use a unique data set to show that financial market experts - institutional investors with portfolios averaging $573 million - exhibit costly, systematic biases. A striking finding emerges: while investors display clear skill in buying, their selling decisions underperform substantially - even relative to strategies involving no skill such as randomly selling existing positions - in terms of both benchmark-adjusted and risk-adjusted returns. We present evidence consistent with limited attention as a key driver of this discrepancy, with investors devoting more attentional resources to buy decisions than sell decisions. When attentional resources are more likely to be equally distributed between prospective purchases and sales, specifically around company earnings announcement days, stocks sold outperform counterfactual strategies similar to buys. We document managers' use of a heuristic that overweights a salient attribute of portfolio assets - past returns - when selling, whereas we do not observe similar heuristic use for buys. Assets with extreme returns are more than 50% more likely to be sold than those that just under- or over-performed. Finally, we document that the use of the heuristic appears to a mistake and is linked empirically with substantial overall underperformance in selling.
Keywords: behavioral finance; limited attention; heuristics; performance evaluation
JEL Classification: G02, G11, G23
Abstract: Most research on heuristics and biases in financial decision-making has focused on non-experts, such as retail investors who hold modest portfolios. We use a unique data set to show that financial market experts - institutional investors with portfolios averaging $573 million - exhibit costly, systematic biases. A striking finding emerges: while investors display clear skill in buying, their selling decisions underperform substantially - even relative to strategies involving no skill such as randomly selling existing positions - in terms of both benchmark-adjusted and risk-adjusted returns. We present evidence consistent with limited attention as a key driver of this discrepancy, with investors devoting more attentional resources to buy decisions than sell decisions. When attentional resources are more likely to be equally distributed between prospective purchases and sales, specifically around company earnings announcement days, stocks sold outperform counterfactual strategies similar to buys. We document managers' use of a heuristic that overweights a salient attribute of portfolio assets - past returns - when selling, whereas we do not observe similar heuristic use for buys. Assets with extreme returns are more than 50% more likely to be sold than those that just under- or over-performed. Finally, we document that the use of the heuristic appears to a mistake and is linked empirically with substantial overall underperformance in selling.
Keywords: behavioral finance; limited attention; heuristics; performance evaluation
JEL Classification: G02, G11, G23
Contrary to our expectations, there is no discernible link between emotions and estimates of minority group percentages, and in some cases, negative emotions reduce misperceptions
Nothing to fear? Anxiety, numeracy, and demographic perceptions. Yamil Ricardo Velez et al. Research & Politics, https://doi.org/10.1177/2053168018794583
Abstract: Studies have found that Americans tend to overestimate the size of minority populations, a pattern that potentially increases antipathy toward racial and ethnic outgroups due to heightened perceptions of intergroup competition. Recent research, however, suggests that providing people with accurate information about racial and ethnic demographics has no discernible impact on intergroup attitudes. In this study, we consider whether anxiety is responsible for overestimates of racial and ethnic groups in the USA. We conduct an experiment where we manipulate anxiety before asking subjects to estimate the size of racial and ethnic groups at the local and national level. Contrary to our expectations, our findings suggest that there is no discernible link between emotions and estimates of minority group percentages, and in some cases, negative emotions reduce misperceptions.
Keywords: Context, emotions, misperceptions
Abstract: Studies have found that Americans tend to overestimate the size of minority populations, a pattern that potentially increases antipathy toward racial and ethnic outgroups due to heightened perceptions of intergroup competition. Recent research, however, suggests that providing people with accurate information about racial and ethnic demographics has no discernible impact on intergroup attitudes. In this study, we consider whether anxiety is responsible for overestimates of racial and ethnic groups in the USA. We conduct an experiment where we manipulate anxiety before asking subjects to estimate the size of racial and ethnic groups at the local and national level. Contrary to our expectations, our findings suggest that there is no discernible link between emotions and estimates of minority group percentages, and in some cases, negative emotions reduce misperceptions.
Keywords: Context, emotions, misperceptions
Rolf Degen summarizing: After decades of research, we still don't have a clue about which specific components of psychotherapy are helpful for clients, or if there are even any
The Role of Common Factors in Psychotherapy Outcomes. Pim Cuijpers, Mirjam Reijnders, and Marcus J.H. Huibers. Annual Review of Clinical Psychology, Vol. 15:- (Volume publication date May 2019). https://doi.org/10.1146/annurev-clinpsy-050718-095424
Abstract: Psychotherapies may work through techniques that are specific to each therapy or through factors that all therapies have in common. Proponents of the common factors model often point to meta-analyses of comparative outcome studies that show all therapies have comparable effects. However, not all meta-analyses support the common factors model; the included studies often have several methodological problems; and there are alternative explanations for finding comparable outcomes. To date, research on the working mechanisms and mediators of therapies has always been correlational, and in order to establish that a mediator is indeed a causal factor in the recovery process of a patient, studies must show a temporal relationship between the mediator and an outcome, a dose–response association, evidence that no third variable causes changes in the mediator and the outcome, supportive experimental research, and have a strong theoretical framework. Currently, no common or specific factor meets these criteria and can be considered an empirically validated working mechanism. Therefore, it is still unknown whether therapies work through common or specific factors, or both.
Abstract: Psychotherapies may work through techniques that are specific to each therapy or through factors that all therapies have in common. Proponents of the common factors model often point to meta-analyses of comparative outcome studies that show all therapies have comparable effects. However, not all meta-analyses support the common factors model; the included studies often have several methodological problems; and there are alternative explanations for finding comparable outcomes. To date, research on the working mechanisms and mediators of therapies has always been correlational, and in order to establish that a mediator is indeed a causal factor in the recovery process of a patient, studies must show a temporal relationship between the mediator and an outcome, a dose–response association, evidence that no third variable causes changes in the mediator and the outcome, supportive experimental research, and have a strong theoretical framework. Currently, no common or specific factor meets these criteria and can be considered an empirically validated working mechanism. Therefore, it is still unknown whether therapies work through common or specific factors, or both.
How and when taking pictures undermines the enjoyment of experiences; by constantly striving to document their experiences, consumers may unwittingly fail to enjoy those experiences to the fullest
How and when taking pictures undermines the enjoyment of experiences. Gia Nardini, Richard J. Lutz, Robyn A. LeBoeuf. Psychology & Marketing, https://doi.org/10.1002/mar.21194
Abstract: The consumption of experiences (as opposed to products) has seen an increasing amount of research attention in recent years. A key aspect of the experiential consumption journey is how the experience is consumed. For instance, people almost invariably take pictures during highly enjoyable experiences such as vacations or important family events. Although past research has suggested that taking pictures may enhance the enjoyment of moderately enjoyable experiences, the effect of picture taking on the real‐time enjoyment of highly enjoyable experiences is not clear. To address this matter, the authors investigate whether taking pictures affects consumers’ enjoyment of highly enjoyable hedonic experiences. A series of laboratory studies demonstrate that taking pictures (compared with not taking pictures) can decrease enjoyment of highly enjoyable experiences. This study suggests that, by constantly striving to document their experiences, consumers may unwittingly fail to enjoy those experiences to the fullest. These results have implications for how firms may best stage experiential offerings to enhance their customers’ experiences.
Abstract: The consumption of experiences (as opposed to products) has seen an increasing amount of research attention in recent years. A key aspect of the experiential consumption journey is how the experience is consumed. For instance, people almost invariably take pictures during highly enjoyable experiences such as vacations or important family events. Although past research has suggested that taking pictures may enhance the enjoyment of moderately enjoyable experiences, the effect of picture taking on the real‐time enjoyment of highly enjoyable experiences is not clear. To address this matter, the authors investigate whether taking pictures affects consumers’ enjoyment of highly enjoyable hedonic experiences. A series of laboratory studies demonstrate that taking pictures (compared with not taking pictures) can decrease enjoyment of highly enjoyable experiences. This study suggests that, by constantly striving to document their experiences, consumers may unwittingly fail to enjoy those experiences to the fullest. These results have implications for how firms may best stage experiential offerings to enhance their customers’ experiences.
Perception of naturally dead conspecifics impairs health and longevity through serotonin signaling in Drosophila melanogaster
Perception of naturally dead conspecifics impairs health and longevity through serotonin signaling in Drosophila. Tuhin S Chakraborty, Christi M Gendron, Yang Lyu, Allyson S Munneke, Madeline N DeMarco, Zachary W Hoisington, Scott D Pletcher. bioRxiv 515312, https://doi.org/10.1101/515312
Abstract: Sensory perception modulates health and aging across taxa. Understanding the nature of relevant cues and the mechanisms underlying their action may lead to novel interventions that improve the length and quality of life. In humans, psychological trauma is often associated with the recognition of dead individuals, with chronic exposure leading to persistent mental health issues including depression and post-traumatic stress disorder. The mechanisms that link mental and physical health, and the degree to which these are shared across species, remain largely unknown. Here we show that the vinegar fly, Drosophila melanogaster, has the capability to perceive dead conspecifics in its environment and that this perceptive experience induces both short- and long-term effects on health and longevity. Death perception is mediated by visual and olfactory cues, and remarkably, its effects on aging are eliminated by targeted attenuation of serotonin signaling. Our results suggest a complex perceptive ability in Drosophila that reveals deeply conserved mechanistic links between psychological state and aging, the roots of which might be unearthed using invertebrate model systems.
Abstract: Sensory perception modulates health and aging across taxa. Understanding the nature of relevant cues and the mechanisms underlying their action may lead to novel interventions that improve the length and quality of life. In humans, psychological trauma is often associated with the recognition of dead individuals, with chronic exposure leading to persistent mental health issues including depression and post-traumatic stress disorder. The mechanisms that link mental and physical health, and the degree to which these are shared across species, remain largely unknown. Here we show that the vinegar fly, Drosophila melanogaster, has the capability to perceive dead conspecifics in its environment and that this perceptive experience induces both short- and long-term effects on health and longevity. Death perception is mediated by visual and olfactory cues, and remarkably, its effects on aging are eliminated by targeted attenuation of serotonin signaling. Our results suggest a complex perceptive ability in Drosophila that reveals deeply conserved mechanistic links between psychological state and aging, the roots of which might be unearthed using invertebrate model systems.
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