Search results

1

To answer or not to answer? A field test of loss aversion

100%

Krawczyk M.

Ekonomia. Rynek, Gospodarka, Społeczeństwo

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2012

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issue 29

106-114

EN

This study is a field experiment on loss aversion. The framing of scoring rules was differentiated in an exam at the University of Warsaw, with only half the students facing explicit penalty points in the case of giving an incorrect answer. Loss aversion predicts that less risk will be taken (less questions will be answered) when losses are possible but in fact, no treatment effect was observed.

2

An assessment of smoking and non-smoking student preferences for the Thai smoking warning signs

100%

Tangtammaruk P.

Business and Economic Horizons

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2017

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vol. Volume 13

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issue Issue 5

591-603

EN

The standard no smoking sign or prohibition sign which has a red circle with a red diagonal line through a cigarette picture has been used in schools, universities, as well as public places as a smoking prevention tool in Thailand since 1992. Nevertheless, statistical data indicates that the number of new smokers since 2001 to 2014 has not significantly changed and most of the smokers start this habit between the ages of 15-19 years old. This paper thereby aims to test smoker and non-smoker preference in relation to the standard, current smoking signs as well as other types of signs associated with various behavioral economic principles and psychological ideas. The basic reveal preference approach (RP) and state preference approach (SP) were used in order to test their preference, and the economic binary choices model with the maximum likelihood (ML) estimation was used to measure factors affecting the prevalence of smoking. This paper found that the majority of both smokers and non-smokers preferred Pictorial Health Warning (PHWs) signs which relates to the principle of loss aversion to other types of smoking warning sign. Basically, PHWs is used on the cigarette package which is not often seen by the non-smokers, even the smokers can prevent these PHWs by replacing cigarette packs with cigarette holder cases after buying cigarette packs. However, applying PWHs as a sign posted on school, university, and public places can, to a certain extent, make individuals more concerned about their future losses from smoking. Additionally, this paper found that males, and having friends smoking were two significant factors affecting individual smoking behavior. Finally, we hope that an application of PHWs on the smoking signs grounded on the idea of loss aversion could be further developed as another strategy preventing smoking especially for youths in schools and universities.

3

CEO emotional bias and dividend policy: Bayesian network method

75%

Mohamed Ali A., Anis J.

Business and Economic Horizons

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2012

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vol. 7

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issue 1

1-18

EN

This paper assumes that managers, investors, or both behave irrationally. In addition, even though scholars have investigated behavioral irrationality from three angles, investor sentiment, investor biases and managerial biases, we focus on the relationship between one of the managerial biases, overconfidence and dividend policy. Previous research investigating the relationship between overconfidence and financial decisions has studied investment, financing decisions and firm values. However, there are only a few exceptions to examine how a managerial emotional bias (optimism, loss aversion and overconfidence) affects dividend policies. This stream of research contends whether to distribute dividends or not depends on how managers perceive of the company’s future. I will use Bayesian network method to examine this relation. Emotional bias has been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some100 Tunisian executives. Our results have revealed that leader affected by behavioral biases (optimism, loss aversion, and overconfidence) adjusts its dividend policy choices based on their ability to assess alternatives (optimism and overconfidence) and risk perception (loss aversion) to create of shareholder value and ensure its place at the head of the management team.

4

Prospect Theory Versus Expected Utility Theory: Assumptions, Predictions, Intuition and Modelling of Risk Attitudes

75%

Lewandowski M.

Central European Journal of Economic Modelling and Econometrics

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2017

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issue 4

5

Asymptotycznie efektywna strategia odrzucania gier obarczonych zbyt dużym ryzykiem

63%

Drabik E.

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2010

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vol. 57

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issue 1

53-65

EN

Many important economic decisions involve an element of risk. Risk aversion is a concept in economic, game theory, finance and psychology related to the behavior of consumers, players and investors under uncertainty. Loss aversion is an important component of a phenomenon that has been discussed a lot in recent years. Loss aversion is a tendency to feel the pain of a loss more acutely than pleasure of the equal – sized gain. Many scientists have analyzed the problem of profitability in the game. Some authors presented certain features, by which “safe” games played once should be characterized. Kahneman and Tversky (1991) showed that loss – aversion – to – gain – attraction ratio should amount to 1:2. The aim of this paper is to show an asymptotically effective strategy which enables the risk – aversive player to establish boundary variables loss and gain at each stage of the repeated game.

PL

Wiele decyzji ekonomicznych podejmowanych w warunkach niepewności zawiera w sobie element ryzyka, a uczestnicy rynku mogą mieć zróżnicowany do niego stosunek, przy czym przez wiele lat obowiązywało założenie, że mają oni awersję do ryzyka. Awersja do ryzyka jest koncepcją znaną nie tylko z ekonomii, ale również teorii gier, finansów i psychologii, a dotyczy ona zachowań konsumentów, graczy, inwestorów działających w warunkach niepewności. Również awersja do strat jest koncepcją szeroko dyskutowaną w ostatnich latach. Zauważono bowiem, że uczestnicy rynku o wiele intensywniej odczuwają stratę niż czerpią radość z takiego samego co do wartości bezwzględnej zysku. Wielu autorów analizowało problem opłacalności uczestnictwa w grach z określoną wartością zysku lub straty. Kahneman i Tversky (1991) ustalili nawet, że warto brać udział w grach, w których stosunek ewentualnego zysku do ewentualnej straty ma się tak jak 2:1. Inni autorzy prezentowali cechy tzw. bezpiecznych gier. Celem pracy jest zaprezentowanie asymtotycznie efektywnej strategii stosowanej w grach wieloetapowych, która umożliwia interaktywne wyznaczanie granicznych wartości straty i zysku przy jakich warto kontynuować grę.

6

Prognozy dynamiki inwestycji przedsiębiorstw a ekonomia behawioralna

54%

Bentkowska K.

Kwartalnik Nauk o Przedsiębiorstwie

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2019

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vol. 52

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issue 3

37-45

EN

The article analyses what determinants of the entities’ decisions can influence the accuracy of entrepreneurs’ survey forecasts according to behavioral economics. As crucial seem: quick and slow thinking, anchoring and adjustments, loss aversion and endowment effect. The example of the food processing enterprises in Poland describes their forecasts and real investments. The results show that when estimating the investment dynamics the entrepreneurs forecast a lower value than it actually achieves. When they evaluate their ex post investments, they rate them as higher than they were in practice.

PL

Celem artykułu jest określenie, jakie uwarunkowania decyzji podmiotów mogą, zgodnie z nurtem ekonomii behawioralnej, wpływać na dokładność ankietowych prognoz przedsiębiorców. Kluczowe wydają się: myślenie szybkie i wolne, zakotwiczenia i dostosowania, awersja do strat i efekt posiadania. Na przykładzie przedsiębiorstw branży przetwórstwa spożywczego i napojów w Polsce przedstawiono, jak kształtują się ich prognozy i rzeczywiste inwestycje. Wyniki pokazują, że szacując dynamikę inwestycji przedsiębiorcy prognozują wartość niższą niż osiąga ona w rzeczywistości. Kiedy oceniają swoje inwestycje ex post, postrzegają je natomiast jako wyższe niż były w praktyce.

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2 Business and Economic Horizons

1 Central European Journal of Economic Modelling and Econometrics

1 Ekonomia. Rynek, Gospodarka, Społeczeństwo

1 Kwartalnik Nauk o Przedsiębiorstwie

1 Przegląd Statystyczny

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1 Anis J.

1 Bentkowska K.

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