#experimentalecon — Public Fediverse posts

Firm Pay, Amenities, and Inequality https://d.repec.org/n?u=RePEc:nbr:nberwo:35149&r=&r=bec
"Non-wage attributes are an important driver of job choice: workers frequently choose lowerpaying offers. Amenity valuations are highly dispersed across firms and approximately orthogonal to wages, so amenities do not offset between-firm pay differences. In money-metric units, the signal variance of amenities is about one-third that of wage premia. Conditional on the wage, high-amenity firms tend to be larger, have lower quit rates, and are more favorably reviewed by employees. Amenity preferences vary across demographic groups. Men and women do not value the same firms equally: the correlation between their firm-specific valuations is 0.239. Women work at firms that pay less. They also work at firms that offer them higher amenity value. Using gender-specific valuations, women do not work at firms that offer them lower overall value. In some specifications, they work at firms that offer more."
#LaborMarkets #wages #ExperimentalEcon #gpg

Firm Pay, Amenities, and Inequality https://d.repec.org/n?u=RePEc:nbr:nberwo:35149&r=&r=bec
"Non-wage attributes are an important driver of job choice: workers frequently choose lowerpaying offers. Amenity valuations are highly dispersed across firms and approximately orthogonal to wages, so amenities do not offset between-firm pay differences. In money-metric units, the signal variance of amenities is about one-third that of wage premia. Conditional on the wage, high-amenity firms tend to be larger, have lower quit rates, and are more favorably reviewed by employees. Amenity preferences vary across demographic groups. Men and women do not value the same firms equally: the correlation between their firm-specific valuations is 0.239. Women work at firms that pay less. They also work at firms that offer them higher amenity value. Using gender-specific valuations, women do not work at firms that offer them lower overall value. In some specifications, they work at firms that offer more."
#LaborMarkets #wages #ExperimentalEcon #gpg

Firm Pay, Amenities, and Inequality https://d.repec.org/n?u=RePEc:nbr:nberwo:35149&r=&r=bec
"Non-wage attributes are an important driver of job choice: workers frequently choose lowerpaying offers. Amenity valuations are highly dispersed across firms and approximately orthogonal to wages, so amenities do not offset between-firm pay differences. In money-metric units, the signal variance of amenities is about one-third that of wage premia. Conditional on the wage, high-amenity firms tend to be larger, have lower quit rates, and are more favorably reviewed by employees. Amenity preferences vary across demographic groups. Men and women do not value the same firms equally: the correlation between their firm-specific valuations is 0.239. Women work at firms that pay less. They also work at firms that offer them higher amenity value. Using gender-specific valuations, women do not work at firms that offer them lower overall value. In some specifications, they work at firms that offer more."
#LaborMarkets #wages #ExperimentalEcon #gpg

Firm Pay, Amenities, and Inequality https://d.repec.org/n?u=RePEc:nbr:nberwo:35149&r=&r=bec
"Non-wage attributes are an important driver of job choice: workers frequently choose lowerpaying offers. Amenity valuations are highly dispersed across firms and approximately orthogonal to wages, so amenities do not offset between-firm pay differences. In money-metric units, the signal variance of amenities is about one-third that of wage premia. Conditional on the wage, high-amenity firms tend to be larger, have lower quit rates, and are more favorably reviewed by employees. Amenity preferences vary across demographic groups. Men and women do not value the same firms equally: the correlation between their firm-specific valuations is 0.239. Women work at firms that pay less. They also work at firms that offer them higher amenity value. Using gender-specific valuations, women do not work at firms that offer them lower overall value. In some specifications, they work at firms that offer more."
#LaborMarkets #wages #ExperimentalEcon #gpg

Firm Pay, Amenities, and Inequality https://d.repec.org/n?u=RePEc:nbr:nberwo:35149&r=&r=bec
"Non-wage attributes are an important driver of job choice: workers frequently choose lowerpaying offers. Amenity valuations are highly dispersed across firms and approximately orthogonal to wages, so amenities do not offset between-firm pay differences. In money-metric units, the signal variance of amenities is about one-third that of wage premia. Conditional on the wage, high-amenity firms tend to be larger, have lower quit rates, and are more favorably reviewed by employees. Amenity preferences vary across demographic groups. Men and women do not value the same firms equally: the correlation between their firm-specific valuations is 0.239. Women work at firms that pay less. They also work at firms that offer them higher amenity value. Using gender-specific valuations, women do not work at firms that offer them lower overall value. In some specifications, they work at firms that offer more."
#LaborMarkets #wages #ExperimentalEcon #gpg

Choice Architecture in Occupational Choices
http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0255_lhwpaper.pdf
This study uses a Swiss job board to analyze how rank order and design influence high-stakes occupational choices. Higher rankings increased applications, especially for high-paying and gender-congruent occupations. Users interpreted rank to justify choices aligning with identity, providing field evidence for motivated reasoning. An interactive, visually enriched interface redesign boosted applications and watch list usage. Results show that reducing cognitive load expands the variety of options individuals consider and remember.
#choicearchitecture #motivatedreasoning #laborEconomics #jobtech #ExperimentalEcon
#BoundedRationality

Delegating in the Age of AI: Preferences for Decision Autonomy https://d.repec.org/n?u=RePEc:rco:dpaper:558&r=&r=eur
"… participants systematically underutilize both #AI and human agents, even when those agents outperform them. Despite a general hesitancy to delegate, we observe a clear preference for delegating to AI rather than human agents, a behavioral pattern that remains consistent across both decision domains and architectures
… suggesting that algorithm aversion stems primarily from a broader aversion to relinquishing control rather than from specific distrust towards AI
… If individuals are driven primarily by general reluctance to relinquish control rather than specific distrust in AI, then #transparency alone, focused narrowly on increasing #trust in AI, will likely fall short of overcoming this barrier."
#ExperimentalEcon #BoundedRationality

How do monetary incentives affect the measurement of social preferences? https://d.repec.org/n?u=RePEc:zur:econwp:482&r=&r=exp
"… the use of monetary #incentives, as well as the size of the stakes, have little impact on choices at the descriptive levels, as well as for the identification of qualitatively distinct preferences types. They appear to matter, however, for the quantitative identification of the strength and the precision of social preferences.
… the #socialPreferences of the general population are likely overestimated when elicited with hypothetical stakes. If one is solely interested in having a rough, descriptive measure of social preferences at the aggregate level, or if one wants to identify qualitatively distinct preferences types, then relying on hypothetical stakes might suffice.
… if one is interested in making a quantitative assessment of subjects’ other-regardingness, e.g., in order to make quantitative predictions, then our result suggest that using monetary incentives is advisable,
… no evidence that using a larger stake size improves the identification of social preferences"
#ExperimentalEcon #BehavioralEconomics

Experimental Evidence on Attitudes Toward Inequality and Fairness https://www.annualreviews.org/content/journals/10.1146/annurev-economics-073124-083232
WP: https://www.danielweishaar.net/files/AHW2024_ExperimentalEvidence.pdf
"Although inequality aversion seems important in some contexts– particularly where resources are “manna from heaven”, many experiments also reveal #inequality acceptance, particularly in situations where available resources are linked to the discretionary production choices of individuals. Many people reward effort or productivity when making distributive choices, i.e., they are choice egalitarian or meritocratic. However, across the contexts that we have considered, there are also other prevalent #fairness positions, such as egalitarians, who object to inequalities regardless of how they come about, and libertarians, who accept market allocations and object to redistribution regardless of how inequality comes about."
#ExperimentalEcon #BoundedRationality

Noise and Bias: The Cognitive Roots of Economic Errors https://d.repec.org/n?u=RePEc:lan:wpaper:423483206&r=&r=exp
"… formalizes the idea that decision makers might follow a mixture of rules of behavior combining cognitively imprecise value maximization and computationally simpler shortcuts.
… findings suggest that neither cognitive imprecision nor multiplicity of behavioral rules suffice to explain received patterns in economic decision making.… jointly modeling (cognitive) noise in value maximization and #biases arising from simpler, cognitive shortcuts delivers a unified framework which can parsimoniously explain deviations from normative prescriptions across domains."
#BoundedRationality #heuristics #ExperimentalEcon

Fairness in a Society of Unequal Opportunities https://d.repec.org/n?u=RePEc:rco:dpaper:506&r=&r=exp
"…a majority of people are willing to accept #inequality caused by unequal opportunities, a position that markedly contrasts with their responses to inequality caused by #luck
…Americans and right-wing voters exhibiting a greater acceptance of the resulting inequality, reŕecting both differences in #fairness views and attribution biases… "
#ExperimentalEcon #BoundedRationality

Mental Models and Learning: The Case of Base-Rate Neglect http://d.repec.org/n?u=RePEc:cdl:ucsdec:qt8cb387t8&r=exp
"…findings suggest mistakes are more likely to be persistent when they are driven by incorrect mental models that miss or misrepresent important aspects of the environment. Such models induce confidence in initial answers, limiting engagement with and #learning from feedback."
#BoundedRationality #attention #ExperimentalEcon

Are #AI chatbots behaviorally similar to humans?
https://a-ortmann.medium.com/are-ai-chatbots-behaviorally-similar-to-humans-f5bc5bf361bb?
Andreas does not fully agree with https://www.pnas.org/doi/10.1073/pnas.2313925121
and argues "…that this is a mis-specified (not to say: silly) question as it depends on the circumstances in which humans find themselves."

I tend to agree with him.

#ExperimentalEcon
#BoundedRationality
#BehavioralEconomics

Does increasing inequality threaten #socialStability?
https://openaccess.nhh.no/nhh-xmlui/bitstream/handle/11250/3121388/DP%2002.pdf
…unambiguous evidence of a casual relationship running from #inequality to social instability
…the disadvantaged initiate the destabilisation
…history of stability facilitates the re-emergence of #coordination in more unequal environments, and a sudden increase in inequality is more destabilising than a gradual increase
#ExperimentalEcon

The Missing Type: Where are the Inequality Averse (Students)?
https://dx.doi.org/10.2139/ssrn.4767248
"Younger & more educated individuals not only tend to have lower degrees of other-regardingness but this reduction in other-regardingness nullifies behindness aversion among students. Differences in income do not seem to affect #socialPreferences.
…provide a new cautionary tale that insights from student populations might not extrapolate to the general population."
#ExperimentalEcon #boundedRationality

via Andreas Ortmann:
Interesting new working paper. AER and JEEA bad, EE good.
https://cris.maastrichtuniversity.nl/en/publications/editorial-favoritism-in-the-field-of-laboratory-experimental-econ
#ExperimentalEcon #favoritism #NetworkEffects