Problems, Methods and Tools in Experimental and Behavioral Economics (eBook)

Kesra Nermend is Professor at the University of Szczecin, President of Center of Knowledge and Technology Transfer at University of Szczecin, and Head of the Department of Computational Methods in Experimental Economics in Institute of IT in Management in The Faculty of Economics and Management of the University of Szczecin. He has authored and co-authored about 100 publications mainly in the area of using quantitative methods and tools for the analysis of economic phenomena. Prof. Kesra is also Chair of Organization Committees and member of Programme Committees of scientific conferences; member of Polish Information Processing Society, West-Pomeranian branch; member of Scientific Society of Organization and Management, West-Pomeranian branch; member of Polish Association for Knowledge Management; member of Section of Classification and Data Analysis at Polish Statistical Association and West Pomeranian Information Society Council. Małgorzata Łatuszyńska is Professor and Head of the Department of Economic Processes Modelling and Simulation Methods and Vice-Dean for Student Affairs in Institute of IT in Management in The Faculty of Economics and Management and Vice-president of Center of Knowledge and Technology Transfer at University of Szczecin at the University of Szczecin.  Prof. Łatuszyńska is author and co-author of about 170 publications mainly from the scope of simulation methods and tools of computer science in economics, management and transport. She is also Chair and member of Programme Committees of scientific conferences,  member of Polish Information Processing Society, West-Pomeranian branch; member of the board of Scientific Society of Organization and Management, West-Pomeranian branch; member of Polish Association For Knowledge Management.  

Preface 5
Contents 7
Theoretical Aspects of Experimental and Behavioral Economics 10
1 Mainstream Economics Versus Behavioral Economics—A Contribution to Reflection 11
Abstract 11
1.1 Introduction 11
1.2 Mainstream Economics—Introductory Issues 12
1.3 Behavioral Economics—Introductory Issues 14
1.4 Mainstream Economics from the Perspective of Behaviorists 20
1.5 Behavioral Economics from the Perspective of Mainstream Economists 22
1.6 Mainstream Economics and Behavioral Economics—Differentiating Aspects 24
1.7 Conclusion 25
References 26
2 Behavioral Aspects of Cost Management 29
Abstract 29
2.1 Introduction 30
2.2 Costs as a Subject of Management 31
2.3 Areas and Tools of Cost Management and Behavioral (Factors) Impacts 32
2.4 The Use of Selected Psychological Theories in Managing Enterprise Costs 34
2.5 Conclusions 39
References 40
3 The Financial Management of Households—Behavioral Economics Perspective 43
Abstract 43
3.1 Introduction 43
3.2 Selected Issues Relating to Household Decisions—A Classical Approach 44
3.3 Household Behavior in Light of Income 46
3.4 The Financial Management of Modern Households 48
3.5 Conclusion 51
References 52
4 Propensity to Risk and the Prospect Theory 54
Abstract 54
4.1 Introduction 55
4.2 Measures of Propensities 55
4.3 Prospect Theory and Propensity to Risk 58
4.4 Empirical Example 62
4.5 Conclusions 66
References 67
5 Some Theoretical Aspect of Equilibrium in Behavioral Economics 68
Abstract 68
5.1 Introduction 69
5.2 Determination of the Equilateral Cone Using a Hyperbolic Spiral 69
5.3 Stock Exchange States, the Boundary Matrix of Equilibrium for the Ideal Economy 74
5.4 Symmetry of Economic Quantities, Surfaces of Equilibrium 76
5.5 Conclusions 83
References 83
Methods and Tools of Contemporary Economics 84
6 Intuitive Methods Versus Analytical Methods in Real Estate Valuation: Preferences of Polish Real Estate Appraisers 85
Abstract 85
6.1 Introduction 85
6.2 Literature Review 87
6.3 Scope of Data and Organization of the Study 88
6.4 Test Results 89
6.5 Conclusions 92
References 93
7 Methodology for Choosing the Location for In-Game Advertising Billboards 94
Abstract 94
7.1 Introduction 94
7.2 Research Experiment 96
7.3 Conclusions 101
References 102
8 Neuromarketing Tools in Studies on Models of Social Issue Advertising Impact on Recipients 103
Abstract 103
8.1 Introduction 103
8.2 Materials and Methods 106
8.3 Results and Discussion 109
8.4 Conclusions 112
Acknowledgements 113
References 113
9 Impact of Negative Emotions on Social Campaigns Effectiveness—Measuring Dilemmas 116
Abstract 116
9.1 Introduction 117
9.2 Research on the Use of Negative Emotions in Social Campaigns 119
9.3 Experimental Research—Assumptions and Design 120
9.4 Results of the Pretest 122
9.5 Conclusion 126
Acknowledgements 126
References 127
10 Use of Computer Game as an Element of Social Campaign Focusing Attention on Reliability of Information in the Internet 129
Abstract 129
10.1 Introduction 129
10.2 Computer Games Used for Purposes of Social Campaign, Focusing Attention on Reliability of Information in the Internet 133
10.3 Examining Playability and the Campaign Message Reception 135
10.4 Conclusions 140
Acknowledgements 140
References 140
11 Application of the Survival Trees for Estimation of the Propensity to Accepting a Job and Resignation from the Labour Office Mediation by the Long-Term Unemployed People 142
Abstract 142
11.1 Introduction 143
11.2 Data Used in the Research 146
11.3 Research Methodology 147
11.4 Results of the Empirical Analysis 149
11.5 Conclusions 153
References 155
12 Expressing Our Preferences with the Use of AHP: The Game Is not Worth the Candle? 156
Abstract 156
12.1 Introduction 157
12.2 Literature Review 158
12.3 Experimental Procedure 160
12.4 Research Results 161
12.5 Conclusions 165
References 165
13 Experimental Study of Consumer Behavior Using Agent-Based Simulation 167
Abstract 167
13.1 Introduction 167
13.2 Agent-Based Simulation in Marketing Research 168
13.3 Methodology for Consumer Behavior Analysis Using ABS 170
13.4 The Structure of ABS Model 173
13.4.1 A Set of Agents and Their Attributes and Behaviors 174
13.4.2 A Set of Agent Relationships and Methods of Interaction 174
13.4.3 The Agent’s Environment 175
13.5 Model for Case Study 175
13.6 Discussion of Experimental Results 178
13.7 Conclusion 180
References 181
Practical Issues—Case Studies 184
14 The Relationship Between Doctors’ Communication and Trust in Doctor: Some Behavioural Data 185
Abstract 185
14.1 Introduction 185
14.2 Interpersonal Communication in the Physician–Patient Relationship 186
14.3 Research Methodology 189
14.4 Research Results 190
14.5 Conclusions 193
References 194
15 Wine Tasting: How Much Is the Contribution of the Olfaction? 196
Abstract 196
15.1 Introduction 197
15.2 Methodology and Sample 199
15.2.1 EEG Recording and Signal Processing 199
15.2.2 The Autonomic Data Recordings and Signal Processing 201
15.3 Results 201
15.3.1 Approach-Withdrawal Index 201
15.3.2 Emotional Index 202
15.4 Discussion: Perception, Action, and Emotion 203
15.5 Conclusion 204
Acknowledgements 204
References 204
16 Information Assimilation as a Decisive Factor About Website User’s Behaviors 207
Abstract 207
16.1 Introduction 208
16.2 Information Concept 209
16.3 Information Assimilation Concept in the Context of Different Approaches 210
16.4 The Research Assumptions of Information Assimilation Evaluation 212
16.5 Evaluation Methodology of Information Assimilation on Internet Services 214
16.6 Conclusions 223
References 224
17 Participatory Budgeting as Example of Behavioural Impact of Public Policies 226
Abstract 226
17.1 Introduction 227
17.2 Behavioural Approach in Public Policies 227
17.3 Participatory Budgeting Theory as Object of Impact of Behavioural Economics 229
17.4 Practical Example of Behavioural Approach Applied in Local Public Policies in Szczecin and in Community of Police 233
17.4.1 Scientific Approach 233
17.4.2 Findings and Discussion 234
17.5 Conclusions 239
References 240
18 Confirmation Bias in Valuation of Footballers’ Performance Rights 243
Abstract 243
18.1 Introduction 243
18.2 Professional Football, Journalists and Spectators Reactions—The Background of Confirmation Bias 245
18.3 Methodology of the Research 247
18.4 Empirical Results 249
18.5 Conclusion and Final Remarks 252
References 252
19 Comparison of the Order-Picking Route and Time Obtained by Using the TMAL Method with Results of Selected Take-Out Strategies 254
Abstract 254
19.1 Introduction 254
19.2 Literature Review 255
19.3 Applied Analytical Methods 257
19.4 Results of the Experiment 260
19.5 Conclusions 263
References 264
20 Simulation Game “Step into the Future” as a Tool of Experimental Economics—Case Study 266
Abstract 266
20.1 Introduction 266
20.2 Characteristics of the Game from the Point of View of the Experimental Elements 267
20.2.1 Environment 267
20.2.2 Institutions 268
20.2.3 Behaviors of the Game Participants 271
20.3 Results of Game Evaluation from a Didactic Point of View in the Context of the Experiment 274
20.4 Conclusions 275
References 275
21 Behavioral Economics and Rationality of Certain Economic Activities: The Case of Intra-Community Supplies 277
Abstract 277
21.1 Introduction 278
21.2 Intra-community Trade Actions Consistent with Behavioral Economics Theory 279
21.3 Data and Methodology 283
21.4 Differences Between Aggregate ICS and ICA in Comext Database 284
21.5 Irregularities in Intrastat Data 288
21.6 Conclusions 289
References 290
22 Cognitive Reflection Test in Predicting Rational Behavior in the Dictator Game 292
Abstract 292
22.1 Introduction 293
22.2 Background 293
22.3 Research Data and Methodology 296
22.3.1 Participants 296
22.3.2 Materials and Procedure 296
22.3.3 Hypothesis 297
22.4 Results 297
22.4.1 CRT and Dictators 298
22.4.2 Anonymity of the Dictator 299
22.4.3 Position of the Dictator 300
22.5 Discussion and Conclusion 301
References 302
23 A Scientific Experiment as a Research Method in the Tourism Sector in the Context of Increased Terrorism Risks 304
Abstract 304
23.1 Introduction 305
23.2 Outbound Tourism—Determinants of Development and Outbound Tourists’ Preferences 306
23.3 Neurotourism—Cognitive Neurology Research Methods in Tourism 311
23.4 Methodology 312
23.5 Results 315
23.6 Conclusions 318
References 319
24 The Role of Behavioral Methods Used in Research on Tourism Development 322
Abstract 322
24.1 Introduction 322
24.2 The Role of Emotions in Tourism 324
24.3 Neurocognitive Studies and Tourism 325
24.4 Methodology and Results 329
24.5 Conclusions 332
References 333