Using two studies of the same leading Israeli crowdfunding platform—‘Headstart’—various aspects of the fundraising method discussed in this article were explored. The first study identifies the ...factors that impact the amount of investment in crowdfunding projects. Using data from 517 backers who invested in ‘Headstart’ projects, direct correlations were established between the age of the backers, the minimum tangible reward levels, being friends or family of the entrepreneurs and the level of risk aversion with the investment amount. It is argued that these results are related to more extensive information being available to family and friends. Furthermore, the findings implicate that for different amounts of investment, different factors will have an impact. The second study seeks to identify the crowdfunding entrepreneurs’ unique characteristics that make some of them succeed in funding their projects more than others. According to the responses of 162 crowdfunding entrepreneurs to the ‘Big Five’ questionnaire, their agreeableness and extraversion have a positive impact on the success of campaign funding, but the impact is gender related. Neuroticism and conscientiousness are also factors. These studies contribute to the literature by using rare, first-hand information from entrepreneurs and backers to identify the internal and external factors that lead to success in crowdfunding.
Does having an environmental, social, and governance (ESG) policy have an impact on stakeholders? This research presents a unique model that allows us to measure the economic value of adopting an ESG ...policy for financial institutions’ stakeholders. Using the results of a questionnaire distributed among financial institution employees and customers, we find that, on average, employees are willing to forgo 11% of their salary to work for a company that has adopted and implemented such a policy. In addition, customers are willing to pay 47% more in management fees to do business with financial institutions that have such a policy. To our knowledge, this is the first study that quantifies the benefits for financial institutions stakeholders of adopting an ESG policy.
The objective of this paper is to measure and compare the subjective time discounting of professional athletes and non-athletes. By using a questionnaire, we found higher subjective discounting for ...professional athletes than for non-athletes. We also found that the professional athletes' win-orientation positively affected their present preferences. On the other hand, professional athletes' play- orientation, which reflects their attitude towards the game itself, negatively affected their present preferences. No such effects were found in non-athletes. We argue that the ``win-at-all-costs'' competitive approach that leads athletes to sacrifice everything in order to win may cause (or reflect) their higher preference for the present.
•We utilize data from four Grand Slam tennis tournaments in 2010.•According to the rules of tennis it is possible to define low pressure versus high pressure situations.•Under reasonable assumptions, ...we find that men consistently choke under competitive pressure.•We find mixed results for women.
We exploit a unique setting in which two professionals compete in a real-life tennis contest with high monetary rewards in order to assess how men and women respond to competitive pressure. Comparing their performance in low-stakes versus high-stakes situations, we find that men consistently choke under competitive pressure, but with regard to women the results are mixed. Furthermore, even if women show a drop in performance in the more crucial stages of the match, it is in any event about 50% smaller than that of men. These findings are robust to different specifications and estimation strategies.
Abstract The current field study uses data collected after the 2009 war between Israel and the Hamas militias in the Gaza Strip ended. The study compares recalled emotions and perceived risks among ...two groups of students, all of whom were exposed to rocket attacks. Individuals in the “left the war zone” group left the region under attack as a precautionary action, while the “stayed in the war zone” group remained in the region during war. The results indicate no significant differences in the levels of recalled fear and anger between the two groups, while the perceived self-risk from terror was higher among the “stayed in the war zone” group. Yet, a higher level of recalled fear was found among those who left the war zone and whose parents resided in the war zone, compared to those who left the war zone and whose parents resided outside the war zone. In addition, fearful people became more pessimistic about their level of personal risk from terror, but not about the routine risks. We conclude that civilians need attention even if they leave the war zone since leaving the attacked region as a precautionary action may mitigate perceived self-risk from terror but does not seem to eliminate the high level of negative emotions evoked by the terror attacks.
Achieving high vaccination rates is important for overcoming an epidemic. This study investigates the association between religious faith and intentions to become vaccinated against COVID-19 in ...Israel and Japan. Most of Israel’s population is monotheistic, whereas most Japanese are unaffiliated with any religion. Therefore, our findings might be applicable to various countries that differ in their religions and levels of religiosity. We conducted almost identical large-scale surveys four times in Israel and five times in Japan from March to June 2020 to obtain panel data. We found that intentions of getting vaccinated depend on people’s level of religiosity in a non-linear way. Those who have strong religious beliefs are less likely to become vaccinated than those who say they are less religious. Two other factors that play a role in this relationship are religious denomination in Israel and identifying with a religion in Japan.
Music plays a significant role in human life. The literature suggests that background music can influence an individual's decision-making process. Previous studies have shown that the tempo of music ...can affect people's choices about whether to prefer the present or the future when buying goods. We focused on the influence of the tempo of music on monetary time preference which is the willingness to wait for receiving money in the present compared to receiving it in a later period. In the experiment we asked participants to complete a questionnaire that included time delay questions to measure time preferences while listening to background music. Those who listened to music with a fast tempo were more likely to favour the present than those who listened to slow music or none at all. We suggest that this difference arises from an increase in people's cognitive load that leads to a status quo bias.
•We test the effect of cognitive load on impulsive behavior and time preference•Under high cognitive load participants are more impulsive•Under high cognitive load participants are more present ...oriented•Impulsive behavior was not found to be a mediator between cognitive load and time preference•We suggest that people should not make long term decision under cognitive load.
The current study tests experimentally the effect of cognitive load on impulsive behavior with uncertainty choices as the time preference. Participants were 189 students, randomly assigned to two cognitive load groups (low and high), and a control group with no cognitive load manipulation. Under cognitive load participants were asked to answer a questionnaire with several time delay scenarios and participate in an impulsive behavior task. The results show that under a high cognitive load, participants are more impulsive and more present oriented than under a low cognitive load. Impulsive behavior did not mediate the two measures. Some possible explanations are discussed.
The effect of SMS notifications on time preferences Israel, Avi; Rosenboim, Mosi; Shavit, Tal
Journal of behavioral and experimental economics,
April 2022, 2022-04-00, 20220401, Letnik:
97
Journal Article
Recenzirano
•We test the effect of SMS notifications on time preference (delay discounting).•Exposure to SMS notifications increase the tendency to favor the present.•SMS notifications also affected ...impulsiveness and stress.•Impulsiveness and stress were not found to be mediators between SMS notifications and time preference.•We suggest that SMS notifications increased the demand on cognitive processes.
In this paper we use the SMS instant messaging application to examine the effect of notifications on time preferences. To do so, we conducted a laboratory experiment with three different groups. Participants in the first (second) treatment group received SMS messages with a high (low) degree of frequency. The third group was a control group that did not receive any SMS messages. The results show that, with exposure to SMS notifications, regardless of their frequency, the tendency to favor the present increases. They also indicate that SMS notifications affect impulsiveness and stress. However, the influence of impulsiveness and stress were not the factors that activated the change in time preferences. In addition to the contribution to the literature on smartphones and human behavior, our results have real-life implications regarding how we make decisions when we are interrupted by notifications from our mobile devices.
•Extremely high net wages are not necessary for achieving efficient allocation in the labor market and have nothing to do with the effort invested by employees.•We posit that for any individual there ...must be a boundary level of effort beyond which s/he is not capable of investing any additional effort, independent of the monetary incentives provided.•In the range beyond the break-off wage in which the link between incentives and effort breaks down, we propose to “detach” the gross wages that express the monetary compensation firms are paying (or willing to pay) in return for work from the net wages that the employees are actually receiving (or should receive) in order to motivate them to work by employing high marginal tax rate on the premium above the break-off wage.•We show that even considering enormous convexities in the employee performance gradient, our policy neither changes the competitive allocation of labor nor hurts the incentives schemes for employees.
An average worker in some US companies needs to work more than a year to earn his/her CEO's daily wage. We posit that the level of effort any individual can invest is bounded. Therefore, we cast doubt on the well-accepted economic notion that extremely high salaries are necessary because they ensure economic efficiency. Considering the notion of bounded effort may enrich the public discussion about the need for extreme wage levels that to date has overlooked the limited power of economic incentives.
PDF
