Lorenz Goette's research while affiliated with University of Bonn and other places

Publications (20)

Article
Full-text available
This paper investigates the role of biased health perceptions as a potential driving force of risky health behaviors. We define absolute and relative health perception biases, illustrate their measurement in surveys and provide evidence on their relevance. Next, we decompose the theoretical effect into its extensive and intensive margin: When the e...
Article
We propose a novel experiment that prevents social learning, thus allowing us to disentangle the underlying mechanisms of social influence. Subjects observe their peer’s incentives, but not their behavior. We find evidence of conformity: when individuals believe that incentives make others contribute more, they also increase their contributions. Co...
Article
Positive feedback about the outcome of volunteers’ prosocial actions is often thought to help motivate continued volunteers’ engagement. In the context of blood donations, various collection systems have begun to provide blood donors feedback on successful utilization of their blood donation. An experiment conducted by the main NGO that supports th...
Article
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Imperfect information and inattention can lead consumers to undervalue the energy efficiency of products, contributing to growing environmental problems and climate change. To nudge individuals towards energy efficiency, environmental certification schemes, such as the European Union (EU) energy label, present grade-like efficiency classes. In a re...
Article
We test expectations-based reference dependence in market experiments with probabilistic forced exchange. Koszegi and Rabin (2006 ) predict that when the probability of forced exchange increases, individuals cannot expect to stick with the status quo, and should grow more willing to exchange. This mechanism may eliminate and even reverse the "endow...
Article
This project examines the role of heterogeneity in gain-loss attitudes for identifying models of expectations-based reference dependence (Koszegi and Rabin, 2006, 2007) (KR). Different gain-loss attitudes lead to different signs for KR comparative statics. Failure to account for the known heterogeneity in gain-loss attitudes is a central confoundin...
Article
This project examines the role of heterogeneity in loss aversion for identifying models of expectations-based reference dependence (Kőszegi and Rabin, 2006, 2007) (KR). Different levels of loss aversion lead to different signs for comparative statics previously used to test the KR model. In an experiment with 607 subjects, we show heterogeneous tre...
Article
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Attention-deficit hyperactivity disorder (ADHD) is characterized by deficits in executive functions and decision making during childhood and adolescence. Contradictory results exist whether altered event-related potentials (ERPs) in adults are associated with the tendency of ADHD patients toward risky behavior. Clinically diagnosed ADHD patients (n...
Chapter
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Impaired decision making and working memory (WM) are among the characteristic symptoms of patients affected by attention deficit hyperactivity disorder (ADHD). In order to investigate whether a WM training can affect the attitude toward risky decision making, we designed a study where participants had to perform a probabilistic gambling task. Our s...
Article
Theories of expectations-based reference-dependent preferences have provided a critical modeling innovation, incorporating a structured theory of the formation of reference points. An important prediction of these models is a monotone response in behavior to changes in expectations. To test such models we conduct a real-effort experiment manipulati...
Article
We develop a model of public good contributions as signals of the contributor's trustworthiness, and test the predictions of this model using data on volunteering in small Swiss towns. Unlike most previous work, we avoid assuming that agents simply have a taste for prestige, and instead model the material value of a prosocial reputation. The model...
Article
Full-text available
Classic game theory predicts that individuals should behave as rational agents in order to maximize their gain. In real life situations it is observed that human decision making does not follow this theory. Specific patterns of activity in several brain circuits identified in recent years have been associated with irrational and imperfect decision...

Citations

... When they face any confusion with respect to their research work, the members of the research team can provide new ideas or can pool in ideas; hence, this is conducive to finding solutions to research problems [56]. The research team can be strengthened and a congenial humanistic environment that promotes scientific research can be created, and improvement in quality of research can be sought by the team [57]. ...
... LE predict the time of one's death (e.g. Smith et al. 2001) and, the literature has shown that they are consistent with life tables (Hurd & McGarry 2002), even though they do exhibit some bias (Arni et al. 2021), expecially when they are compared with end-of-life data (Costa-Font & Vilaplana 2022). ...
... Rather than being loss averse, these least-loss-averse students could actually be weakly gain loving. In riskless choice, Goette et al. (2019) find that a quarter of participants can be classified as "gain loving". λ c "loss-neutral or weakly loss-averse" "loss-averse" "strongly loss-averse" ...
... Nudges may reduce missed hospital appointments (Hallsworth et al. 2015), encourage physical activity (Milkman et al. 2014), promote healthier dieting habits (Downs et al. 2009), or motivate people to get their flu vaccine shot (Milkman et al. 2021). Nudges can also help to spur organ donations (Johnson & Goldstein 2003) and blood donations (Goette & Tripodi 2020). There are studies employing nudges in the COVID-19 context. ...
... We extend this nascent but highly topical literature by investigating the role of biased health perception in explaining the (non)uptake of preventive actions among Europeans aged at least 50 years. Biased health perception that is, over-or underestimating one's own health, was shown to increase substantially with age (9); it is further relevant for the adoption of risky health behaviours and has serious consequences for health and well-being (10,11). In addition, incorrect beliefs about one's own health can affect one's perception of susceptibility to a disease and how severe that disease will be-which are important elements of preventive action according to the Health Belief Model (12). ...
... Of particular relevance to this paper are field trials examining the impact of monetary labels for appliances on actual purchasing decisions. Allcott and Taubinsky (2015) and Andor et al. (2019b) analyse the impact of energy cost information on lightbulb sales in the USA and Germany respectively with the former finding no impact and the latter finding a positive impact. For larger appliances, Kallbekken et al. (2013) conducted a field experiment testing the effectiveness of a monetary label and sales-person training on fridge freezers and tumble dryers sales in Norway; del Mar conducted a similar field trial amongst small retailers in Spain with fridge freezers, dishwashers, and washing machines; Carroll et al. (2016b) test the effectiveness of a new five-year energy cost label on tumble dryers sales in Ireland and DECC (2014) examined a new energy cost label for washing machines and tumble dryers in the UK. ...
... Furthermore, villages in rural Uganda are a small-scale societies and so the social effects of the second round are also relevant to the local context. 2 An alternative would have been to assign reference lotteries not only randomly (which we did) but also transparently, for instance by tossing a coin for a subject to see, as in the tests of reference-dependent preferences of Fuster (2011) , Heffetz andList (2014) and Goette et al. (2019) . However, this would have precluded pursuing our interest in the effect on behaviour of features of the decision interface-of naturally suggested courses of action. ...
... Impaired decision making is another characteristic of subjects with ADHD which leads them to choose riskier options with unfavorable outcomes in economic and financial settings (Barkley & Fischer, 2010). We have recently tested risk-taking activity of young adult ADHD and we observed that frontal sites were most affected during a probabilistic gambling task, whereas global brain activity was likely to be affected in controls (Mesrobian et al., 2018a). We have also provided evidence that WM training affects both performance and cortical activity during the gambling task (Mesrobian et al., 2018b). ...
... First, this research stream calls for richer model settings. Recently, Goette et al. (2019) examine the role of heterogeneity in gain-loss attitude in identifying models of expectations-based reference dependence in an individualdecision setting. It is important to examine the competition between contestants who differ in their levels of loss aversion. ...
... We have recently tested risk-taking activity of young adult ADHD and we observed that frontal sites were most affected during a probabilistic gambling task, whereas global brain activity was likely to be affected in controls (Mesrobian et al., 2018a). We have also provided evidence that WM training affects both performance and cortical activity during the gambling task (Mesrobian et al., 2018b). In the current study, for the first time, we present ERPs recorded in ADHD and controls during the dual n-back task. ...