Do Negative Economic Shocks Affect Cognitive Function, Adherence to Social Norms and Loss Aversion?

Serie

  • SocArXiv

Resumen

  • Households are frequently subject to income and asset shocks. We performed a lab experiment, inducing losses on a real effort task, after which we measured cognitive performance, loss aversion and cheating behavior. We found that asset losses, but not income losses, act as a cognitive load, by decreasing accuracy and increasing response times. We did not detect any change in dishonesty or loss aversion.

fecha de publicación

  • 2020

Líneas de investigación

  • asset
  • cheating
  • cognitive function
  • income
  • loss aversion
  • negative shock
  • social norm

Issue

  • y4zaw