Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?

For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically—an effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its robustness is largely undisputed. The effect’s causes, however, have not been thoroughly examined with regard to one important aspect. Due to the construction of the lotteries that were used in the experiments, none of the studies is able to distinguish between MLA and an explanation based on (myopic) loss probability aversion (MLPA). This distinction is important, however, in discussion of the practical relevance and the generalizability of the phenomenon. We designed an experiment that is able to disentangle lottery attractiveness and loss probabilities. Our analysis reveals that mere loss probabilities are not as important in this dynamic context as previous findings in other domains suggest. The results favor the MLA over the MLPA explanation.     

Gender effects for loss aversion: Yes,no, maybe?

Journal of Risk and Uncertainty - Gender effects in risk taking have attracted much attention by economists, and remain debated. Loss aversion—the stylized finding that a given loss carries...     

A choice for ‘me’ or for ‘us’? Using we-reasoning to predict cooperation and coordination in games

Cooperation is the foundation of human social life, but it sometimes requires individuals to choose against their individual self-interest. How then is cooperation sustained? How do we decide when instead to follow our own goals? I develop a model that builds on Bacharach (in: Gold, Sugden (eds) Beyond individual choice: teams and frames in game theory, 2006) ??circumspect we-reasoning?? to address these questions. The model produces a threshold cost/benefit ratio to describe when we-reasoning players should choose cooperatively. After assumptions regarding player types and beliefs, we predict how the extent of cooperation varies across games. Results from two experiments offer strong support to the models and predictions herein.     

‘We’re Civil Servants’: The Status of Trauma-Informed Care in the Community

ABSTRACT

Trauma-informed care (TIC) in social service organizations means that the organizations operate with the understanding that everyone involved has possibly experienced trauma in their lifetime. This qualitative study examined local service organizations’ usage of the 5 main principles of TIC: safety, trustworthiness, collaboration, empowerment, and choice (as developed by Fallot & Harris, 2006). Ten focus groups (n = 69) and 6 individual interviews (n = 6) with employees from administration through management were interviewed such that almost all facets of each agency were represented. The participants were asked about their agencies’ policies and practices for utilizing the 5 principles of TIC. The results suggest that the vast majority of organizations in this study implemented many of the principles of TIC with clients, though they had not labeled their practices as “trauma-informed.” However, although clients were receiving TIC, some of the principles were neglected as they pertain to staff, such as choice and empowerment. The findings of this study suggest that agencies are unaware of the relevance of TIC as it relates to staff. It is recommended that future research examine whether the use of TIC in agencies prevents “burnout,” high turnover rates, and vicarious traumatization of staff.     

The Atypical Family: Mode or Necessity?

The study of de facto families has been neglected, despite the fact that they occur all round the world under various names and among individuals of all social strata. This paper analyses these atypical families in terms of their appearing to be stable social systems with consciously selected partners. Thirteen motives of individual and social provenance are found to be involved in their establishment. Although the older families are preponderantly a result of societal stress, modern atypical families in most cases are a mode expression.     

The scrapbooking detective: Frederick Porter Wensley and the limits of ‘celebrity’ and ‘authority’ in inter-war Britain

Frederick Porter Wensley was one of Scotland Yard's ‘Big Four’ detectives, head of the Metropolitan Police Criminal Investigation Department and responsible for establishing the Flying Squad. On his retirement in 1929, he used the two bound scrapbooks of press clippings and photographs he had collated to document his personal life and career to inform his 1931 autobiography Detective Days and serialized press articles. Through examining the interaction of material between scrapbooks and autobiographical writings, this article explores how Wensley constructed his post-retirement persona as ‘celebrity detective’ from a canny understanding of what had made him a commercial subject for the press. It argues that Wensley recast his life to promote his own successes at the expense of a narrative of police unity, providing a vehicle for him to suggest further changes to the structure of the police force without official sanction. By juxtaposing this against tightening legislation on police communication with journalists during the inter-war period under the Official Secrets Acts, this article demonstrates how the ‘celebrity’ that Wensley sought to occupy was increasingly regarded as irreconcilable with police ability to effect ‘impartial’ regulation, anticipating the concerns raised by the 2012 Leveson Inquiry into the Culture, Practice and Ethics of the Press. The article thus charts a turning point in defining the relationship between police and press.     

Are groups ‘less behavioral’? The case of anchoring

Economic small group research points to groups as more rational decision-makers in numerous economic situations. However, no attempts have been made to investigate whether groups are affected similarly by behavioral biases that are pervasive for individuals. If groups were also able to more effectively avoid these biases, the relevance of biases in actual economic contexts dominated by group decision-making might be questioned. We consider the case of anchoring as a prime example of a well-established, robust bias. Individual and group biasedness in three economically relevant domains are compared: factual knowledge, probability estimates and price valuations. In contrast to previous anchoring studies, we find groups to successfully reduce, albeit not eliminate, anchoring in the factual knowledge domain. For the other two domains, groups and individuals are equally biased by external anchors. Group cooperation thus reduces biases for predominantly intellective tasks only, while no such reduction is achieved when judgmental aspects are involved.     

The Cuban paladar: Ideological subversion or substantiation?

The findings of a qualitative, in-depth exploration of Havana's rapidly expanding private sector, reveal that paladares – privately owned Cuban restaurants – are not, as previously suggested, antithetical to Havana's political status quo. Instead the negotiation between the state in, and toleration of, private enterprise in Havana has become the foundation for a host of double standards and informal regulations that manifest themselves in two distinct business models. While at the same time inherently capitalistic, modestly successful paladares help contribute to the socioeconomic endurance of Havana's social doctrine despite their high levels of regulation. On the other hand, elite paladares routinely challenge political and social ideologies, yet remain largely immune to retribution. The findings contribute to the understanding of the context of Havana's informal second economy and the ongoing U.S. embargo.     

The ratio bias phenomenon: fact or artifact?

The ratio bias—according to which individuals prefer to bet on probabilities expressed as a ratio of large numbers to normatively equivalent or superior probabilities expressed as a ratio of small numbers—has recently gained momentum, with researchers especially in health economics emphasizing the policy importance of the phenomenon. Although the bias has been replicated several times, some doubts remain about its economic significance. Our two experiments show that the bias disappears once order effects are excluded, and once salient and dominant incentives are provided. This holds true for both choice and valuation tasks. Also, adding context to the decision problem does not alter this finding. No ratio bias could be found in between-subject tests either, which leads us to the conclusion that the policy relevance of the phenomenon is doubtful at best.     

‘The confidence to know I can survive’: resilience and recovery in post-quake Christchurch

This paper explores the relevance of terms such as resilience and recovery when analysing earthquake stories recorded for the Women's Voices/Ngā Reo o Ngā Wahine Project after the sequence of earthquakes and aftershocks in Christchurch, New Zealand's second-largest city, in 2010–2011. While the media focused on stories of victims, the heroic work of rescue teams, policy, army and firefighters, or the deliberations of national and local politicians, the National Council of Women of New Zealand wanted to ensure that women's everyday quake experiences were recorded for posterity. The outcome was an oral history project that documented the stories of women all over the city, both beneficiaries of earthquake support and those active in assisting others. Their narratives illustrate how resilience in the face of natural hazard events, such as this earthquake sequence, requires effort, ingenuity and imagination, but also the activation of multiple actor networks and relevant technologies. These ‘insider stories’ also highlight the ways in which expectations of ‘resilience’ can obscure vulnerability after natural hazard events and the complex and uneven processes associated with ‘recovery’. The relevance of critical reflections on discourses of resilience is explored through attention to the stories of specific women.     

The household inventory as urban ‘theatre’ in late medieval Burgundy

In 1413 at the death of his wife Guillemot, Jean Aubert, a group of witnesses and a clerk of the local mayoralty met to value the possessions of their residence, resulting in an inventory full of notes and values on rooms and their objects. Within the existing historiography of the Burgundian Netherlands and its northern European neighbours, inventories and their objects tend to be analysed from two perspectives: the Burgundian court and the ‘consumer revolution’. Applying insights from Erving Goffman and Bruno Latour, this article suggests a third perspective should have priority: the urban ‘theatre’ within which objects were documented and placed. Therefore it sets up an alternate methodology which begins with the inventory to build a picture of the theatre (the urban context and residence), the actors (the Aubert family) and the audience (the witnesses of the inventory) to establish new insights into the operation of Burgundian power and the dynamics of the ‘consumer revolution’.     

Searching for ‘analysis’ in the southwest: AM vs. PM newspapers in four ‘fire zones’

Never in the history of newspapering has our Fourth Estate been so unsure of what its premiere medium should be doing as we approach the 21st century. Because daily newspaper circulation and readership have been declining since 1987, every newspaper consultant in America has an opinion about what papers must do. This exploratory study focuses on what Southwest media managers think newspapers must do—provide analysis and context in local news coverage. Context is defined and eight competing southwestern newspapers in Alburquerque, El Paso, Phoenix, and Tucson are content analyzed for “analysis” by investigating 200 seperate 1994 editions in this non-probability, purposive benchmark sample.     

The ‘black spot’ on the Crimea: venereal diseases in the Black Sea fleet in the 1920s

This article examines how high command in the Soviet Red Navy responded to reportedly high levels of venereal diseases in the Black Sea fleet in the mid-1920s. Illness in the fleet posed a threat to national security, especially during the first unstable decade of the Soviet Union’s existence. Naval command and the municipal authorities of the Crimean Autonomous Soviet Socialist Republic (Crimean ASSR) targeted three main points for reform: the source of infection, those who became infected, and the urban space of Sevastopol. The majority of studies of venereal diseases in military populations have been situated within wartime, whereas this article explores the construction of disease during peacetime to interrogate how the naval and municipal authorities in the Black Sea justified intervention into the private, and intimate, lives of sailors and the wider population.     

The travelling workshops experiment: An attempt at ‘illuminative evaluation’

An account of the background against which a non-traditional strategy of evaluation was adopted in the Travelling Workshops Experiment at Newcastle upon Tyne Polytechnic. The author points out that research rarely proceeds along textbook lines and describes how the clear cut distinctions originally envisaged for the internal and external components of the evaluation ot the project soon became blurred in the process of evolving practicable procedures. At the same time, the research team had to resolve the conflict which arose between pressures towards a traditional, tightly controlled approach to evaluation and their own preference for a more exploratory strategy in which behavioural objectives would not be specified at the outset. An alternative model was found in ‘illuminative evaluation’, which eschews pre- and post-testing in favour of a more wide-ranging study ot the contextual determinants of the success of an innovation. Use of this model nonetheless poses many problems, not the least of which is that illuminative evaluation is a broad strategy rather than a set of specific techniques.