Revisiting “money illusion”: Replication and extension of Shafir,Diamond, and Tversky (1997)

Shafir et al. (1997) described money illusion as people’s inclination to think of money without taking inflation sufficiently into account, i.e., in nominal terms rather than in real terms. We successfully replicated Problems 1 to 4 of Shafir, Diamond, and Tversky’s study (1997) on money illusion (MTurk; N = 604). We found effect sizes in line with the original ones for assessments of income (Problem 1; original: Cramer’s V = 0.26, 95% CI [0.17, 0.37]; replication: V = 0.28 [0.21, 0.36]), transactions (Problem 2; original: 48% [42%, 52%]; replication: 70% [66%, 73%]), sales and consumption (Problem 3; original buy: 38% [33%, 43%]; replication buy: 47% [43%, 51%]; original sell: 43%% [38%, 48%]; replication sell: 43% [39%, 47%]), and contracts (Problem 4; original: V = 0.25 [0.13, 0.42]; replication: V = 0.17 [0.10, 0.25]). With an added extension, we found no support for the notion that knowing about or correctly estimating the inflation rate affected money illusion. We discuss theoretical implications for the study of money illusion and the psychological meaning of inflation, as well as for the understanding of the antecedents of money illusion. All data, code, and materials are available on https://osf.io/rv9mw/.     

A life course built for two: Acting,aging, and soap operas

Due to their longevity, daytime soap operas provide a rich entertainment text through which to examine representations of, and experiences of, age and aging. Our exploratory, qualitative project explores how veteran soap actors make sense of their own aging process alongside that of their characters’, and how soaps serve as an unexpected cultural resource for negotiating the varied meanings of aging. Drawing on original interview data with soap actors (n = 11) and other industry experts (n = 4), original survey data with long-term viewers (n = 34), and secondary data as reported in the entertainment and popular presses, we examine actors’ use of fictional narratives to make meaning of their progression through the life course. Our analysis is situated at the intersections of gerontology, media studies, and the sociology of work.     

Replication: Revisiting Tversky and Shafir’s (1992) Disjunction Effect with an extension comparing between and within subject designs

Does uncertainty about an outcome influence decisions? The sure-thing principle (Savage, 1954) posits that it should not, but Tversky and Shafir (1992) found that people regularly violate it in hypothetical gambling and vacation decisions, a phenomenon they termed “disjunction effect”. Very close replications and extensions of Tversky and Shafir (1992) were conducted in this paper (N = 890, MTurk). The target article demonstrated the effect using two paradigms in a between-subject design: here, an extension also testing a within-subject design, with design being randomly assigned was added. These results were consistent with the original findings for the “paying to know“ problem (original: Cramer’s V = 0.22, 95% (CI) [0.14, 0.32]; replication: Cramer’s V = 0.30, 95% CI [0.24, 0.37]), yet not for the “choice under risk” problem (original: Cramer’s V = 0.26, 95% CI [0.14, 0.39]; replication: Cramer’s V = 0.11, 95% CI [−0.07, 0.20]). The within-subject extension showed very similar results. Implications for the disjunction effect and judgment and decision-making theory are discussed, and a call for improvements on the statistical understanding of comparisons of between-subject and within-subject designs is introduced. All materials, data, and code are available on https://osf.io/gu58m/.     

Understanding types,locations, & perpetrators of peer-to-peer sexual harassment in U.S. middle schools: A focus on sex,racial, and grade differences

This study employed a mixed-method design to examine sexual harassment victimization among American middle school youth (grades 5–8). Students completed a self-report measure of sexual harassment victimization and indicated where sexual harassment occurs in their school. They responded to open-ended questions about the most upsetting incident they experienced and identified characteristics of perpetrators (N = 858). Verbal victimization (e.g., unwanted sexual commentary and homophobic name-calling) was more frequent than physical victimization and sexual assault. The types of sexual harassment experienced and the perpetrators varied by sex, race, and grade level. Sexual harassment occurred most frequently in hallways, followed by classrooms, gym locker rooms, gym class, lunch room, and outside of the school. The most upsetting unwanted incidents included (1) verbal - homophobic language; (2) verbal - sexual commentary and sexual rumor spreading; (3) physical – being touched; (4) pulling down pants; (5) being sexually assaulted; and (6) dismissiveness of victimization. Girls reported other boys as perpetrators; whereas, boys reported their perpetrators as other boys and close friends. For African-American students, perpetrators were identified as older and romantic partners. For White students, perpetrators were reported as same-age peers and friends. Understanding and recognizing what constitutes sexual harassment and where it most commonly occurs among early adolescence is critical to preventing sexual harassment into late adolescence.     

Subjective measures of risk aversion, fixed costs, and portfolio choice

The paper investigates risk preferences among different types of individuals. We use several different measures of risk preferences, including questions on choices between uncertain income streams suggested by Barsky, Juster, Kimball, and Shapiro (1997) and a number of ad hoc measures. As in [Barsky et al., 1997] and [Arrondel and Calvo-Pardo, 2002], we first analyze individual variation in the risk aversion measures and explain them by background characteristics (both “objective” characteristics and other subjective measures of risk preference). Next we incorporate the measured risk preferences into a household portfolio allocation model, which explains portfolio shares, while accounting for incomplete portfolios and fixed costs. Our results show that a measure based on factor analysis of answers to a number of simple risk preference questions has the most explanatory power. The Barsky et al. (1997) measure has less explanatory power than this “a-theoretical” measure, suggesting that sophisticated measures based on economic theory may exceed the financial capability of respondents. Fixed costs turn out to provide an economically and statistically highly significant explanation for incomplete portfolios.     

Catching‐up or Leapfrogging in the Indian IT Service Sector: Windows of Opportunity,Path‐creating,and Moving up the Value Chain

Indian IT service firms are successfully competing with world leaders and research on the industry is emerging. Providing analysis at firm rather than industry level, this article identifies the windows of opportunity open to Indian firms, with the following findings: (i) the catching‐up process by Indian IT firms can be classified as a three‐stage ‘body shopping–offshoring–global delivery model’, comparable with the three steps in original equipment, own‐design and own‐brand manufacturing; (ii) the window of opportunity for Indian firms was primarily the techno‐economic paradigm shift, and secondarily the government's regulation and support of the industry; and (iii) Indian firms initially partially re‐invented their own path by offshoring and created their own global delivery model, gradually moving to higher value‐added services.     

Family identification facilitates coping with financial stress: A social identity approach to family financial resilience

Family financial stress research has typically examined negative effects of deprivation on mental health, which in turn erode financial coping. While this work acknowledges family support’s role in buffering these effects, it has typically overlooked how family identification can act to structure the experience of, and response to, economic challenge. We adopt a Social Identity approach, arguing that family identification predicts increased social support and improved well-being, which predicts more effective coping with financial problems. We explore this in two community surveys (N = 369; N = 187). In the first we show that stronger family identification and support predict better well-being, which predicts better evaluation of economic coping. In the second we replicate these findings, and also show that the relationship between well-being and financial distress is fully mediated by perceptions of ‘Collective Family Financial Efficacy’. These findings point to a more positive understanding of how family cohesion can promote mental well-being/resilience.     

Differing conceptions of the causes of the economic crisis: Effects of culture,economic training,and personal impact

We report findings from a survey regarding the lay perception of the causes of the worldwide economic and financial crisis. Respondents (N = 2245) from a variety of countries were included: China (Hong Kong), Turkey, Russia, Israel, Germany, USA, and France. We have previously documented a range of factors that affects lay understanding of the crisis The present study expanded the database and focuses on the combination of factors that jointly predict whether the respondents view the crisis as a complex impersonal system that malfunctioned, or hold a moral/intentional view about its origins. We show that respondents from Western World countries, who were unaffected by the crisis and have economic training, interpret the crisis differently from all other respondents (i.e., those living in Turkey, Russia, or Hong Kong, and those who were personally affected by the crisis or without economic training). These differences have important implications on how policies are perceived and evaluated by the public, and should inform how they are presented to the public.     

Confidence in the economy in times of crisis: Social representations of experts and laypeople

This study investigates experts’ and laypeople's social representations of the financial and economic crisis, as widely discussed in the media after the fall of Lehman Brothers in 2008. Financial experts (n = 156) and laypeople (n = 153) with low versus high confidence in the economic recovery spontaneously associated thoughts and beliefs about the crisis and to economic and political stakeholders. Following a mixed-methods approach, they evaluated economic stakeholders with regard to six trust items. The study was conducted in March 2010 in Austria, which was moderately affected by the crisis. The results indicate that economic variables (e.g., unemployment) were central to the social representations of the crisis, while underlying feelings of unfairness and egoism surfaced during the ongoing process of association. The social representation did not comprise a general criticism of the economic system. The differences between the subgroups depended on identification-based self-protection and economic knowledge. Experts and laypeople tended to attribute the economic crisis to specific stakeholders in a self-protecting way: experts blamed the media, laypeople blamed the managers, and both blamed the politicians. Interestingly, the subgroups tended to evaluate the banks as being relatively neutral. Expertise and differentiated economic knowledge was related to confidence in the economic recovery. Thus, the perceived capability of politicians in terms of competence and morality seems crucial for regaining public confidence in the economy.     

Holistic understanding of individuals’ prosocial behaviors: A configurational approach

This study examined individuals’ prosocial behaviors by integrating two theories (STOPS: situational theory of problem solving and AAM: anger activism model). To explicate the causal relationship between individuals’ perceptual, cognitive, and emotional factors and prosocial behaviors adoption, this study used a fuzzy-set qualitative comparative analysis (fsQCA). With a survey (N = 312) of individuals who participated in certain types of prosocial behaviors between 2020 and 2021, this study found configurations of core antecedent factors leading to different types of prosocial behaviors. The findings from this study complement the limitations of each theory on its own and contribute to strategic communication practice for nonprofit organizations or other entities involved in encouraging prosocial behaviors.     

Pierre Bourdieu: Economic models against economism

The use of economic analogies by Bourdieu has often been the object of much criticism. For some scholars, it reveals an “economistic” vision of the social world too much inspired by neoclassical economics. For others, it is a kind of mechanical metaphor transposed to cultural phenomena in a determinist way, as in the holistic (Marxist) tradition. To understand this usage and to refute these contradictory criticisms, we return to and focus on the very first occurrences in the 1958–1966 period – the focus of our article – of what Bourdieu would call a “general economy of practices” in his book Esquisse d’une théorie de la pratique. Two central aspects, often forgotten by critics, are presented here: first, the close but very particular link between his work and economics as a growing scientific discipline during these years; second, the criticisms Bourdieu makes of the economic model as a general scientific tool for the social sciences. If one insists only on one of the two sides of the coin, one risks misunderstanding Bourdieu’s original scientific habitusand intellectual project. By contrast, this “double” position opens the possibility of an “integrated” vision of social and economic factors of practices, thanks to the introduction of the “cultural” and above all the “symbolic” dimensions of social life.     

Shoplifting,monitoring and price determination

Shoplifting is a major crime problem costing American retailers more than $10 billion per year. Surprisingly, despite the evolvement of an extensive theoretical literature on the economics of some major economic crimes, shoplifting has failed to attract economists’ attention. The present paper applies the economic toolbox to this problem, developing a principal–agent type model of shoplifting and shoplifting control. The model examines the customer's decision of whether to shoplift or not as well as the store's profit-maximizing price and monitoring intensity. The paper challenges the conventional wisdom that the observed rise in shoplifting calls for intensified monitoring and higher prices, showing that a rational response to increased shoplifting involves a reduction in both monitoring and prices.     

The Vital Few foster parents: Replication and extension

The Pareto Principle, also known as the 80–20 rule or the Vital Few, has been successfully used as a framework to identify the small proportion of highly productive foster parents who provide a disproportionate amount of care. This study replicated and extended this research using a nationally representative sample of foster families (N = 876) with a focus on willingness to foster, and actually fostering, children with special needs.Using latent class analysis, two classes of foster parents were identified: one accounted for 19% of respondents and the other 81%. We refer to the former as the Vital Few and the latter as the Useful Many. Vital Few respondents fostered 74.2% of foster children — 11 times more than the Useful Many, although only fostering two times longer. They also had almost 1-1/2 times as many foster children in their homes at the time of the study. Notably, the Vital Few were willing to foster more types of children with special needs and a higher percentage had actually fostered children with each of the seven types of special needs studied. The classes were similar demographically except that Vital Few respondents were less likely to work outside the home and Vital Few mothers were slightly less educated as compared to Useful Many mothers.This study further validates the utility of the Pareto Principle for understanding foster parents and, by extension, has important implications for the well-being and stability of foster children with special needs. Considerations for supporting the Vital Few, including education and training needs, are discussed.     

Predicting illegal income generation among homeless male and female young adults: Understanding strains and responses to strains

This study examined gender differences among homeless young adults' engagement in illegal economic activity (i.e., panhandling, selling drugs, survival sex, gambling, theft). A purposive sample of 601 homeless young adults (ages 18–24) was recruited from three U.S. cities (Los Angeles, CA [n = 200], Austin, TX [n = 200], and Denver, CO [n = 201]) to participate in semi-structured interviews. General strain theory was used to identify predictors of illegal economic activity, including strains (childhood abuse, street victimization, length of homelessness, transience) and responses to strain (deviant peer associations, substance use, post-traumatic stress disorder, arrest history). The full hypothesized path models for males and females separately were tested using observed-variable path analysis. Among females, a greater variety of illegal income sources was reported by those who had experienced greater street victimization and who had used a greater number of substances in the past year. Among males, a greater variety of illegal income sources was reported by those who had more deviant peer associations, experienced greater street victimization, and used a greater number of substances in the past year. Findings have implications for research and preventive interventions to address engagement in illegal economic activity among male and female homeless young adults.     

Children's perspectives on their economic activity—Diversity,motivations and parental awareness

This research investigates how children from an affluent city in the UK exercise agency to construct their economic worlds. A survey (n = 484) showed that children (ages 10 to 14 years) conduct a range of monetary and non‐monetary activities. A second study (n = 83) with diaries, self‐documentation, and parental questionnaires, showed that children's economic activity involves individual and social motivations, occurs in formal and informal contexts, and is often self‐regulated. Parents acknowledge children's monetary activities and neglect non‐monetary activities. The results suggest that children's agency unfolds in diverse economic activities shaped by contextual factors and interactions with peers and parents, thereby supporting a relational view of children's agency.     

Designing effective corporate social advocacy campaigns using valence,arousal, and issue salience

Corporate social advocacy (CSA) is a growing communications practice that involves corporations taking a public stance on a controversial social issue. Some CSA campaigns have failed in the past (e.g., Pepsi’s 2017 Live for Now Moments Anthem video) by generating public backlash and damaging corporate reputation. To test how to design CSA campaigns that are beneficial for both the corporation and the advocacy issue, the current between-subjects experiment (N = 508) employed a 2 (issue salience: moderate vs. high) X 2 (valence: negative vs. positive) X 2 (arousal: moderate vs. high) factorial design to test the effects of salience, valence, and arousal on memory and four persuasion outcomes: company attitudes, purchase intentions, political participation intentions, and social media intentions, while also analyzing the mediation of information processing. Findings support prior research suggesting that negative valence increases persuasion in CSA contexts. A high-salience issue and high-arousal language increased political participation and social media intentions but had no effect on company attitudes or purchase intentions. Practical implications for CSA campaign designers highlight the persuasive potential of negative valence in CSA messages, and the utility of high-salience and high-arousal for political action and social media engagement.     

Endogenizing consumers' expectations in four major EC countries

This article examines the relationship between consumers' opinions and a number of measurable economic variables. It concludes that consumers' opinions are not easily explained by economic variables only. The implication is that consumer surveys do actually contain original information. helpful in very short-term forecasting. The paper invalidates previous investigations on the basic characteristics of opinion variables.     

Statistical power of the social network autocorrelation model

The network autocorrelation model has become an increasingly popular tool for conducting social network analysis. More and more researchers, however, have documented evidence of a systematic negative bias in the estimation of the network effect (ρ). In this paper, we take a different approach to the problem by investigating conditions under which, despite the underestimation bias, a network effect can still be detected by the network autocorrelation model. Using simulations, we find that moderately-sized network effects (e.g., ρ = .3) are still often detectable in modest-sized networks (i.e., 40 or more nodes). Analyses reveal that statistical power is primarily a nonlinear function of network effect size (ρ) and network size (N), although both of these factors can interact with network density and network structure to impair power under certain rare conditions. We conclude by discussing implications of these findings and guidelines for users of the autocorrelation model.     

Foster home licensing and risk of reentry to out-of-home care following family reunification

Family reunification without subsequent reentry is the primary permanency goal for children placed in foster care. While a number of placement-level factors have been examined for their effect on subsequent reentry to care, no study to date has considered foster care licensing. The current study uses statewide administrative data to construct a cohort of foster care youth who entered care between 2009 and 2012 and were reunified by the start of 2013 (N = 7752) to investigate the association between types of foster care and the probability of reentry to foster care up to two years following reunification. We focus specifically on the licensing status of foster homes, and employ propensity score analysis to address selection bias in placement type. A propensity-weighted cox proportional hazard model revealed that youth placed in licensed relative care (LRC) homes and licensed non-relative care (LNC) homes were more likely to reenter foster care than those youth placed in unlicensed relative care (URC) homes during their first spell of foster care.     

La sociologie du travail en Amérique latine : un essai de périodisation

Even though some areas in Latin America were already industrialized in the 1930s, labor sociology did not appear there till after WW II. Although this discipline followed in the tracks of its North American or European predecessors, the region’s history has affected its development. Three historical phases over the past half century draw attention: industrialization by replacing imported merchandise with goods produced by national firms; the authoritarian governments or military dictatorships that put a halt to the developing homeland economy; and the competitive restructuring that is programming the abandonment of public firms and advocating an export-driven economic model. During each phase, new questions have arisen but without making ideas from the preceding phase obsolete. — Special issue: Latin America.