Do as I Say,Don’t Do as I Do: Differences in moral judgments do not translate into differences in decisions in real-life trolley problems

Many people judge that it is permissible to harm one person in order to save many in some circumstances but not in others: it matters how the harm comes about. Researchers have used trolley problems to investigate this phenomenon, eliciting moral judgments or behavioral predictions about hypothetical scenarios where five people can be saved at the cost of harming one other person. We operationalized trolley problems in the laboratory, with economic incentives and real-life consequences, allowing us to observe not only judgments but actual decisions. We varied whether the five were saved by clicking a switch that diverted the harm to the one or by dragging the one in front of the harm. We found differences in moral judgments between the two tasks, but no differences in behavior. The judgments of actors and observers also differed, with observers judging it more right to act. Our results suggest that the difference between moral judgments and actions arises because participants think that doing the right action still involves doing something morally discreditable, and that the morality of taking action does not exhaust the normative reasons for acting.     

Overconfident health workers provide lower quality healthcare

While a growing body of evidence suggests that healthcare workers in low and middle-income countries often provide poor quality of care, the reasons behind such low performance remain unclear. The literature on medical decision-making suggests that cognitive biases, or failures related to the way healthcare providers think, explain many diagnostic errors. This study investigates whether one cognitive bias, overconfidence, defined as the tendency to overestimate one’s performance relative to others, is associated with the low quality of care provided in Senegal. We link survey data on the overconfidence of health workers to objective measures of the quality of care they provide to standardised patients – enumerators who pose as real patients and record details of the consultation. We find that about a third of providers are overconfident – meaning that they overestimate their own abilities relative to their peers. We then show that overconfident providers are 26% less likely to manage patients correctly and exert less effort in clinical practice. These results suggest that the low levels of quality of care observed in some settings could be partly explained by the cognitive biases of providers, such as overconfidence. Policies that encourage adequate supervision and feedback to healthcare workers might reduce such failures in clinical decision-making.     

Community dissatisfaction and depressed mood in Suburbia

Because of contradicting theoretical statements and empirical data, there is a need to specify the exact part that neighborhood and individual characteristics represent in determining mental health related behavior and the livabiiity of residential neighborhoods. This article adds to the understanding of the general problem by exploring the contributions that economic and social status of neighborhoods and individuals make towards depressed mood and community dissatisfaction. The study was limited to men residing in “classic suburbia” in the early 1960s. Seven hypotheses were proposed — the expectancy congruence, the additive, the big reward, and big failure, the atypical person, the reward visibility, and the economic status maintenance hypotheses. Support for the big reward and pan of the additive hypothesis was observed. The relationships presented in the paper clearly demonstrate that to gain an understanding of community dissatisfaction and depressed mood we must examine an individual's social and economic status and that of his neighborhood.     

Changing attitudes to risk at older ages: The role of health and other life events

This paper investigates risk attitudes at older ages in 14 European countries. Older individuals report lower willingness to take risks in all countries. Using panel data we are able to show that this relationship between financial risk attitudes and age is not due to cohort effects or selective mortality. We also show that key mechanisms driving this change with age are health changes and other life events – in our preferred specification around half of the overall evolution of risk attitudes with age can be explained by health shocks, retirement, and widowhood or marital change that occur increasingly frequently as individuals age. These life-events are a particularly important explanation of the evolution of risk attitudes for women.     

Mental discounting and financial strategies

Subjective discount rates have been used as measures of time preference to explain saving behavior, with varying results. There is also a lack of agreement between different explanatory models of subjective discount rates. In this paper, it is argued that a better understanding of subjective discount rates can be reached by using groups with different financial strategies as domains. It is shown by PLS and regression analyses that the mental discounting process differs between groups practicing different financial strategies and that the explained variance of subjective discount rates and thus the understanding of such rates are improved by using financial strategy groups as domains.     

Worries of the poor: The impact of financial burden on the risk attitudes of micro-entrepreneurs

We randomly expose the owners of small retail businesses in Vietnam to scenarios that trigger financial worries and study the effect of this intervention on risk attitudes using an incentive-compatible elicitation method. We find that entrepreneurs exposed to financial worries behave less risk-averse than those assigned to a placebo treatment. This effect is stronger for owners of shops which are smaller and those less exposed to large income shocks in their everyday business. We further show that the effect of financial worries on risk attitudes is not explained by changes in the cognitive functioning of the treated. The findings are consistent with previous results from laboratory experiments with students in developed countries. As such, the paper provides evidence for the external validity of these findings in the context of micro-entrepreneurship in a developing country and points to financial worries as one understudied psychological channel for the effect of material deprivation on decision-making.