Why men collect things? A case study of fossilised dinosaur eggs

Collecting entails substantial costs in terms of effort, money, time and space needed to find, obtain and store desirable items. Still, the non-utilitarian nature of collectibles suggests that a simple economic justification of this behaviour is unlikely. Moreover, the apparent sex difference, with collectors being almost exclusively men, indicates a possible reproductive motive. However, presently available theories have failed to identify these motives and predict its patterns leaving collecting behaviour unexplained. This paper employs recent developments in the fields of evolutionary psychology and theoretical biology in order to construct a plausible theory which accounts for collecting behaviour. In particular, it is argued that collecting has evolved to facilitate reliable communication between males with respect to their unobserved resource acquisition capacity. Based on this theoretical framework three hypotheses are derived: the desirability of a collectible item is positively related to its rarity, aesthetic pleasingness, and size. Evidence based on eBay auction sales of fossilised dinosaur eggs provides support for all three hypotheses.     

The benefits of joint and separate financial management of couples

Financial management differs across households with consequences for financial outcomes and well-being of partners in households. A large-sample study has been performed, investigating the relationship between financial management of households and the occurrence of financial problems. To our knowledge, this is the first study on this relationship. Data from both partners was collected on having joint and separate bank accounts, on financial decision making, on drivers of financial management, and on financial outcomes. Based on the data, four financial management styles were derived: syncratic/joint, male-dominant, female-dominant, and autonomous financial management. In the syncratic style, partners have a joint bank account and take most financial decisions together. In the male/female-dominant styles, one partner (husband or wife) takes the main financial decisions. In the autonomous style, both partners have their own bank accounts and make their own decisions. As a conclusion, we find that syncratic financial management and having a joint instead of a separate bank account correlates with fewer financial problems, as compared with male-dominant money management and having separate bank accounts. Deciding together as partners is beneficial for the quality of financial management and for avoiding financial problems.     

Impulsivity and household indebtedness: Evidence from real life

Using a probit model, we estimated the role of emotional factors in determining household participation in the debt market, after controlling for such traditional economic predictors as age, level of education, income, wealth, and work status. A sample of 445 Caucasian subjects selected among fulltime employees at international asset management companies underwent the Barratt Impulsiveness Scale, the Iowa Gambling Task (IGT) while skin conductance was recorded, and a series of questions related to their demographic-socio-economic profile. Aside from confirming the role played by traditional explanatory variables commonly used as determinants of household indebtedness, results revealed the significant influence of individuals’ impulsivity in making debt decisions. Impulsivity predicted unsecured debt (i.e. consumer credit), but it was not significantly associated with secured debt (i.e. mortgages). Neither presence of a somatic marker to guide decisions nor performance at the IGT predicted real-life indebtedness decisions in this non-clinical sample. The notion that “non-rational” factors influence debt demand has been largely ignored and raises concerns about the risk of over-indebtedness for impulsive individuals.     

Risky discounts: Do people prefer them on a per-item or per-purchase basis and why?

Risky discounts differ from other discount formats in that the actual discount level is determined by chance (e.g., “scratch & save” cards). Four studies investigated whether consumers prefer to receive risky discounts on a per-purchase or per-item basis. Although these options do not differ with regard to expected value, they entail multiple differences (e.g., savings distribution, amount of individual gains, excitement, and effort involved) that may lead to differential consumer perceptions and experiences. Controlling for expected value of savings, participants preferred per-item over per-purchase discounts. As hypothesized, the main reasons for this preference were a partly incorrect perception of the properties of the savings distribution, the adoption of a narrow mindset focusing on the best outcome in a series of discount gambles, and the greater excitement provided by multiple discount gambles.     

Socio-demographics,implicit attitudes,explicit attitudes,and sustainable consumption in supermarket shopping

The aim of this research is to examine whether socio-demographics, implicit and explicit attitudes towards the environment predict sustainable consumer behaviour, measured using supermarket loyalty card data. The article uses an Implicit Association Test (IAT) and Likert scales to gauge implicit and explicit attitudes towards sustainable consumption in a real consumer sample, and measures demographic characteristics of participants. Results indicate that level of education is a key predictor of an aggregate measure of sustainable consumption, with a small part of this influence mediated by level of explicit environmental concern for climate change. Econometric modelling shows that explicit and implicit attitudes influence consumer decisions differently in specific food categories. Results, obtained with real consumer data, call into question the accepted socio-demographic profile of the green consumer and help identify conditions under which pro-environmental attitudes predict sustainable consumption.     

From dual processes to multiple selves: Implications for economic behavior

This article presents a short review of dual-process and dual-system theories from social and cognitive psychology and comments on their relevance for research on economic behavior. We view dual-process theories as a theoretical scaffolding which helps structure and interpret experimental results and can deliver important insights on human behavior in economic contexts. Dual-process ideas and concepts have already started to percolate into economics, contributing to the behavioral turn and the incorporation of bounded rationality into economic theory. The most recent development in this direction is represented by multiple selves models, which we view as a promising first step. We conclude the article with a brief discussion of the remaining articles in the special issue.     

Do fixed payments affect effort? Examining relative thinking in mixed compensation schemes

Several earlier studies have shown that people exhibit “relative thinking”: they consider relative price differences even when only absolute price differences are relevant. The article examines whether relative thinking exists when people face mixed compensation schemes that include both fixed and pay-for-performance components. Such compensation schemes are prevalent in many occupations (e.g., salespeople and managers) and therefore are an important practical issue. Surprisingly, the ratio between the pay-for-performance and the fixed compensation does not affect effort, meaning that no relative thinking is found. Another experiment shows that this is not due to reciprocity that cancels out relative thinking. In a third experiment subjects make similar decisions without incentives and the results suggest that the different context (compensation schemes instead of price comparisons) and not the introduction of financial incentives (which were not used in previous studies) is the reason that relative thinking disappears. The results have implications for designing incentive schemes in firms and for designing experiments.     

Decision making for others involving risk: A review and meta-analysis

Are choices for others riskier than choices people make for themselves? This question has been asked by economists, psychologists, and other researchers in the social sciences – which has generated a diversity of research accounts and results. For example, a number of studies have found strong instances of a risky shift in choices for others, while other studies have found no such effect or have found that choices for others instead generate a cautious shift. In a meta-analysis of 128 effects from 71 published and unpublished papers (totaling 14,443 observations), we found a significant though small effect size (d = 0.105) in favor of a risky shift when people choose for others. Moreover, we found considerable variance between studies (Q = 1106.25), suggesting that the net effect is susceptible to moderating factors or study characteristics, which we identify and discuss as well (viz. choice recipient, decision frame, decision reciprocity, theoretical perspective, study design). Thus, we document not only whether decisions for others are riskier, but when (and when such decisions are less risky). We further discuss what is distinctly unique about decision making for others – how such choices are not just different in degree from personal choices but different in kind.     

The material and immaterial in conflict: Spirituality reduces conspicuous consumption

Many spiritual leaders have argued that materialistic pursuits are incompatible with following a spiritual life. Consistent with this view, we found that higher levels of spirituality correspond to a decreased desire to consume material goods in a conspicuous manner. Study 1 was correlational, and found that people who reported having spiritual experiences reported a decreased desire to spend lavishly for visible consumer goods, such as a cell phone. Study 2 was experimental, and found that participants assigned to recall a spiritual event also demonstrated a decreased desire to consume conspicuously, relative to participants assigned to recall an enjoyable event.     

Financial management, coping and debt in households under financial strain

This study looks at how households cope financially with a budget under a certain financial strain (after the birth of a new baby), and particularly examines their financial management practices and debting behaviour. Other factors associated with debt status caused by financial strain — particularly psychological variables — are also examined. A number of indexes were calculated from questionnaire data and used to measure these variables. The results showed that being in debt was significantly associated with feelings of coping less well and with better financial management. Better coping was also significantly associated with being more ‘forwardlooking’ and having a more negative attitude towards debt. Better financial strategies were significantly associated with being less materialistic and having a more stable budget. The results confirm previous findings that psychological and behavioural variables have a considerable impact on being in or keeping out of debt, but also suggest that perceived poor coping and being in debt during a period of particular financial strain may actually lead to an improvement in financial management.