[ { "id": "https://authors.library.caltech.edu/records/x4p85-xjv36", "eprint_id": 82955, "eprint_status": "archive", "datestamp": "2023-08-19 11:56:56", "lastmod": "2024-01-14 05:49:14", "type": "monograph", "metadata_visibility": "show", "creators": { "items": [ { "id": "Kovalchik-S", "name": { "family": "Kovalchik", "given": "Stephanie" } }, { "id": "Camerer-C-F", "name": { "family": "Camerer", "given": "Colin F." }, "orcid": "0000-0003-4049-1871" }, { "id": "Grether-D-M", "name": { "family": "Grether", "given": "David M." } }, { "id": "Plott-C-R", "name": { "family": "Plott", "given": "Charles R." } }, { "id": "Allman-J-M", "name": { "family": "Allman", "given": "John M." } } ] }, "title": "Aging and decision making: A comparison between neurologically healthy elderly and young individuals", "ispublished": "unpub", "full_text_status": "public", "keywords": "Age, overconfidence, willingness to pay/accept, endowment effect, theory of mind, game theory, risk-taking", "note": "We thank Dr. Gail Murdock and Dr. Linda Clark, from the ADRC, who coordinated the recruitment of the older population and provided demographic data for these subjects. We also thank Kathy Zeiler for her assistance with the loss aversion methodology, as well as Neda Afsarmanesh for her involvement in the questionnaire\ndesign. The financial support of the National Science Foundation, the Summer Undergraduate Research Fellowship at the California Institute of Technology, the Arthur\nR. Adams Fellowship, and the David and Lucile Packard Foundation are gratefully\nacknowledged.\nFor their reading of and helpful responses to early versions of our paper, we thank\nDr. John Conlisk and our article's anonymous referee.\n14\n\n
Submitted - sswp1180.pdf
", "abstract": "We report the results of experiments on economic decisions with two populations,\none of healthy elderly individuals (average age 82) and one of younger students (average\nage 20). We examine confidence, decisions under uncertainty, differences between\nwillingness to pay and willingness to accept and the theory of mind (strategic thinking).\nOur findings indicate that the older adults' decision behavior is similar to that of young\nadults, contrary to the notion that economic decision making is impaired with age.\nChoices over lotteries do not reflect the age differences previously reported in the\npsychology and biology literature. Moreover, some of the demonstrated decision\nbehaviors suggest that the elderly individuals are less biased than the younger\nindividuals.(1)There is a greater prevalence of overconfident behavior in the younger\npopulation. (2) Our results show no significant support for a theory of an endowment\neffect in either population. (3) Both populations perform similarly on the beauty contest\ntask, although there is a modest indication of a higher incidence of confused behavior by\nthe older.", "date": "2017-11-06", "date_type": "published", "publisher": "California Institute of Technology", "id_number": "CaltechAUTHORS:20171103-153904140", "official_url": "https://resolver.caltech.edu/CaltechAUTHORS:20171103-153904140", "rights": "No commercial reproduction, distribution, display or performance rights in this work are provided.", "funders": { "items": [ { "agency": "NSF" }, { "agency": "Caltech Summer Undergraduate Research Fellowship (SURF)" }, { "agency": "Arthur R. Adams Fellowship" }, { "agency": "David and Lucile Packard Foundation" } ] }, "local_group": { "items": [ { "id": "Social-Science-Working-Papers" } ] }, "doi": "10.7907/x4p85-xjv36", "primary_object": { "basename": "sswp1180.pdf", "url": "https://authors.library.caltech.edu/records/x4p85-xjv36/files/sswp1180.pdf" }, "resource_type": "monograph", "pub_year": "2017", "author_list": "Kovalchik, Stephanie; Camerer, Colin F.; et el." }, { "id": "https://authors.library.caltech.edu/records/qh08g-khx44", "eprint_id": 79624, "eprint_status": "archive", "datestamp": "2023-08-19 13:41:22", "lastmod": "2024-01-13 23:26:55", "type": "monograph", "metadata_visibility": "show", "creators": { "items": [ { "id": "Grether-D-M", "name": { "family": "Grether", "given": "David M." } }, { "id": "Plott-C-R", "name": { "family": "Plott", "given": "Charles R." } }, { "id": "Rowe-D-B", "name": { "family": "Rowe", "given": "Daniel B." } }, { "id": "Sereno-M-I", "name": { "family": "Sereno", "given": "Martin I." } }, { "id": "Allman-J-M", "name": { "family": "Allman", "given": "John M." } } ] }, "title": "Mental Processes and Strategic Equilibration: An fMRI Study of Selling Strategies in Second Price Auctions", "ispublished": "unpub", "full_text_status": "public", "keywords": "auctions, strategy, imaging", "note": "Revised version. Original dated to February 2004. \n\nThe research support of the Caltech Laboratory for Experimental Economics and the National Science Foundation are gratefully acknowledged. \n\nPublished as Grether, D.M., Plott, C.R., Rowe, D.B., Sereno, M., & Allman, J.M. (2007). Mental processes and strategic equilibration: An fMRI study of selling strategies in second price auctions. Experimental Economics, 10(2), 105-122.\n\nSubmitted - sswp1189_-_revised.pdf
", "abstract": "This study is the first to attempt to isolate a relationship between cognitive activity and equilibration to a Nash Equilibrium. Subjects, while undergoing fMRI scans of brain activity, participated in second price auctions against a single competitor following predetermined strategy that was unknown to the subject. For this auction there is a unique strategy that will maximize the subjects' earnings, which is also a Nash equilibrium of the associated game theoretic model of the auction. As is the case with all games, the bidding strategies of subjects participating in second price auctions most often do not reflect the equilibrium bidding strategy at first but with experience, typically exhibit a process of equilibration, or convergence toward the equilibrium. This research is focused on the process of convergence.", "date": "2017-08-01", "date_type": "published", "publisher": "California Institute of Technology", "id_number": "CaltechAUTHORS:20170731-150528277", "official_url": "https://resolver.caltech.edu/CaltechAUTHORS:20170731-150528277", "rights": "No commercial reproduction, distribution, display or performance rights in this work are provided.", "funders": { "items": [ { "agency": "Caltech Laboratory for Experimental Economics" }, { "agency": "NSF" } ] }, "local_group": { "items": [ { "id": "Social-Science-Working-Papers" } ] }, "doi": "10.7907/qh08g-khx44", "primary_object": { "basename": "sswp1189_-_revised.pdf", "url": "https://authors.library.caltech.edu/records/qh08g-khx44/files/sswp1189_-_revised.pdf" }, "resource_type": "monograph", "pub_year": "2017", "author_list": "Grether, David M.; Plott, Charles R.; et el." } ]