Regret Theory: Looking Back, Looking Forward

In 1982, the Economic Journal published a paper by Graham Loomes and Robert Sugden proposing an alternative theory of rational choice under uncertainty called regret theory.  A special anniversary session discussed the history of the theory, its success relative to other approaches, its applications and empirical evidence.  In this video clip NIBS Co-Investigator, Robert Sugden, …

Choice Rules and Accumulator Networks by Sudeep Bhatia

Decision makers often use sophisticated rules to make their decisions. For example, when trying to evaluate two objects they may look at a single attribute and choose the object that is best on that attribute. Alternatively, they may try to examine all attributes, and then add up these attributes to determine the total desirability of …

Warwick Business School – Second Nudgeathon

On the 14th and 15th of September 2015, the second Nudgeathon, a behavioural change competition founded by the Warwick Business School, will take place at The Shard in London. Nudgeathon, as its name implies, is a nudging marathon. The main objective of the event is to develop implementable solutions to a given social issue. The idea …

Intertemporal Choice Workshop

Forty scholars from across the NIBS network and further afield met in Warwick to generate and discuss ideas related to intertemporal choice. Organised by the Intertemporal Choice mini-network in NIBS, the conference was set up to foster collaboration between researchers from different institutions, and to promote policy-focused research ideas tackling the issues related to choice …

Co-ordination Workshop Report by Emily Wyman

When individuals, groups, or even nations desire to act together to achieve something that none can achieve alone, they must often negotiate between multiple ways of accomplishing this.  Typically, this will require some form of shared knowledge of the situation, a degree of assurance between parties, or some complex reasoning about what others are likely …

Two new papers on ‘virtual bargaining’ as a foundation for social interaction, culture, and society

In social interactions people often act jointly: they take turns in conversations, coordinate their actions in rowing, football or improvised dance, perform complementary tasks in cooking, assembling furniture, or, perhaps, even in elementary economic transactions. But how do such joint actions work? And how, in particular, do people successfully coordinate with each other, without explicit …

Why we need behavioural economics

‘It took decades for behavioural economics to break into the mainstream. Now, after just a few years of “bias”, “anchoring” and “nudge”, some critics are already questioning whether it has anything left to offer.’ Chris Starmer, Director of NIBS and CeDEX discusses why we need behavioural economics in ‘The Conversation‘ (published online 28 July 2014)

Risk Taking and Information Aggregation in Groups

Spiros Bougheas, Jeroen Nieboer and Martin Sefton report an experiment examining risk taking and information aggregation in groups in CeDEx Working Paper 2014-09. Group members come to the table with an individual preference for a choice under risk, based on privately received information, and can share this information with fellow group members.  They then make a decision under risk …

How do risk attitudes affect measured confidence?

A Working Paper from the University of Nottingham’s Centre for Decision Research and Experimental Economics (CeDEx) explores how risk attitudes affect measured confidence – paper reference 2014-05. Authors Zahra Murad, Martin Sefton and Chris Starmer examine confidence in own absolute performance using two elicitation procedures: self-reported (non-incentivised) confidence and an incentivised procedure that elicits the certainty equivalent of a bet based on …

The puzzle of high cost credit versus low yield savings

  A new publication by John Gathergood and Jörg Weber entitled ‘Self-Control, Financial Literacy & the Co-Holding Puzzle’ is forthcoming in the  Journal of Economic Behavior & Organization  In advance of publication, the paper is available online. Using UK survey data to analyze the puzzling co-existence of high cost revolving consumer credit alongside low yield liquid …