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The Faster the Better: When the Payoff Depends on Reaction Times in a Natural Experiment

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  • Migheli, Matteo

Abstract

This paper experimentally investigates how people take risk with other people’s money, and specifically, whether risk-taking is influenced by information about others. Before choosing the degree of risk another person must bear, subjects get information about the other person’s gender and self-reported level of extroversion. There is no evidence that information about gender has an effect, and matters more for choosing on behalf of one’s-self than for choosing on behalf of others. Extroversion, however, has a significant effect. Here it matters more for choosing on behalf of others than on behalf of one’s-self. I also find that the own risk choices have a strong effect on choosing on behalf of others.

Suggested Citation

  • Migheli, Matteo, 2017. "The Faster the Better: When the Payoff Depends on Reaction Times in a Natural Experiment," Review of Behavioral Economics, now publishers, vol. 4(2), pages 135-151, September.
  • Handle: RePEc:now:jnlrbe:105.00000062
    DOI: 10.1561/105.00000062
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    Cited by:

    1. Lotito, Gianna & Migheli, Matteo & Ortona, Guido, 2019. "Some Experimental Evidence on Type Stability and Response Times," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201919, University of Turin.

    More about this item

    Keywords

    Reaction times (RT); Natural experiment; Instinctiveness; Cognitive processes;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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