Do negative economic shocks affect cognitive function, adherence to social norms and loss aversion?

Francesco Bogliacino and Felipe Montealegre ()

Journal of the Economic Science Association, 2020, vol. 6, issue 1, No 5, 57-67

Abstract: Abstract Households are frequently subject to income and asset shocks. We performed a lab experiment, inducing losses on a real effort task, after which we measured cognitive performance, loss aversion and cheating behavior. We found that asset losses, but not income losses, act as a cognitive load, by decreasing accuracy and increasing response times. We did not detect any change in dishonesty or loss aversion.

Keywords: Cognitive function; Cheating; Social norm; Loss aversion; Negative shock; Income; Asset (search for similar items in EconPapers)
JEL-codes: C91 D81 D91 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (7)

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Working Paper: Do Negative Economic Shocks Affect Cognitive Function, Adherence to Social Norms and Loss Aversion? (2020)
Working Paper: Do Negative Economic Shocks Affect Cognitive Function, Adherence to Social Norms and Loss Aversion? (2020)
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DOI: 10.1007/s40881-020-00091-4

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