Working Paper: NBER ID: w24931
Authors: Jonathan Chapman; Mark Dean; Pietro Ortoleva; Erik Snowberg; Colin Camerer
Abstract: We study the pattern of correlations across a large number of behavioral regularities, with the goal of creating an empirical basis for more comprehensive theories of decision-making. We elicit 21 behaviors using an incentivized survey on a representative sample (n=1,000) of the U.S. population. Our data show a clear and relatively simple structure underlying the correlations between these measures. Using principal components analysis, we reduce the 21 variables to six components corresponding to clear clusters of high correlations. We examine the relationship between these components, cognitive ability, and demographics, and discuss the theoretical implications of the structure we uncover and find a number of relations that partly confirm, but also add nuance, to previous findings.
Keywords: behavioral economics; decision-making; principal components analysis; social preferences; risk preferences
JEL Codes: C90; D64; D81; D9
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Social preferences (D71) | Risk preferences (D81) |
| Risk attitudes (D81) | Complexity of representation (D79) |
| Cognitive abilities (D91) | Social preferences (D71) |
| Cognitive abilities (D91) | Propensity to punish (K42) |
| Cognitive abilities (D91) | Patience (Y60) |
| Behavioral measures (C99) | Components (PCA) (C38) |