Rich and famous: recognition-based judgment in the Sunday Times rich list

Recognition as a cue to judgment in a novel, multi-option domain (the Sunday Times Rich List) is explored. As in previous studies, participants were found to make use of name recognition as a cue to the presumed wealth of individuals. Names that were recognized were judged to be the richest name from amongst the set presented at above chance levels. This effect persisted across situations in which more than one name was recognized; recognition was used as an inclusion criterion for the sub-set of names to be considered the richest of the set presented. However, when the question was reversed, and a “poorest” judgment was required, use of recognition as an exclusion criterion was observed only when a single name was recognized. Reaction times when making these judgments also show a distinction between “richest” and “poorest” questions with recognition of none of the options taking the longest time to judge in the “richest” question condition and full recognition of all the names presented taking longest to judge in the “poorest” question condition. Implications for decision-making using simple heuristics are discussed.

Within - versus between - country differences in risk attitudes: implications for cultural comparisons

Cultural comparisons enjoy increasing popularity in economics. Since cultural comparison must abandon random allocation to treatments, it is unclear whether differences found between countries can be attributed to country characteristics or are merely driven by differences in subject pools. In experiments in two Chinese cities and at two campuses in Ethiopia, we show that within-country differences are negligible. Differences between the two countries, on the other hand, are large.