ABSTRACT. Humans have the propensity of reacting to unfair situations even when they are not directly affected by the violation and when there is no future reward for themselves by doing so (Fehr& Fischbacher, 2004b; Gintis, 2000). According to many evolutionary scientists, intervention of third-parties to violations of cooperation or equal sharing norms plays a key role in maintaining cooperation in humans (Boyd et al., 2003; Tomasello, 2016). Past research have shown that third parties are even willing to incur a cost to intervene after norm violations, and this behavior has been identified as an altruistic behavior (Fehr & Gächter, 2002; Shinada et al., 2004). Third parties may intervene after norm violations by either compensating the victim or punishing the transgressor (Gummerum et al., 2016; Liu et al., 2018). We aimed to understand the dynamics of third-party interventions by differentiating these two different types of third-party behaviors and investigating their proximate mechanisms. We treated social value orientation (SVO) as an individual-level proximate mechanism, which refers to individuals’ tendencies of considering the interests of others or themselves in social interactions and cooperation (Van Lange et al., 1997). Three different types of SVO have been identified; prosocial orientation (i.e., preference for joint outcomes), individualistic orientation (i.e., preference for own outcome) and competitive orientation (i.e., preference for a maximum difference between own and other’s outcome). We investigated whether third-party punishment and compensation differ from each other in terms of their relationships with prosocial orientation. In addition to considering individual level differences in prosocial orientations, we investigated the effect of relatedness motivation orientation which was experimentally manipulated, since past research has shown that highlighting motivation orientation increased prosocial intentions and behaviors (Pavey et al., 2011). This study was pre-registered. The study sample consisted of 306 participants (48 male, 249 female, 6 nonbinary, 3 other; Mage=18.9; SD= 2.04). Participants completed the Nine-Item Triple Dominance Scale (Van Lange et al., 1997); answered a set of self-affirmation questions related to the experimental condition they randomly assigned (relatedness, autonomy, or competence; adapted from Deci and Ryan, 2000; taken from Pavey et al., 2011; Reed & Aspinwall, 1998) and played a Third-Party Intervention Game (adapted from Fehr & Fischbacher, 2004; taken from Gummerum et al., 2016). In order to check the effect of manipulation three one-way Analyses of Variance (ANOVAs) were conducted. The results showed that the experimental manipulations were successful in highlighting the three basic needs. In order to test research questions, the Linear mixed-effects models were run in RStudio with participants’ punishment and compensation expenditure as continuous variables. The main effects of altruism, relatedness, offer by Player A and decision type (punishment vs compensation), and all possible two-way, three-way, and four-way interactions were entered as fixed effects. Subject identities were entered as random intercepts. Firstly, the results showed that participants were more likely to spend their points for punishment (M =. 79, SD = 1.15) than compensation (M =. 59, SD = .99; B = -.81, p< .001), and the expenditures to either punish the transgressor or compensate the victim decreased as the offer size increased (B = -.40, p< .001). This demonstrates a preference for incurring costs to intervene following norm violations in unfair conditions, with an inclination toward punishment. Secondly, the interaction effect of Decision type X Prosocial tendency was significant (B = -.04, p< .001), showing that whether one prefers to either punish or compensate in response to unfairness depends on their level of prosocial orientation. According to this, participants high in altruism spent similar amounts on punishment and compensation while participants low in altruism spent more points on punishment than compensation. Thirdly, the interaction effect of Decision type x Relatedness was significant (B = -.97, p< .05). Participants spent more points on compensation in the relatedness (M = .65, SD = 1.10) than all other conditions (M = .58, SD = .95), while there was no difference in points spent on punishment in the relatedness (M =. 80, SD = 1.13) and all other condition. This indicates that the effect of relatedness manipulation on third-party intervention behavior is valid for compensation but not for punishment. Finally, the interaction effect of Relatedness x Prosocial tendency x Decision type was not significant (B = -.02, p> .05), showing that prosocial tendency does not interact with relatedness motivation orientation in influencing the preferred type of third-party intervention behaviour. Overall, the findings show that individuals tend to spend their resources to respond to unfairness, they prefer punishment over compensation, and this inclination is modulated by prosocial tendencies as well as relatedness motivation orientations. In conclusion, prosocial tendencies and relatedness cues might be more proximate mechanism for third-party compensation than third-party punishment.

ABSTRACT. Intellectual capital exerts a significant influence on entrepreneurship. This study delves into one vital component of intellectual capital crucial for entrepreneurial endeavors: relational capital (RC). RC encompasses the value derived from trust, respect, familiarity, collaboration, and interpersonal bonds. The notion of RC, is rooted in the understanding that the success of entrepreneurial ventures hinges significantly on the relationships they cultivate within their milieu. Indeed, a substantial body of literature suggests that mastering social skills constitutes a pivotal aspect of the entrepreneurial process. In accordance with the intellectual capital literature, relational capital (RC) encompasses interactions with stakeholders, customers, suppliers, associates, and partners, constituting one of the three fundamental components of intellectual capital. The other two components are human capital, which pertains to the value derived from the collective stock of tacit and explicit knowledge possessed by individuals, and structural capital, which refers to the value stemming from the organizational structure, processes, and cultural knowledge internalized within the business entity. RC serves as an intangible asset crucial for fostering innovation, enhancing efficiency, fostering cooperation, forming alliances, and boosting overall performance. Furthermore, RC plays a pivotal role in various aspects of business operations. It can lower negotiating costs within alliances, facilitate favorable payment terms, provide strategic insights such as information on potential competitors or distribution channels, enable the establishment of a more robust alliance network encompassing finance and investment opportunities, and even offer invaluable emotional support from friends and. Entrepreneurial development relies heavily on extensive interactions and relationships with a spectrum of stakeholders, including potential partners, investors, bankers, customers, suppliers, employees, advisors, family members, and other collaborators. Nevertheless, RC is deemed to confer a competitive advantage, particularly in the nascent phases of business development. Given the consensus between the entrepreneurial and intellectual capital literature regarding the pivotal role of relationships in entrepreneurship, it prompts the inquiry into whether distinct personality factors influencing the caliber and extent of relationship cultivation can be identified and empirically scrutinized for their impact on entrepreneurship. In this paper, I propose a theoretical model that underscores a potentially significant personality driver of relational capital (RC), namely disgust sensitivity, and examine its moderating influence on entrepreneurial tendencies —which previous research has shown to significantly predict actual entrepreneurship. Disgust sensitivity represents a distinctive personality trait known to profoundly impact both physical interactions and psychological distancing in interpersonal relationships, thus playing a pivotal role in relationship building. The entrepreneurial tendency comprises several facets of the entrepreneurial personality pivotal for the initial phases of entrepreneurial development, such as awareness, creativity, opportunism, and vision. Research has demonstrated that this tendency significantly predicts actual engagement in entrepreneurship, thus positioning it not only as a personality trait but also as a robust proxy for determining entrepreneurial career choices. According to the proposed model, disgust sensitivity acts as a moderator for the direct impact of various broad categories of personality traits—known to influence relationship quality and satisfaction—on entrepreneurial tendency and through it on entrepreneurship. Alongside theoretical elaboration, the paper will provide empirical evidence to substantiate the proposed theoretical framework. In contributing to this existing literature, the paper introduces a crucial and often overlooked personality trait, namely disgust sensitivity, which governs both physical interactions and psychological distancing. This trait significantly impacts the interconnected self of an entrepreneur, who must actively engage in the social realm and cultivate extensive relationship capital. Specifically, I propose that individuals exhibiting high levels of disgust sensitivity experience moderating effects on several Big Five general personality traits crucial to entrepreneurship, in contrast to individuals characterized by low disgust sensitivity. Additionally, this paper bears close relevance to the economic entrepreneurial literature, which examines various facets of social capital and their influence on entrepreneurs' capacity to cultivate supportive relationships, particularly trust and networking. Furthermore, it intersects with the economic psychology literature, which has shown a keen interest in exploring the role of personality characteristics in economic behaviors, preferences, and outcomes. According to the Affect-as-Information theory, individuals implicitly inquire, "how do I feel about this?", with these feelings serving as sources of information during decision-making. Within this framework, disgust serves as information regarding trust in others and influences harsher moral judgments. High disgust sensitivity can consequently prompt individuals to withdraw from interactions and pose significant obstacles to relationship building. In contributing to this body of literature and addressing the growing interest in the impact of negative affect on entrepreneurship, the paper provides empirical support for the potential effect disgust sensitivity. It demonstrates how disgust sensitivity may influence not only simple behaviors and attitudes but also moderate the impact of personality traits on a more complex cognitive-motivational structure—namely, the inclination to become an entrepreneur, which is highly contingent on social contacts and relationships. To summarize, this study develops a theoretical model and offers empirical validation, positing that disgust sensitivity moderates the relationships between entrepreneurial tendency—which previous research has shown to significantly predict actual entrepreneurship—and the Big Five personality traits: Extraversion, Neuroticism, and Agreeableness. These traits are recognized for their impact on relationship quality and satisfaction. Furthermore, the model suggests that heightened disgust sensitivity mitigates the entrepreneurial gender gap, which partly arises from differences in networking behaviors between genders. Women tend to utilize their networks for relationship-building, whereas men often leverage networks for strategic and instrumental gains. The findings underscore the intertwined effects of disgust sensitivity and personality traits on a multifaceted, higher-order entrepreneurial tendency. In light of the prevailing focus on human capital accumulation and resource enhancement in entrepreneurship endeavors, this paper underscores the significance of personality traits in fostering social networking and relationship building, thereby constituting vital supplementary resources for entrepreneurship. Importantly, these factors also influence the entrepreneurial gender gap.

ABSTRACT. Within behavioural public policy, the psychology of poverty seeks to produce generalizable, mechanistic, and policy-relevant knowledge, and has already made seminal contributions to the understanding of poverty from a behavioural and experimental perspective. This methodological talk evaluates the field's aim by asking what consequences there are for the mechanistic extrapolation and generalization of causal effects, if one evaluates the paradigmatic experimental designs with the concept of construct validity. With the concept I emphasize its theoretical side of connecting high-order constructs with empirical operationalizations and inspecting experimental interventions as operationalizations. I argue that the field's aim of producing robust policy-relevant causal generalizations and extrapolations is in tension with the current practices of construct validation around the interventions and mechanisms studied by the field. The practices and their downstream consequences to experimental design and resulting causal inferences do not easily allow generalizations and extrapolations made.

Building on a behavioural economics perspective, the field began with two seminal experimental studies a decade ago that produced bold causal generalizations about the negative psychological effects of poverty and resource scarcity. Since the field has expanded significantly, and the paradigmatic experimental interventions include priming, payday, harvest, and laboratory strategies (with some field experiments). Now, the main construct, scarcity, is operationalized flexibly and is often linked to “universal” cognitive mechanisms that apply across contexts. However, when flexible operationalizations are left implicit, challenges arise. Cognitive mechanisms may vary or interact with other kinds of mechanisms across contexts. The heterogeneity of scarcity can produce varying effects depending on duration and intensity—as could be in different welfare-state settings, as some evidence points out—which broad generalizations may fail to capture. Moreover, the nature of the experimental interventions—what they changed and what they did not—along with their relations to the higher-order construct of scarcity, is not always clear. Tendency to overlook construct validity leads to an incomplete understanding of how interventions, assumed mechanisms, and outcomes relate to the various behaviours and (choice) environments of the poor, thus hindering building generalizations. Lack of construct validity can also partly explain the mixed evidence-base of the field.

The psychology of poverty holds great value, with experiments remaining central. The field has shown that poverty has cognitive effects through causal mechanisms, even though much work remains to be done on the specifics. To get further, instead of applying the paradigmatic cognitive mechanism schema by default to new studies, researchers could consider more how empirical operationalizations reflect the phenomenon with its social-cultural aspects, treating interventions as local and context-dependent, and embracing—sometimes messy—mixed-methods triangulation to untangle how interventions are actually implemented and how mechanisms seem to work. Thus, many issues outlined do not have a straightforward statistical solution, but require better use of theory, as was emphasized in the early stages of psychometrics. Moreover, insights from the mechanistic approach to explanation can help balance the trade-off between granularity and generality in causal claims and thus recalibrate the aim of the field more realistic. Collaboration between behavioural researchers and poverty scholars could further help by developing policy-relevant constructs of poverty and scarcity, even though there is no need nor possibilities for a “grand theory” of poverty.

ABSTRACT. This paper studies how key economic preferences are distributed in a society and how this variation relates to individuals’ early health endowment and family background. To answer these questions, we (i) present a novel dataset that includes incentivized measures of competitiveness and key economic preferences (social preferences, risk preferences, time preferences) as well as survey data from nearly 6000 Finnish individuals aged from 15 to 30 years, (ii) link these data with respondents’ medical birth records, medical histories, and a broad variety of administrative records containing educational and labor market outcomes for respondents and their family members, (iii) systematically explore a large set of potential developmental and demographic correlates of economic preferences and assess their relative importance in explaining individual and geographical variation in preferences, and (iv) investigate how children’s early health endowment and parental inputs may jointly shape economic preferences. The key idea is to link incentivized preference data with rich individual- and population-level datasets to expand the scope of research into important domains of economic behavior and decision-making that are not easily studied using behavioral experiments or administrative datasets alone.

The evidence presented in this paper suggest that (i) competitiveness, risk taking, patience and altruism increase in an age interval from 15 to 30 years, (ii) heterogeneity in preferences across geographical regions tends to outweigh individual variation in preferences, (iii) individuals’ early health endowment predicts their competitiveness in adolescence and early adulthood, and (iv) individuals’ personality traits tend to be more accurate predictors of their economic preferences than a wide range of demographic and health-related variables.

ABSTRACT. Aim Press companies sometimes sell newspapers using an honour system, which involves placing the papers at unmonitored distribution points and expecting customers to pay honestly when they purchase papers. The system is useful for selling papers during weekends and holidays. Yet, without control mechanisms or payment enforcement, many exploit the system by underpaying or taking papers without payment, causing substantial economic losses. The current research sought to examine the effectiveness of text-based interventions in increasing payment morale in an honour system in a large-scale, longitudinal field experiment in Austria, targeting newspaper customers (daily circulation of about 240,000) in two major Austrian cities (i.e., Vienna and Graz, with a total population of around 2.3 million).

Method We partnered with an Austrian print production company for this research. As the initial step, we crowdsourced intervention proposals from behavioural science communities. Based on the responses we received, we designed 19 interventions and had them evaluated by a representative online sample from Germany recruited from Prolific (n ~= 900). Participants predicted how effective these interventions would be in the exact context where they would be implemented. As the number of independent observations was limited in the field study, we selected the two most promising interventions to implement. One intervention suggested that the printing company would donate 1,000€ to a local children’s hospital in the respective city if the payment rate exceeds 80% (Donation condition). The other invited customers to participate in an “honesty contest” to find out which neighbourhood was the most honest in each city (Honesty Contest condition). We assigned distribution points with comparable payment rates to one of the intervention conditions or to a control condition (without intervention) and gathered payment rate data, which included eleven, six, and two observations for each payment counting unit from the pre-intervention, intervention, and post-intervention periods. During the intervention period, intervention texts were positioned right above the newspapers and were thus expected to be seen clearly by customers.

Results Overall, both interventions substantially increased payment rates (by approximately 40%, on average) compared with the control, and the effect persisted in the post-intervention period. While this increase is substantial, it should be noted that the pre-intervention payment rate was low (though we cannot disclose the exact number due to a confidentiality agreement with the company). Nonetheless, the total revenue still benefited remarkably from the interventions due to the scale of the implementation. The Honesty Contest intervention was slightly more effective than the Donation intervention. Furthermore, we observed considerable heterogeneity in the effect. The effect was mainly driven by observations from Graz (where the payment rate was twice as high as in Vienna before the intervention).

Conclusions Text-based behavioural interventions are effective in increasing payment morale in an honour system. The effectiveness of interventions may depend on the strength of existing social norms. More research is needed to understand better whether interventions that exploit people’s tendency to be competitive in being good and moral are generally more effective than interventions that appeal to individuals’ prosociality.

ABSTRACT. There are many reasons why young people should save money, including future financial security, emergency preparedness, financial independence, debt avoidance, more deliberate spending, and wealth accumulation. However, people in general, and young people in particular, often struggle with saving. Several factors hinder their ability to save, such as impulsive and unplanned spending, which is further exacerbated by marketing strategies both online and offline, low financial literacy, peer pressure, and social media influences (e.g., Huang, 2024; Lusardi, 2019; Penman & McNeill, 2008). To address this issue, we developed and tested four different interventions aimed at increasing individuals' willingness to save. First, we designed a three hour long behavioral education based on the recommendations of Lučić and Uzelac (2024). This intervention focused on teaching practical tools to encourage saving and reduce impulsive spending in young people, such as how to keep personal budget, how to save money and when and how to borrow money. Second, we created a 10-minute educational video presentation designed to make saving and investing more meaningful and attractive for young people. In video, drastically different futures of two young people are contrasted, Marija who spent prudently and saved/invested part of her income and Ivan who spent all his income on short-term wants and luxuries, where, unlike Marija, Ivan lacks any financial security in adulthood and cannot plan for things like buying a home or starting a family. Third, drawing from the literature on goal-setting and implementation intentions (e.g., Epton et al., 2017; Sheeran et al., 2024; Soman & Zhao, 2011), we developed a 10-15 minute online goal-setting module. This module guided participants through five steps: identifying a relevant savings goal, making it attainable and specific, forming "if-then" implementation intentions, and modifying their environment to facilitate adherence to their savings plan. The final intervention was an AI-based approach involving interaction with ChatGPT. We developed an online chatbot in which participants first stated a specific savings goal. This input was fed into ChatGPT, which was prompted to act as a financial advisor. Its task was to "help the students create a plan that would enable them to save enough money within the desired timeframe to achieve their stated goal." Participants engaged in at least two rounds of conversation with ChatGPT until they were satisfied with their personalized savings plan. A total of N = 476 high school and college students participated in our study in both waves of data collection (M = 21.76 years, SD = 3.14; 71% female). Participants were randomly assigned to one of the four intervention conditions or a control group. Because the behavioral education intervention was conducted live in schools, whereas the other interventions were administered online, the response rates for the online interventions were lower, leading to an uneven distribution of participants across conditions. Specifically, there were N = 155 participants (32%) in the behavioral education condition, N = 93 (19%) in the goal-setting condition, N = 77 (16%) in the educational video condition, and N = 58 (12%) in the ChatGPT condition. Additionally, there were N = 100 participants (21%) in the control group, which did not receive any intervention. We employed longitudinal research design, collecting data at two time points. The first wave of data collection took place in 2023. Approximately one year later, participants underwent one of the four interventions, followed by a second wave of data collection one to one-and-a-half months later. Our primary variables of interest were financial self-efficacy (e.g., "I believe I am capable of achieving my financial goals in the next three months"), perceived behavioral control (e.g., "My financial situation and the achievement of my financial goals are completely under my control"), and behavioral intentions (e.g., "I believe I will start following my own financial plan in the next three months"). To assess the effectiveness of our interventions, we conducted a mixed-design ANOVA, comparing each intervention to the control group separately. The main effect of interest was the interaction between experimental condition (Intervention vs. Control) and time (T1 vs. T2). If an intervention was effective, we expected this interaction to be significant, indicating that the dependent variables increased from T1 to T2 for the intervention group but remained unchanged or decreased for the control group. Our results indicate that behavioral education was the most effective intervention, as evidenced by significant time x condition interactions for all three dependent variables: financial self-efficacy (F(1, 241) = 14.61, p < .001), perceived behavioral control (F(1, 246) = 8.19, p = .003), and behavioral intentions (F(1, 232) = 6.76, p = .010). Unlike the control group, which showed little change over time, participants in the behavioral education condition exhibited increased scores on all three measures. The goal-setting intervention also showed promise, yielding a significant time x condition interaction for financial self-efficacy (F(1, 191) = 7.46, p = .007) and a marginally significant interaction for behavioral intentions (F(1, 191) = 3.66, p = .057), though it did not significantly impact perceived behavioral control. In both cases, scores in the intervention group increased, whereas those in the control group remained stable or declined slightly. Finally, neither the educational video nor the ChatGPT intervention significantly impacted the dependent variables. In conclusion, two of our four theoretically and empirically informed interventions — behavioral education and goal-setting — demonstrated potential for increasing young people's propensity to save. Further research is needed to refine these approaches and explore additional strategies to enhance financial decision-making among young consumers.

ABSTRACT. Research on goal setting and goal pursuit shows that people who have set a (financial) goal are more motivated to perform behaviors that lead to goal attainment (e.g., Gollwitzer and Brandstätter 1997). For example, people who set saving goals are more likely to actually save (e.g., Ye at al. 2025). In the financial advice industry, not unsurprisingly a big trend is “goal-based” advice, where the advisor makes a financial plan based on the client’s goals and goal prioritization.

The academic literature is remarkably silent when it comes to studying goal setting, in that, it starts from given goals and then looks at subsequent downstream decision making and behaviors. As a result, the focus of many studies is on increasing the motivation to achieve these financial goals. Other studies ask participants to formulate financial goals as part of the experimental procedure, such as getting them to think about a savings moment and the amount they want to save for this occasion (Ülkümen and Cheema 2011). However, setting financial goals as a mandatory response in an experiment says little about the relevance of these goals and their impact on financial behavior in real life. Anecdotal evidence from practice, however, shows that when people are asked about their financial goals, many are not able to mention at least one financial goal.

Therefore, we look into how people set financial goals and if the methods to support goal setting impact the number and types of goals set. First, in Study 1 we perform qualitative in-depth interviews with a diverse sample of consumers (N=10). We find that the majority of subjects has no financial goals “top of mind” and only when asked further and supported with showing lists of potential goals some subjects seem to have financial goals or new goals emerge. In Study 2 we then test quantitively based on a survey experiment (N=1,222, nationally representative) how different ways to elicit goals impact goal setting. Subjects were randomly assigned to 1 of 4 groups being asked about their financial goals either as open answer field or by showing a list of 5, 10, or 15 of in practice common goals (always with the option to add more). We find statistically significant evidence that longer lists of possible goals led to subjects reporting having more goals (and sometimes different goal), although these additional goals were often ranked less important by subjects. Moreover, we find a significant interaction with subject’s propensity to plan in that subjects with a high propensity to plan are the least susceptible to the goal list treatment effect.

Our findings allow for two interpretations. Either longer lists of goals help consumers to remind them of “forgotten” goals or, especially for non-planners they “create” potentially even not relevant goals. Our research thus provides valuable insights for designing decision guidance and (automated) financial advice, where careful consideration must be given to how goals are elicited to ensure they are authentic and relevant to the consumer.

References

Gollwitzer, P., & Brandstätter, V. (1997). Implementation Intentions and Effective Goal Pursuit. Journal of personality and social psychology, 73(1), 186-199.

Ülkümen, G., & Cheema, A. (2011). Framing goals to influence personal savings: The role of specificity and construal level. Journal of Marketing Research, 48(6), 958-969.

Ye, Post, Zou, Chen (2025), Savings goals matter - Cognitive constraints, retirement planning, and downstream economic behaviors, working paper.

ABSTRACT. Finance is stereotypically associated with men, and such stereotypes often influence consumer language. Drawing on human capital theory, social identity theory, and the linguistic relativism hypothesis, we conducted a series of qualitative and quantitative studies to examine gender differences in language use within the consumer finance domain. Our aim was to better understand the gender gap in financial literacy and inform targeted interventions. Our analyses revealed clear gender-based language differences—both in surface and deep structures—across word frequency, metaphor use, professional tone, and conversational strategies. Consistent with prior research in other domains, women’s language was generally more colloquial, relational, figurative, and emotionally expressive, while men’s language tended to be more professional (or stylized as such), argumentative, factual, and agency-driven. Based on these findings, we created three versions of a well-known financial literacy test: feminized, masculinized, and neutral. A large, representative sample of adults was randomly assigned to one version. Using item response theory, we analyzed test performance by gender and language version. Results showed that both women and men performed differently depending on question phrasing. We identified a subset of items resistant to language bias and used it to reassess gender differences. Although the gender gap remained—favoring men by 0.775 on a standardized scale—it was significantly smaller when feminized language was used, compared to both masculinized and neutral versions. This study confirms the persistence of a gender gap in financial literacy but suggests that its size may be overestimated when tests rely on masculinized language.

ABSTRACT. This study investigates the spending and saving motives of digital bank customers, focusing on the use of mental accounting. Drawing on survey data from 1,979 Norwegian adults, we examine the prevalence and patterns of digital mental accounting, its relationship with financial literacy and financial self-efficacy, and its role in mitigating financial vulnerability.

Having control over personal finances can be difficult, and previous studies have shown that households have a tendency to underestimate expected future spending (Peetz and Buehler 2009). In the financial climate of today, this can be particularly challenging. As a result, an increasing amount of consumer debt and loan defaults can be observed among consumers (Reserve 2020, Finanstilsynet 2021, Finanstilsynet 2024). A way of combatting this problem could be by using some form of plan for one’s finances, as researchers have found that people who exhibit planning behavior arrive at retirement age with much more wealth than non-planners (Rabinovich and Webley 2007). One tool that can be used to help with financial planning is metal accounting, which refers to cognitive operations used to organize and keep track of financial activities (Thaler 1999). In our study we investigate whether setting specific labels or goals on digital bank accounts can be used as a form of digital mental accounting. Mental accounts can in many cases be seen as derived as a function of consumers’ goals, and setting up these types of accounts can be helpful in achieving these savings goals (Soman and Ahn 2011). According to Sui, Sun et al. (2021), households that overspend their income rarely set savings goals, which implies that setting these types of goals could give people more control over their spending behavior.

Data for this study has been collected through a survey by Kantar TNS and is representative of the Norwegian population. Norway is an ideal country to study digital mental accounting seeing as it is one of the most digitally advanced countries in the word, along with being one of the countries furthest along in becoming a cashless society (Mumtaza, Nabillah et al. 2020, EC 2023, NETS 2023). We built on work by Xiao and Noring (1994), for the dependent variables of categories for digital mental accounts: Daily: “Daily expenses”, Purchase: “Savings for e.g. travel, celebrations (e.g. weddings or birthdays), purchasing things (e.g. furniture, car, white goods, etc.), renovations, etc.” Emergency: “Emergencies and unforeseen expenses”, Retire: “Pension savings (except savings through the employer)”, Child: “Savings for children and/or grandchildren”’ Grow: “Savings for leisure, e.g. concerts, sports events, hobbies, etc.”. In addition we created our own category of Home: “Save for a home or a holiday home”, and one for Other: “Other purposes not mentioned above”. Binary logistic regressions have been used in the analysis.

Our findings highlight several key insights into how individuals leverage mental accounting in a digital context to manage their finances. We confirmed that digital mental accounting is a widely used tool among the participants, with distinct accounts serving as earmarked funds for specific purposes such as daily expenses, purchases, emergencies, and retirement. Younger participants were more likely to use multiple accounts, reflecting a generational shift in financial behavior influenced by digitalization. Furthermore, gender differences in account usage suggest that traditional norms and priorities continue to shape financial strategies, with women favoring accounts for emergencies and children, while men were more inclined toward growth and daily expenses. Additionally, the study underscored the importance of financial literacy and financial self-efficacy in promoting effective financial management. Participants with higher financial literacy and self-efficacy were significantly more likely to have saved for a rainy day and to engage in purposeful mental accounting. This reinforces the critical role of financial education in fostering resilience and long-term planning among individuals. The analysis also revealed how financial vulnerability, including difficulties in paying bills and holding high-interest debts, negatively impacts individuals’ ability to save for emergencies. However, the use of mental accounting and structured financial planning could potentially alleviate some of these challenges by enabling individuals to better allocate their resources.

References EC (2023). Digital Economy and Society Index (DESI) 2022 Norway. E. Commission. https://digital-strategy.ec.europa.eu/en/policies/desi-norway, European Union.

Finanstilsynet (2021, April 28th 2021). "Redusert utlånsvolum og fortsatt høy andel misligholdte forbrukslån. Flere inkassosaker knyttet til forbruksgjeld, og økt andel eldre krav." Retrieved January 3rd, 2022, from https://www.finanstilsynet.no/nyhetsarkiv/nyheter/2021/redusert-utlansvolum-og-fortsatt-hoy-andel-misligholdte-forbrukslan.-flere-inkassosaker-knyttet-til/.

Finanstilsynet (2024). RAPPORT OM UTVIKLINGEN I FORBRUKSGJELD. finanstilsynet.no, Finanstilsynet.

Mumtaza, Q. M. H., et al. (2020). "Worldwide mobile wallet: a futuristic cashless system." Bulletin of Social Informatics Theory and Application 4(2): 70-75.

NETS (2023). Nordic Payment Report 2023. NETS. https://insights.nets.eu/publication/nordic-payment-report-2023, NETS: 34.

Peetz, J. and R. Buehler (2009). "Is there a budget fallacy? The role of savings goals in the prediction of personal spending." Personality and Social Psychology Bulletin 35(12): 1579-1591.

Rabinovich, A. and P. Webley (2007). "Filling the gap between planning and doing: Psychological factors involved in the successful implementation of saving intention." Journal of Economic Psychology 28(4): 444-461.

Reserve, U. F. (2020). Report on the economic well-being of US households in 2019-May 2020. 2020. https://www.federalreserve.gov, US Federal Reserve: 68.

Soman, D. and H.-K. Ahn (2011). "Mental accounting and individual welfare." Perspectives on framing: 65-92.

Sui, L., et al. (2021). "An assessment of the effects of mental accounting on overspending behaviour: An empirical study." International Journal of Consumer Studies 45(2): 221-234.

Thaler, R. H. (1999). "Mental accounting matters." Journal of Behavioral Decision Making 12(3): 183-206.

Xiao, J. J. and F. E. Noring (1994). "Perceived saving motives and hierarchical financial needs." Financial Counseling and Planning 5(1): 25-44.

ABSTRACT. Introduction

This study explores the social and emotional pressures consumers face when making financial decisions during the pre-Christmas period. Specifically, we examine the associations between gift anxiety, materialism, gift motivation, and the propensity to spend and borrow at Christmas. Building on research by McNair, Ranyard, and Nyhus (2024), which found that high materialism predicts both a higher propensity to spend and borrow, and that an obligation gift motive predicts a higher propensity to spend, we extend this research by investigating whether gift anxiety is another psychological factor that increases the willingness to spend and borrow at Christmas. This is in addition to materialism (Richins & Dawson, 1992) and gift motives (Wolfinbarger & Yale, 1993).

Our study is inspired by the work of Sherry, McGrath, and Levy (1993), Wooten (2000), Otnes, Kim, and Lowrey (1992), and Reshadi and Givi (2023), who have examined the negative aspects of gift-giving. Traditionally, gift-giving is analyzed from a social exchange perspective, where gifts are seen as tools for maintaining and strengthening social relationships. However, some studies have revealed that gift-giving can lead to negative emotional outcomes, such as anxiety, and that some gifts are given out of a sense of obligation rather than positive motivation.

Sherry et al. (1993) found that gift exchange can cause high levels of anxiety and lead to interpersonal conflicts. Respondents described situations where gifts were used as weapons to make the receiver feel uncomfortable. Otnes et al. (1992) found that some receivers are perceived as more difficult because they express expectations that are hard to meet or determine for the giver. Wooten (2000), found that situations where it is important for the giver to elicit a certain reaction from the receiver, while simultaneously perceiving the likelihood of doing so as small, are particularly anxiety-inducing. Relatedly, Reshadi and Givi (2023) have shown that givers spend more on gifts for wealthy receivers to avoid imbalance in the gift exchange and to signal higher financial status, aligning with Wooten’s perspective that gifts are linked to self-presentation. These studies suggest that concerns about the gift receivers’ reactions may motivate givers to increase spending and, if necessary, borrowing to finance Christmas-related expenses.

This Study

Data were collected in Norway (n=656) and the UK (n=345) in the week before Christmas in December 2023. Respondents from the UK were recruited through Prolific, while Norwegian respondents were recruited through posts on social media (Facebook and LinkedIn). All respondents were over 18 years old.

The questionnaires included questions about the respondents’ age, sex, education level, occupation, number of children, personal and household income. Additionally, the questionnaire included measures based on previously validated scales: enjoyment and obligation gift motives (10 questions) (Wolfinbarger & Yale, 1993), the materialism dimensions of success, centrality, and happiness (9 questions) (Richins & Dawson, 1992), financial hardship (3 questions) (Lempers, Clark-Lempers, & Simons, 1989), money management practices (9 questions) (Garðarsdóttir & Dittmar, 2012), propensity to spend (8 questions) and borrow (8 questions) (McNair et al., 2024), five financial literacy questions, positive and negative feelings (12 questions) (Diener et al., 2010). We included 12 questions to measure gift anxiety, based on Wooten (2000). In both surveys, items were subjected to correlational analysis followed by principal components analysis. Factor structures were similar in both countries, allowing scores for each psychological factor to be calculated in the same way.

Preliminary Results

Hierarchical regression analyses for each of the two outcome variables were conducted for each survey separately. The sociodemographic predictors were entered in the first step, followed in the second by economic hardship and proactive money management, with the psychological factors entered in the third step. Preliminary results show that gift anxiety and materialism are significant predictors of the propensity to spend in both countries. We also find that the enjoyment gift motive predicts the propensity to spend in both countries, while the obligation motive is only a significant predictor in Norway.

We find that a higher materialism score (happiness dimension) predicts a higher propensity to borrow in both countries, while the obligation gift motivation is a positive predictor of the propensity to borrow in Norway. The increase in explained variance when adding psychological variables to the equation was much higher for the propensity to spend than for the propensity to borrow. Financial variables and money management skills were the most important predictors for the propensity to borrow.

References

Diener, E., Wirtz, D., Tov, W., Kim-Prieto, C., Choi, D. W., Oishi, S., & Biswas-Diener, R. (2010). New well-being measures: Short scales to assess flourishing and positive and negative feelings. Social Indicators Research, 97(2), 143-156.

Garðarsdóttir, R. B., & Dittmar, H. (2012). The relationship of materialism to debt and financial well-being: The case of Iceland’s perceived prosperity. Journal of Economic Psychology, 33(3), 471-481.

Lempers, J. D., Clark-Lempers, D., & Simons, R. L. (1989). Economic hardship, parenting, and distress in adolescence. Child Development, 60(1), 25-39.

McNair, S., Nyhus, E. K., & Ranyard, R. (2024). Propensity to spend and borrow at a time of high pressure: The role of the meaning of Christmas and other psychological factors. Frontiers in Behavioral Economics, 3, 1385609.

Otnes, C., Lowrey, T. M., & Kim, Y. C. (1993). Gift selection for easy and difficult recipients: A social roles interpretation. Journal of Consumer Research, 20(2), 229-244.

Reshadi, F., & Givi, J. (2023). Spending the most on those who need it the least: Gift givers buy more expensive gifts for affluent recipients. European Journal of Marketing, 57(2), 479-504.

Richins, M. L., & Dawson, S. (1992). A consumer values orientation for materialism and its measurement: Scale development and validation. Journal of Consumer Research, 19(3), 303-316.

Sherry, J. F., McGrath, M. A., & Levy, S. J. (1993). The dark side of the gift. Journal of Business Research, 28(3), 225-244.

Wolfinbarger, M. F., & Yale, L. J. (1993). Three motivations for interpersonal gift giving: Experiential, obligated, and practical motivations. Advances in Consumer Research, 20(1).

Wooten, D. B. (2000). Qualitative steps toward an expanded model of anxiety in gift-giving. Journal of Consumer Research, 27(1), 84-95.

ABSTRACT. INTRODUCTION AND MOTIVATION Improving the quality of care is a key objective of healthcare management and policy. To achieve this goal, policy makers are encouraged to look beyond traditional financial incentives by focusing on both extrinsic and intrinsic motivations of health care providers. Shedding light on this important topic, our study analyzes the interplay of both kinds of motivations regarding their impact on physicians’ medical service provision and the quality of care. This is an underexplored research area, as mostly the impact of extrinsic factors, such as payment schemes, on providers’ health care provision are studied, whereas the effect of intrinsic factors, such as personality traits, is mostly lacking. The extrinsic factors we are studying are the basic payment systems capitation (CAP), and fee-for-service (FFS), as well as blended CAP-based and FFS-based pay-for-performance (P4P) and mixed (Mix) payment schemes. All of them are known to influence health care providers’ behavior. For instance, CAP incentivizes underprovision, whereas FFS induces overprovision. Blended systems are assumed to mitigate these undesired effects as incentives of physicians and patients are better aligned. Controlled experimental studies provide support for this theoretical result. However, field evidence is less conclusive, in mixed systems and under performance pay. Despite its extended use, the impact of P4P on the quality of care appears moderate, if at all, with substantial heterogeneity in providers’ responses. A deeper understanding of what drives this heterogeneity is missing. Medical care providers have been found to be motivated by factors beyond financial incentives. Personality traits appear to cause heterogeneity in behavior as they relate to individuals’ intrinsic motivation. Personality traits have been found to explain behavior and responses to incentives in various contexts other than health care and relate to, for example, prosocial behavior, productivity and self-selection into the public sector. In health economics, evidence on how the interplay between intrinsic and extrinsic motivations drives physician behavior is scarce. The few results suggest a negative correlation between performance-pay effects and neuroticism as well as conscientiousness. Lab experiments on provider payments typically do not consider personality traits at all or do not analyze them separately. What is missing so far is a thorough understanding of the link between personality traits, physicians’ (intrinsic and extrinsic) motivations and outcomes. RESEARCH QUESTIONS The basic question is whether dissimilarities in personality traits affect provider behavior differently already under a given (basic) payment system. And if so, do we observe a different effect in CAP compared to FFS due to the diverging incentives of the two schemes? If it were the case that certain personality traits are related to more patient-regarding behavior than others, or that people with higher intensities in the same personality trait provide higher treatment quality, then there might be less room for improvement under additional financial incentives such as P4P. In this case, it is not the additional performance incentive that may fail, but it is the respective person’s characteristic(s) that is (are) relevant for an already higher treatment quality under the basic payment scheme. It thus appears that a systematic analysis on whether, and if so, how personality traits may contribute to understanding health care providers’ responses to financial incentives, is mostly lacking. In particular, insights on the potential of personality traits to explain heterogeneity in health professionals’ behavior are missing as is a comprehensive understanding of how and under which conditions personality traits may moderate the effect of blended payment systems. Our study contributes to filling these gaps by analyzing the following research questions: (1) How do personality traits relate to individual physicians’ behavioral responses to the basic payment systems CAP and FFS, and (2) how do personality traits interact with blended CAP- and FFS-based pay-for-performance and mixed payment schemes? METHODS To answer our first research question, we analyze laboratory and field data, as well as survey data (N = 659), based on behavioral experimental studies we have been conducting between 2011 and 2015. All studies follow the same experimental setting, including the decision situation, framing, and ex-post questionnaire. We link the data on personality traits (BFI-10) with the behavioral data of medical students (prospective doctors), practicing doctors, and nonmedical students who are randomly assigned to either a CAP or an FFS payment scheme. To answer our second research question, we focus on a smaller sample (N = 277). These are conditions where participants are confronted with a blended payment system in part 2 of the experiment. We study how personality traits interact with CAP- or FFS-based mixed payment schemes or with CAP- or FFS-based pay-for-performance systems. We compare the results with responses in the related basic non-blended scenarios at a within-subject level. RESULTS We find that Agreeableness significantly relates to the supply and the quality of care. Under CAP and FFS, more agreeable individuals are more patient-regarding by providing higher quality of care. Other traits do not significantly relate to providers’ behavior in the basic systems. While we find that by introducing mixed and performance pay systems, the quality of care under CAP and FFS is significantly improved, some personality traits moderate the incentive effect — but not under all blended payment schemes. In FFS-based and CAP-based mixed systems, it is Agreeableness that relates to a higher quality of care. No other personality trait does so. In CAP+P4P, it is higher Agreeableness and Conscientiousness that relates to a higher quality of care. Yet, more conscientious and more agreeable individuals respond significantly less to this payment scheme. Under FFS+P4P, personality traits are apparently not behaviorally relevant. CONCLUSION In essence, we observe only in the CAP-based performance-pay system that the incentive effect is moderated, namely by Agreeableness and Conscientiousness. Our findings seem informative for better incentivizing physicians — in particular, the tailoring of financial incentives based on personality traits, as well as the respective necessary organizational changes.

ABSTRACT. Introduction

The Saudi cultural sector is undergoing a transformative period, marked by significant investments to preserve and promote its rich heritage while fostering a vibrant cultural ecosystem. Increasing public engagement with cultural activities is a cornerstone of these efforts, as it not only drives demand for cultural offerings but also incentivizes sustainable growth in cultural supply. The Ministry of Culture (MoC) has recently started to assess demand for cultural activities to identify potential barriers to cultural participation (MoC, 2023, 2024). However, the mechanisms by which participation in cultural activities influences future demand for new activities from the same (vs. other) cultural sub-sector remain insufficiently understood. While existing research highlights the role of familiarity and exposure in shaping cultural preferences (e.g., Kolhede & Gomez-Arias, 2017; Thorsby et al., 2024; Váradi & Józsa, 2023), there is limited empirical evidence quantifying these effects in the Saudi context, particularly across distinct sub-sectors such as music, museums, archaeological sites, and theater. Addressing this gap is critical for designing targeted interventions that maximize the impact of cultural campaigns and policies to promote cultural participation in the Kingdom. In this regard, the MoC conducted two natural experiments aimed to test the impact that participation in cultural activities have on people’s attractiveness towards other cultural activities. More specifically, the two experiments were designed to explore 1) whether prior participation in a cultural sub-sector would increase the attractiveness of new activities within the same sub-sector (i.e., attractiveness effect); and 2) whether prior participation in one sub-sector would also influence the attractiveness of activities in another sub-sector (i.e., spillover effect).

Methodology

To answer these questions, the two natural experiments used quotas to build three groups with different levels of previous participation in cultural activities from the selected sub-sectors (no previous participation in any sub-sector; participation in sub-sector 1 but not in sub-sector 2; and participation in sub-sector 2 but not in sub-sector 1), balanced for gender and aged 18-70 years old. Participants (Total N=1288) completed a structured survey in which they were randomly shown two vignettes of fictitious events from two different sub-sectors (Experiment 1: music and museums sub-sectors; Experiment 2: theater and heritage sub-sectors). After each vignette, participants were asked to evaluate the attractiveness of the fictious event. Ratings included specific interest, likelihood to attend, expected satisfaction, and likelihood to recommend. An aggregate measure of event attractiveness was computed by averaging these four metrics, rescaled to a uniform 7-point scale . Vignettes were modeled after MoC’s promotional posts, ensuring consistent stimuli presentation. The experiments were approved by ethics committee from the GfeW (German Association for Experimental Economic Research, under IRB Certificates No. pC6JsSDn and No. cwLhFLpX).

Results

In both experiments, independent samples t-tests (two-sided) and robustness checks using linear regression models were conducted to assess the effects of prior participation on the perceived attractiveness of new cultural activities, while controlling for general interest.

Attractiveness effect

Results from the t-tests supported the attractiveness effect. People are 21.3% to 24.5% more attracted to new cultural activities after they had participated in activities in the same sub-sector (all ps <0.01). In the first experiment, linear regressions showed the results remain robust after controlling for general interest in museums or music concerts: previous participation in cultural activities in one sub-sector directly impacts the attractiveness of new activities in the same sub-sector. On the contrary, the same linear regression models in Experiment 2 showed that the impact of previous participation on the attractiveness of new cultural activities works indirectly: participation in activities from one sub-sector increases interest in activities from this sub-sector in general, which, in turn, further increases the attrativeness of new activities in this sub-sector.

Spillover effect

Experiment 1 results from the t-tests supported the spillover effect showing that people are also more 4.6% to 8.6% attracted to new cultural activities after they had participated in activities in another sub-sector (all ps < 0.01). Linear regression models showed that the impact of previous participation on the attractiveness of new cultural activities in another sub-sector works indirectly: people who previously participated in activities from one sub-sector become more interested in the other sub-sector, in general, which in turn increases the attractiveness of new activities in this other sub-sector. In Experiment 2 the spillover effect was found only for one of the sub-sectors: people who previously visited archeological sites rated the fictitious theater play 4.2% more attractive than people who did visit archeological sites before (p < 0.01). The fact that previous attendance to theater plays did impact the attractiveness of the fictitious archeological site suggest that the spillover effects found might not generalize to all sub-sectors. Linear regression models showed that the impact of previous participation on the attractiveness of new cultural activities in another sub-sector works indirectly: people who previously visited archeological sites become more interested in theater plays in general, which, in turn, further increases the attractiveness of new activities in these sub-sector.

Conclusion

The findings from both experiments provide valuable insights into the behavioral dynamics of cultural participation showing that prior cultural participation fosters both direct and indirect growth in cultural demand. Stronger effects were consistently observed within the same sub-sector, while spillover effects across sub-sectors were less pronounced and not for all the selected sub-sectors. Although the results are based on natural experiments, in which randomization was not possible, in our experiment temporal precedence is clearly established, and the robustness checks conducted account for potential confounding variables and provide strong statistical evidence that there is indeed a causal relationship between cultural participation and increased attractiveness of other cultural activities. These experiments are useful tools to better understand cultural demand and to support the development of targeted strategies to enhance cultural participation. These strategies might focus on promoting cultural activities among consumers who attend activities in the same subsector and leveraging spillover effects to promote interest in activities across different subsector.

ABSTRACT. Introduction

Handicrafts are fundamental to Saudi Arabia's cultural heritage, representing centuries of artistry and craftsmanship. Declaring 2025 as The Year of Handicrafts by the Saudi Council of Ministers underscores the nation's commitment to preserving and promoting this vital cultural element. Through events and exhibitions led by the Saudi Ministry of Culture (MoC), Saudi artists are showcasing their creativity, connecting the past, present, and future, and emphasizing the global and national variability of handicrafts. This celebration also highlights the importance of the untold stories behind these artifacts, which are integral to the Saudi identity and a source of national pride (Arab News, 2025). Despite this national commitment to support the crafts sector, the rapid development of technology and automated production is significantly impacting the sector. While automated production might help to increase productivity and innovation in the sector, by enabling faster and more cost-effective production of handicrafts, it also challenges the future of the traditional human-made handicrafts – especially if people fail to recognize the unique value of these human-crafted items. In this vein, it is crucial to understand how people value human-made versus machine-made handicrafts in order to preserve the cultural and artistic significance of traditional craftsmanship. To answer this question, we conducted an experiment aimed to test how people value handicrafts and how much this perception changes when they are explicitly informed the handicrafts were made by a human artist or by a machine. Building on this previous research on the impact of automation on perceived value of creative work (Khokar, 2024; MoC, 2024), we hypothesize that knowing the origin of the crafts would make participants more in favor of buying the hand-made ones (human favoritism hypothesis), and less willing-to-buy the machine-made crafts (machine discrimination hypothesis).

Methodology

To test these hypotheses, the MoC Behavioral Insights Unit conducted a survey-based experiment, with 2 (information about the origin: with vs. without) x 2 (origin: human- vs. machine-made handicraft) between-subjects design. The experiment was conducted between July 4- August 8-2024, and targeted a sample of 1,240 respondents (310 per group), proportionally balanced by gender (50% female, 50% male) and spanning an age range of 18–70 years. Participants were randomly intercepted in public places across Riyadh, Saudi Arabia, and completed a structured survey designed to measure perceptions and willingness-to-buy the crafts. At the beginning of the experiment participants were given a small sample of a handicraft rug (either hand-made or machine-made) and were informed (or not) about its origin (either machine-made or human-made). After touching the sample with their own hands, participants were asked to state their evaluation of/willingness to buy the handicraft . Ethical considerations were strictly adhered to, ensuring anonymity of responses and obtaining general consent from participants prior to data collection. The experiment was approved by ethics committee from the GfeW (German Association for Experimental Economic Research, IRB Certificate No. 96czKtRt by GfeW).

Results Independent sample t-tests were used to test the impact of informing participants about the origin of the handicraft sample. In line with the human favoritism hypothesis, being informed that a human artist created the handicraft increased in 4.7% participants’ evaluation/willingness to buy the product, compared to not knowing its origin (t(618) = 3.78, p < 0.01). On the contrary, no support was found for the machine discrimination hypothesis: being informed that the handicraft was machine-made did not significantly change participants’ evaluation of the handicraft, compared not knowing its origin (t(623) = 1.21, p = .89) Overall, these findings underscore the importance of informing consumers about the handicrafts' origin in enhancing consumers’ evaluation of/willingness to buy hand-made products.

Conclusion

This research aimed to contribute to a deeper understanding of consumers’ preferences towards products at the intersection of traditional craftsmanship and technological innovation. Additionally, it might also contribute to inform cultural policies aimed at protecting and fostering the appreciation for traditional hand-crafted products in the modern world. In this regard, to ensure that hand-made product are properly valued, policymakers should consider the following measures:

• Labeling regulations: Introduce guidelines for identifying hand-made products, promoting the inclusion of detailed information about their origin, production processes, and the craftsmanship involved. This approach will emphasize the authenticity, quality, uniqueness, and cultural significance of artisanal goods. • Educational campaigns: Initiate public awareness programs to enhance understanding and appreciation of traditional craftsmanship by highlighting the value of human creations. • Marketing campaigns: Conduct marketing campaign that highlight distinctive qualities of hand-made products, emphasizing their authenticity, superior quality, uniqueness, and the cultural importance of handicrafts in preserving Saudi cultural heritage.

By aligning with Saudi Vision 2030's goals of cultural preservation and economic diversification, these measures are also a timely contribution to the nation’s cultural agenda.

ABSTRACT. Introduction Nudging, defined as subtle changes in choice architecture to influence behaviour while maintaining freedom of choice, is widely recognized as a promising tool for public health promotion. Since its conceptualization by Thaler and Sunstein in 2008, research on nudge interventions has grown substantially, leading to numerous literature reviews across various health domains. However, a comprehensive synthesis of applied nudging methods and effective interventions for public health is still lacking. This overview seeks to fill this gap by summarizing findings from recent literature reviews and providing a foundation for future research in this field.

Methodology The literature search was restricted to reviews published between January 2018 and May 2024, sourced from Scopus, WoS, Science Direct, and EBSCO. Search terms included keywords related to nudging and various health behaviours or healthcare delivery. Findings were grouped into thematic domains, describing tested interventions, effectiveness, and research gaps and limitations.

Results A total of 46 literature reviews, including 35 systematic reviews, were analysed. Studies examined nudging health behaviours, including lifestyle changes and disease prevention and management. Additionally, studies explored how health professionals can be nudged to improve healthcare delivery. Figure 1 presents the detailed thematic domains along with corresponding references. Studies have demonstrated positive but heterogeneous results, with general findings for each thematic domain outlined below.

1. Lifestyle changes Nudging interventions show promise in promoting healthy food choices by lowering effort-related barriers (e.g., increasing accessibility of healthier options), setting healthier defaults, and providing simplified (e.g., traffic-light) food labelling. Small positive effects have been observed with variations in plate, portion, or cutlery size, and social norms have been found to influence choices when dining out. To encourage physical activity, effective strategies include point-of-choice prompts, such as banners promoting stair use in public spaces. Wearable activity trackers enhance conscious exercise behaviours, including step counts and moderate-to-vigorous activity. Gamification, commitment lotteries, and social incentives also show positive but modest results. Research on sleep-related nudges remains insufficient for broad conclusions. For addressing addictive substance consumption, school-based interventions show minimal impact, while strategies for tobacco and alcohol consumption prevention in adults by increasing salience of information or incentives, providing feedback, or combining nudges demonstrate some effectiveness. Active approaches, such as portion adjustments with immediate measurement of outcomes, yield positive results, whereas passive nudges in complex environments are ineffective. Gain-framed smoking cessation messages show a slight but not statistically significant advantage over loss-framed ones, warranting a reevaluation of traditional public health messaging strategies.

2. Disease prevention and management To increase vaccination rates, reminders, informational nudges, and combinations of nudges are commonly used. Evidence highlights the success of nudges that incentivize parents and healthcare professionals, enhance information salience, and utilize trusted messengers. To increase screening uptake, techniques such as framed information, default bias, and authority bias have been identified, though ethical concerns about transparency and the evaluation of benefit-harm ratios have been raised. For reducing healthcare appointment no-show rates reminders via SMS, phone calls, or mail are the most common and effective interventions. In disease management, tested methods for supporting the self-management of patients with chronic conditions include reminders, planning prompts, small financial incentives, and feedback. While nudging positively impacts self-care behaviours, such as medication adherence, there is a lack of evidence supporting improvements in broader disease control outcomes, such as reduced hospitalizations. For diabetes management, the use of reminders, gamification, and social modelling through group meetings has demonstrated particularly positive effects. Regarding HIV management, opt-out defaults, active-choice defaults, and lottery incentives have effectively increased HIV testing uptake, with lottery incentives also enhancing HIV prevention and antiretroviral therapy adherence. For tropical disease prevention in low- and middle-income countries, nudging primarily focuses on general health behaviours (e.g., handwashing) with limited attention to specific disease control measures (e.g., medication adherence). In non-specific disease prevention, such as hand hygiene and mask use, informative interventions using messages, posters, visual cues, environmental modifications, and improved access have demonstrated positive effects.

3. Nudging health professionals to improve healthcare delivery Nudging interventions effectively assist healthcare professionals in clinical decision-making, including ordering medications, laboratory tests, imaging, prescribing medications, and enhancing implementation and adherence to clinical guidelines. Strategies that influence clinical behaviour include framing information, providing feedback (e.g., comparing antibiotic prescriptions among peers), modifying default options (e.g., automatic substitution for generic medications), enabling active choices, delivering reminders, adjusting options, and minimizing effort for desired choices. Digital platforms, such as electronic health records, have proven effective in implementing nudges. These systems enable the delivery of nudging information or adjustments to how options are presented. Passive nudges that require minimal user action (e.g., default prescription changes) are particularly effective. In line with the 'nudge ladder theory', stronger interventions, such as default settings, consistently outperform less intrusive approaches like information provision.

Discussion While nudging shows promise for public health promotion, its effectiveness varies due to contextual, population-specific, and methodological factors. The reviewed studies highlight significant research gaps and limitations. Key challenges include insufficient evidence on long-term impacts, particularly for interventions fostering sustained behavioural changes like habitual physical activity. High heterogeneity, inconsistent outcome measures, and limited data from low-income and crisis settings further constrain applicability. Researchers emphasize the need for rigorous, well-designed studies, including preregistered trials to reduce publication bias, and greater focus on diverse populations, such as children and low socioeconomic groups. Future research should also explore multicomponent nudging strategies combined with complementary approaches for improved outcomes. Additionally, standardizing terminology, evaluating economic aspects, and addressing ethical concerns, particularly for passive nudges, remain critical. Addressing these gaps could enhance the scalability and impact of nudging public health.

Conclusions Nudging shows considerable potential to improve public health, though its effectiveness is described as moderate and heterogeneous. While positive results have been reported across various health-related domains, the variability in effectiveness underscores the need for context-specific approaches, better conceptual clarity, and further well-designed research on long-term impacts and scalability.

ABSTRACT. Abstract for IAREP 2025 Interactive Session Proposal Title: We Know the World is Hard: How Do We Avoid ‘Dumb’ Behavioural Public Policy?*

Behavioural science has become an essential tool for governments and organisations grappling with pressing challenges. However, as Michael Hallsworth’s Manifesto for Applied Behavioural Science (2023)1 highlights, the field faces critical limitations, including over-simplification, mechanistic approaches, limited representation of target audiences, and a failure to grapple with complexity and systemic change. Encouragingly, teams adjacent to government like BehaviourWorks Australia have applied a Method that brackets more common behavioural science deep dives with systems informed problem definition, and scale up2 in over 400 projects, and Bursara have integrated systems thinking and agent based modelling into their work3. The EU Joint Competency Centre have compellingly detailed how they integrate behaviour and systems in supporting policy development4. While such developments provide a compelling roadmap for improvement, they do not document and build on the methodological and practical innovations already being used by applied behavioural science practitioners working inside the public sector. This interactive session aims to surface and document how behavioural science practitioners are navigating complexity and deploying systems thinking in their work. Rather than treating complexity as an intractable barrier, many BSci professionals working in government, industry, and policy units are actively finding ways to engage with systems thinking and systemic change, blending behavioural insights with broader governance, regulatory, futures/foresighting and institutional approaches. These real-world adaptations often outpace academic discussions, providing a valuable source of learning for both scholars and practitioners. They also tend be never reported in academic literature, obscuring important contributions from practice back into research. * (with apologies to Richard Thaller for the misquote). Session Goals Interrogate the critiques and opportunities related to applying behavioural science within complicated and complex, adaptive systems. Identify practical strategies and innovations that practitioners are already using to integrate behavioural science and systems approaches in their engagement with policy, administration and governance. Explore tensions, challenges and opportunites that arise when behavioural public policy engages with systemic approaches. Document and synthesise these insights to contribute to a broader research agenda on behavioural science and systems change. Key Discussion Themes Relevance of critiques and opportunities: How do practitioners interpret and respond to concerns? Are they valid? Are they overstated? What is missing? Engagement with systems thinking and systemic change: Are behavioural science practitioners integrating systems approaches? If so, how? Methodological and disciplinary tensions: What happens when behavioural insights intersect with disciplines such as complex systems, and system change in governance, and public administration? What are the conflicts or synergies? Practical workarounds and innovations: What real-world strategies have practitioners developed to navigate complexity, overcome barriers, and integrate behavioural science and systems approaches effectively? Skills and capacity-building: Do practitioners have the necessary skills, capabilities and tools to engage with complexity? How well do they collaborate with cognate public policy ‘trades’ like design, innovation, and across disciplinary divides? If not, what training or institutional support is needed? Session Format This session is an interactive workshop rather than a traditional panel or presentation. Participants will be engaged in structured activities designed to elicit and synthesise insights from diverse experiences. Framing Talk (10-15 min): Overview of challenges and opportunities of relating behavioural and systems approaches How can we do behavioural public policy that is not ‘stupid’? Live Polling & Real-Time Feedback (5 min): Which critiques resonate most? Where have you encountered successful applications of behavioural science within complex policy environments? Small Group Breakout Discussions (25 min): Groups discuss and document: What strategies and methodologies they use to navigate complexity. Key barriers and tensions in their work. Practical case studies of behavioural science in complex systems. Plenary Synthesis & Insights Harvesting (15-20 min): Common themes and divergences are mapped during report-back. Discussion of gaps, challenges, and opportunities for further collaboration and research. Next Steps & Research Agenda (5-10 min): Exploring a collaborative rsource to document and share practitioner insights. Identifying opportunities for further methodological development. Who Should Attend? This session is designed for: Behavioural science practitioners working in government, industry, and consulting. Researchers interested in applied behavioural public policy. Nudge units, design thinkers, public sector innovators and policy labs exploring complex problems and responses to them Systems thinkers and public administration scholars engaging with behavioural science. Conclusion Behavioural public policy is at a crossroads. As Hallsworth argues, the field must evolve to remain relevant and effective in addressing global challenges. However, practitioners are already pushing the boundaries, integrating behavioural science with systemic change approaches in ways that are not yet fully documented. This session will surface those experiences, creating a collective knowledge base to inform both academic research and applied practice. Through this interactive workshop, we aim to capture and synthesise real-world strategies, helping to build a more sophisticated, context-sensitive, and system-aware approach to behavioural public policy. The insights generated will contribute to a broader research agenda and provide practical takeaways for participants seeking to improve their own practice. They will also inform a new Masters of Systems and Behaviour Change at Monash University.

We gratefully acknowledge contributions from past and present members of the Australian, Victorian and Queensland Government Behavioural Science teams, as well as the Estonion Public Sector Innovation Unit, in developing this session. We'd also like to thank colleagues from Behaviourworks, as well as BIT's Michael Hallsworth, who kindly provided input.

References: 1. Hallsworth, M. A manifesto for applying behavioural science. Nat. Hum. Behav. 7, 310–322 (2023). 2. Inspiring Change: How to Influence Behaviour for a Better World. (Monash University Publishing, Melbourne, 2024). 3. Valle, E. D. D., Jang, C. & Wendel, S. Behavioral Systems: Combining Behavioral Science and Systems Analysis. https://busara.global/wp-content/uploads/2024/10/GW-8-RAOF.pdf (2024). 4. European Commission. Joint Research Centre. Unlocking the Full Potential of Behavioural Insights for Policy: From Influencing the Individual to Shaping the System. (Publications Office, LU, 2025).

ABSTRACT. Session Goals Interrogate the critiques and opportunities related to applying behavioural science within complicated and complex, adaptive systems. Identify practical strategies and innovations that practitioners are already using to integrate behavioural science and systems approaches in their engagement with policy, administration and governance. Explore tensions, challenges and opportunites that arise when behavioural public policy engages with systemic approaches. Document and synthesise these insights to contribute to a broader research agenda on behavioural science and systems change. Key Discussion Themes Relevance of critiques and opportunities: How do practitioners interpret and respond to concerns? Are they valid? Are they overstated? What is missing? Engagement with systems thinking and systemic change: Are behavioural science practitioners integrating systems approaches? If so, how? Methodological and disciplinary tensions: What happens when behavioural insights intersect with disciplines such as complex systems, and system change in governance, and public administration? What are the conflicts or synergies? Practical workarounds and innovations: What real-world strategies have practitioners developed to navigate complexity, overcome barriers, and integrate behavioural science and systems approaches effectively? Skills and capacity-building: Do practitioners have the necessary skills, capabilities and tools to engage with complexity? How well do they collaborate with cognate public policy ‘trades’ like design, innovation, and across disciplinary divides? If not, what training or institutional support is needed? Session Format This session is an interactive workshop rather than a traditional panel or presentation. Participants will be engaged in structured activities designed to elicit and synthesise insights from diverse experiences. Framing Talk (10-15 min): Overview of challenges and opportunities of relating behavioural and systems approaches How can we do behavioural public policy that is not ‘stupid’? Live Polling & Real-Time Feedback (5 min): Which critiques resonate most? Where have you encountered successful applications of behavioural science within complex policy environments? Small Group Breakout Discussions (25 min): Groups discuss and document: What strategies and methodologies they use to navigate complexity. Key barriers and tensions in their work. Practical case studies of behavioural science in complex systems. Plenary Synthesis & Insights Harvesting (15-20 min): Common themes and divergences are mapped during report-back. Discussion of gaps, challenges, and opportunities for further collaboration and research. Next Steps & Research Agenda (5-10 min): Exploring a collaborative resource to document and share practitioner insights. Identifying opportunities for further methodological development. Who Should Attend? This session is designed for: Behavioural science practitioners working in government, industry, and consulting. Researchers interested in applied behavioural public policy. Nudge units, design thinkers, public sector innovators and policy labs exploring complex problems and responses to them Systems thinkers and public administration scholars engaging with behavioural science. Conclusion Behavioural public policy is at a crossroads. As Hallsworth argues, the field must evolve to remain relevant and effective in addressing global challenges. However, practitioners are already pushing the boundaries, integrating behavioural science with systemic change approaches in ways that are not yet fully documented. This session will surface those experiences, creating a collective knowledge base to inform both academic research and applied practice. Through this interactive workshop, we aim to capture and synthesise real-world strategies, helping to build a more sophisticated, context-sensitive, and system-aware approach to behavioural public policy. The insights generated will contribute to a broader research agenda and provide practical takeaways for participants seeking to improve their own practice. They will also inform a new Masters of Systems and Behaviour Change at Monash University. We gratefully acknowledge contributions from past and present members of the Australian, Victorian and Queensland Government Behavioural Science teams in developing this session, and colleagues from Behaviourworks, as well as Michael Hallsworth who kindly provided input. References: 1. Hallsworth, M. A manifesto for applying behavioural science. Nat. Hum. Behav. 7, 310–322 (2023). 2. Inspiring Change: How to Influence Behaviour for a Better World. (Monash University Publishing, Melbourne, 2024). 3. Valle, E. D. D., Jang, C. & Wendel, S. Behavioral Systems: Combining Behavioral Science and Systems Analysis.https://busara.global/wp-content/uploads/2024/10/GW-8-RAOF.pdf (2024). 4. European Commission. Joint Research Centre. Unlocking the Full Potential of Behavioural Insights for Policy: From Influencing the Individual to Shaping the System. (Publications Office, LU, 2025).

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ABSTRACT. Insufficient sleep is a global concern, necessitating accurate sleep measurements to understand and prevent its adverse impacts on mental and physical health. While self-reporting is a common, cost-effective method for gathering sleep data, it is prone to biases like overreporting and error-prone due to imperfect memory. This study systematically compares self-reported measures of sleep duration with device-based sleep data collected via wearable activity trackers using the online platform Prolific. Participants at Prolific, upon registering, indicate whether or not they own a wearable activity tracker (that is capable of measuring sleep data). Combining online panels with device-measured sleep data may offer widespread access to low-cost, high-validity sleep data that can help advance our knowledge about which interventions help people to sleep better. However, online panels and selection on device ownership potentially introduce other biases that are explored in this paper.

Specifically, we conducted an online panel study in three waves with N = 885 respondents through Prolific. We divided the participants into two samples: i) an unrestricted sample (UR), ii) and a sample restricted to device owners (RDO). Both samples self-reported their sleep, with respondents in the RDO sample also uploading device-measured sleep data. The primary aim is to compare self-reported and device-measured sleep data while investigating four potential sources of variation. First, demographic disparities and dropout rates between the two samples are examined to understand potential selection effects due to device ownership. Second, the study assesses the impact of mandatory data uploading on dropout. Third, it explores if informing participants that their sleep is being measured affects their behavior. Lastly, the research investigates effects associated with wearing sleep-monitoring devices (e.g., related to the feedback these devices provide).

Our main results are as follows. Respondents in the RDO sample are generally older, wealthier, and more likely to work full-time, and self-report lower sleep duration compared to the UR sample in the first wave. Dropout in the study seems strongly related to being required to upload device data, as well as to some demographics and sleep duration itself. Self-reported and device-reported sleep are not systematically different in device owners, but some differences with self-reported sleep in the general public are observed.

Several lessons can be learned from our paper. The use of online panels targeting device owners seems to be a feasible strategy to collect objective data on sleep. However, this introduces selection effects that need to be taken into account when generalizing findings. Differences between self-reported sleep and device-measured sleep are small for device owners, presumably because these participants check their devices before self-reporting sleep. However, requiring participants to upload screenshots of their device-measured sleep significantly increases dropout rates. A middle ground between objectively verified sleep data and minimizing across-wave dropout rates seems to be to ask device-owners to self-report their device measured sleep data.

ABSTRACT. This study examines whether prosocietal individuals in organizations can leverage political tactics to gain power and curb socially harmful practices – despite resistance from peers who may prefer maximizing short-term gains. Drawing on three literatures, championing, CSR/ESG, and organizational politics, we introduce the idea of prosocietal organizational politics, or Benevolent Machiavellianism. We designed a laboratory experiment in which four-person groups (N=466) repeatedly decided how much funding to take from a shared charity pool, then competed for decision-making authority in a high-stakes final round. We found widespread antisocial behavior that prosocial players failed to eliminate. Analyses further show that participants who deviate markedly from their group’s withdrawal norm garner fewer votes, suggesting that moral alignment with peers matters more than traditional influence tactics. Notably, political skill had little effect on actual behavioral outcomes, yet strongly predicted participants’ subjective perceptions of ease and confidence during persuasion attempts. Additionally, Machiavellianism and power motives were positively associated with withdrawing more resources from charities in the critical final stage. The study extends championing, CSR, and organizational politics research by demonstrating how moral context shapes persuasion processes and illuminates the complexities facing employees who seek ethical reforms from within.

ABSTRACT. Introduction Business English teaching, despite its well-established status (Ramirez, 2015) and current profitability (Maican, 2017), is still an underdeveloped area of ESP (English for Specific Purposes) teaching in terms of a lack of coherent, solid and modern methodology (Wieczorek, 2024, Geng, 2017) that would cater for the needs of adult, (pre)intermediate-level language users who need to use English for occupational purposes. The learning objectives of such mature students often revolve around specific lexis in a given field (like for instance, English for financial analysis or for law and administration), or more generally, English language usage in business environment (Frendo, 2005), entailing intercultural and speaking skills in the context of corporate communication. Both might be an affective challenge for students who need to (re)start learning English after a long break following their school graduation and who are very often quite reluctant to participate in the process due to language-related inhibitions and bad experience in the past. On the side of the teacher, those objectives require not only their specialist knowledge concerning an appropriate sub-field of Business English Teaching and language teaching in general, but also business-related knowledge which many typical foreign language teachers may lack and which, in turn, is likely to affect their well-being in a negative way and it may be perceived as a teaching challenge (Wieczorek, 2024). Study context and methodology The presented research is qualitative in nature and set in a non-Anglophone, post-communist, context where especially Business English teaching as a part of ESP is considered an underdeveloped area (Klimanova and Pikhart (2021). The current study results therefore fill the gap, as they refer to Business English teaching to adult, intermediate students from Poland, which is one of post-communist countries. The study area is between the service provider (here: the Business English teachers) and customers (here: Business English students) within the area of Business English teaching. The main objective of the described study was to find key barriers to successful Business English instruction for adult learners in view of teachers and students. The methods applied were a case study and an interview method which have already been used in prior studies concerning business relationships (e.g. Pérez and Cambra-Fierro, 2015; Wieczorek, 2020, 2024; Wieczorek and Mitręga, 2020) in a similar context as the relationship between a BE teacher and their students (here seen as customers) is also a business-like one. The principles of Seidel’s (1998) Qualitative Data Analysis methodology were applied to analyse the qualitative material obtained. The study informants were 22 teachers teaching Business English to adult, intermediate-level corporate workers at private courses and post-graduate studies and 40 students employed at diversified business sectors and attending Business English courses or post-graduate studies. Study findings On the basis of the analysed qualitative material interesting results with reference to the affective aspect of Business English teaching emerged, especially stressing the role of well-being and classroom atmosphere as the most important factor contributing to Business English instruction especially. The results were grouped into four clusters of factors, comprising the affective states of teachers and students, the creation of positive atmosphere through the implementation of entertaining, stress-minimising activities, the frequency of updating the course programme and content, and eclectic approaches to teaching. The results not only refer to students’ emotional barriers, problems and expectations, but also to their influence on teachers’ emotions which play a crucial role in the process of teaching and learning a foreign language especially with reference to teaching for and about business at the same time. The concept of Linguistic Entrepreneurship was revisited as it is seen as strongly connected to the described teaching and learning context. The phenomenon itself refers to treating language as a resource for enhancing one’s worth in occupational settings and as a moral imperative of a good citizen and an ideal neoliberal worker (de Costa et al., 2016). Study limitations However the study, as the majority of qualitative studies, is not free from limitations (e.g. small sample, restricted context), it gives a valuable insight in many aspects of Business English teaching and it may be treated as a call for more future research in the area and a starting point for quantitative research using bigger samples and further validation. References 1. De Costa, P., Park, J. and Wee, L. (2016). Language learning as linguistic entrepreneurship: Implications for language education. The Asia-Pacific Education Researcher 25(5–6). 695–702. https://doi.org/10.1007/s40299-016-0302-5. 2. Frendo, E. (2005). Teach Business English. Pearson Education. 3. Geng, Ch. (2017). On the Teaching Innovation of Business English Teaching: A study on Multimodal Communicative Competence of Ethnic Universities. Theory and Practice in Language Studies, Vol. 7, No. 4, 322-326, DOI: http://dx.doi.org/10.17507/tpls.0704.11 4. Klimova, B.; Pikhart, M. (2021). New Advances in Second Language Acquisition Methodology in Higher Education. Educ. Sci. 2021, 11, 128. https://doi.org/10.3390/ educsci11030128 5. Maican, M. (2017). Challenges of teaching Business English in higher education. Bulletin of the TransilvaniaUniversity of Braşov Series V: Economic Sciences • Vol. 10 (59) No. 2 - 2017 6. Pérez, L. and Cambra-Fierro, J. (2015). Learning to work in asymmetric relationships: insights from the computer software industry. Supply Chain Management: An International Journal, 20(1), 1–10 7. Ramirez, C. G. (2015). English for specific purposes: Brief history and definitions. Revista de Lenguas Modernas, 23, 379-386. 8. Seidel, J. (1998). Qualitative data Analysis. The Ethnograph, vol. 4 9. Wieczorek, A.L. (2020). The Lack of Business Experience Versus The Lack of Appropriate Linguistic Background in Business English Teaching Context. In: Michalik, U., Zakrajewski, P., Sznicer, I., Stwora, A. (eds) Exploring Business Language and Culture. Second Language Learning and Teaching. Springer, Cham. https://doi.org/10.1007/978-3-030-58551-8_4 10. Wieczorek, A.L. (2020). Eclecticism as a Key Factor in Successful Business English Instruction. XLinguae. Vol. 17, Isue 4, 284-299 11. Wieczorek, A.L., Mitręga, M. (2020). Managing Prosumption in University Education—A Case Study Approach. In: Michalik, U., Zakrajewski, P., Sznicer, I., Stwora, A. (eds) Exploring Business Language and Culture. Second Language Learning and Teaching. Springer, Cham. https://doi.org/10.1007/978-3-030-58551-8_3

ABSTRACT. The Czech Republic exhibits significantly low investment participation, with only 35% of its population regularly investing and 37% lacking investment experience altogether. This research investigates the behavioral, social, and educational factors influencing this trend, addressing gaps in existing literature on investment biases within Central and Eastern Europe. Given the long-term economic and personal financial consequences of low stock market participation, understanding these barriers is crucial for improving financial literacy, trust in capital markets, and investment behaviors among Czechs.

The study is part of a three-stage research project aimed at identifying barriers to stock market participation, testing behavioral nudges to encourage investing, and measuring the long-term financial impact of these interventions. The first stage surveys 1,000 Czech participants to assess their financial literacy, investment biases, and socio-demographic characteristics. Using cluster analysis, respondents are segmented by socio-economic status and behavioral tendencies to determine which barriers disproportionately impact specific population groups. This segmentation will guide policymakers in designing effective interventions tailored to address these biases and promote capital market participation.

Historical experiences, particularly the communist era between 1948 and 1989, have played a key role in shaping Czech risk aversion and distrust toward financial institutions. The forced nationalization of assets during this period likely contributed to a collective reluctance toward financial investments, a trend observed in other post-communist nations. The findings of this study therefore have broader implications beyond the Czech Republic, offering insights into similar barriers faced by other emerging economies.

The theoretical foundation of this research is based on existing literature on behavioral finance and financial literacy, particularly in post-communist societies. Studies comparing East and West Germany highlight persistent disparities in stock market participation decades after reunification, with East Germans investing less and demonstrating home bias toward post-Soviet companies. Similar patterns emerge across CEE nations, where financial literacy remains inadequate and stock market participation low.

Despite attempts to introduce financial literacy education in Czech schools during the 2010s, a structured nationwide curriculum is still lacking. The absence of systematic financial education contributes to investment hesitancy, as citizens struggle with fundamental financial concepts such as compound interest and risk diversification. Previous studies indicate that without clear guidance, individuals often exhibit suboptimal financial behaviors, such as excessive real estate investment at the expense of diversified portfolios. This aligns with the Czech homeownership rate of 78%, far exceeding the 66% observed in the US, where a higher percentage of investors allocate capital to equities.

Investment awareness is another critical barrier. Even financially literate individuals may avoid stock markets simply because they lack exposure to investment opportunities. Additionally, social norms discourage investment when an individual’s peer group exhibits low participation, further reinforcing a cycle of disengagement. Historical exclusion from financial markets, whether due to systemic barriers or cultural norms, also perpetuates generational reluctance to invest in stocks.

Czech investors demonstrate a strong preference for real estate, suggesting behavioral biases influencing portfolio allocation. The long-standing overinvestment in property markets drives housing prices upward, making the country one of the most unaffordable places to live relative to income levels. Czech homebuyers systematically deviate from rational financial behavior due to entrenched social norms. Similar trends are observed in Lithuania, where a lack of financial literacy and trust in financial institutions leads to greater household participation in real estate over stock markets.

Low trust in financial institutions is another major obstacle. Previous studies suggest that countries with repeated financial scandals experience diminished household stock market participation. A study in Bulgaria found that public skepticism toward corporate social responsibility initiatives stems from communist-era mistrust, a phenomenon likely extending to Czech capital markets as well. These findings suggest that overcoming trust deficits is essential for increasing stock market participation.

Comparing economic transitions between Russia and China provides insight into why investment behaviors diverge across post-communist countries. China’s gradual shift toward capitalism allowed for a more stable transition, whereas Russia’s abrupt liberalization led to financial instability and a loss of public confidence in capital markets. Understanding these differences is crucial for crafting investment policies suited to the Czech context.

Although research on financial literacy and behavioral biases exists, studies specifically addressing investment nudges in post-communist societies are scarce. However, behavioral interventions such as setting default investment options have proven highly effective. Research also highlights the role of inertia in promoting long-term financial habits. Additionally, targeted interventions addressing specific biases such as panic selling and home bias could be leveraged to encourage investment participation.

This study aims to identify which demographic groups are most susceptible to these barriers and to assess the effectiveness of different nudges in addressing them. While prior research has examined gender and age-related investment biases, few studies have explored the specific constraints preventing biased groups from stock market participation in the first place. Understanding these constraints is key to designing tailored policy interventions.

The research employs a mixed-methods approach combining quantitative and qualitative analysis. The survey data undergoes factor analysis and principal component analysis to validate hypothesized investment barriers. Clustering techniques segment respondents based on their financial behavior. Logistic regression models assess the likelihood of stock market participation relative to financial literacy and behavioral biases.

The expected contribution of this study extends beyond academia. By identifying key barriers to investing, the findings can inform policymakers, financial educators, and institutions on how to foster stock market participation. Insights from this research could guide the development of targeted financial education programs and trust-building initiatives within capital markets. Moreover, as other post-communist economies face similar challenges, these findings hold broader international relevance, particularly in Eastern European nations with shared socio-economic histories.

In conclusion, this study aims to bridge the knowledge gap regarding investment participation barriers in the Czech Republic by analyzing behavioral biases, financial literacy deficiencies, and historical influences. Through empirical research, the findings will inform targeted interventions to promote informed financial decision-making, enhance economic resilience, and foster a stronger investment culture within the Czech Republic and beyond. Future research will focus on implementing and testing these nudges in real-world financial environments to measure their long-term efficacy in increasing stock market participation.

ABSTRACT. The presentation focuses on the impact of emotions and sentiment in mass and media messages on perceptions of macroeconomic phenomena and decisions made in times of crises, pandemics, political polarization and other socio-economic challenges. Particular attention was paid to the emotional overtones of media messages and its ability to shape inflation forecasts, public sentiment and economic behavior. The results of the experimental research conducted indicate that emotional asymmetry - greater sensitivity of audiences to negative information than to positive information - plays a key role in cognitive distortions. These distortions can destabilize the economy, affect the decisions of consumers and investors, and limit the effectiveness of public policies. Contemporary crises, such as the COVID-19 pandemic, global financial meltdowns and the rise of political polarization, show that emotions are a powerful factor shaping the reception of information in mass media. Media messages based on emotional narratives are effective in capturing the attention of audiences, but at the same time they amplify fear, uncertainty or excessive optimism. The framing effect and emotional asymmetry are particularly evident in this context, as people tend to react more strongly to negative information than positive. As a result, the negative tone of media coverage can lead to unwarranted pessimism, which destabilizes public sentiment, increases consumer caution and reduces consumer spending. In times of dictatorship and intense political polarization, the media are sometimes used as a tool for emotional manipulation. Media narratives based on fear or anger can reinforce social divisions, undermine trust in public institutions and influence consumer and investor attitudes. Such mechanisms not only destabilize the economy, but also reduce the effectiveness of monetary and fiscal policies, which become less effective under conditions of heightened uncertainty. Understanding how the emotional tone of messages influences audience perception is therefore crucial to designing effective communication and policy strategies. A study was conducted to analyze how the emotional tone of media messages shapes inflation perceptions and economic decisions. The experiment involved 254 participants divided into two groups. The first group was presented with news with a positive emotional tone that emphasized economic stability and optimistic inflation forecasts. The second group was presented with news with a negative tone, focusing on sharp price increases and potential risks to the economy. The main objective of the study was to determine whether differences in the emotional overtones of media messages affect participants' inflation forecasts, and what cognitive mechanisms might explain these differences. Analysis of the results using the Mann-Whitney U test revealed statistically significant differences between the two groups. Those exposed to positive messages forecast lower inflation rates and were more optimistic about the overall economic situation. This group also showed a greater propensity to make consumption decisions. In contrast, participants exposed to negative comments predicted higher inflation rates and declared greater caution in economic decision-making, suggesting a greater intensity of pessimism caused by the emotional tone of the messages. The survey results confirmed the existence of emotional asymmetry in the reception of media information. The negative tone of messages exerts a stronger influence on audience perception than messages with a positive tone, which is reflected in inflation forecasts and consumer decisions. The framing effect further underscores that the way macroeconomic data is presented significantly changes the way audiences interpret it. A message constructed in an alarmist tone arouses greater anxiety, even if the economic data do not warrant such a reaction. The study's conclusions point to important practical implications. The media and institutions responsible for communicating monetary and fiscal policy should take into account that the emotional tone of media messages can influence public behavior and the stability of the economy. In particular, consciously designing media narratives toward a more neutral or constructive tone can help mitigate the negative effects of emotional asymmetry. For example, during periods of economic crises, media messages with a subdued tone can reduce consumer panic and stabilize the market. Simultaneously, the study's findings suggest that during times of dynamic socio-economic transformations, such as the COVID-19 pandemic, emotionally charged media narratives can both support and undermine the effectiveness of political actions. Depending on the tone of the message, the emotions generated by the reception of information can influence collective reactions, including social trust, levels of consumption, and investment. Therefore, understanding the mechanisms by which emotions affect audience perception should be a priority for researchers and practitioners in behavioral economics, social communication, and economic policy. However, it is important to emphasize that interpreting the study's results requires a critical approach. First, participants in the experiment may have been aware of its artificial nature, which could have influenced their reactions. Second, the study focused on the short-term effects of the emotional tone of messages, while real processes of macroeconomic perception often develop over a longer period. Third, the experiment was limited to analyzing emotional tone, neglecting factors such as source credibility, socio-political context, or participants' personal experiences. Future research could incorporate these aspects to better understand the complexity of mechanisms shaping the perception of inflation and other macroeconomic phenomena. Additionally, the use of advanced technologies, such as natural language processing (NLP), could allow for more precise tracking of the impact of media narratives on public sentiment and macroeconomic forecasts. In summary, the study's results highlight the critical influence of emotional media narratives on inflation perception and economic decision-making. The conclusions underscore the need for greater responsibility in media communication and the conscious design of narratives that support rational consumer decisions and economic stability. In times of multidimensional crises, understanding the role of emotions in media communication becomes essential for effective management of the economy and society.

ABSTRACT. Subjective well-being measures are increasingly used in economic research and policy evaluations as a proxy for utility. The foundation of this practice lies in the assumption that the maximization of one’s well-being is the guiding principle behind people’s decisions. To examine this underlying premise, Benjamin et al. (2012) studied whether people choose what they believe would maximize their subjective well-being in a U.S. sample. Later, Adler et al. (2017) examined the trade-off between happiness and other attributes in decision-making within a U.K. sample. Their findings, along with subsequent research using their measurement approach, reveal differences in the extent to which people prioritize happiness across demographics. Additionally, a negative correlation was observed between higher education and the prioritization of happiness.

Following this thread of research, this study examines how students at a top university in UK value well-being and how university identity shapes this tendency. Using a survey with two existing tasks from Benjamin et al. (2012) and Adler et al. (2017) — one asking students to trade off happiness against other objectives, and the other examining the alignment of individual choice, predicted happiness outcomes, and perceived norms — we compare the results from top university students with those from nationally representative samples (from the U.S. and U.K.), and explore the role of identity and the accuracy of perceived norms.

Our findings reveal that top university students value happiness less than the general public samples in the U.S. and U.K., and that stronger university identification is linked to a reduced emphasis on happiness. Additionally, students believe fewer of their peers value happiness, despite many doing so privately, suggesting pluralistic ignorance. This study contributes to understanding how social norms and group identity influence happiness valuation and underscores the impact of social contexts on well-being attitudes and behaviors.

ABSTRACT. The study of solidarity has long been a topic of social psychological research, though primarily among adults, and indeed, a growing number of studies inform us about the factors influencing solidarity with the members of disadvantaged groups, including fairness perceptions about their situation and helping behavior toward them. Nevertheless, promoting social welfare by decreasing social inequality and establishing societies with less conflicts requires passing on solidarity principles to younger generations. Empirical studies of solidarity have also been conducted among children, although they typically examine children’s distribution decisions by focusing mainly on one specific aspect when identifying the principles children apply to achieve fair distributions. Such principles include elements of procedural justice, merit-based fairness, equality etc. For instance, by investigating children between the ages of 4 and 11, cross-cultural research (Huppert et al., 2019) has already reported that children tend to prefer equal resource distribution in preschool years and distributions reflecting fairness based on effort and merit in school-age years. However, to our knowledge, there is a lack of studies examining the emergence of compensatory attitudes in these decisions, i.e., attitudes that, beyond effort, also consider the pre-existing availability of resources that significantly influence performance as a target of judgement. Thus, we are explicitly interested in the examination of how children take both personal effort and resource availability into account when judging performance of actors shaped by their efforts and resource availability.

In two questionnaire studies, we aimed to better understand the reward decisions and justice perceptions of 8- to 12-year-olds in situations where both the level of effort exerted by an actor and the accessibility of resources the actor could mobilize were manipulated. In our first study, 11- to 12-year-old Hungarian children (N = 93) read a scenario in a 2 (low/high effort) × 2 (low/high resource accessibility) between-subjects design. The protagonist of the scenario, a child of the same age and gender as the participant, completed a school task with either little or great effort while using material resources that were either easy or difficult to access. The children were then asked whether the protagonist should receive a particular reward and how fair it would be to reward them. The results showed that reward allocation was not considerably influenced by the main effects of effort or resource accessibility, but it was significantly affected by their interaction effect: most children awarded the reward in the high-effort and high-accessibility condition, whereas willingness to reward dropped unexpectedly in the high-effort and low-accessibility condition. This willingness was the lowest in the two low-effort conditions. In terms of justice perception, only the level of effort made a difference: children considered the reward to be fairer when it was given after showing high effort.

Compensatory attitudes reflecting the different levels of resource accessibility could not be identified in the first study. Therefore, we designed a second study, currently in progress with data collection among 8- to 10-year-old children. While maintaining the examined aspects, the 2×2 design, and the main characteristics of the protagonist, we significantly revised the scenario by accentuating the protagonist’s access to resources more (i.e., highlighting that accessibility is determined by the financial situation of the protagonist’s family). Furthermore, we included age-specific measurements of meritocratic beliefs and empathy as moderating variables in the questionnaire. We expect that in cases where actions are characterized by high effort but low accessibility, decisions and fairness judgments about the reward will reflect compensatory attitudes, particularly when levels of empathy are higher and meritocratic views are less strongly endorsed. Regarding both reward decisions and fairness judgments of rewarding, preliminary results so far show only the main effect of effort.

Besides sharing the results of both studies, we will discuss the limitations of our research, explore the practical implications of our findings, and raise questions for future research.

Reference Huppert, E., Cowell, J. M., Cheng, Y., Contreras‐Ibáñez, C., Gomez‐Sicard, N., Gonzalez‐Gadea, M. L., Huepe, D., Ibanez, A., Lee, K., Mahasneh, R., Malcolm-Smith, S., Salas, N., Selcuk, B., Tungodden, B., Wong, A., Zhou, X., & Decety, J. (2019). The development of children's preferences for equality and equity across 13 individualistic and collectivist cultures. Developmental Science, 22(2), e12729. https://doi.org/10.1111/desc.12729

ABSTRACT. Beginning with Bikhchandani, Hirshleifer, and Welch (1992), theoretical economists have shown that herd behavior can be a rational response to the information contained in others’ choices. In the simplest model, a sequence of agents each in turn choose one of two options after having observed their predecessors’ choices. Agents have common preferences over the two options, but they do not know which is better. Rather, they receive independent and equally strong private binary signals about the correct option. In this setting, an information cascade eventually occurs in which agents ignore their signals and make the same choice. The benefit of information diversity is lost, leading agents to frequently herd on the wrong option despite the many signals that reveal the correct one. Similarly to herd instincts, rational learning from others’ choices predicts herds that are idiosyncratic, socially dysfunctional, and volatile. But rational herding has limits, and its social costs can be mitigated as the arrival of better-informed agents or the release of public news may reverse wrong herds into correct ones. Smith and Sørensen (2000) starkly illustrate the limits of rational herding and the possibility for all late movers to make the correct choice. They consider arbitrarily precise signals which implies that, even if one million agents choose the same option, there is always the possibility that the next agent’s signal influences her choice and leads her to go against the herd. The decision to go against the herd overturns the informational weight of the long sequence of past choices, which radically swings the beliefs of successors. Thus, abstracting from their own signal, successors follow the overturning choice rather than the one million herding choices, with the overturning choice being more likely to be correct than the herding choices. This is what Smith and Sørensen refer to as the overturning principle.

We report an experimental test of the overturning principle to investigate whether, as predicted by the principle, the benefit of information is recaptured once a herd is overturned. Our experimental evidence largely contradicts this prediction, which suggests that people form herds that resemble unreasoning herds and can evolve into frenzies with boundless social costs. Our experimental setting is made of three sequences of subjects. In the bottom sequence, subjects receive binary signals of low quality and they choose one of two options after having observed their predecessors’ choices. Once an imbalance of two choices for an option occurs, a laboratory cascade should emerge where subjects ignore their signals and choose the same option. In the middle sequence, subjects observe the choices made earlier in the bottom sequence and they receive binary signals of high quality. Thanks to their superior information, middle sequence subjects should always follow their signal so that any cascade in the bottom sequence should be overturned. Finally, in the top sequence, each subject observes the choice made in the previous period by the middle sequence subject as well as the choices made earlier in the bottom sequence. Subjects in the top sequence do not receive private signals. According to the overturning principle, a rational deviation from a herd, no matter how long the herd is, reveals a strong signal favoring the contrary action and successors should imitate the deviant. Thus, the overturning principle holds if subjects in the top sequence follow the overturning guesses made in the middle sequence.

Our results can be summarized as follows. In the bottom sequence, the emergence of herds is delayed as subjects tend to overweight their signal relative to the information contained in previous choices. Indeed, at odds with the standard predictions, a substantial proportion of choices fail to herd on few past choices which contradict the signal. Still, once enough past choices contradict their signal, subjects herd on these past choices meaning that herd behavior is qualitatively consistent with rational herding. The evidence in the bottom sequence matches perfectly the evidence of past information cascade experiments (as summarized in Weizsäcker, 2010). In the middle sequence, subjects often fail to overturn long strings of choices that contradict their signal. They fail to appreciate that strings of 2 or 3 choices that contradict their signal are as informative as strings of 5 or more such choices (given the evidence in the bottom sequence). Said differently, subjects in the middle sequence neglect the information redundancy in the choices made late in the bottom sequence as the latter are heavily influenced by early choices. The evidence in the middle sequence is in line with recent experimental evidence on social learning (Eyster, Rabin, and Weizsäcker, 2018; March and Ziegelmeyer, 2020). In the top sequence, subjects fail to imitate overturning choices in most cases, i.e., violations of the overturning principle are substantial. Indeed, once they observe many identical choices in the bottom sequence, subjects in the top sequence are reluctant to imitate a middle sequence choice that overturns the herd. Instead, they follow the majority. Our evidence suggests that subjects in the top sequence value the information contained in a long herd more than the information of the overturning guess, i.e. they tend to reason like most subjects in the middle sequence. What is remarkable is that subjects in the top sequence neglect the information redundancy of a herd even when they observe its disruption.

References

Bikhchandani, S., D. Hirshleifer, and I. Welch (1992): “A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades,” Journal of Political Economy, 100, 992–1026.

Eyster, E., M. Rabin, and G. Weizsäcker (2018): “An Experiment on Social Mislearning,” Unpublished.

March, C., and A. Ziegelmeyer (2020): “Altruistic Observational Learning,” Journal of Economic Theory, 190, 105–23.

Smith, L., and P. Sørensen (2000): “Pathological Outcomes of Observational Learning,” Econometrica, 68, 371–98.

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ABSTRACT. Abstract Psychology is a field that requires both intellectual engagement and emotional resilience, making the academic experience and future career plans of psychology students particularly dependent on their personal dispositions, professional identification, and social belonging. Previous research suggests that personality traits, empathy, and social identity play a crucial role in shaping students’ satisfaction with their studies and career aspirations. The Big Five personality traits (BFI; John & Srivastava, 1999), particularly extraversion and emotional stability (inverse of emotional instability/neuroticism), have been also found to predict study satisfaction and career motivation (Furnham, 2012). Meanwhile, empathy (Interpersonal Reactivity Index, IRI; Davis, 1983) plays an essential role in students’ engagement with psychology, especially in clinical and counseling settings. Furthermore, professional identification with psychology as a field, operationalized through collective self-esteem (CSE; Luhtanen & Crocker, 1992), may contribute to higher satisfaction and stronger career commitment. This study investigates how Big Five personality traits, empathy, and collective self-esteem predict satisfaction with psychology studies and future career plans in psychology students. Understanding these relationships may provide insight into how students develop academic and professional identity and what factors shape their long-term career plans in psychology.

1. Theoretical background

1.1. Role of Big5 personality dimensions in developing a professional career Personality is a crucial determinant of academic and career-related attitudes and behaviors. The Big Five Inventory (BFI; John & Srivastava, 1999) provides a well-established framework for assessing Big5 personality traits in an academic and professional context. •Extraversion is associated with higher social engagement, energy, and academic enthusiasm, which may contribute to greater satisfaction and stronger career orientation. •Emotional instability (a facet of neuroticism) is linked to higher stress, anxiety, and lower well-being, making it a likely negative predictor of both study satisfaction and career confidence. •Agreeableness, conscientiousness, and openness are often associated with academic performance, but their role in study satisfaction and career planning is less direct.

1.2. Empathy and Academic Engagement of psychology students Empathy plays a key role in psychology students’ academic motivation and career commitment, as their future profession often involves helping and understanding others (Mehrabian & Epstein, 1972). Measured by the Interpersonal Reactivity Index (IRI; Davis, 1983), empathy consists of different facets, two of which are particularly relevant: •Empathic concern reflects compassion and emotional sensitivity toward others, fostering academic engagement and professional identity in psychology students . •Personal distress, in contrast, refers to self-oriented discomfort in emotionally charged situations, which may lead to higher emotional burden and lower confidence in a psychology-related career.

1.3. Social Identity and Professional Identification Social identity theory (Tajfel & Turner, 1986) posits that group identification enhances motivation and well-being. In academic and professional settings, identifying with one’s discipline contributes to higher engagement, resilience, and long-term career commitment. The Collective Self-Esteem Scale (CSE; Luhtanen & Crocker, 1992) assesses individuals’ feelings of belonging and worth within their professional group. Specifically, two dimensions of CSE are particularly relevant: •Private collective self-esteem, which reflects an individual’s personal evaluation of their group membership (e.g., feeling proud to be a psychology student/professional). •Membership collective self-esteem, which captures the perceived sense of inclusion and acceptance within the psychology field. Given that professional identity formation is a crucial step in career decision-making, it is expected that stronger identification with the psychology profession will positively predict both study satisfaction and career aspirations.

2. Methodology

2.1. Participants and Measures A sample of 174 undergraduate psychology students (91% female, mean age = 32.1 years) was recruited from a Hungarian university. Participants completed an online survey, including: •Big Five personality traits (BFI; John & Srivastava, 1999) •Empathy (IRI; Davis, 1983) •Professional identification (Collective Self-Esteem Scale; Luhtanen & Crocker, 1992) •Satisfaction with psychology studies (Likert-scale self-report) •Career plans in psychology (intended career commitment measured via Likert-scale responses)

2.2. Statistical Analysis Multiple regression analyses were conducted to examine the predictive role of personality, empathy, and professional identification on satisfaction with studies and career plans.

3. Results

3.1. Predictors of Satisfaction with Psychology Studies The regression model predicting satisfaction with psychology studies was significant (R² = 21%, p < .001), with the following key predictors: •Private collective self-esteem (β = .41, p < .001): Stronger professional identification was associated with higher satisfaction. •Emotional stability (BFI, β = –.20, p < .001): Students with lower emotional stability reported higher satisfaction with studies, suggesting that emotional sensibility influences academic experiences positively. •Extraversion (BFI, β = .14, p = .067): Higher extraversion was linked to greater study satisfaction, likely due to increased social and intellectual engagement. •Empathic concern (IRI, β = –.17, p = .02): Higher compassion and emotional sensitivity predicted lower satisfaction with studies, indicating that emotionally invested students find psychology studies more challenging. •Personal distress (IRI, β = .21, p = .014): Greater self-oriented distress was associated with higher satisfaction, suggesting that strong emotional experiences may lead to more engagement in studies.

3.2. Predictors of Career Plans in Psychology The regression model predicting career plans as a psychologist was also significant but weak (R² = 15%, p < .001), with the following key predictors: •Identification (CSE membership: β = .27, p < .001): Stronger identification as a future psychologist increased career commitment. •Importance of contribution (CSE memrship: β = .15, p = .076): a greater sense of belonging in the psychology field had a marginally significant positive effect career intentions. •Extraversion (BFI, β = .15, p = .054) also had a marginally significant positive effect on career plans.

5. Discussion and Implications These findings provide empirical support for the influence of personality, empathy, and social identity on psychology students’ satisfaction and career plans. Strengthening professional identity and emotional resilience may enhance students’ academic experiences and long-term career commitment in psychology.

ABSTRACT. Some theorists conceptualize poverty as a restriction on freedom, such as the freedom to choose a desired lifestyle or preferred products (e.g., Sen, 2000). However, the existing literature lacks studies that directly examine whether individuals living in poverty perceive their financial situation as a limitation on freedom and how this perception affects their well-being and economic decision-making. According to psychological reactance theory (Brehm & Brehm, 1981), when an individual's freedom is threatened, they experience psychological reactance—a motivational state aimed at restoring lost freedom. This state consists of cognitive beliefs about perceived restrictions on freedom and affective responses, primarily anger (Dillard & Shen, 2005). Applying this theory to financial constraints as a form of restricted freedom may help explain why individuals in poverty make specific economic decisions to regain their sense of autonomy. This research examines whether poverty constitutes a restriction on freedom, using reactance theory to explain psychological responses to perceived financial constraints. Additionally, we explore how perceiving one's financial situation as a restriction on freedom relates to spending-oriented economic decisions, a behavior often associated with individuals experiencing poverty (Shah et al., 2012; Yang, 2016), as well as its links to well-being and psychological resources. The aim of Study 1 is to explore how individuals living in poverty perceive the impact of their economic situation on their freedom and the feelings this elicits. In Study 1, we conducted in-depth interviews with 22 Poles living in poverty. Qualitative analysis revealed that most respondents perceived poverty as limiting their freedom. Several economic coping strategies were identified, such as increasing income through loans or seeking employment. We identified three main attitudes among individuals in extreme poverty: (1) feelings of anger, frustration, and injustice, particularly among those unable to work due to chronic health issues, who perceived their financial situation as a limitation on freedom; (2) apathy, where participants had become accustomed to their situation and did not perceive it as restricting their freedom; and (3) hope and rationalization, where individuals focused on positive aspects of their lives and did not see their financial situation as a constraint. The qualitative analysis also provided insight into which aspects of limited freedom of choice contribute to lower well-being among individuals in poverty. The aim of Study 2 was to examine the prevalence of perceiving poverty as a restriction on freedom and its relationship with income levels. In online Study 2 (n = 300), 85% of participants perceived poverty as a restriction on freedom, with many describing it as one of the most limiting life experiences. Findings showed that lower-income individuals were more likely to perceive their financial situation as constraining their freedom. In Study 3 (n = 365), also conducted via an online panel, we examined whether perceiving one's financial status as a restriction on freedom—and the subsequent experience of reactance—was associated with lower well-being and diminished psychological resources. A series of mediation models revealed that lower income was associated with higher reactance toward one's financial situation (i.e., perceiving it as a limitation on freedom and experiencing anger about it). This, in turn, was associated with several indicators of lower well-being, including higher levels of depression, more negative moods, and lower life satisfaction. Additionally, reactance was linked to lower psychological resources, such as reduced self-esteem, self-efficacy, and optimism. These findings suggest that limited psychological resources may hinder individuals from overcoming financial hardship, as diminished self-esteem, self-efficacy, and optimism can reduce motivation and perceived ability to improve one's economic situation. Study 4 explored the relationships between income, reactance to one's financial situation, various economic decisions, and consumer preferences linked to a desire to increase freedom of choice. It also examined personality predictors of reactance and moderators of these relationships. This study was conducted online on a representative sample of Poles (n = 1,069). The results identified personality traits associated with higher reactance toward one's financial situation, including greater trait reactance, materialism, autonomy, and an internal locus of control, as well as a lower emphasis on choice-making for identity. Lower income was linked to higher levels of reactance toward one's financial situation, which, in turn, was associated with a greater preference for taking out loans and installment purchases and a lower tendency to save. However, this relationship did not extend to preferences for luxury goods. The study also found that materialism moderated the relationship between income and reactance, while trait reactance and internal locus of control moderated the link between financial reactance and the preference for taking out loans. Study 5 aims to experimentally simulate a subjective state of poverty in a laboratory setting using the scarcity research paradigm to test causal relationships. Specifically, we aim to examine whether poverty increases financial reactance, leading to economic decisions intended to restore restricted freedom through borrowing. The results of this study will be discussed during the presentation. In sum, reactance theory provides a valuable framework for understanding the relationship between poverty, well-being, and economic decision-making. The discussion will address the implications of economic disadvantage as a restriction on freedom, suggesting that poverty not only diminishes well-being but may also motivate borrowing behaviors that could further exacerbate financial hardship. Additionally, we highlight that lower psychological resources, such as self-esteem, self-efficacy, and optimism, may create additional barriers to overcoming poverty. These findings have important theoretical and practical implications. Theoretically, they expand reactance theory by demonstrating its relevance to financial constraints and economic behavior. Practically, they suggest that interventions aimed at strengthening psychological resources may help individuals in poverty make more sustainable financial decisions. Furthermore, these results open new avenues for research on interventions based on reactance theory that focuses on changing perceptions of financial hardship as a restriction on freedom. Potential strategies include gratitude exercises or reducing materialistic values, which could mitigate the negative effects of financial constraints on decision-making and well-being. This research provides a novel perspective on how financial limitations shape perceptions of freedom and economic choices, offering insights for both policymakers and practitioners.

ABSTRACT. Introduction Personality nuances have received little attention in research on pro-environmental attitudes, unlike Big Five or HEXACO domains, while often only self-reports and one sample are researched. Personality traits might play a vital role in pro-environmental attitudes and behaviours, as they are stable and prevail in many situations and resulting behaviours can accumulate over more extended periods of time, just like greenhouse gases in atmosphere (Karbalaei et al., 2014; Soutter et al., 2020). Meta-analytically, domains Openness (r = .22) and Honesty-Humility (r = .20) have shown the highest correlations with pro-environmental attitudes, followed by Agreeableness, Conscientiousness and Extraversion with weaker associations (Soutter et al., 2020). For facets, Openness facets Aesthetic Appreciation, Intellectual Curiosity have correlated the highest (Brick & Lewis, 2014; Markowitz et al., 2012; Soutter & Mõttus, 2021), under Agreeableness, Sympathy has shown the stronger correlation (Soutter & Mõttus, 2021). But Agreeableness facets did not correlate with pro-environmental attitudes in Markowitz et al. (2012), therefore conclusions are not final. As associations with personality domains and facets have enhanced our understanding of pro-environmental attitudes, personality nuances could do so even further. Especially as existing research has almost exclusively relied on self-report and one sample and due to that different measurement errors and systematic biases have inflated presented correlations to unknown degrees. Combining self-reports with informant-ratings and including Estonian, Russian and English-speaking samples, we estimated true correlations between personality traits and pro-environmental attitudes, as well as pro-environmental attitudes' true predictability from domains or nuances combined and intergeneration differences in the associations.

Methods The Estonian Biobank collected the Estonian and Russian samples within the Personality Study from November 2021 to April 2022. We only included participants whose significant other, child, grandchild, friend, parent, grandparent or other chosen acquaintance agreed to participate; all participants gave informed consent. The Estonian sample consisted of 20 926 participants (14259 females, average age 45.20 years, SD = 13.69), and the Russian sample of 762 participants (532 females, average age 43.44 years, SD = 12.96). English-speaking sample was collected through Prolific Academic platform from March to June 2020, consisting of 600 (403 females, average age 28.56 years, SD = 13.19). Participants' trait ratings were collected with 198 items from 100 Nuances of Personality, and pro-environmental attitudes were assessed with six items (three in English) regarding recycling, seriousness of climate change, making sacrifices to limit climate change, supporting green-minded politicians, thinking about the long-term impact of one’s choices. Pro-environmental attitudes aggregate score was calculated as a score from the principal component analysis (PCA) of the pro-environmental items. Building upon self- and other-reported personality and self-reported pro-environmental items, a novel method of true correlation (rtrue) and true overall predictability (rpred) was used to analyse data.

Results Rtrues were higher than self-reported correlations; nuances reported larger effect sizes than domains. In the Estonian sample, domains Openness (rtrue = .35), Agreeableness (rtrue = .27) and nuances “Believe that poor deserve our sympathy” (rtrue = .62), “Believe that everyone should have a say” (rtrue =.62), “Treat all ethnicities and religions equally” (rtrue =.52), “Support liberal political candidates” (rtrue = .50), “Enjoy hurting others” (rtrue=-.50), “Would like others to be afraid of me” (rtrue =-.46) and “Can't be bothered with other's needs” (rtrue =-.46) had the highest rtrues, while the highest self-reported correlation for domain Openness was r=.30 and for nuance “Believe in the importance of art” was r=.31. For the Russian-speaking sample “Believe that everyone should have a say” (rtrue = .84) and for English-speaking sample “Support liberal political candidates” (rtrue = .76) nuances had the highest correlation. Collection of nuances with at least moderate rtrues (rpred=.61) showed the highest pro-environmental aggregate predictive accuracy, while the three highest correlating nuances (rpred=.58) had almost as good as predictive accuracy in Estonian. Collection of domains had the lowest predictive accuracy (rpred=.50).

Conclusions Personality nuances “Believe that poor deserve our sympathy”, “Believe that everyone should have a say”, “Treat all ethnicities and religions equally” and "Support liberal political candidates" associate with pro-environmental attitudes aggregate the most. Nuances outperform domains, true correlations combining self- and other-reports outperform self-reports. Also, top three personality nuances out-predict combined domains and are just slightly behind all nuances and nuances with at least moderate correlation in Estonian. Integrating other-reports with self-reports enables to view personality nuance-level associations with pro-environmental attitudes from a new perspective, allowing to capture parts not available to participant oneself but also potentially lowering all error-based measuring. The novel method of true correlation and true prediction, also looking beyond domains, suggest that pro-environmental attitudes are more influenced by personality than previously thought.

References Brick, C., & Lewis, G. J. (2014). Unearthing the "Green" Personality: Core Traits Predict Environmentally Friendly Behavior. Http://Dx.Doi.Org/10.1177/0013916514554695, 48(5), 635–658. https://doi.org/10.1177/0013916514554695 Karbalaei, S., Abdollahi, A., Momtaz, V., & Abu Talib, M. (2014). Locus of control, Neuroticism, and spirituality as predictors of waste-prevention behaviors. Ecopsychology, 6(4), 252–259. https://doi.org/10.1089/ECO.2014.0038 Markowitz, E. M., Goldberg, L. R., Ashton, M. C., & Lee, K. (2012b). Profiling the "Pro-Environmental Individual": A Personality Perspective. Journal of Personality, 80(1), 81–111. https://doi.org/10.1111/J.1467-6494.2011.00721.X Soutter, A. R. B., Bates, T. C., & Mõttus, R. (2020a). Big Five and HEXACO Personality Traits, Proenvironmental Attitudes, and Behaviors: A Meta-Analysis: Https://Doi.Org/10.1177/1745691620903019, 15(4), 913–941. https://doi.org/10.1177/1745691620903019 Soutter, A. R. B., & Mõttus, R. (2021). Big Five facets' associations with pro-environmental attitudes and behaviors. Journal of Personality, 89(2), 203–215. https://doi.org/10.1111/JOPY.12576

ABSTRACT. Introduction

Climate change is a collective action problem that can only be solved if most people act together to reduce their carbon emissions, whether by taking direct action, or by supporting pro-climate policies.

However, collective illusions (or “pluralistic ignorance”) whereby people under-estimate other people’s willingness to act can threaten collective action, because most people are conditional cooperators who choose whether to cooperate based on what they think others will do (review in Martin et al. 2024).

One under-studied feature of the climate collective action problem is that different groups in society are being asked to cooperate in different ways: urban dwellers by reducing their car use, all consumers by buying low-emissions products, farmers by changing what they produce and how, and so on. This could lead to misperceptions between groups if they do not observe or identify others’ actions as cooperation.

In this study, we investigated collective illusions across groups by comparing how farmers and the rural and urban public in Ireland see their own, their peers’, and each others’ climate concern and willingness to act. We chose these groups because in Ireland, agriculture creates more carbon emissions than any other sector, and different pro-climate policies will likely impact rural and urban dwellers differently.

Literature review

We build on two (interconnected) strands of research: research on cooperation in climate collective action problems, and research on collective illusions and misperceptions of others’ climate views.

Regarding climate cooperation, Kjeldahl & Hendricks (2018) argue that people under-estimating others’ climate worry can discourage climate collective action. Martin et al.’s (2024) systematic scoping review finds that beliefs about others and conditional reciprocity are important factors of climate cooperation, but that existing climate cooperation studies (which often use lab experiments such as public goods games) do not account for the diversity of actions required by different groups to stop climate change.

There is also evidence that people hold collective illusions about climate change perceptions. Sparkman et al. (2022) find that Americans underestimate popular climate policy support by nearly half, and Andre et al.’s (2024) survey of almost 130,000 people in 125 countries finds that people systematically under-estimate others’ willingness to act, despite widespread climate concern and willingness. However, there is little research on misperceptions in or across groups (except by political ideology, Ballew et al. 2020).

Methodology

We conducted a pre-registered survey of 1,667 adults in Ireland, including 467 farmers and 1,200 members of the general public, split evenly between rural and urban residents. Farmers were recruited via multiple channels to increase diversity and representativeness (e.g., regarding region and farm type).

The survey asked participants how concerned they are about climate change, and how concerned they think farmers and the general public in Ireland are. It also asked how willing participants are to take different kinds of actions to help reduce climate change (for farmers, this also included sustainable farming practices), and how willing they think farmers and the general public are to take these actions.

Our analysis compared farmers and the rural and urban public’s answers to these questions, first descriptively (using survey weights), then using regression models (with demographic controls and secondary models checking differences by farmer characteristic). To identify collective illusions, our models then compared how concerned and willing each group actually is (based on their answers about themselves) to how worried and willing this group is perceived to be (when asked to rate this group).

Results

We found that farmers and the public hold climate collective illusions about their peers and each other.

Regarding climate concern, all three groups (farmers, the rural public, and the urban public) reported being highly concerned, and we found no significant differences between their levels of concern. We also found no significant differences between the three groups’ ratings of the Irish public’s concern, but the public rated Irish farmers’ concern significantly lower than farmers did.

We found collective illusions in concern: the public under-estimates farmers’ actual concern, although farmers accurately perceive the public’s actual concern. In addition, both the public and farmers under-estimate their own group’s actual concern, but farmers are more accurate.

Regarding willingness to act, all three groups reported a high willingness to take action in their everyday life (e.g., driving or flying less, improving home energy efficiency). Farmers were highly willing to change how they farm (e.g., plant trees, use energy-efficient farm technologies). We found no significant differences between all three groups’ willingness to change their everyday lives, but the public rated both Irish farmers and the Irish public as significantly less likely to change than farmers did.

We found collective illusions in willingness: the public under-estimates farmers’ actual willingness, and farmers under-estimate the public’s actual willingness, although to a lesser extent. Both the public and farmers under-estimate their own group’s actual willingness, but the public is more accurate.

Discussion

The results show that people under-estimate others, and the public especially under-estimates farmers. A potential explanation for between-group illusions is that people do not see or identify other groups’ cooperation because it looks different from their own, leading to biased beliefs and negative reciprocity.

Another potential explanation for both between- and within-group illusions could be, as argued in Kjeldahl & Hendricks (2018), that a loud minority creates misperceptions of what a group’s majority actually thinks. Our survey results show some bimodality in the distributions of concern and willingness to change, with a small minority reporting that they are not at all concerned or likely to change.

This study has implications for both researching and addressing the climate crisis. Future climate cooperation studies, such as those using economic games, could account for diverse possible climate inputs rather than having all subjects cooperate via the same action, to help identify whether people respond to cooperation from other groups when it looks different from their own.

Regarding policy implications, our results suggest that correcting collective illusions, for example by emphasising shared concerns and identities (Martin et al. 2024), could help foster cooperation, including by reducing potential feelings of marginalisation among groups whose climate actions look different.

ABSTRACT. Sustainable behavior is a key factor in addressing global environmental, economic, and social challenges. Higher education institutions (HEIs) are expected to play a pivotal role in fostering sustainability awareness and equipping students with the necessary knowledge and competencies to integrate sustainable practices into their professional and personal lives. However, the relationship between sustainability knowledge and behavior remains complex, with previous research yielding conflicting findings regarding its impact (Vicente-Molina et al., 2013). While HEIs increasingly integrate sustainability and sustainable finance into their curricula and extracurricular activities, a gap remains in understanding how different types of knowledge—subjective and objective—shape students’ sustainability attitudes and behaviors. This study contributes to the literature by examining the factors influencing sustainability knowledge acquisition among university students and exploring the role of attitudes as a mediator between knowledge and behavior. It distinguishes between subjective knowledge (both general sustainability knowledge and specific sustainable finance knowledge) and objective knowledge (formal sustainability knowledge acquired through academic courses). By analyzing the impact of demographic and academic variables such as age, country, field of study, and education level, this research provides deeper insight into how sustainability knowledge is formed and how it translates into sustainable behavior. The findings offer valuable insights for educators, policymakers, and institutions seeking to enhance sustainability education and foster meaningful behavioral change among future leaders. Using survey data from 1,511 university students across Spain, Italy, and Israel, we classify subjective knowledge into two categories: (1) Sustainability Knowledge (SK), which covers general sustainability concepts, and (2) Sustainable Finance Knowledge (SFK), which focuses specifically on sustainable finance, a specialized area within sustainability. Objective knowledge is assessed through Formal Sustainability Knowledge (FSK), referring to knowledge acquired through courses in sustainability-related subjects. Univariate analysis was conducted according to the demographic and academic variables. The findings reveal notable differences between countries. Spanish students exhibit higher subjective knowledge (SK & SFK) scores than their Israeli peers. However, when comparing Spanish and Italian students, no significant difference is found in Sustainability Knowledge (SK), while Spanish students score higher in Sustainable Finance Knowledge (SFK) than their Italian counterparts. These differences may reflect stronger national sustainability education policies or a greater cultural emphasis on sustainability awareness. Additionally, younger students tend to have higher general Sustainability Knowledge (SK), whereas older students score higher in the more specific field of Sustainable Finance Knowledge (SFK). This pattern suggests that general sustainability knowledge is often introduced at earlier educational stages, while specific sustainable finance knowledge develops later, potentially through professional exposure or advanced courses. The analysis also reveals significant differences in sustainability knowledge by education level. Ph.D. students demonstrate higher Sustainability Knowledge (SK) than bachelor's students, while Master’s students score higher in Sustainable Finance Knowledge (SFK) than Bachelor's students. However, Formal Sustainability Knowledge (FSK) does not significantly differ across education levels, suggesting that the availability of sustainability courses remains relatively uniform. This finding highlights the need to ensure accessibility to sustainability education at all academic stages to develop relevant sustainability competencies. Academic discipline also plays a crucial role in sustainability knowledge acquisition. Students in Management and Economics demonstrate higher levels of Sustainable Finance Knowledge (SFK) compared to all other disciplines except Law, reinforcing previous findings that business and economics students have greater exposure to sustainability finance topics (Avelar et al., 2019; Haertle et al., 2017). In contrast, Education students exhibit lower levels of both Sustainability Knowledge and Sustainable Finance Knowledge, suggesting that sustainability content is less integrated into education curricula. This finding underscores the need for broader interdisciplinary sustainability education to ensure that sustainability principles are incorporated across academic fields. In addition, structural equation modeling (SEM) was applied to examine how those different types of knowledge influence sustainability attitudes and behaviors. The results indicate that the country of the academic institution has a significant positive effect on all types of knowledge. Age affects only specific Sustainable Finance Knowledge (SFK), with older individuals exhibiting a significant positive effect. Regarding education level, the findings reveal a significant negative effect on Formal Sustainability Knowledge (FSK), indicating that higher levels of education are associated with lower levels of formal sustainability knowledge. Furthermore, each type of knowledge has a significant positive effect on attitude, with Formal Sustainability Knowledge (FSK) exerting the strongest influence, followed by specific Sustainable Finance Knowledge (SFK), while general Sustainability Knowledge (SK) has the weakest effect. This suggests that self-perceived familiarity alone may not be sufficient to shape strong sustainability attitudes, as subjective knowledge can sometimes lead to overconfidence or gaps in applied understanding (Schlegelmilch et al., 1996; Laroche et al., 2001). In addition, it aligns with studies emphasizing the importance of structured sustainability education in higher education (Michel, 2020; Barros-Guerro & Bello-Benavides, 2022). Finally, attitude has a significant positive effect on sustainable behavior, reinforcing the notion that fostering positive sustainability attitudes is key to promoting sustainable actions. The results consistent with prior research emphasizing the Knowledge-Attitude-Behavior (KAB) model (Michael et al., 2020; Tang, 2018). Students with stronger pro-sustainability attitudes are more likely to engage in responsible consumption, advocacy, and sustainability-oriented decision-making. In summary, this study has several practical implications. Given that different types of sustainability knowledge influence attitudes and behavior in varying ways, HEIs should integrate both general and specific sustainability knowledge into curricula across disciplines and education levels. The observed country-specific differences highlight the impact of national sustainability policies, emphasizing the need for stronger reforms to enhance sustainability awareness and competency development. Additionally, fostering positive sustainability attitudes through experiential learning and interdisciplinary approaches is essential for promoting sustainable actions among students, preparing them to apply sustainability principles in their professional and personal lives. The findings also support a behavioral model where attitudes mediate the relationship between knowledge and behavior, reinforcing the importance of educational strategies that not only provide knowledge but also shape attitudes to drive meaningful behavioral change.

ABSTRACT. There is an inherent difficulty in motivating climate action (Rossa-Roccor et al. 2021). Climate action requires people to overcome the loss of present-day sacrifices to reap future benefits that are often uncertain (IPCC, 2022). This can make the implementation of environmental policies particularly challenging. Several papers have explored alternative framings when justifying environmental policies. For example using economic, social, or health rationales (Dasandi et al. 2022). Some experimental research suggests that health framing is more effective at garnering public support compared to traditional environmental framing (Hart and Feldman, 2018; Mossler et al. 2017). Changing the labelling of the issue from “climate change” or “global warming” to “air pollution” has been shown to have a positive effect on acceptability (Mossler et al. 2017). Other research shows that people are less likely to believe emissions have negative consequences when framed in the context of climate change (as opposed to public health) and consequently, they display lower levels of support (Hart and Feldman, 2018). However, there is evidence to the contrary with one study finding environmental messaging to be just as effective as equivalent health messaging in increasing public acceptability (Dasandi et al. 2022).

The present study adds to this body of literature in several distinct ways. Previous studies utilise a general measure of support for climate policies as the dependent variable. However, people's preferences differ quite drastically depending on the type of policy proposed (Drews et al. 2016). As such, we present participants with a defined policy vignette. In addition, previous studies have largely focused on the impact of one frame versus another. Yet, in practice, policymakers usually cite several benefits and justifications for the policy they are proposing. As such, the present study explores the effect of combining frames. Lastly, it has been theorised that health framing is preferable because it is more personally relevant, i.e. it is less psychologically distant. To the researchers' knowledge, this has not been empirically tested until now.

Using a randomised between-subjects experiment (n=698, UK-representative sample) we test the impact of environmental and public health justifications on public approval for a city centre driving charge. The dependent variable is the participants’ acceptability of the policy, which is measured on a Likert scale. Upon entering the study, participants randomly received either an environmental (E), health (H), environmental with health co-benefit (Eh), health with environmental co-benefit (He) justification for the policy or a neutral message (control group). The environmental messages refer to the link between car emissions and climate change whilst the health messages highlight the association between toxins produced by cars and their impact on public health. Environmental policy preferences are shaped by people's beliefs about climate change and their level of trust in political institutions (Drews et al. 2016). As such, our paper also explores whether treatment effects vary according to levels of political trust and climate change beliefs (moderation analysis). We conduct a mediation analysis to assess whether the effect of the messages on approval can be partially explained by psychological distance.

Our results show that compared to the control, the co-benefit messages (Eh and He) have a significant and positive effect on policy approval. However, the environmental (E) and health (H) messages are not reliable predictors. Furthermore, we find a positive association between psychological distance and approval. People are more approving of the policy when they perceive climate change/air pollution to be an issue that is certain, whose effects will be realised in the near future, and when they view the issue as local and directly affecting people like themselves. However, we do not find a difference in psychological distance perceptions between the treatment groups and there is little evidence that psychological distance explains the effect of the treatment messages on approval. The treatment messages do not have a differing effect on approval depending on whether people believe climate change is caused entirely by human activity or a mixture of human activity and natural processes. However, we find some evidence that environmental messages are particularly effective when people display higher levels of political trust.

Our exploratory analysis focuses on people’s beliefs about the motivations of policymakers. Roughly 39% of the sample believe policymakers are motivated by raising funds (as opposed to reducing emissions or toxins, as suggested by the messages). This belief is significantly and negatively associated with policy approval, demonstrating that those who hold this belief are more likely to disapprove of the policy. Furthermore, we show that receiving either environmental message (E or Eh) significantly increases the probability that someone believes policymakers are acting to raise funds. We also find that those with lower levels of trust in political institutions are more likely to believe policymakers are acting to raise funds as opposed to reducing emissions/toxins.

Dasandi, N., Graham, H., Hudson, D., Jankin, S., vanHeerde-Hudson, J., Watts, N., 2022. Positive, global, and health or environment framing bolsters public support for climate policies. Communications Earth and Environment, 3(1).

Drews, S., & van den Bergh, J. C. J. M., 2016. What explains public support for climate policies? A review of empirical and experimental studies. Climate Policy, 16(7), 855–876.

Fairbrother, M., Sevä, I.J., Kulin, J., 2019. Political trust and the relationship between climate change beliefs and support for fossil fuel taxes: Evidence from a survey of 23 European countries. Global Environmental Change, 59, 102003.

Hart, P.S., Feldman, L., 2018. Would it be better to not talk about climate change? The impact of climate change and air pollution frames on support for regulating power plant emissions. Journal of Environmental Psychology, 60,pp. 1-8.

IPCC, 2022. Climate Change 2022: Impacts, Adaptation, and Vulnerability. Cambridge University Press, Cambridge, UK and New York, NY, USA.

Mossler, M.V., Bostrom, A., Kelly, R.P., Crosman, K.M., Moy, P., 2017. How does framing affect policy support for emissions mitigation? Testing the effects of ocean acidification and other carbon emissions frames. Global Environmental Change, 45, pp.63-78.

Rossa-Roccor,V., Giang, A., Kershaw, P., 2021. Framing climate change as a human health issue: enough to tip the scale in climate policy? The Lancet Planetary Health, 5(8), pp. e553-e559.

ABSTRACT. Individuals need to make careful retirement saving decisions by choosing suitable investment strategies (Debets et al., 2022; Schröder et al., 2022, 2023). Insufficient preparation for retirement is a significant risk that can result in a considerably lower standard of living in retirement (Brüggen et al., 2019; Ebbinghaus, 2021). However, individuals are often not engaged in retirement planning (Eberhardt et al., 2022), possibly due to a lack of relevant knowledge, interest, and awareness (Benartzi & Thaler, 2007; Blakstad et al., 2018; Choi et al., 2002; Prast & van Soest, 2016; Thaler & Benartzi, 2004; van Rooij et al., 2012). Financial literacy, especially knowledge about the pension system, positively influences active engagement in retirement decision-making (Almenberg & Säve-Söderbergh, 2011; Bucher-Koenen & Lusardi, 2011; Clark et al., 2010; Debets et al., 2022). Therefore, effective communication about retirement is required, equipping individuals to make considered choices. Presenting financial information using visuals (Kothakota & Kiss, 2020; Schröder et al., 2022) and interactivity (Brüggen et al., 2019; Tang et al., 2011) could be useful in increasing comprehension (Abdalla et al., 2018; Chy & Buadi, 2023; Schröder et al., 2023). However, there’s a significant need to explore the impact of data visualization and interactive design in pension communication. This study aims to assess the effect of providing easy-to-understand and interactive pension information on individual’s knowledge, attention, and pension planning behaviour. We fulfil this aim by conducting an online survey-experiment (n = 2000) and an eye-tracking experiment (n = 40) in Estonia. The experiment is based on Schröder et al., (2022; 2023) and involves four treatment groups featuring combinations of a pension navigation tool, a table of possible pension fund choices, a narrative video, and a text presentation. As such, each group (apart from the control group, which receives no additional information) receives two sets of information combined from these options. After considering the information provided, participants were asked on a five-point scale (with one indicating least agreement and five indicating most agreement): 1) Subjective knowledge: “How informed do you feel about the Estonian pension system?” 2) Sufficiency rating “Is the amount sufficient for your retirement?” 3) Change probability. What is the probability that you will make changes regarding your pension in the next month?” In addition, we measured clicking on two provided hyperlinks, one for calculating a personalised monthly pension based on government data, and another for a comprehensive overview of the Estonian pension system from an official government site. The results indicate that visual and interactive pension communication raised subjective knowledge levels compared to text and table format presentations. Therefore, our study supports the conclusions of previous experiments comparing text-based and video-based comprehension of financial concepts (e.g., Kothakota & Kiss, 2020) while also adding to the literature on retirement engagement and interactive visuals (e.g., Brüggen et. al., 2019). We have the advantage of examining both interactivity and video format pension communication in one sample, comparing each communication format to each other and a control group baseline concurrently. We also show that interactive tools can reduce cognitive load and motivate people to engage in retirement planning. While previous studies have assumed this to be the case (Kothakota & Kiss, 2020; Liverence & Franconeri, 2015), we provide eye-tracking data on the cognitive mechanism. Additionally, participants exposed to the interactive tool and video were more likely to change their current pension planning behaviour. Eye-tracking data indicates that interactive, gradually presented information, reduces mental effort and enhances pension information comprehension. For this, we rely on evidence that more complex tasks produce higher “angry” emotion (Talen & den Uyl, 2022). Participants exposed to visual material and interactive tools expend less cognitive load and complete tasks faster than their counterparts reading identical text or analysing a table. Interestingly, we found that the treatments reduced searching for additional information. We argue that this is due to the treatment providing already subjectively comprehensive information - group participants showed increased self-assessed knowledge of the pension system, i.e. feeling they are already informed enough, which reduces motivation to search for more information. Furthermore, eye-tracking data shows that the hyperlinks got more attention in the interactive pension planning tool compared to the same information presented in a table. We infer that participants were aware of the possibility of searching for more information but elected not to click. We posit that this is an indication of the visual material being easier to comprehend Our findings contribute to filling an important research gap in effective retirement communication using visuals and interactive tools (Brüggen et. al., 2019; Kothakota & Kiss, 2020; Schröder et al., 2023). These results are important considerations for policymakers implementing pension communication strategies.

ABSTRACT. Research on financial decision-making and pension savings has traditionally focused on consumers' need for savings and financial literacy to prevent a pension gap or financial distress (Greenberg & Hershfield, 2019). It has also examined how consumers’ lifestyles influence their financial behavior and overall financial well-being (Brüggen et al., 2017). However, little is known about individuals who adopt radical saving and investment strategies with the explicit goal of achieving financial independence. This gap in the literature cannot be attributed to a lack of practical relevance, as a growing number of people are embracing a lifestyle known as Financial Independence, Retire Early (FIRE). This movement encourages aggressive saving and investing to accumulate sufficient assets for retirement at an unusually early age (Kerr, 2020).

In an initial study, we examine individuals within the FIRE movement to determine whether achieving financial independence—typically implying the accumulation of high net worth—is a feasible strategy for the general population. Specifically, we investigate whether living comfortably off one's assets is only attainable for individuals with specialized education and higher starting wealth. Furthermore, we aim to identify the mechanisms that enable FIRE adherents to achieve financial independence. As FIRE is a cultural and community-driven movement, its members may experience different financial outcomes than their peers due to various social, psychological, and financial mechanisms (Khan & Pandey, 2023). These include social encouragement and accountability, reinforced through active participation in online forums, social media groups, and financial tracking tools that promote high savings rates and minimal spending. Additionally, the spread of financial knowledge within the FIRE community may contribute to higher financial literacy among its members compared to the general population.

The first study employs representative survey data (n = 2,000) collected in Estonia to examine the demographic, financial, and behavioral characteristics of individuals pursuing FIRE compared to those who do not. Within this sample, individuals aiming for financial independence are identified by their agreement with the statement: "I am trying to accumulate enough assets for retirement so that I can live comfortably off passive income alone."

The findings indicate that 16% of the sample is actively planning to achieve financial independence, with this share being particularly high among younger individuals. Thirty percent of participants aged 18–25 expect to become financially independent in the future. Overall, FIRE adherents tend to be younger (M = 37.31 vs. 43.57), more likely to be self-employed (21% vs. 10%), and more inclined to pursue higher education than their peers. They report significantly higher household and personal incomes, demonstrate greater financial planning skills, and exhibit both higher objective financial literacy and greater confidence in their pension plans. Additionally, individuals planning for FIRE show higher risk tolerance (M = 5.70 vs. 4.61 on a 10-point scale) and greater willingness to delay gratification (time preference: M = 5.72 vs. 4.60).

FIRE followers also display distinct asset allocation strategies and more diverse investment portfolios compared to non-FIRE individuals. They show higher participation in voluntary pension schemes (Pillar III: 36% vs. 26%), stock and bond investments (42% vs. 16%), and real estate ownership for investment purpose (28% vs. 9%). Additionally, they have significantly higher engagement in alternative investments, such as cryptocurrencies (11% vs. 3%), private equity and peer-to-peer lending (8% vs. 2%), while being less likely to hold high-interest consumer loans (12% vs. 19%). Even among the youngest FIRE planners, stock and bond ownership rates are more than twice as high as those of their non-FIRE counterparts.

The results highlight significant financial differences between FIRE followers in Estonia and their peers. Individuals striving for financial independence demonstrate higher financial literacy and superior financial planning skills. Young FIRE adherents, in particular, exhibit many of the characteristics and behaviors necessary to accumulate sufficient wealth over their lifetime. However, their unusually high exposure to private equity and real estate holdings at a young age suggests two possible explanations. On the one hand, it reflects exceptional financial management skills and an entrepreneurial mindset. On the other, it may indicate privilege stemming from generational wealth, raising important questions about accessibility and inequality within the FIRE movement.

By highlighting the significant differences between FIRE followers and the general population, our findings have important implications for the literature on FIRE, early retirement, frugality, and financial independence. Previous research on early retirement (e.g., Quinn, 2002; Disney et al., 2015) has typically focused on individuals retiring only a few years before the official retirement age. In contrast, the FIRE followers in our sample illustrate the feasibility and relevance of much earlier retirement, often decades ahead of conventional timelines. The emphasis on frugal living (Lastovicka et al., 1999; Carrigan & Szmigin, 2004) aligns closely with the behaviors observed in FIRE adherents, who prioritize savings over consumption to enhance long-term financial security. Many within the movement actively seek savings rates of 50–75%, demonstrating a commitment to aggressive wealth accumulation. Moreover, the financial behaviors of FIRE followers in our sample are consistent with established wealth accumulation models (Hubbard et al., 1994; Gourinchas & Parker, 2002) and provide new insights into how individuals actually build assets over the course of their lifetimes. Our quantitative findings on attitudes, beliefs, and asset holdings associated with the pursuit of financial independence contribute to the growing body of research on the FIRE movement by addressing key questions about its demographic profile and behavioral patterns (Khan & Pandey, 2023; Taylor & Davies, 2021).

ABSTRACT. Background and aims

Inducements are a core component of gambling marketing. However, they have attracted increased attention from regulators due to their potential links to gambling harms. We deployed a randomised, pre-registered online experiment to test whether inducements cause specific changes to gambling behaviour.

Methods

622 males aged under 40 made incentive-compatible betting choices over Euro 2024 football matches. Participants were randomised to see bets with inducements or to a control group with no inducements. Some participants were also randomised to see inducement-linked bets where the expected value odds made them the worst available choice, i.e., a dominated option that was an objectively “bad bet” even accounting for the inducement.

Results

Inducements increased the amount spent on bets by over 10% and almost halved the number of people opting not to bet. Those with evidence of problem gambling were disproportionately affected. Inducements also led to decision errors, making bettors three times more likely to choose bad bets.

Discussion and Conclusions

Our findings add to growing evidence that inducements risk causing harm to consumers, with worse effects among those with evidence of problem gambling. We provide novel evidence that inducements push gamblers into making decision errors, opting for bad bets that heighten the risk of financial harm. Our findings support the regulation of inducements to reduce gambling harms.

ABSTRACT. This research plan aims to explore a novel approach to enhancing retirement savings by leveraging parallels between charitable giving and saving for retirement. We investigate whether what is typically seen as a psychological barrier to retirement savings – the perception of one's future self as a stranger (Hershfield et al., 2011) – could potentially be transformed into an advantage. Building on research showing that spending on others increases happiness (Dunn, Aknin, & Norton, 2008), we examine whether framing pension contributions as donations to one's future self can transfer successful interventions from the charitable giving domain to promote saving for retirement. We hypothesize that this framing might generate the same "warm glow" effect associated with charitable giving, potentially making the act of saving more immediately rewarding.

Study 1 will be conducted on Prolific (April 2025), employing a between-subjects design on U.S. and/or UK subjects. Participants are presented with a scenario asking them to decide which proportion of a windfall income to allocate to immediate consumption and retirement savings. In one condition savings are framed as standard retirement savings (control) and in another as "donating to your future self" (treatment). This design allows us to test whether the charitable giving frame increases the proportion of money allocated to retirement savings compared to traditional framing.

Contingent on the results from Study 1, we plan to conduct Studies 2 and 3 in Estonia and Latvia, respectively, implementing the experiments in local languages. This cross-cultural extension will help validate the effectiveness of the intervention across different institutional contexts, cultural settings, and language differences.

The next phase involves collaborating with pension funds and policymakers to implement field experiments, testing the intervention's effectiveness in real-world settings. For instance, reframing the call-for-action message in e-mail reminders (Reinson et al., 2025) or other communication channels.

Throughout the studies, we investigate potential heterogeneous treatment effects based on individual differences such as financial literacy, trust in financial institutions, socioeconomic status and prior giving behavior. Building on previous literature, also we examine how personality traits moderate the intervention's effectiveness. For instance, people with high levels of empathy or agreeableness have been found to save less (Gerhard et al., 2018) but give more to charity (Ottoni-Wilhelm and Vesterlund, 2023). Our framework suggests that emphasizing empathy toward the future self might be particularly effective for this population.

Additionally, we explore how different decision-making styles interact with our intervention. Prior research shows that affect-driven decision-makers tend to avoid financial planning (Park and Sela, 2018), while affect increases charitable giving. Our intervention might help bridge this gap by making retirement savings more emotionally engaging through the charitable giving frame.

This research contributes to both the retirement savings and charitable giving literature by identifying novel mechanisms to increase savings behavior and highlighting the potential for cross-pollination between these domains. Our findings have important implications for policymakers and financial institutions seeking to improve retirement savings outcomes.

References: Dunn, E. W., Aknin, L. B., & Norton, M. I. (2014). Prosocial Spending and Happiness: Using Money to Benefit Others Pays Off. Current Directions in Psychological Science, 23(1), 41–47. https://doi.org/10.1177/0963721413512503 Gerhard, P., Gladstone, J. J., & Hoffmann, A. O. I. (2018). Psychological characteristics and household savings behavior: The importance of accounting for latent heterogeneity. Journal of Economic Behavior & Organization, 148, 66–82. https://doi.org/10.1016/j.jebo.2018.02.013 Hershfield, H. E. (2011). Future self-continuity: How conceptions of the future self transform intertemporal choice. Annals of the New York Academy of Sciences, 1235(1), 30–43. https://doi.org/10.1111/j.1749-6632.2011.06201.x Ottoni-Wilhelm, M., & Vesterlund, L. (2023). Motives to give in economics and psychology: A step toward unification. Journal of Economic Behavior & Organization, 216, 354–365. https://doi.org/10.1016/j.jebo.2023.09.018 Park, J. J., & Sela, A. (2018). Not My Type: Why Affective Decision Makers Are Reluctant to Make Financial Decisions. Journal of Consumer Research, 45(2), 298–319. https://doi.org/10.1093/jcr/ucx122 Reinson, H., Post, T., Mazar, N., Reeck, C., Saulitis, A., Shah, A., Syropoulos, S., Uusberg, A. (2025). Boosting Retirement Savings Through Email Reminders: Evidence from a Nationwide Megastudy. [Manuscript in preparation]

ABSTRACT. Why Don’t Donors Deduct? Behavioral Barriers to Tax Incentives in Charitable Giving Michael Hilweg-Waldeck & Argun Aman Hild University of Mannheim & ZEW Mannheim Abstract

Governments worldwide provide tax deductions for charitable donations to incentivize giving. However, empirical evidence reveals a striking discrepancy in deduction behavior: while 80% of online donors claim tax deductions, only 0.5% of donors in field settings—where donation and deduction choices are observable—do so. This gap raises fundamental questions about the behavioral drivers of tax-deduction decisions. Leveraging a combination of empirical data, survey insights, and experimental evidence, we examine whether social image concerns and information deficits drive this pattern. In two large-scale experiments—one conducted online in an anonymous setting (n=483) and the other in a socially observable field setting (n=6,728)—we confirm that deduction rates remain high in anonymity (87%) but collapse in observable environments (0.5%). Surprisingly, neither information provision nor belief correction treatments significantly increase deduction rates in either setting. Ongoing work includes a second field experiment with improved timing of interventions and a lab study that isolates the causal effect of observability. Our findings challenge standard economic assumptions about tax incentives and highlight the importance of social context in financial decision-making. 1. Introduction

Charitable giving is often framed as an act of pure altruism, yet extensive research suggests that social image concerns and strategic motivations also play a role. To encourage donations, many governments provide tax deductions, effectively reducing the cost of giving. However, donors’ willingness to claim these deductions varies substantially across settings.

Empirical data from a major Austrian charity reveal a stark behavioral contrast: while 80% of donors in anonymous online settings deduct their donations, only 0.5% of donors in face-to-face interactions claim deductions. This discrepancy suggests that factors beyond financial incentives—such as social norms, image concerns, and beliefs about moral appropriateness—may influence deduction behavior.

To systematically investigate this issue, we conducted two controlled experiments that varied observability while keeping the tax benefits constant. Importantly, the procedural steps for claiming tax deductions are identical across settings, meaning that the stark differences in deduction behavior cannot be attributed to variations in administrative complexity or accessibility. Additionally, survey data from a representative Austrian sample (n=314) indicate that many donors misunderstand the deduction process and hold misperceptions about its moral acceptability. To address these concerns, we implemented two interventions: an information treatment explaining the deduction procedure and a belief correction treatment providing information about Austrians’ moral perceptions of tax deductions. 2. Experimental Design

We designed two experiments to isolate the role of observability in deduction decisions. The first, an online experiment with 483 participants, allowed individuals to earn money through a real-effort task and donate to real charities in an anonymous setting. The second, a field experiment conducted with 6,728 participants, took place within Austria’s largest door-to-door charity campaign, where deduction decisions were socially observable. To assess the impact of knowledge and beliefs, we introduced two treatments: one providing detailed information on how tax deductions work and another correcting misperceptions about the moral perception of deducting donations in Austria. The control group received no additional information. 3. Results 3.1 Empirical Patterns & Experimental Validation

Both observational and experimental data confirm a stark difference in deduction behavior between settings. In the online experiment, 87% of donors claimed deductions, whereas in the field experiment, only 0.5% did so. This supports the notion that observability plays a crucial role in deduction decisions. 3.2 Treatment Effects

Despite addressing both informational gaps and moral perceptions, neither intervention significantly altered deduction rates in either setting (p > 0.1 in all cases). These findings suggest that social image concerns, rather than misinformation or uncertainty, drive the reluctance to claim deductions in public settings. 4. Ongoing Work & Next Steps

To further explore these mechanisms, we are conducting two additional studies. A second field experiment refines the timing of information delivery, ensuring that the intervention occurs immediately before donation decisions rather than weeks in advance. As part of this intervention, we employ large-scale radio advertisements as a treatment medium to disseminate information broadly and assess its impact on deduction behavior. The data have been collected and are currently being processed by our charity partner. Additionally, we are conducting a controlled lab experiment that manipulates the observability of deduction decisions to establish causality more precisely. Data collection is ongoing, with results expected by February 2025. 5. Conclusion

Our findings reveal that the decision to claim tax deductions is highly context-dependent. While donors in anonymous settings freely claim deductions, social interaction and observability dramatically reduce deduction rates. The failure of information and belief correction treatments to alter behavior suggests that social norms and signaling concerns override financial incentives. Our lab experiment will provide a stronger causal test of observability’s role in deduction behavior and further disentangle the mechanisms underlying social image concerns. These insights have implications for the design of tax policies intended to encourage charitable giving, particularly in public donation settings.

ABSTRACT. This conceptual paper examines the interaction between small business (SME) taxpayers and their accountants, investigating a potential conflict of interest in the presence of tax aversion. Empirical data will be collected in the near future via a self-report survey to validate our hypotheses. We aim to inspire empirical research into tax aversion, a still underexplored behavioural phenomenon (Fochmann & Kleinstück, 2012), its drivers and consequences. Additionally, we address two other gaps in the literature by investigating behavioural drivers of accountants and their advice, and investigating client-accountant interactions and their conflicts of interest, responding to the research calls of Kang (2018) and Radulović and Savić (2024). Finally, we also contribute to the general field of corporate tax research. Taxation is a complex matter (Kirchler, 2007), business taxes even more so, and many SME owners feel their tax knowledge is limited (Ahmed & Braithwaite, 2005; Kamleitner et al., 2012). Therefore, they rely heavily on accountants (Everaert et al., 2007; Webley & Ashby, 2010). Their demand for accountants is primarily driven by the wish to file a correct return (Collins et al., 1992; Hite & McGill, 1992; Niemirowski & Wearing, 2003). In turn, accountants perceive a demand for aggressive advice from their clients (Tan, 1999) while this advice drives SME owners’ commitment to their accountant (Tan et al., 2016). Accountants seem to have good reason to believe they should help their clients save on taxes. The common saying that “good accountants pay for themselves” supports this view. While contemporary literature acknowledges that the standard rational taxpayer (Allingham & Sandmo, 1972) does not exist, we still largely rely on the image of an econ accountant (Thaler & Sunstein, 2008). However, it is unlikely that accountants are immune to the behavioural flukes that influence their human clients. Behavioural principles such as fairness perceptions (Farrar et al., 2019; Farrar et al., 2020) and emotions (Enachescu et al., 2019; Olsen et al., 2018; Privitera et al., 2021), as well as other personal characteristics, have been found to impact tax behaviour. Through executives, these characteristics also influence corporate tax behaviour (Dyreng et al., 2010; Hambrick & Mason, 1984; Hanlon et al., 2022). Might the same logic apply to SME owners’ most trusted advisor? Yet, little research examines how non-economic influences on accountants, through their advice, shape SME’s tax behaviour. An underexplored, intriguing and somewhat elusive behavioural tax phenomenon, is tax aversion (or tax aversion bias), which refers to the excessive disutility of taxes compared to economically equivalent payments (Blaufus & Möhlmann, 2014). It influences behaviour in atypical ways (Sussman & Olivola, 2011) and elicits a desire to avoid taxes, to a point beyond the rational economic motivation to avoid a monetary cost (McCaffery, 1993). This bias resembles loss aversion (Kahneman & Tversky, 1979) but extends further, increasing peoples’ disutility of paying taxes, even if avoidance or evasion is not pursued at all costs. For society, tax aversion might lower compliance rates and increase enforcement costs due to tax averse individuals taking on more risk (Fennell & Fennell, 2003). A specific manifestation of tax aversion is the “tax shelterer’s fallacy” McCaffery (1993), which leans towards the gambler’s fallacy. It leads people to focus excessively on tax benefits, disregarding the total costs associated with tax avoidance. Inspired by the concept of myopic loss aversion (Benartzi & Thaler, 1995), we term this behaviour “myopic tax sheltering”. Accountants’ role here is intriguing. On one hand, accountants recognising their clients' tax aversion, should help avoid irrational myopic tax sheltering decisions. However, this also presents an opportunity to exploit their client’s tax aversion bias to their advantage. Remember that accountants often believe clients favour aggressive advice (Tan et al., 2016). This might explain accountants’ puzzling, anecdotally observed advice to clients, still undocumented in literature, to “increase (business) costs”. However sensible for costs that genuinely benefit the business, costs purely created to generate tax benefits just exemplify myopic tax sheltering. This raises the question whether this advice reflects a principal-agent conflict, where accountants exploit information asymmetry for their benefit. If accountants shift their tax-averse clients’ focus solely to tax savings, they can create the simplistic impression of valuable tax-saving advice, which may justify their fees. However, if accountants themselves fall victim to the tax shelterer’s fallacy, due to their own tax aversion, this advice seems to be given in good faith. Could even professionals such as accountants be susceptible to this bias? After all they are taxpayers themselves. Their beliefs about the fairness of the tax system, and their emotions, may influence their advice. We face some major challenges in our research though. Tax aversion, its measurement, drivers and consequences are yet uncharted (Fennell & Fennell, 2003). It is even unclear whether behaviours attributed to tax aversion stem from genuine dislike of taxes, or are simply a consequence of tax complexity, miscalculations, or imprecise heuristics (Fochmann & Kleinstück, 2012). However, if we observe a systematic bias leading people to overvalue the true cost of taxes, it must have underlying causes that influence tax behaviour. If tax aversion occurs, it likely mediates the relationship between known drivers and tax behaviour itself. To initially explore of drivers of tax aversion, we focus on two known drivers of tax behaviour, fairness perceptions and emotions, alongside personal characteristics like age, gender, education, and professional experience. We hypothesize that accountants' tax aversion is positively related to the degree of myopic tax sheltering advice they provide and expect this relationship to be stronger when accountants perceive their clients to have higher tax-saving expectations. We predict that these client expectations moderate the impact of behavioural tax drivers, whether or not mediated by tax aversion, on myopic tax sheltering advice. Tax-averse accountants may believe they are offering valuable service by providing myopic tax sheltering advice, but what about the other accountants? Are accountants suffering from tax aversion-induced fallacies themselves, or are they merely “Phishing” their SME clients “for Phools” (Akerlof & Shiller, 2015)?

ABSTRACT. Introduction The commuter tax allowance (‘Entfernungspauschale‘ or ‘Pendlerpauschale‘) in Germany allows taxpayers to deduct commuting costs from their taxable income —€0.30/km for the first 20 km and €0.38/km beyond—reducing taxable income if it exceeds the €1,230 flat-rate deduction for professional expenses. It is a fiscal policy tool that lowers Germany's total tax revenue by €5–6 billion annually (Spiegel Online 2021, Bundesrechnungshof 2022). The commuter tax allowance has been the subject of criticism for several decades (see UBA 2021, Agora Verkehrswende 2022). One source of criticism is that the regulation applies to all modes of transport and thus has no steering effect on the use of sustainable modes of transport such as public transport. Further, higher commuting subsidies incentivize an increase in the length of the commute (Paetzold 2019). Additionally, the allowance tends to disproportionately benefit high-income groups, as tax savings increase with income (Rinscheid & Busemeyer 2023), while low-income taxpayers, often receive little to no benefit and are less likely to file tax returns (Hauck & Wallossek 2024). Despite the public debate, yet little attention has been given to how individuals perceive the regulation of the commuter tax allowance. Therefore, we conducted a survey with 3,055 participants in Germany to assess their beliefs about the current regulation in terms of personal financial interests, distributional aspects and environmental impact, as well as their knowledge of the commuter tax allowance and their support for a reform. We investigate the relevance of the environmental dimension and whether individuals are more likely to support reforms that target distributional aspects than those that increase personal financial benefits. In addition, participants were provided with information about either the distributional or environmental dimension of the current regulation. We examine how this information influences participants' beliefs about the policy and their support for several reform options. Rinscheid & Busemeyer (2023) find that even minimal information about these aspects has a strong impact on support for a reform in this context. Following them, we extend their findings by assessing individuals' prior knowledge and underlying beliefs to better understand the mechanisms driving these treatment effects. Understanding how information provision influences public acceptance is important for designing effective reforms. In addition, policymakers are unlikely to pursue reforms without widespread acceptance, making it relevant to understand public attitudes before introducing new policies (Grelle & Hofmann 2024). Moreover, we seek to contribute to the large literature showing that information provision can shape public preferences for policy reforms, such as pension reforms (Schuetz et al. 2023), education reforms (Lergetporer et al. 2020), and eurozone policy reforms (Dolls & Wehrhöfer 2021). We aim to contribute to the understanding of how beliefs about distributional aspects, environmental concerns, and personal interests and their interaction with information provision shape support for policy reforms within the German tax system.

Experimental Design Participants were assigned to either a between-subjects or a within-subjects design. In the within-subjects group, participants first indicated their initial beliefs on a 7-point Likert scale about the commuter tax allowance prior to the experiment, focusing on three dimensions: distributional aspects (the term used in the experiment was “social fairness” [“soziale Gerechtigkeit”]), environmental impact, and own financial interests. All participants were then randomly assigned either to a control group or one out of two treatment groups. The control group received basic information on the commuter tax allowance, while the two treatment groups received additional information about either its disproportionate benefit to high-income earners or its potential to encourage long commutes without incentivizing the use of sustainable modes of transport. After receiving this information, participants either updated their beliefs (within-subjects group) or stated their beliefs (between-subjects group). Finally, they indicated their support for five reform options using a 7-point Likert scale. These are: (1) removal of the commuter tax allowance without replacement, (2) an income-independent mobility allowance of 10 cents per kilometer for all commuters, (3) a ‘scandinavian model‘ restricting car journey deductions to cases where public transport is not viable, (4) capping the allowance to the cost of public transport (i.e. the Deutschlandticket (€49 per month) for short distances), and (5) increasing the allowance to 50 cents per kilometer. Lastly, participants’ beliefs regarding the three dimensions were also assessed for each reform option. If participants answered the assessment of the distributional aspects, environmental impact and own financial interests regarding the reform options with ‘don’t know/no answer‘, we asked them to name the reasons that led them to choose this option.

Data Our preregistered survey experiment draws on a sample of approximately 3,055 German household members from the forsa.omninet panel, which is representative of the German population aged 18 and older with access to the internet.

Results Initial belief elicitation in the within-subject group reveals that 40 % of participants consider the current commuter tax allowance as socially fair, while 26 % disagree. A share of 8 % beliefs that the current regulation benefits the climate and the environment, while 28 % state that it benefits them financially. Independent of information provision, support for a reform toward the ‘scandinavian model‘ is the highest at 39 % and the lowest at 13 % for a removal. Support for the various reform options varies according to party preference: participants with a (center)-right conservative party preference have a statistically significant higher acceptance for an increase than those with a left-wing party preference. We find the opposite result for the support for the ‘scandinavian model‘. Notably, support for an income-independent mobility allowance is consistent across different party preferences. Providing information on tax refund differences based on income reduces perceptions of fairness by 22 percentage points, with varying effects depending on prior knowledge of commuter tax allowances. It also increases support for income-independent mobility allowances by about 10 percentage points. Environmental information influences beliefs on fairness but doesn't significantly affect support for proposed reforms, with variations based on prior knowledge.

ABSTRACT. Tax evasion and shadow economy activities vary significantly across Europe, yet our understanding of how these variations affect survey responses about illegal economic behaviors remains limited, especially in diverse tax morale settings. This study addresses this knowledge gap by investigating the impact of tax compliance cultures on social desirability bias in surveys about tax evasion. Focusing on Denmark, Italy, and Latvia – countries with distinct combinations of tax morale and shadow economy sizes – the research employs an innovative design that combines list experiments with vignettes.

By engaging 6,600 participants across these three countries, the study examines how social norms and tax morale influence self-reported tax evasion behaviors. Participants were randomly assigned to control and treatment groups, with the treatment group receiving an additional sensitive item about tax evasion in their list. A placebo test using a non-sensitive item (house purchase) was also conducted to validate the method. Additionally, the study incorporated belief updating about tax morale norms to investigate their impact on tax evasion disclosure and tax morality.

While the list experimental results do not yield conclusive evidence of social desirability bias, the inconsistencies in list experiment responses for sensitive questions suggest that social desirability bias may still subtly influence how people report illegal behaviors. The findings also underscore the importance of considering how information about social norms, as employed in the vignettes, can influence individual attitudes towards tax compliance. Notably, when participants’ beliefs about the prevalence of tax evasion acceptance were updated to reflect a lower acceptance rate than previously assumed, it correlated with a decrease in tax morale. This study thus contributes valuable insights to our understanding of tax morale formation and highlights the potential unintended consequences of norm-based interventions in tax policy.