Elias Henrikki Rantapuska

Does Short-Term Hunger Increase Trust and Trustworthiness in a High Trust Society?

We build on the social heuristics hypothesis, the literature on the glucose model of self-control, and recent challenges on these hypotheses to investigate whether individuals exhibit a change in degree of trust and reciprocation after consumption of a meal. We induce short-term manipulation of hunger followed by the trust game and a decision on whether to leave personal belongings in an unlocked and unsupervised room. Our results are inconclusive. While, we report hungry individuals trusting and reciprocating more than those who have just consumed a meal in a high trust society, we fail to reject the null with small number of observations (N = 101) and experimental sessions (N = 8). In addition, we find no evidence of short-term hunger having an impact on charitable giving or decisions in public good game.

Do Investors Reinvest Dividends and Tender Offer Proceeds

This study documents how much investors reinvest dividends and tender offer proceeds. I find that households reinvest only a small proportion of funds within two weeks, less than 1% of cash-dividends and around 10% of tender offer proceeds. Tender offer proceeds are more likely to be reinvested even when holding investor and size of the cash flow constant. This finding is consistent with the idea of investors having separate mental accounts for dividends and capital assets.