Seda Ertac

Gender, Competitiveness, and Socialization at a Young Age: Evidence From a Matrilineal and a Patriarchal Society

Recent literature presents evidence that men are more competitively inclined than women. Since top-level careers usually require competitiveness, competitiveness differences provide an explanation for gender gaps in wages and differences in occupational choice. A natural question is whether women are born less competitive or whether they become so through the process of socialization. To pinpoint when in the socialization process the difference arises, we compare the competitiveness of children in matrilineal and patriarchal societies. We find that while there is no difference at any age in the matrilineal society, girls become less competitive around puberty in the patriarchal society.

Ever Failed, Try Again, Succeed Better: Results from a Randomized Educational Intervention on Grit

We show that grit, a non-cognitive skill that has been shown to be highly predictive of achievement, is malleable in the childhood period and can be fostered in the classroom environment. Our evidence comes from an evaluation of a randomized educational intervention implemented in elementary schools in Istanbul. Outcomes are measured via a novel incentivized real effort task and actual school grades on core subjects. We find that treated students are 1) more likely to choose to undertake a more challenging and more rewarding task against an easier but less rewarding alternative, 2) less likely to give up after failure, 3) more likely to exert effort to accumulate task-specific ability, and consequently, 4) more likely to succeed and collect higher payoffs. The intervention also has a significant impact on school grades: We find that treated students are about 3 percentage points more likely to receive top grades in core academic subjects.

Mental attributes and temporal brain dynamics during bargaining: EEG source localization and neuroinformatic mapping

It was previously shown by fMRI studies that unfair offers during an ultimatum bargaining game activate regions in the brain associated with emotions and conflict, leading to decisions inconsistent with standard economic theory. The temporal dynamics of emotional processing and mental attributes were not clear due to the coarse temporal resolution in those studies (∼2 s). Here, the ultimatum game was studied by EEG recorded from the responders in 19 channels. EEG time series were first in-put to independent component analysis. An equivalent current dipole model was used to localize the sources of the independent components in EEGLAB. The Talairach coordinates of the dipoles were matched with references in the Brede neuroinformatics database. Dipole magnitudes, anatomical regions, and mental attributes were used to explain the rejection of the offers by applying multiple regression as a function of time in epochs with a median resolution of 250 ms. The results are consistent with previous studies regarding responder behavior and activated regions (e.g., anterior cingulate cortex, frontal gyrus, insular cortex). There are three main findings observed with the higher temporal resolution: (1) regression results from fine-scale temporal data showed activations not captured when the analysis was done by using time-averaged data; (2) temporal analysis detected the individual significant epochs and fluctuations (positive and negative correlations) in regions and for the associated mental attributes (e.g., reward/harm perception, anger, unfairness); (3) there was a sequential activation of anterior cingulate cortex and insular cortex, respectively, leading to the rejection response. Overall, regression models could explain a large percentage (∼80%) of out-of-sample behavioral responses. The results are promising for the prospect of using EEG and source localization techniques in neuroeconomics to study finer temporal dynamics of neural activation.

Fostering Patience in the Classroom: Results from Randomized Educational Intervention

We evaluate the impact of a randomized educational intervention on children’s intertemporal choices. The intervention aims to improve the ability to imagine future selves and encourages forward-looking behavior using a structured curriculum delivered by children’s own trained teachers. We find that treated students make more patient intertemporal decisions in incentivized experimental tasks. The results persist almost 3 years after the intervention, replicate well in a different sample, and are robust across different experimental elicitation methods. The effects also extend beyond experimental outcomes: we find that treated students are significantly less likely to receive a low “behavior grade.”

Trading experience modulates anterior insula to reduce the endowment effect

Significance Trading experience has been shown to reduce the endowment effect, a decision-making bias that distorts market prices and reduces trade. Understanding the mechanisms underlying how experience changes this bias will provide important insights for developing interventions to improve market efficiency. Using functional magnetic resonance imaging, we show that market experience causes a reduction in right anterior insula activation during selling, which mediates a decrease in the endowment effect. These findings suggest that trading mitigates negative affective responses in the context of selling. People often demand a greater price when selling goods that they own than they would pay to purchase the same goods—a well-known economic bias called the endowment effect. The endowment effect has been found to be muted among experienced traders, but little is known about how trading experience reduces the endowment effect. We show that when selling, experienced traders exhibit lower right anterior insula activity, but no differences in nucleus accumbens or orbitofrontal activation, compared with inexperienced traders. Furthermore, insula activation mediates the effect of experience on the endowment effect. Similar results are obtained for inexperienced traders who are incentivized to gain trading experience. This finding indicates that frequent trading likely mitigates the endowment effect indirectly by modifying negative affective responses in the context of selling.

Gender Stereotypes in the Classroom and Effects on Achievement

We study the effect of elementary school teachers’ beliefs about gender roles on student achievement. We exploit a natural experiment where teachers are prevented from self-selecting into schools, and, conditional on school, students are allocated to teachers randomly. We show that girls who are taught for longer than a year by teachers with traditional gender views have lower performance in objective math and verbal tests, and this effect is amplified with longer exposure to the same teacher. We find no effect on boys. We show that the effect is partly mediated by teachers’ transmitting traditional beliefs to girls.

Removal of ocular artifacts in EEG signals measured in a neuroeconomics experiment

In neuroeconomics experiments many ocular artifacts are encountered during long trial durations. In this study, results from algorithms used to remove artifacts in EEG measurements are presented. The study consists of three parts. In the first part, EEG signals were band-pass filtered to remove high frequency noise and low frequency drift. Next, the artifacts were removed by using traditional regression method and independent component analysis (ICA). Finally, the performances of the two artifact removal methods were compared. Although artifacts were suppressed better by ICA than regression, ICA caused decrease in root mean square (RMS) values of the non-artifactual parts of some channels.

The role of verifiability and privacy in the strategic provision of performance feedback: Theory and experimental evidence

We theoretically and experimentally analyze the role of verifiability and privacy in strategic performance feedback using a “one principal-two agent” context with real effort. We confirm the theoretical prediction that information transmission occurs only in verifiable feedback mechanisms and private-verifiable feedback is the most informative mechanism. Yet, subjects also exhibit some behavior that cannot be explained by our baseline model, such as telling the truth even when this will definitely hurt them, interpreting “no feedback” more optimistically than they should, and being influenced by feedback given to the other agent. We show that a model with individual-specific lying costs and naive agents can account for some, but not all, of these findings. We conclude that in addition to being naive, some agents also suffer from self-serving biases and engage in non-Bayesian social comparisons in their interpretation of performance feedback.