Arbeitspapier
On the Causes and Consequences of Deviations from Rational Behavior
This paper presents novel evidence for the prevalence of deviations from rational behavior in human decision making – and for the corresponding causes and consequences. The analysis is based on move-by-move data from chess tournaments and an identification strategy that compares behavior of professional chess players to a rational behavioral benchmark that is constructed using modern chess engines. The evidence documents the existence of several distinct dimensions in which human players deviate from a rational benchmark. In particular, the results show deviations related to loss aversion, time pressure, fatigue, and cognitive limitations. The results also demonstrate that deviations do not necessarily lead to worse performance. Consistent with an important influence of intuition and experience, faster decisions are associated with more frequent deviations from the rational benchmark, yet they are also associated with better performance.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 8341
- Classification
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Wirtschaft
Microeconomic Behavior: Underlying Principles
Micro-Based Behavioral Economics: General‡
Game Theory and Bargaining Theory: General
Data Collection and Data Estimation Methodology; Computer Programs: General
- Subject
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rational strategies
artificial intelligence
behavioural bias
- Event
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Geistige Schöpfung
- (who)
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Zegners, Dainis
Sunde, Uwe
Strittmatter, Anthony
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and Ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2020
- Handle
- Last update
-
10.03.2025, 1:52 PM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Zegners, Dainis
- Sunde, Uwe
- Strittmatter, Anthony
- Center for Economic Studies and Ifo Institute (CESifo)
Time of origin
- 2020
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On the causes and consequences of deviations from rational behavior
Heterogeneity and Performance in Tournaments: A Test for Incentive Effects using Professional Tennis Data
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Macroeconomic consequences of educational composition: sectoral allocation, inequality, and automation
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Demographic dynamics, preferences, and economic development
Expectations and economic choices : essays on projection bias, expectation-based reference points, and the emergence of extreme political systems
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On the causes and consequences of deviations from rational behavior
Heterogeneity and Performance in Tournaments: A Test for Incentive Effects using Professional Tennis Data
Heterogeneity and Performance in Tournaments: A Test for Incentive Effects using Professional Tennis Data
Macroeconomic consequences of educational composition: sectoral allocation, inequality, and automation
Macroeconomic consequences of demographic change : capital expenditures, demand, and factor prices
Human Capital Accumulation, Education and Earnings Inequality
Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies
Wirtschaftliche Entwicklung und Demokratie: ist Demokratie ein Wohlstandsmotor oder ein Wohlstandsprodukt?
Potential, prizes and performance : testing tournament theory with professional tennis data
Demographic dynamics, preferences, and economic development
Expectations and economic choices : essays on projection bias, expectation-based reference points, and the emergence of extreme political systems