Dr Brian Wallace, Department of Economics, UCL
University College London,
Gower Street, London, WC1E 6BT
Published / Forthcoming papers:
- "The Effect of Power Asymmetries on Cooperation and Punishment in a Prisoner's Dilemma Game" (with Jonathan Bone, Redouan Bshary, Nichola Raihani) PLoS ONE, 10(1): e0117183, January 2015.
- "The Impact of the Termination Rule on Cooperation in a Prisoner's Dilemma Experiment" (with Hans-Theo Normann) International Journal of Game Theory, vol. 41(3), pages 707-718, 2012 (working paper version)
- "Deferred Compensation in Multi-Period Labor Contracts: An Experimental Test of Lazear's Model" (with Steffen Huck & Andrew Seltzer) American Economic Review, vol. 101(2), pages 819-843, April 2011 (working paper version)
- "Asymmetric Enforcement of Cooperation in a Social Dilemma" (with Nikos Nikiforakis & Hans-Theo Normann) Southern Economic Journal, vol. 76(3), pages 638-659, January 2010 (working paper version)
- "Reciprocal strategies and aspiration levels in a Cournot-Stackelberg experiment" (with Steffen Huck) Economics Bulletin, vol. 3(3), pages 1-7, 2002.
- "Other people's money: Self-Other differences in financial decision-making?" (with Ivo Vlaev, Nicholas Wright, Antoinette Nicolle, Paul Dolan, Raymond Dolan) [May 2014]
Abstract: Many important financial decisions are taken not by the person who will ultimately gain or lose from the outcome, but on their behalf by people such as policy makers, doctors, and managers. Previous studies that aim to understand such surrogate decision-making have certain limitations, such as using between-subject designs or decision outcomes that are nonmonetary, hypothetical, or which do not entail the possibility of losses. We examined decision-making about risk and time when deciding for others compared to for oneself in a study that circumvents previous limitations. We also exploit the rigours of a modelling framework, that has been shown to account for both psychological and neural processes, in order to gain insight into the underlying decision processes. We find that individuals are both less patient and more loss-averse with other peoples' money, while they are more random when deciding for others for both risk and time. Thus, our study reveals unique biases in both the preferences and decision rules used in surrogate decision-making. We suggest the pattern of results are best explained by a preference for self-enhancement in the context of decision-making for others.
- "The impact of price frames on consumer decision making: Experimental evidence" (with Steffen Huck, Julia Schmid) [October 2015]
Abstract: We present a laboratory experiment on the impact of price framing on consumer decision making. Consumer subjects face a search market where two sellers offer a homogeneous good. We examine six different price frames with linear per-unit pricing (that is displayed as such) serving as a benchmark. We find that all frames deviating from the benchmark have some negative impact on consumer decision making. The most striking result concerns drip pricing (where prices are decomposed into three elements and "dripped in" during the purchasing process). While leaving the actual decision problem unchanged, drip pricing wipes out 22% of consumer surplus.
Price framing research
Recently, with Steffen Huck, we conducted a laboratory experiment that investigated the effects of price framing on decision making as if in a retail setting. Prices frames encountered include '3 for 2', 'price was x now y', 'sale ends tomorrow', 'price is x while stocks last' and '...plus shipping'.
The report, entitled "The effects of price framing on consumer decision making", is available at: http://www.oft.gov.uk/shared_oft/economic_research/OFT1226.pdf. A working paper is available above.
Media coverage of the report include:
Throughout the year, we run experiments both online and in our lab in Drayton House. Typically, this involves making decisions at a computer. If you take part, you can earn money as well as helping contribute to our research.
You can register to join our participant database through our experiment recruitment page at https://else.econ.ucl.ac.uk/experiments. You will then receive invitations to take part in individual experiments.
Economics department I.T.
For any queries related to I.T. in the department, please email firstname.lastname@example.org.
For this academic year, I am not teaching any courses at UCL. My office hours are by appointment.