Personality Psychology and Economics

This paper explores the power of personality traits both as predictors and as causes of academic and economic success, health, and criminal activity. Measured personality is interpreted as a construct derived from an economic model of preferences, constraints, and information. Evidence is reviewed about the "situational specificity" of personality traits and preferences. An extreme version of the situationist view claims that there are no stable personality traits or preference parameters that persons carry across different situations. Those who hold this view claim that personality psychology has little relevance for economics. The biological and evolutionary origins of personality traits are explored. Personality measurement systems and relationships among the measures used by psychologists are examined. The predictive power of personality measures is compared with the predictive power of measures of cognition captured by IQ and achievement tests. For many outcomes, personality measures are just as predictive as cognitive measures, even after controlling for family background and cognition. Moreover, standard measures of cognition are heavily influenced by personality traits and incentives. Measured personality traits are positively correlated over the life cycle. However, they are not fixed and can be altered by experience and investment. Intervention studies, along with studies in biology and neuroscience, establish a causal basis for the observed effect of personality traits on economic and social outcomes. Personality traits are more malleable over the life cycle compared to cognition, which becomes highly rank stable around age 10. Interventions that change personality are promising avenues for addressing poverty and disadvantage.personality, behavioral economics, cognitive traits, wages, economic success, human development, person-situation debate

Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals

Competitive dynamics research has focused primarily on interactions between dyads of firms. Drawing on the awareness-motivation-capability framework and strategic group theory we extend this by proposing that firms’ actions are influenced by perceived competitive pressure resulting from actions by several rivals. We predict that firms’ action magnitude is influenced by the total number of rival actions accumulating in the market, and that this effect is moderated by strategic group membership. We test this using data on the German mobile telephony market and find them supported: the magnitude of firm’s actions is influenced by a buildup of actions by multiple rivals, and firms react more strongly to strategically similar rivals

Antecedents of academic performance of university students: academic engagement and psychological capital resources

Predicting academic performance is of key importance to the success, wellbeing and prosperity of students, their families, the economy, and the society at large. This study investigates the relationship between academic engagement, psychological capital (PsyCap) and academic performance. Data were collected in two different universities, one in Spain and another in Portugal. Students completed two self-report questionnaires regarding academic engagement and Psychological Capital. Academic performance was assessed through Grade Point Average, provided by the universities at the end of the exam period. The samples consisted of 389 and 243 undergraduate students, respectively. Results showed a positive relationship between academic engagement and PsyCap, on the one hand, and academic performance on the other, in both samples. Results also supported PsyCap as a full mediator in the relationship between academic engagement and academic performance. Exploration of alternative models yielded superior fit for the proposed model. Accordingly, academically engaged students were likely to experience higher levels of PsyCap, which in turn positively impacted their academic performance. The results point to the importance of considering psychological predictors, rather than the prevalent reliance on traditional predictors of academic performance

Validation of the Scale of Emotional States in the Physical Education Context

The purpose of the present study was to validate an instrument of student emotional experiences in the Spanish Physical Education context. The sample of participants consisted of 864 secondary education students from various educational institutions of Spain who ranged in age from 13 to 19 years. To assess the psychometric properties of the Scale of Emotions in Physical Education (SEPE), various types of analyses were conducted. The factor structure of the SEPE was examined through confirmatory factorial analysis in relation to two models. In the first model, it was proposed that the eight first order factors, which represented the eight emotional states, would be correlated amongst each other. In the second model, an eight-factor model with two higher order factors was proposed, with these higher order factors representing distinct sets of positive and negative emotions. The results provide support the presence of an eight-factor second order model which consisted of sets of four positive emotions and four negative emotions. These results provide evidence for the reliability and validity of the SEPE within the Spanish Physical Education context

Early error detection predicted by reduced pre-response control process: an ERP topographic mapping study

Advanced ERP topographic mapping techniques were used to study error monitoring functions in human adult participants, and test whether proactive attentional effects during the pre-response time period could later influence early error detection mechanisms (as measured by the ERN component) or not. Participants performed a speeded go/nogo task, and made a substantial number of false alarms that did not differ from correct hits as a function of behavioral speed or actual motor response. While errors clearly elicited an ERN component generated within the dACC following the onset of these incorrect responses, I also found that correct hits were associated with a different sequence of topographic events during the pre-response baseline time-period, relative to errors. A main topographic transition from occipital to posterior parietal regions (including primarily the precuneus) was evidenced for correct hits similar to 170-150 ms before the response, whereas this topographic change was markedly reduced for errors. The same topographic transition was found for correct hits that were eventually performed slower than either errors or fast (correct) hits, confirming the involvement of this distinctive posterior parietal activity in top-down attentional control rather than motor preparation. Control analyses further ensured that this pre-response topographic effect was not related to differences in stimulus processing. Furthermore, I found a reliable association between the magnitude of the ERN following errors and the duration of this differential precuneus activity during the pre-response baseline, suggesting a functional link between an anticipatory attentional control component subserved by the precuneus and early error detection mechanisms within the dACC. These results suggest reciprocal links between proactive attention control and decision making processes during error monitoring