Understanding College Application Decisions Why College Sports Success Matters

Using a unique, national data set that indicates where students choose to send their SAT scores, the authors find that college sports success has a large impact on student application decisions. For example, a school that has a stellar year in basketball or football on average receives up to 10% more SAT scores. Certain demographic groups (males, Blacks, out-of-state students, and students who played sports in high school) are more likely to be influenced by sports success than their counterparts. The authors explore the reasons why students might be influenced by these sporting events and present evidence that attention/accessibility helps explain these findings

Crime and property values: Evidence from the 1990s crime drop

Does a dramatic drop in crime lead to an increase in property values? To date, the literature on how crime influences property values has focused solely within a single metropolitan area and has been limited primarily to cross-sectional analysis. In this study we exploit the dramatic, nationwide decrease in crime that occurred in the 1990s to examine the relationship between changes in crime rates and property values. To do this, we compile information on changes in property values and crime during the 1990s in nearly 3000 urban zip codes throughout the U.S. Using a fixed-effects framework as well as an instrumental variables strategy, our analysis implies a large and statistically significant association between crime and property values. The estimated elasticities of property values with respect to crime range from − 0.15 to − 0.35. Furthermore, zip codes in the top decile in terms of crime reduction saw property value increases of 7–19% during the 1990s. Both the empirical analysis and a graphical analysis are suggestive that decreasing crime leads to increasing property values. Highlights ► We exploit the sharp decrease in crime in the 1990s to examine the relationship between crime and property values. ► Information on changes in property values and crime in nearly 3000 U.S. zip codes are used to conduct the analysis. ► Our analysis implies a large and statistically significant association between crime and property values. ► The top decile of zip codes (in terms of crime reduction) saw property value increases between 7 and 19% during the 1990s

Can Losing Lead to Winning?

Individuals, groups, and teams who are behind their opponents in competition tend to be more likely to lose. In contrast, we show that through increasing motivation, being slightly behind can actually increase success. Analysis of more than 18,000 professional basketball games illustrates that being slightly behind at halftime leads to a discontinuous increase in winning percentage. Teams behind by a point at halftime, for example, actually win more often than teams ahead by one, or approximately six percentage points more often than expected. This psychological effect is roughly half the size of the proverbial home-team advantage. Analysis of more than 45,000 collegiate basketball games finds consistent, though smaller, results. Experiments corroborate the field data and generalize their findings, providing direct causal evidence that being slightly behind increases effort and casting doubt on alternative explanations for the results. Taken together, these findings illustrate that losing can sometimes lead to winning

Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes

Although experimental studies have documented systematic decision errors, many leading scholars believe that experience, competition, and large stakes will reliably extinguish biases. We test for the presence of a fundamental bias, loss aversion, in a high-stakes context: professional golfers\u27 performance on the PGA Tour. Golf provides a natural setting to test for loss aversion because golfers are rewarded for the total number of strokes they take during a tournament, yet each individual hole has a salient reference point, par. We analyze over 2.5 million putts using precise laser measurements and find evidence that even the best golfers—including Tiger Woods—show evidence of loss aversion

Heuristic Thinking and Limited Attention in the Car Market

Can heuristic information processing affect important product markets? We explore whether the tendency to focus on the left-most digit of a number affects how used car buyers incorporate odometer values in their purchase decisions. Analyzing over 22 million wholesale used-car transactions, we find substantial evidence of this left-digit bias; there are large and discontinuous drops in sale prices at 10,000-mile thresholds in odometer mileage, along with smaller drops at 1,000-mile thresholds. We obtain estimates for the inattention parameter in a simple model of this left-digit bias. We also investigate whether this heuristic behavior is primarily attributable to the final used-car customers or the used-car salesmen who buy cars in the wholesale market. The evidence is most consistent with partial inattention by final customers. We discuss the significance of these results for the literature on inattention and point to other market settings where this type of heuristic thinking may be important. Our results suggest that information-processing heuristics may be important even in markets with large stakes and where information is easy to observe.

Improving College Performance and Retention the Easy Way: Unpacking the ACT Exam

Colleges rely on the ACT exam in their admission decisions to increase their ability to differentiate between students likely to succeed and those that have a high risk of under-performing and dropping out. We show that two of the four sub tests of the ACT, English and Mathematics, are highly predictive of positive college outcomes while the other two subtests, Science and Reading, provide little or no additional predictive power. This result is robust across various samples, specifications, and outcome measures. We demonstrate that focusing solely on the English and Mathematics test scores greatly enhances the predictive validity of the ACT exam.

The Impact of Personal Experience on Behavior: Evidence From Video-Rental Fines

Personal experience matters. In a field setting with longitudinal data, we disentangle the effects of learning new information from the effects of personal experience. We demonstrate that experience with a fine, controlling for the effect of learning new information, significantly boosts future compliance. We also show that experience with a large fine boosts compliance more than experience with a small fine, but that the influence of experience with both large and small fines decays sharply over time

International trials of vertical flow reactors for coal mine water treatment

Vertical flow reactors (VFRs) were tested at coal mine sites in New Zealand, South Korea, and the USA. The objective was to evaluate the iron removal efficiency and iron removal mechanisms during field trials at low pH and circumneutral pH, and to evaluate the potential use of VFRs as stand-alone systems or in combination with other passive treatment technologies. Total iron and manganese removal efficiencies at circumneutral pH (6–8) often exceeded 90%, with effluent concentrations less than 1 mg/L. This is attributed to both homogeneous and heterogenous Fe(II) oxidation and filtration of the precipitated ferrihydrite. Iron removal efficiencies at moderately acidic conditions (pH 3–4.5) averaged close to 40%, with an average 71.0% removal in one of the trials after iron removal capacity was stabilized. Microbial Fe(II) oxidation and precipitation as schwertmannite together with aggregation of colloidal and nano-particulate Fe(III) are suspected to be the main removal mechanisms. Iron solubility limited removal under very acidic conditions (pH < 3). The reproducibility of the results with respect to previous research confirmed that VFRs can be used as stand-alone passive treatment systems for iron removal from mine waters with a footprint less than half of the area required by a conventional aerobic wetland. A VFR can also provide useful iron pretreatment for other passive treatment systems under circumneutral conditions, but would have to be combined with alkaline generating systems to achieve full iron removal from acidic mine waters