Effects of mental accounting on intertemporal choice

Two experiments with undergraduates as subjects were carried out with the aim of replicating and extending previous results showing that the implication of the behavioral life-cycle hypothesis (H. M. Shefrin & R. H. Thaler, 1988) that people classify assets in different mental accounts (current income, current assets, and future income) may explain how consumption choices are influenced by temporary income changes. In both experiments subjects made fictitious choices between paying for a good in cash or according to a more expensive installment plan after they had received an income which was either less, the same, or larger than usual. In Experiment 1 subjects were supposed to have savings so that the total assets were equal, whereas in Experiment 2 the total assets varied. The results of both experiments supported the role of mental accounts in demonstrating that subjects were unwilling to pay in cash after an income decrease even though they had access to saved money. Thus, in effect they chose to pay more for the good than they had to. Indicating a need for further refinement of the concept of mental account, choices to pay in cash after an income decrease tended to be more frequent when the consumption and savings motives were compatible than when they were incompatible. Furthermore, increasing the total assets made subjects more willing to pay in cash after an income decrease

Self-control and loss aversion in intertemporal choice

The life-cycle theory of saving behavior (Modigliani, 1988) suggests that humans strive towards an equal intertemporal distribution of wealth. However, behavioral life-cycle theory (Shefrin & Thaler, 1988) proposes that people use self-control heuristics to postpone wealth until later in life. According to this theory, people use a system of cognitive budgeting known as mental accounting. In the present study it was found that mental accounts were used differently depending on if the income change was positive or negative. This was shown both in a representative nationwide sample of households and in a student sample. Respondents were more willing to cut down on their propensity to consume when faced with an income decrease than to raise it when the income increased. Furthermore, contrary to the predictions of behavioral life-cycle theory, it was found that the respondents adjusted their propensity to consume the most when the income increases or decreases took place immediately. Hence, it is suggested that theories of intertemporal choice (e.g., Loewenstein, 1988; Loewenstein & Prelec, 1992) provide a better account of the data than does the behavioral lifecycle theory

Explanations of effects of prior income changes on bying decisions

Two experiments with undergraduates as subjects tested explanations of how a prior temporary income change influences choices between buying and deferred buying. In Experiment 1 predictions from the behavioral life-cycle theory (Shefrin & Thaler, 1988), the renewable resources model (Linville & Fischer, 1991) and the loss-sensitivity principle (Garling & Romanus, 1997) were contrasted. The results are inconsistent with the latter two explanations since the framing of buying as positive (buying a new model of a product) or negative (replacing a broken product) did not interact with the income change. Congruent with the behavioral life-cycle theory, willingness to buy was greater when subjects received a temporary income increase than when they received a temporary income decrease although total assets were equal. Further support for the behavioral life-cycle theory is obtained in Experiment 2 where four income-change conditions and durable and nondurable goods are compared

Explanations of effects of prior income changes on buying decisions

Two experiments with undergraduates as subjects tested explanations of how a prior temporary income change influences choices between buying and deferred buying. In Experiment 1 predictions from the behavioral life-cycle theory (Shefrin & Thaler, 1988), the renewable resources model (Linville & Fischer, 1991) and the loss-sensitivity principle (Garling & Romanus, 1997) were contrasted. The results are inconsistent with the latter two explanations since the framing of buying as positive (buying a new model of a product) or negative (replacing a broken product) did not interact with the income change. Congruent with the behavioral life-cycle theory, willingness to buy was greater when subjects received a temporary income increase than when they received a temporary income decrease although total assets were equal. Further support for the behavioral life-cycle theory is obtained in Experiment 2 where four income-change conditions and durable and nondurable goods are compared

Effects of mental accounting on intertemporal choices

Two experiments with undergraduates as subjects were carried out with the aim of replicating and extending previous results showing that the implication of the behavioral life-cycle hypothesis (H. M. Shefrin & R. H. Thaler, 1988) that people classify assets in different mental accounts (current income, current assets, and future income) may explain how consumption choices are influenced by temporary income changes. In both experiments subjects made fictitious choices between paying for a good in cash or according to a more expensive installment plan after they had received an income which was either less, the same, or larger than usual. In Experiment 1 subjects were supposed to have savings so that the total assets were equal, whereas in Experiment 2 the total assets varied. The results of both experiments supported the role of mental accounts in demonstrating that subjects were unwilling to pay in cash after an income decrease even though they had access to saved money. Thus, in effect they chose to pay more for the good than they had to. Indicating a need for further refinement of the concept of mental account, choices to pay in cash after an income decrease tended to be more frequent when the consumption and savings motives were compatible than when they were incompatible. Furthermore, increasing the total assets made subjects more willing to pay in cash after an income decrease

Phosphor Thermometry of Alumina-Forming High-Temperature Alloys Using Luminescent Rare-Earth Ions in YAG: Proof of Concept Using a Dispersion of Ce3+ -Doped YAG Particles in a FeCrAl Alloy

Most high-temperature processes require monitoring and controlling temperature, preferably with high precision and good lateral resolution. Here we evaluate the use of the technique commonly known as phosphor thermometry, which exploits the temperature dependent photoluminescence from an inorganic phosphor, for the determination of the temperature of a composite material consisting of the metallic alloy FeCrAl dispersed with phosphor particles of yttrium aluminum garnet (Y3Al5O12, YAG) doped with a small amount of luminescent Ce3+ ions (YAG:Ce3+). The results show that with some optimization and by changing the dopant ion, YAG based phosphor particles offer a unique opportunity to measure the surface temperature of metal alloys with high precision and high lateral resolution, all the way up to the maximum working temperature of alumina-forming high temperature alloys at ca. 1300 \ub0C

Towards a Time-predictable Dual-Issue Microprocessor: The Patmos Approach

Current processors are optimized for average case performance, often leading to a high worst-case execution time (WCET). Many architectural features that increase the average case performance are hard to be modeled for the WCET analysis. In this paper we present Patmos, a processor optimized for low WCET bounds rather than high average case performance. Patmos is a dual-issue, statically scheduled RISC processor. The instruction cache is organized as a method cache and the data cache is organized as a split cache in order to simplify the cache WCET analysis. To fill the dual-issue pipeline with enough useful instructions, Patmos relies on a customized compiler. The compiler also plays a central role in optimizing the application for the WCET instead of average case performance

A mutation in POLE predisposing to a multi-tumour phenotype

Somatic mutations in the POLE gene encoding the catalytic subunit of DNA polymerase epsilon have been found in sporadic colorectal cancers (CRCs) and are most likely of importance in tumour development and/or progression. Recently, families with dominantly inherited colorectal adenomas and colorectal cancer were shown to have a causative heterozygous germline mutation in the proofreading exonuclease domain of POLE. The highly penetrant mutation was associated with predisposition to CRC only and no extra-colonic tumours were observed. We have identified a mutation in a large family in which the carriers not only developed CRC, they also demonstrate a highly penetrant predisposition to extra-intestinal tumours such as ovarian, endometrial and brain tumours. The mutation, NM_006231.2:c.1089C>A, p.Asn363Lys, also located in the proofreading exonuclease domain is directly involved in DNA binding. Theoretical prediction of the amino acid substitution suggests a profound effect of the substrate binding capability and a more severe impairment of the catalytic activity compared to the previously reported germline mutation. A possible genotype to phenotype correlation for deleterious mutations in POLE might exist that needs to be considered in the follow-up of mutation carriers

Deltagerdriven forskning – växtodlingsgruppen: Resultat och utvärdering av arbetet under 1998 till 2001

De ekologiska lantbrukarna i Sverige har under lång tid utfört olika typer av utvecklingsarbete på gårdsnivå (Wivstad, 1999). I den fortsatta utvecklingen av ekologiskt lantbruk är det viktigt att ta tillvara dessa erfarenheter och kunskaper. Deltagardriven forskning är en förändringsprocess (Ullmark, 1998) där aktiva lantbrukare, rådgivare och forskare arbetar i grupp utifrån gemensamma intresseområden. Syftet är att knyta ihop forskarnas, rådgivarnas och lantbrukarnas teoretiska och praktiska kunskaper och erfarenheter. Alla som medverkar i processen är lika viktiga och alla parter som berörs av resultaten har möjlighet att påverka gruppens arbete och utveckling (Ullmark, 1998). Tillsammans identifierar gruppen problem och använder/utvecklar för lantbrukaren relevanta försöks- och forskningsmetoder som kan bidra till att lösa de praktiska problem som lantbrukaren faktiskt ställs inför. Genom deltagardriven forskning kan lantbrukarna även få möjlighet till att påverka var och hur forskning bedrivs. Forskningsfrågorna kan hämtas från lantbrukssystemets olika delar samt göra gruppen medveten om hur olika delar påverkar helheten (Wivstad, 1999; Eksvärd et al, 2001). I förlängningen kan deltagarna bli informatörer och överföra idéer till andra lantbrukare (Ullmark, 1998). Centrum för uthålligt lantbruk, CUL, placerat vid SLU, har sedan 1998 ansvarat för det tvärvetenskapliga projektet ”Deltagardriven forskning” som ett verktyg för regional utveckling av det ekologiska lantbruket. Det övergripande målet har varit att öka kunskapen om hur man kan åstadkomma uthålliga lantbrukssystem. Projektet startade med sex delgrupper inriktade på följande områden: grönsaker – friland, grönsaker – växthus, höns, växtodling, biogas samt grisproduktion. Därefter har några tillkommit och några avslutats. För aktuell information se hemsidan: www.cul.slu.se. Ytterligare beskrivning kan fås i ”Deltagardriven forskning – forskningsinriktad aktörssamverkan för svenskt lantbruk” (Eksvärd, i tryck)