Neuroeconomic foundations of probability and value perception. This project aims to investigate well-known behavioural “biases” in probability and value perception through the lens of neurobiology. This project will generate new knowledge on how the value of rewards, and the likelihood of receiving them, are incorporated in the decision-making process. Using an interdisciplinary approach, this project will be of interest to researchers from several domains of social science, which focus on how a ....Neuroeconomic foundations of probability and value perception. This project aims to investigate well-known behavioural “biases” in probability and value perception through the lens of neurobiology. This project will generate new knowledge on how the value of rewards, and the likelihood of receiving them, are incorporated in the decision-making process. Using an interdisciplinary approach, this project will be of interest to researchers from several domains of social science, which focus on how and why people make their decisions and how we could improve people’s wellbeing by improving their choices. The findings will provide insights into effective, behaviour-related policy design that aims to improve peoples’ well-being.Read moreRead less
Rank-dependent choice equilibrium. This project aims to develop and test a new statistical theory of games, Rank-Dependent Choice Equilibrium (RDCE), which has the potential to unify and improve on existing approaches where the extreme reliance on perfect decision making and perfect foresight has raised doubts about their empirical relevance. The project intends to develop the theoretical foundations of RDCE, explore its relation with various parametric approaches, and evaluate RDCE via meta stu ....Rank-dependent choice equilibrium. This project aims to develop and test a new statistical theory of games, Rank-Dependent Choice Equilibrium (RDCE), which has the potential to unify and improve on existing approaches where the extreme reliance on perfect decision making and perfect foresight has raised doubts about their empirical relevance. The project intends to develop the theoretical foundations of RDCE, explore its relation with various parametric approaches, and evaluate RDCE via meta studies and stress tests. Expected outcomes of RDCE include a paradigm shift in game theory, resulting in broader acceptance and adoption of statistical game theory and to more robust policy recommendations.Read moreRead less
Designing Efficient and Equitable Voting Mechanisms. The most commonly used method for collective decision making, majority voting, is generally not efficient as it does not allow voters to express the intensity of their preferences. In addition, majority voting suffers from the tyranny of the majority, i.e. the risk of repeatedly excluding minority groups from representation. A final downside of majority voting is its winner-take-all nature, i.e. it provides no compensation for losing voters. T ....Designing Efficient and Equitable Voting Mechanisms. The most commonly used method for collective decision making, majority voting, is generally not efficient as it does not allow voters to express the intensity of their preferences. In addition, majority voting suffers from the tyranny of the majority, i.e. the risk of repeatedly excluding minority groups from representation. A final downside of majority voting is its winner-take-all nature, i.e. it provides no compensation for losing voters. This project concerns the design of alternative mechanisms that avoid these shortcomings and robustly deliver efficient and equitable outcomes. The project develops the theory underlying these novel mechanisms, tests them in a range of environments, and delivers an implementation for practical use.
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An economic study of charitable giving. This project aims to study the motivations for charitable giving and helping behaviour and how these motivations interact with external factors under different institutions.Recent data from 2015 show that charitable donations in Australia have fallen to a 30-year low. Although real GDP has increased, inequality has risen. Social norms and perceptions relating to disadvantaged people can influence donor motivations. The anticipated goal is to design initiat ....An economic study of charitable giving. This project aims to study the motivations for charitable giving and helping behaviour and how these motivations interact with external factors under different institutions.Recent data from 2015 show that charitable donations in Australia have fallen to a 30-year low. Although real GDP has increased, inequality has risen. Social norms and perceptions relating to disadvantaged people can influence donor motivations. The anticipated goal is to design initiatives that influence prosocial activities such as charitable giving, redistribution, refugee intake and migrant integration, and improve understanding of the underlying mechanisms of prosocial behaviour.Read moreRead less
Self-control in Economic Behaviour. This project aims to use new Australian data to study the way that people’s self-control affects their economic behaviour. This project expects to advance science by testing two new ways of identifying whether people understand their own self-control issues and conducting an innovative program of research that links people’s self-control to their life chances. Expected outcomes include an understanding of i) the factors driving the capacity for self-control; i ....Self-control in Economic Behaviour. This project aims to use new Australian data to study the way that people’s self-control affects their economic behaviour. This project expects to advance science by testing two new ways of identifying whether people understand their own self-control issues and conducting an innovative program of research that links people’s self-control to their life chances. Expected outcomes include an understanding of i) the factors driving the capacity for self-control; ii) the role of self-control in promoting wellbeing; and iii) policy options for improving outcomes through better self-control. This should provide significant benefits in supporting policy agendas such as the Government’s Priority Investment Approach and behavioural economics teams. Read moreRead less
Voter behaviour and polarisation: The role of social preferences. This project aims to investigate how peer pressure and other social concerns affect voter participation, vote choice, and political polarisation. It will marry behavioural experimental economics with political economics and make use of complementary experimental methods that will allow for the study of carefully controlled elections, followed by a large-scale real-world test of the results. Expected outcomes include improved under ....Voter behaviour and polarisation: The role of social preferences. This project aims to investigate how peer pressure and other social concerns affect voter participation, vote choice, and political polarisation. It will marry behavioural experimental economics with political economics and make use of complementary experimental methods that will allow for the study of carefully controlled elections, followed by a large-scale real-world test of the results. Expected outcomes include improved understanding of how social media and other social factors, and political institutions such as compulsory voting, distort election representation and outcomes. Major benefits include the ability to advise policies to reduce polarisation and improve political institutions to ensure they reflect true societal preferences.Read moreRead less
Multidisciplinary analysis of financial reference points and wellbeing. The aim is to find how to improve financial decisions (i) during unexpected economic shocks, and (ii) by the socially disadvantaged. The project will produce the first large-scale evidence on heterogeneity in benchmarks (reference points) against which people evaluate financial alternatives and the role of such benchmarks in financial risk-taking and in creating and perpetuating economic inequality. The expected outcomes inc ....Multidisciplinary analysis of financial reference points and wellbeing. The aim is to find how to improve financial decisions (i) during unexpected economic shocks, and (ii) by the socially disadvantaged. The project will produce the first large-scale evidence on heterogeneity in benchmarks (reference points) against which people evaluate financial alternatives and the role of such benchmarks in financial risk-taking and in creating and perpetuating economic inequality. The expected outcomes include transformed interdisciplinary understanding of financial decisions and significantly greater capacity for multidisciplinary collaboration. The findings will inform policy on promoting financial wellbeing and to mitigate the devastating effects of sudden economic shocks such as that of COVID-19.Read moreRead less
Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use ad ....Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use advanced statistical methods to estimate the benefits of clearer decision-making. The outcomes of this project includes new models of complex financial decisions, and a better understanding of where confusion arises and the effects it may have. Decreased confusion will raise financial well-being and help communities become more resilient to financial shocks.Read moreRead less
Information and market design: mediation and analogical argumentation. This project aims to increase knowledge of how judicious disclosure of information facilitates economic exchange and social interactions and to shed light on how mediation can be an effective mode of dispute resolution. The project seeks to uncover how analogical arguments can be persuasive and determine social outcomes as well as provide guidance for advocates and decision makers on the best way to persuade and counteract mi ....Information and market design: mediation and analogical argumentation. This project aims to increase knowledge of how judicious disclosure of information facilitates economic exchange and social interactions and to shed light on how mediation can be an effective mode of dispute resolution. The project seeks to uncover how analogical arguments can be persuasive and determine social outcomes as well as provide guidance for advocates and decision makers on the best way to persuade and counteract misleading persuasion practices. Besides producing significant new knowledge, the project promises to inform future innovative economic, social and cultural developments of benefit to the Australian and international community.Read moreRead less
Equitable funding for health care: integrating social outcomes. This project will develop an innovative method for decision makers to achieve more equitable allocation of scarce health care resources. Health programs and treatments affect not just health (survival & health related quality of life) but also broader aspects of well-being (e.g. dignity, autonomy, safety). Our current methods for evaluating value for money in health do not capture these aspects. The project will provide benefit by a ....Equitable funding for health care: integrating social outcomes. This project will develop an innovative method for decision makers to achieve more equitable allocation of scarce health care resources. Health programs and treatments affect not just health (survival & health related quality of life) but also broader aspects of well-being (e.g. dignity, autonomy, safety). Our current methods for evaluating value for money in health do not capture these aspects. The project will provide benefit by allowing health system decision makers to achieve fairer allocation of resources across diverse health conditions, interventions and patient populations. Expected outcomes include a new tool for assessing interventions and measuring population health incorporating both health and social outcomes. Read moreRead less