Saving Behavior and Cognitive Abilities: Supplementary Materials. T. Parker Ballinger, Eric Hudson, Leonie Karkoviata and Nathaniel T.

Transcription

1 Saving Behavior and Cogniive Abiliies: Sulemenar Maerials b. Parer Ballinger, Eric Hudson, Leonie Karoviaa and Nahaniel. Wilcox

2 Sulemenar Maerial A: he Income Sreams he hard, moderae and eas ses of income sreams (H, M and E) used in he exerimen are no rul random since we re-seleced hem in various was. his aendix shows he exen o which hese ses collecivel resemble a random samle of rul random i.i.d. binomial sequences of lengh 0 wih success robabili = 0.5 he adverised disribuion. Le Y denoe he oal income in sream Y. he se size (6 sreams) is he smalles discree number of sreams ha can roughl aroximae he acual samling disribuion of oal income in sreams drawn from he adverised disribuion. he figure below shows his disribuion along wih he aroximaion of i ha each of our ses creae wih 6 oal sreams. Our disribuion runcaes awa abou 0. oal robabili from he ails of he adverised disribuion (and has noiceabl more mass in he cener), bu oherwise resembles i rue and exerimenal disribuion of oal income in sreams rue disribuion Exerimen Disribuion Probabili oal Income

3 Recall ha we use 48 sequences of five income sreams. Using a sandard goodness-of-fi es (lielihood raio chi-square, or G-es) agains he null ha a subec s five observed oal income figures (in her five sreams) come from he adverised disribuion, us (,8,8) of our 48 subecs would reec ha null a 5% (0%,5%,50%). Pu differenl, subecs five observaions of oal income give hem no more frequen reasons o reec he adverised income rocess han would five sreams acuall drawn from he adverised income rocess iself. he difficul of sreams, which we ssemaicall selec for our hree ses of sreams, is relaed o he iming of income realizaions. We also need o mae sure ha he resuling collecion of sreams have average ime series roeries resembling hose acuall drawn from he adverised disribuion. We consruc a secial samle auocorrelaion funcion o examine his, mean for relaivel shor sequences of i.i.d. Bernoulli draws. In his analsis we consider sreams Y =,,...,,..., ) as i.i.d. sequences of Bernoulli draws, where Pr( = ) is ( = he robabili ha income is received, and ( ) = Pr( = 0) is he robabili of no income. Define a sream s samle mean and samle variance b ˆ = and vˆ = ( ˆ) = = Under he null ha he are i.i.d. binomial random variables wih common success robabili, we have E ( ˆ ) =, and E( vˆ) = Var( ) = ( ) Define he samle auocovariance a lag b cˆ = ( ˆ)( ˆ). = Exand his:

4 3 ( ) ( ) = = = = = = c ) ( ˆ, or ( ) ( ) = = = = c ˆ ( ) = = i i. Under he null ha he are i.i.d. binomial random variables wih common success robabili, we have E = = 0 ) ( ) (, and 0 ) ( ) ( E = =. Subsiuing hese, he execaion of he samle auocovariance under his null is ( ) ( ) = = = = c E ) ˆ ( ( ) = = i, or ( ) ( ) = ) ( ) ( ) ( ) ˆ ( c E, or ( ) c E ) ( ) ( ) ( ) ( ˆ = = his shows ha in finie samles, he samle auocovariance ĉ has a bias equal o he negaive of he rue variance divided b he samle size. he negaive finie samle bias of auocorrelaion coefficiens in an i.i.d. sequence has long been nown (e.g. Marrio and Poe 954). herefore, define an unbiased small-samle auocovariance esimaor b v c c u / ˆ ˆ ˆ =. hen use he analog rincile o define his nonsandard samle auocorrelaion funcion, designed o be cenered on zero for small i.i.d. Bernoulli sequences:

5 u cˆ cˆ vˆ / cˆ ˆ ρ = = =. vˆ vˆ vˆ We calculae he average value of his ρˆ across our exerimenal income sreams, a lags from o 8. Recall ha here are 48 sreams, 6 in each of he hard, moderae and eas ses H, M and E, bu ha he sreams in M are used hree imes as ofen as hose in H or E. herefore, each sream in M is couned hree imes, and he sreams in H and E once, in calculaing he average value of ρˆ across our sreams. his is as if our exerimen uses 80 sreams in all. herefore, we boosra he disribuion of ρˆ using 0,000 samles of 80 rul random binomial sreams wih = 0. he able below shows he acual average values of across our exerimenal sreams (in column ), and he boosraed 95% confidence inerval for hese auocorrelaions (las wo columns). As can be seen, one of he eigh auocorrelaions falls ouside is boosraed confidence inerval (a lag = 3), bu he oher seven do no. his seems reasonabl reresenaive of he adverised income rocess. ρˆ Acual average auocorrelaion over he exerimen s sreams Boosraed 95% confidence inerval for his average across rul random sreams (0,000 samles) lower uer ˆρ ˆρ ˆρ ˆρ ˆρ ˆρ ˆρ ˆρ

6 Sulemenar Maerial B: Discarded Cogniive ess As menioned in he ex, we reained onl wo of five cogniive ess ha were examined in he firs wo samles. he Poreus Maze (Poreus 965) was one of hese: I requires subecs o hread a encil hrough mazes of increasing comlexi wihou aing wrong urns. Some believe his es measures boh lanning abili and imulse conrol, boh of which ma be relevan o saving behavior. his es was a marginall significan redicor of saving erformance in he firs samle, bu less significan han he Bea III subess, so we discarded i and reained he Bea III subess. he famil of ess nown as Raven Progressive Marices (Raven, Raven and Cour 998) are visual aern inducion ess, much lie he marix reasoning orion of he Bea III es. he Raven famil is widel used in research on cogniive erformance; hese ess are regarded as measures of fluid inelligence (he abili o learn abou and ada o novel siuaions or ass). We firs ried Raven s Sandard Progressive Marices Plus or SPM, which has an exended sensiivi for disinguishing abiliies in he uer 0% of he disribuion of abili. his was a oor redicor of saving erformance in our firs samle and man of our subecs gave u on he las hird of he roblems in his es, suggesing ha i was oo difficul for mos of hem. herefore, we adminisered he briefer and simler Sandard Progressive Marices or SPM in he second samle. he SPM significanl exlained variance in saving erformance, bu less effecivel han he WM san es we also adminisered in he second samle. herefore, we abandoned he Raven famil of ess afer he second samle and reained he WM san es. 5

7 Sulemenar Maerial C: he Personali Scales Subecs ma var in heir inrinsic moivaion o erform well in exerimenal ass, wheher or no exrinsic moivaors (usuall, erformance-coningen cash amen) are used. his gives rise o ineresing mehodological quesions examined elsewhere; for our uroses, variaion in inrinsic moivaion could be a source of variance boh in as erformance and measured cogniive abiliies (erhas eseciall he laer, since we do no rovide an exrinsic moivaion for erformance in hem). Because of his, our firs ersonali measure is an iemresonse-based measure of he inrinsic moivaion o engage in efforful hough called need for cogniion (Cacioo e al. 996), which is measured in he second, hird and fourh samles. Need for cogniion is no cogniive abili. Some sudies sugges ha need for cogniion correlaes onl modesl, if a all, wih cogniive abiliies (e.g., Cacioo, Pe and Morris 983), bu we do no wan o confuse cogniive abiliies wih he inrinsic moivaion o engage in cogniivel challenging ass. herefore, we selec welve of he eigheen iems recommended b Cacioo, Pe and Kao (984) for he shor version of heir need for cogniion scale o measure his ersonali characerisic in he second, hird and fourh samles. Personali schologiss and clinicians have long regarded endencies oward rocrasinaion and imulsiveness as oeniall ineresing ersonali characerisics, and scales For insance, one ma as wheher subecs ideas abou wha i means o erform well, and hence heir goals, are he same as hose of he exerimener, and wheher exrinsic incenives are needed o beer align heir goals wih he exerimener s meaning of erformance. his is an old, resecable view (Smih 98) and man exerimenal ess of incenive effecs are a leas ariall moivaed b i (Camerer and Hogarh 999). Even when he subec aims o do wha he exerimener desires, here ma be nonrivial ineracions beween exrinsic and inrinsic moivaions ha roduce ironic resuls (Gneez and Rusichini, 000; McDaniel and Rusröm 00). Rdval (003) discusses unanswered quesions regarding ineracions beween cogniive caial, inrinsic moivaion and exrinsic moivaion in roducing observed decisions. Examles of he welve iems used are I would refer comlex o simle roblems, hining is no m idea of fun and I find saisfacion in deliberaing hard and for long hours. he resonse comleel rue would be numericall coded as 4 (high Need for Cogniion) for he firs and hird saemens, and as (low Need for Cogniion) for he second saemen. We deliberael omi iems used b Cacioo, Pe and Kao (984) ha seem o involve oher ersonali characerisics of ineres o us, using onl welve of heir eigheen oal iems. 6

8 mean o measure hese have a long hisor. A he same ime, schologiss and behavioral economiss argue ha rocrasinaion and imulsiveness are oucomes of fundamenal roeries of ime references and/or he manner in which eole weigh he resen agains he fuure when maing choices over ime (Ainslie 975; haler and Shefrin 98; O Donoghue and Rabin 999). Procrasinaion scales are nown o correlae negaivel wih need for cogniion (Ferrari 99), so a significan relaionshi beween need for cogniion and saving erformance migh occur siml because need for cogniion is an insrumen for rocrasinaion. herefore, our surve includes welve iems from a conemorar rocrasinaion scale (ucman 99). 3 Whieside and Lnam (00) review as measures of imulsiveness and argue ha endencies oward imulsive behavior acuall arise from he inerla of several disinc ersonali characerisics. On he basis of a new sud examining a ver large number of iems used o consruc exising scales of imulsiveness, Whieside and Lnam offer a new imulsiveness invenor comrised of four subscales he call remediaion, sensaionseeing, erseverance and urgenc. In he second samle, we included he iems used o measure he firs wo of hese subscales which, according o Whieside and Lnam, are boh highl reliable, nearl orhogonal o one anoher, and somewha correlaed wih he oher wo measures (urgenc and erseverance). Premediaion exlained no variance in saving erformance in he second samle, bu sensaion-seeing did (hough weal). Bu o give hese comonens of imulsiveness a good sho, we coninued o measure hem in he hird and fourh samles, and also added he erseverance and urgenc scale iems o our surve for good measure. 4 3 Examles of he welve rocrasinaion iems are I manage o find an excuse for no doing somehing, I u he necessar ime ino even boring ass, lie suding and I am an incurable ime waser. he resonse comleel rue would be numericall coded as 4 (high rocrasinaion endenc) for he firs and hird saemens, and as (low rocrasinaion endenc) for he second saemen. 4 Examles of he eleven remediaion iems are I lie o so and hin hings over before I do hem, I don' lie o sar a roec unil I now exacl how o roceed and I end o value and follow a raional, sensible aroach o hings. Examles of he welve sensaion-seeing iems are I ll r anhing once, I quie eno aing riss 7

9 Sensaion-seeing is oeniall ineresing for reasons going beond is conribuion o imulsiveness. I is osiivel correlaed wih he willingness o ae man inds of riss (Zucerman 994) and has been found o exlain ris-aing variance in some economics exerimens (e.g., Ecel and Wilson 004). Addiionall, sensaion-seeing is nown o be osiivel correlaed wih need for cogniion (Olson, Cam and Fuller 984; Crowle and Hoer 989); herefore, including sensaion-seeing in mulivariae analses could clarif he meaning of an significan effec of need for cogniion in hose analses. and I someimes lie doing hings ha are a bi frighening. Examles of he en erseverance iems are I generall lie o see hings hrough o he end, Unfinished ass reall boher me and I am a roducive erson who alwas ges he ob done. Examles of he welve urgenc iems are I have rouble conrolling m imulses, When I am use I ofen ac wihou hining and In he hea of an argumen, I will ofen sa hings ha I laer regre. 8

10 Sulemenar Maerials D: Subec Insrucions If ou have an quesions abou oeraing he comuer (using he mouse, and so forh) a an ime, conac he rocor immediael, and he or she will gladl answer an quesions ou ma have. his is a sud of economic decision maing. If ou mae good decisions, ou can earn a considerable amoun of mone. he mone comes from a gran, so don worr abou earning oo much. We wan ou o mae good decisions and earn as much as ou can, so read he insrucions carefull and feel comleel free o as he rocor quesions! Here is an ouline of he decision as; laer ages of hese insrucions will exlain hese hings in greaer deail.. You will la five searae ROUNDS of a sending and saving game. You will be PAID according o our SCORE in each round; ou can earn u o a maximum of $7.00 in each round, for a maximum ossible $35.00 in all.. Each round conains wen consecuive decision PERIODS. 3. You will manage sending and saving of exerimenal currenc unis, called ecus for shor. You bu POINS b sending ecus in each eriod; Your oal oins urchased over an enire round is our SCORE for ha round. 4. ONLY a he beginning of he FIRS eriod of a round, ou will receive ecus for sure, as sarer savings for he round. 5. In an eriod (including he firs eriod), ou MAY also receive an INCOME of 6 ecus. BU i is equall liel ha ou will receive no income in an eriod. So ou MAY wish o save ecus for fuure eriods, raher han sending hem all a once. 6. In each eriod, an income ou receive is added o an SAVINGS ou have, o give SAVINGSINCOME. You hen decide how much of his sum o send on oins in ha eriod, and how much of he sum o save for fuure eriods. 7. A able will be udaed in each eriod as ou receive income, bu oins and decide how much o save. I will show everhing ha has occurred and everhing ou have done so far in a round, how man eriods remain in a round, and our oal oins so far in he round. 8. When ou finish a round, our oal oins urchased over ha round are our SCORE. his will be comared o he score of a oor laer and a good laer. If ou do beer han he oor laer, ou earn some of he $7.00 available for ha round; o earn he full $7.00, ou have o do as well or beer han he good laer. his will be described in deail soon. 9. Afer ou finish our five rounds of he saving and sending game, ou will wrie ADVICE on how o la he sending and saving game.

11 Your oal oins over a round is our score for he round, and ha deermines our earnings. You urchase oins during each round b sending ecus in each eriod. So, how do ou receive ecus so ha ou can urchase oins? Firs, remember ha ou will ge saring savings of ecus a he ver beginning of an round. Second, ou ma receive 6 ecus of income in an eriod (including he firs eriod when ou also receive saring savings). However, wheher ou receive income or no is random. I is as if he comuer flis a coin a he beginning of each eriod and onl gives ou 6 ecus when he coin comes u heads; if i comes u ails, he comuer gives ou zero ecus. I is ver imoran o undersand ha income is rul random. he comuer will no reac o an decisions ou mae. In fac, he comuer is no reall fliing coins a all. I siml reads a randoml deermined sequence of income numbers (a sequence of 6 and 0) from a file on is hard drive. We acuall flied he coins long ago o mae a lo of income sequences, and u hose sequences in a file on he comuer s hard drive. he comuer siml reads one of hose sequences. We are elling ou his so ha ou don worr abou he comuer unishing or rewarding ou for doing somehing wrong or righ. he onl hing he comuer does wih our decisions is record hem in a file. I does no loo a our decisions and hen decide wha o do nex. Pu anoher wa, he comuer is no inelligen and ou are no laing a game agains i. Pu sill a differen wa, our decisions so far in a round will have absoluel no effec on he lielihood of receiving income laer in ha round. Income is rul random.

12 he Poin urchasing able below shows our ooruniies for urchasing oins b sending ecus in an eriod. his able will alwas be resen on our screen when ou are deciding how man ecus o send in a eriod. ecus ou send oal oins urchased incremenal oins urchased Noice he following hings abou his able, and wha i means o ou:. he firs row shows oal ecus ou migh decide o send in a eriod, from zero u o 6 or more ecus. Noice ha ou wase ecus if ou send more han 5 ecus in a eriod, since ou ge no exra oins b doing so.. he second row shows he oal oins ou would urchase b sending he oal ecus shown in he firs row. Noice ha he oal oins ou urchase increases as ou send more ecus (u o 5 ecus). 3. he hird row shows exra or incremenal ecus ou urchase as a resul of sending each exra or incremenal ecu in an eriod. Noice ha his decreases as ou send more ecus (here will be more abou his on he nex screen). 4. Your abili o bu oins (according o his able) is refreshed in ever eriod. If for insance ou sen 5 ecus in some eriod, ha does NO affec he wa ou use he able in he nex eriod. In ever eriod, he firs ecu ou decided o send bus 6 oins; he second ecu ou decide o send gives an exra 5 oins for a oal of 5 oins for sending ecus, and so on. How ou use he able doesn deend on how man ecus ou sen, or how man oins ou bough, in revious eriods. In summar, ou have he ooruni o bu from zero o 6 oins b sending from zero o 5 ecus in an eriod. his ooruni does no deend on how man oins ou urchased in as eriods. Of course, ou canno ae advanage of ha ooruni unless ou have ecus available, eiher from savings or an income ou ma (or ma no) receive in a eriod. 3

13 I is helful o see how man exra oins ou bu as ou send exra ecus in each eriod. Consider he able below. I is exacl he same as he able ou saw on he revious age, exce ha he hird row is em. You now will fill in he hird row, according o he following insrucions: If ou send ecu ou bu 6 oins. hus b sending more ecu as comared o 0 ecus sen, ou bu 6 more oins. So, ou should ener he number 6 in he sace of he hird row below. If ou send ecus ou bu 5 oins. hus he exra oins urchased b sending raher han is 56=5. So, ou should ener 5 in he sace below. Similarl, sending 3 ecus bus 65 oins, while sending ecus bus 5. So he exra oins urchased b sending 3 raher han is 655=4. So ou should ener 4 in he 'incremenal oins urchased' below 3. hus, each oen sace in he 'incremenal oins urchased' row is he difference beween he 'oal oins urchased' shown above each oen sace and he 'oal oins urchased' shown for sending one less ecu. Now, lease fill in he res of he oen saces. If ou have an rouble, lease conac he exerimener and he or she will assis ou. ecus ou send oal oins urchased incremenal oins urchased 0 [he comuer ess he resonses for misaes. If an are deeced, he sofware dislas a Please conac he exerimener o roceed o-u. he sofware locs u as well, requiring a assword o roceed. So an error mus be handled beween he exerimener and he subec before roceeding.] 4

14 Good ob! Now ha ou have comleed he exercise, here is he comlee oin urchase able again. Once more, we wan o oin ou one hing abou i, which ou should now be able o see clearl for ourself. ecus ou send oal oins urchased incremenal oins urchased Examine he incremenal oins row of he able he one ou us comleed ourself in he exercise. Noice again ha, as more and more exra ecus are sen in an one eriod, he bu fewer and fewer exra oins in ha eriod. o illusrae: For insance, he firs ecu sen in an eriod would bu a relaivel large number of oins 6 oins in fac. he fifh exra ecu sen in ha same eriod would bu less han half as man exra oins us exra, in fac. Finall, he enh exra ecu sen in ha same eriod would bu onl exra oin. Do ou undersand? If ou do no undersand, lease conac he rocor and he or she will be ver ha o hel exlain his o ou. Remember, i is our oal oin urchases across all eriods of a round ha will deermine how much of an available $7.00 ou can earn for ha round. Full undersanding of he oin urchase able is quie helful for doing well in he saving and sending game. 5

15 How he score in a round of he sending and saving game earns mone. Your chances o urchase oins are arl deermined b luc: You migh ge 6 ecus of income more or less ofen han wha is execed on average, since income sequences are rul random. We deermine our earnings in a wa ha neiher "rewards" nor "unishes" ou for good or bad luc of his sor. Insead, ou are rewarded for doing RELAIVELY WELL wih wha ou HAPPEN O GE. In each round, ou will be "comeing" agains a "good" laer and a "oor" laer. hese are no real laers bu "sraegies" for laing he game. Boh sraegies are in he same osiion ou are, as far as wha he now abou our income sequence and when he learn i. ha is, hese sraegies do no ge o "ee ahead" a fuure ars of he income sequence or oherwise "chea" in an wa. he GOOD PLAYER has an excellen sraeg. Someimes aricians do beer han he "good" laer does, bu his is rare and, sricl seaing, i onl haens b luc. A file in he comuer conains he oal oins earned b he good laer's sraeg when i is alied o he income sequence ou acuall ge in a round. We call his he GOOD SCORE for ha round. he POOR PLAYER has a oor sraeg. I is no he wors imaginable sraeg: I is ossible o ge a lower score han his sraeg, bu his is also rare. Again, a file in he comuer conains he oal oins earned b he oor laer's sraeg when alied o he income sequence ou acuall ge in a round. We call his he POOR SCORE for he round. Basicall, ou earn a leas some mone b "coming in second:" ha is, if our score exceeds he oor score, ou earn a leas some mone. Addiionall, he closer our score is o he good score, he more ou earn. And if ou haen o do as well or beer han he good score, ou earn he enire $7.00 available for he round. o summarize, a he end of a round:. If YOUR SCORE is less han or equal o he POOR SCORE, hen YOU EARNING NOHING.. If YOUR SCORE is greaer han or equal o he GOOD SCORE, hen YOU EARN $ If YOUR SCORE is beween he POOR SCORE and he GOOD Score (his is mos liel), hen ou earn a PERCENAGE of $7.00, deermined as follows: PERCENAGE = 00 * (YOUR SCORE - POOR SCORE) / (GOOD SCORE - POOR SCORE). Noice ha his ercenage increases as our score grows, and will be 00% if our score equals he good score. In oher words, he closer ou are o he good score (and he furher above he oor score ou are), he higher will be our earnings. Now, le's loo a hree examles. hese will be followed b an exercise o chec our undersanding. 6

16 How he score in a round of he sending and saving game earns mone. Examle A. Suose ha Your SCORE is 00 oins, he POOR SCORE is 600 oins and he GOOD SCORE is 800 oins in some round. Noice ha YOUR SCORE is halfwa beween he POOR and GOOD scores. I migh no surrise ou, hen, ha in his examle, ou will earn fif ercen of he available $7.00. ha is in fac righ. Le's al he formula: PERCENAGE OF $7.00 = 00 (YOUR SCORE POOR SCORE) / (GOOD SCORE POOR SCORE) (YOUR SCORE - POOR SCORE) = (00 600) = 600; and, (GOOD SCORE - POOR SCORE) = ( ) = 00; so hen, PERCENAGE OF $7.00 = 00 (00 600) / ( ) = 00 (600/00) = 00 (/) = 50% 7

17 How he score in a round of he sending and saving game earns mone. Examle B. Suose ha Your SCORE is 400 oins, he POOR SCORE is 00 oins and he GOOD SCORE is 800 oins in some round. Noice ha YOUR SCORE in his examle is onl one-hird of he disance from he POOR SCORE o GOOD SCORE. I migh no surrise ou, hen, ha in his examle, ou will earn a hird (or hir-hree ercen) of he available $7.00. ha is in fac righ. Le's al he formula: PERCENAGE OF $7.00 = 00 (YOUR SCORE POOR SCORE) / (GOOD SCORE POOR SCORE) (YOUR SCORE - POOR SCORE) = (400 00) = 00; and, (GOOD SCORE - POOR SCORE) = (800 00) = 600; so hen, PERCENAGE OF $7.00 = 00 (400 00) / (800 00) = 00 (00/600) = 00 (/3) = 33% 8

18 How he score in a round of he sending and saving game earns mone. Examle C. Suose ha Your SCORE is 350 oins, he POOR SCORE is 400 oins and he GOOD SCORE is 400 oins in some round. Noice ha YOUR SCORE is ver close o he GOOD SCORE (nineeen weniehs of he disance from he POOR SCORE o GOOD SCORE o be exac).i migh no surrise ou, hen, ha in his examle, ou will earn nine-five ercen of he available $7.00. ha is in fac righ. Le's al he formula: PERCENAGE OF $7.00 = 00 (YOUR SCORE POOR SCORE) / (GOOD SCORE POOR SCORE) (YOUR SCORE - POOR SCORE) = ( ) = 950; and, (GOOD SCORE - POOR SCORE) = ( ) = 000; so hen, PERCENAGE OF $7.00 = 00 ( ) / ( ) = 00 (950/000) = 00 (95/00) = 95% We will someimes call his ercenage, calculaed as above, he PERCEN SCORE for a round. his ercen score can be hough of as a measure of how well a erson did in a round of he sending and saving game ha doesn deend so much on wheher ha erson go a luc or unluc income sequence. his is wh we use he ercen score o deermine our amen for a round of he sending and saving game. You will no now wha he GOOD SCORE and POOR SCORE are while ou la a round. When ou finish each round, he comuer will disla YOUR SCORE, he POOR SCORE and he GOOD SCORE, and will calculae he ercen score for ou and show how much of he available $7.00 ou earned for ha round. 9

19 How he score in a round of he sending and saving game earns mone. Remember, afer each round ends, he comuer screen will show ou YOUR SCORE, POOR SCORE, GOOD SCORE and our resuling PERCENAGE OF $7.00 for ha round. Le's erform one las exercise o cemen our undersanding of he scoring rules. Here is he scenario: YOUR SCORE for he round was 900 oins. he POOR SCORE for he round was 60 oins. he GOOD SCORE for he round was 00 oins. Now, given hose hree numbers, and he calculaor beside ou, lease calculae our PERCENAGE OF 7.00 which ou would earn in such a round. Here is he formula again for our convenience: PERCENAGE OF $7.00 = 00 * (YOUR SCORE - POOR SCORE) / (GOOD SCORE - POOR SCORE) Percenage of $7.00: ENER Press 'Coninue' afer ou have enered he value. [he comuer ess he resonse for misaes. If an are deeced, he sofware dislas a Please conac he exerimener o roceed o-u. he sofware locs u as well, requiring a assword o roceed. So an error mus be handled beween he exerimener and he subec before roceeding.] 0

20 Jus a few reminders before ou begin:. You begin each round wih ecus of saring savings.. You receive an income of eiher 6 or zero ecus a he beginning of ever eriod. Each is equall liel in an eriod, lie a coin fli. 3. he oal of our savings from he las eriod and whaever income ou receive in a curren eriod is he ecus ou have available for sending and saving. 4. You send ecus in each eriod o bu oins. he sum of he oins ou have bough in all wen eriods of a round is our SCORE, and his deermines our ercenage of an available $7.00 rize for ha round. he more oins ou earn over each round, he higher our share of he available $7.00 for ha round. 5. Alhough ou obviousl carr saved ecus from a curren eriod o he nex eriod WIHIN an one round, ou canno carr saved ecus BEWEEN differen rounds. An ecus ou have remaining a he end of he 0h and final eriod of each round are siml los. You should alwas send all of our remaining ecus in he 0h eriod of an round. Please conac he exerimener so ha ou ma begin laing he game.

21 Sulemenal Maerials E: References Ainslie, G Secious reward: A behavioral heor of imulsiveness and imulse conrol. Pschological Bullein 8: Cacioo, J.., R. E. Pe and K. J. Morris, K. J Effecs of need for cogniion on message evaluaion, recall, and ersuasion. Journal of Personali and Social Pscholog 45: Cacioo, John., R. E. Pe and C. F. Kao he efficien assessmen of need for cogniion. Journal of Personali Assessmen 48: Cacioo, John., R. E. Pe, Jeffre A. Feinsein, and W. Blair G. Jarvis Disosiional differences in cogniive moivaion: he life and imes of individuals varing in need for cogniion. Pschological Bullein 9(): Camerer, Colin F. and Robin M. Hogarh he effecs of financial incenives in exerimens: A review and caial-labor-roducion framewor. Journal of Ris and Uncerain 9(-3):7-4. Crowle, A. E. and W. D. Hoer he relaionshi beween need for cogniion and oher individual difference variables: A wo-dimensional framewor. Advances in Consumer Research 6: Ecel, Caherine and Ric Wilson Is rus a ris decision? Journal of Economic Behavior and Organizaion 55(4): Ferrari, J. R. 99. Pschomeric validaion of wo rocrasinaion invenories for aduls: Arousal and avoidance measures. Journal of Pschoaholog and Behavior Assessmen 4:97-0. Gneez, Uri and Aldo Rusichini Pa enough or don a a all. Quarerl Journal of Economics 5: Marrio, F. H. C. and J. A. Poe Bias in he esimaion of auocorrelaions. Biomeria 4: McDaniel, anga M. and E. Elisabe Rusröm. 00. Decision maing coss and roblem solving erformance. Exerimenal Economics 4:45-6. O Donoghue, ed and Mahew Rabin Doing i now or laer. American Economic Review 89:03-4. Olson, K., C. Cam and D. Fuller Curiosi and need for cogniion. Pschological Reors 54:7-74.

22 Poreus, Sanle D Poreus Maze ess: Fif Years Alicaion. Palo Alo: Pacific Boo Publishers. Raven, J., Raven, J. C., & Cour, J. H Manual for Raven's Progressive Marices and Vocabular Scales. San Anonio, X: he Pschological Cororaion. Rdval, Ondre he imac of financial incenives on as erformance: he Role of cogniive abiliies and inrinsic moivaion. Prague, Czech Reublic: CERGE-EI Discussion Paer. Smih, Vernon L. 98. Microeconomic ssems as an exerimenal science. American Economic Review 7: haler, R. H. and H. M. Shefrin. 98. An economic heor of self-conrol. Journal of Poliical Econom 89: ucman, B. W. 99. he develomen and concurren validi of he rocrasinaion scale. Educaional and Pschological Measuremen 5: Whieside, Sehen P. and Donald R. Lnam. 00. he five facor model and imulsivi: Using a srucural model of ersonali o undersand imulsivi. Personali and Individual Differences 30: Zucerman, M Behavioural Exressions and Biosocial Bases of Sensaion Seeing. Cambridge: Cambridge Universi Press.