Let the Sunshine In? The Effects of Luminance on Economic Preferences, Choice Consistency and Dominance Violations

36 Pages Posted: 22 May 2015 Last revised: 17 Jan 2017

See all articles by Paul Glimcher

Paul Glimcher

New York University (NYU) - Center for Neuroeconomics

Agnieszka Tymula

The University of Sydney - School of Economics; New York University (NYU) - Center for Neuroeconomics

Date Written: January 1, 2017

Abstract

Weather, in particular the intensity and duration of sunshine (luminance), has been shown to significantly affect market outcomes. Yet, because of the complexity of market interactions we do not know how human behavior is affected by luminance in a way that could inform microeconomic choice models. In this paper, we use data from an incentive-compatible, decision-making experiment conducted daily over a period of two years and from the US Earth System Research Laboratory luminance sensor to investigate the impact of luminance on risk preferences, ambiguity preferences, choice consistency and dominance violations. We find that luminance levels affect all of these. Age and gender influence the strength of some of these effects.

Keywords: weather, decision-making, risk, ambiguity, consistency

JEL Classification: D80

Suggested Citation

Glimcher, Paul and Tymula, Agnieszka, Let the Sunshine In? The Effects of Luminance on Economic Preferences, Choice Consistency and Dominance Violations (January 1, 2017). Available at SSRN: https://ssrn.com/abstract=2608765 or http://dx.doi.org/10.2139/ssrn.2608765

Paul Glimcher

New York University (NYU) - Center for Neuroeconomics ( email )

4 Washington Place, Room 809
New York, NY 10003
United States

Agnieszka Tymula (Contact Author)

The University of Sydney - School of Economics ( email )

Rm 370 Merewether (H04)
Sydney, NSW 2006 2008
Australia

New York University (NYU) - Center for Neuroeconomics ( email )

4 Washington Place, Room 809
New York, NY 10003
United States

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