The marriage of perspectives from behavioral economic theory and learning theory has the potential to advance an understanding of substance use and substance use disorder. Behavioral economic demand is a central concept to this interdisciplinary approach. Evaluating demand in the laboratory and clinic can improve previous research on the relative reinforcing effects of drugs by accounting for the multi-dimensional nature of reinforcement rather than viewing reinforcement as a unitary construct. Recent advances in the commodity purchase task methodology have further simplified the measurement of demand values in human participants. This dissertation project presents a programmatic series of studies designed to demonstrate the utility of using a behavioral economic demand framework and the purchase task methodology for understanding substance use disorder through basic and applied science research. Experiments are presented spanning a continuum from theoretical and methodological development to longitudinal work and clinical application. These experiments demonstrate three key conclusions regarding behavioral economic demand. First, behavioral economic demand provides a reliable and valid measure of drug valuation that is applicable to varied drug types and participant populations. Second, behavioral economic demand is a stimulus-selective measure specifically reflecting valuation for the commodity under study. Third, behavioral economic demand provides incremental information about substance use in the laboratory and clinical setting above and beyond traditional measures of reinforcer valuation and other behavioral economic variables. These findings collectively highlight the benefits of behavioral economic demand and provide an important platform for future work in addiction science.

Co-users of alcohol and nicotine are the largest group of polysubstance users worldwide. Although pharmacotherapies are available for alcohol (EtOH) or tobacco use disorders individually, it may be possible to develop a single pharmacotherapy to treat heavy drinking tobacco smokers through capitalizing on the commonalities in their mechanisms of action. Towards this goal, several models of concurrent access to EtOH and nicotine were explored as potential preclinical models of co-use using female alcohol-preferring (P) rats. Additionally, potential pharmacotherapeutics for the treatment of EtOH and nicotine co-use disorder were tested using different variations of our model. Treatments tested included (1) varenicline, a nicotinic acetylcholine receptor (nAChR) partial agonist with high affinity for the α4β2* subtype; (2) r-bPiDI, a subtype-selective antagonist at α6β2* nAChRs; (3) (R)-modafinil, an atypical inhibitor of the dopamine transporter (DAT); and (4) naltrexone, a clinically available µ-opioid receptor antagonist used to treat alcohol use disorder (AUD). Results from the current dissertation show success in developing a translational animal model in female P rats for co-use of EtOH and nicotine under which pharmacologically relevant levels of both EtOH consumption and nicotine intake are achieved. Additionally, our model was successfully used in testing potential pharmacotherapeutics for the treatment of EtOH and nicotine co-use disorder. Although none of the drugs tested were effective as a monotherapy, results from testing the known smoking cessation agent varenicline and the known AUD treatment naltrexone indicate that our model is effective for selectively measuring changes in EtOH and nicotine intake separately, which suggests the beneficial utility of this model for future treatment research. Furthermore, by applying behavioral economic principles to our findings, we found that EtOH acts as an economic substitute for nicotine. Additionally, our behavioral economic analyses revealed that when the cost of nicotine is changed via response requirements vs dose per infusion, there are differences in the elasticity of demand for concurrently available EtOH and nicotine. Finally, the relatively flat consumption curve for EtOH following varenicline pretreatment suggests that pretreatment with varenicline acts to disrupt the relationship between EtOH and nicotine such that EtOH no longer acts as an economic substitute for nicotine.

The endowment and the framing effect are widely examined cognitive biases. The experimental economics literature, using choice data gathered through an elicitation device, commonly finds evidence of these biases. Recent work by Cason & Plott (2014) shows that the interpretation of choice data as consistent with biases related non-standard preference theory could also be consistent with confusion or misconception of the game type used to elucidate preferences. I use the Cason and Plott card auction framework to analyze offers of buyers and sellers in an experimental setting with subjects from the University of New Orleans simulating 97 sellers and 90 buyers. The two games have symmetric payoffs in order to examine cognitive biases given subjects’ misconception of the game form. Subjects of both games display misconception of game form that explains both endowment and framing effects by rational confused choice; however, buyers display a much greater dispersion of offers than sellers. I estimate card implied valuation of sellers and buyers given game form misconception and find no statistical endowment effect, but I do find valuation is more uncertain in the buyer’s game. The theory of Rational Inattention predicts this lack of offer symmetry is due to the additional cognitive steps necessary in calculating buyer offers.

As information regarding origin, production method, and environmental certifications characterize a progressing seafood market, scare analysis has been made to understand market responses. This study focuses on consumer preference for wild-caught and farm-raised shrimp with several attributes. These include the Homegrown By Heroes label and Best Aquaculture Practices certification, as well as other existing attributes including the Marine Stewardship Council and each state’s local label. Also considered are hypothetical labels including Community Supported Fishery (CSF) and National Oceanic & Atmospheric Administration (NOAA). This study surveys consumers in Kentucky and South Carolina while utilizing a choice experiment to elicit willingness-to-pay measures for these various product attributes. Both wild-caught and farm-raised shrimp are considered since these species have significant market potential. Like previous studies, a strong preference for fresh as well as local shrimp was found. Furthermore, preference for Homegrown By Heroes was found to be highly valued by consumers, as well as the NOAA label signifying a federally operated ecolabel. Consumers were also found to value BAP and MSC certifications, two third-party agencies currently existent in the seafood market. Marketing and policy recommendations are given based on consumer willingness to pay estimates for these various seafood attributes in both states.

Abstract In this paper, we examine the behavior of subjects in a mock financial investment experiment to investigate the effects of “skin in the game” and ego utility on hedonic information acquisition decisions. We observe how often subjects “check” their portfolios after given general market returns, and whether conditions impact the existence and magnitude of the ostrich effect – the tendency to avoid information expected to be negative. When considering these experiment conditions as well as subject sex, risk aversion, curiosity, financial literacy and investing experience, we do not find an ostrich effect. We do find that females check their portfolios more often on average than males. Finally, we find that risk-averse people will check their portfolios more often, regardless of market returns or sex.

For decades, neuroscience has greatly contributed to our foundational understanding of human behavior. More recently, the findings and methods of neuroscience have been applied to study the process of decision-making in order to offer advanced insights into the neural mechanisms that influence economic and consumer choices. In this thesis, I will address how customized marketing strategies can be enriched through the integration of consumer neuroscience, an integrative field anchored in the biological, cognitive and affective mechanisms of consumer behavior. By recognizing and utilizing these multidisciplinary interdependencies, marketers can enhance their advertising and promotional mix to elicit desired neural and affective consumer responses and measure these reactions in order to enhance purchasing decisions. The principal objective of this thesis is to present a comprehensive review of consumer neuroscience and to elucidate why it is an increasingly important area of study within the framework of human behavior. I will also describe how the insights gained from this emerging field can be leveraged to optimize marketing activities. Finally, I propose an experiment that illuminates key research questions, which may have considerable impact on the discipline of consumer neuroscience as well as the marketing industry.

Individuals experience risk ubiquitously, but measuring risk taking is difficult. The balloon analogue risk task (BART) was developed in order to assess risk taking through having subjects press a key that accrues reward but also risk losing all reward with each press. In humans, greater responding in this task is associated with other maladaptive risk taking behaviors. The present research modeled this relationship in pigeons due to their previously shown propensity towards risk taking behavior. Experiment 1 used an unsignaled balloon task in which losing could only occur after 5 pecks. Results showed below optimal performance with greater pecks associated with faster acquisition of risk taking in the suboptimal choice task and evidence of modulation by delay discounting measures. Experiment 2 signaled the number of pecks with colors and tested multiple hoppers as a reinforcement modality to increase performance. Results showed only signaling the number of pecks improved performance and was related to performance in the high risk BART task. Both the low and high risk variants were associated with slower suboptimal choice acquisition and again had evidence of modulation by delay discounting measures. Potential shared underlying mechanisms are discussed.

My dissertation argues that fiction produced in England during the frequent financial crises and political volatility experienced between 1770 and 1820 both reflected and shaped the cultural anxiety occasioned by a seemingly random and increasingly uncertain world. The project begins within the historical framework of the multiple financial crises that occurred in the late eighteenth century: seven crises took place between 1760 and 1797 alone, appearing seemingly out of nowhere and creating a climate of financial meltdown. But how did the awareness of economic turbulence filter into the creative consciousness? Through an interdisciplinary focus on cultural studies and behavioral economics, the dissertation posits that in spite of their conventional, status quo affirming endings (opportunists are punished, lovers are married), novels and plays written between 1770 and 1820 contemplated models of behavior that were newly opportunistic, echoing the reluctant realization that irrationality had become the norm rather than a rare aberration. By analyzing concrete narrative strategies used by writers such as Frances Burney, Georgiana Cavendish, Hannah Cowley, and Thomas Holcroft, I demonstrate that late eighteenth-century fiction both articulates and elides the awareness of randomness and uncertainty in its depiction of plot, character, and narrative.

The goal of this research was to determine which population factors were associated with iPad pricing differences across countries. Specifically, this paper measured the relationship between iPad prices in a given country and its U.S. dollar exchange rate, amount of income inequality, Gross Domestic Product per capita, luxury good sales growth, Individualism Index score, and population density. Panel data was collected for the iPad 2, the iPad Retina, and the iPad Mini tablets from 38 countries of varying geographic locations, economic paradigms, and political structures. The pooled data set yielded 114 observations in total. Regressing iPad price as a percent of national average income revealed a positive relationship between price and status consciousness as well as cultural individualism. There existed a negative relationship between iPad price and luxury sales growth. These results indicated that the iPad served as a status symbol with higher demand in countries that promoted individualism and exhibited higher degrees of income inequality.

This paper analyzes the link between relative market value of representative subsets of athletes in the National Basketball Association (NBA) and individual wages. NBA athletes are categorized with respect to multiple performance characteristics utilizing the k-means algorithm to cluster observations and a group's market value is calculated by averaging real annual salaries. Employing GMM estimation techniques to a dynamic wage equation, we find a statistically significant and positive effect of one-period lagged relative market value of an athlete's representative cluster on individual wages after controlling for past individual performance. This finding is consistent with the theory of prototype heuristic, introduced by Kahneman and Frederick (2002), that NBA teams' judgment about an athlete's future performance is based on a comparison of the player to a prototype group consisting of other but comparable athletes. / Series: Department of Economics Working Paper Series