Lydia Ashton

Postdoctoral Fellow

Wisconsin Institute for Discovery

University of Wisconsin, Madison

I am a Postdoctoral Fellow at the the University of Wisconsin–Madison’s Wisconsin Institute for Discovery. I recently completed my Ph.D. in Agricultural and Resource Economics from University of California, Berkeley. My research interests include  Psychology and Economics, Experimental Economics, Neuroeconomics, and Public Economics. I endeavor to increase our understanding of the role that psychological and physiological factors play on economic decision-making. I believe this knowledge can inform and guide policy makers in designing and improving public policies. In particular, I study the effects that cognitive biases and visceral states (e.g. inattention, mental fatigue, hunger) have on economic decisions.

UPCOMING EVENTS

Society for Neuroeconomics

 

 

Miami, FL

Sept. 24-27, 2015

Institute for Research on Poverty (IRP) Webinar

 

 

Webcast

November 4, 2015

American Economic Association

 

 

San Francisco, CA

January 03-05, 2016

MY LATEST RESEARCH

Using a novel laboratory experiment I find that hunger increases monetary impatience. This effect is larger when monetary rewards are immediate, which shows that present bias is a visceral response and can help explain why the poor tend to make more shortsighted economic decisions. Given possible confounds between physical and mental resource depletion, I also manipulated cognitive fatigue. I find that cognitive fatigue also increases monetary impatience; nevertheless this effect seems to be driven by a decrease in attention and an increase in heuristic-based choices. This suggests that hunger and cognitive fatigue affect time preferences through different mechanisms.

 

Chetty et al. (2009) find that consumers perceive tax-salience as a price increase, i.e. sales decrease when posting tax-inclusive prices. Using data from their unique experiment, I test whether individuals display inattention to the decimal digits of the price (i.e. left-digit bias). I find a larger decrease in sales of products in which tax salience shifts the left-most digit upwards, even though the tax rate is the same for all products. This study presents new evidence on left-digit bias from a quasi-random experiment, which also suggests that this is the main channel through which tax salience affects consumers' decisions.

 

©2015 Lydia Ashton