Student wins PURE award

Charlie Carpenter has been awarded a 16-week, $7,500 grant from the Program for Undergraduate Research Experience (PURE) for her research. Ms. Carpenter, a second-year student in Honours Economics and Commerce, will begin her research with Dr. Robert Oxoby on the effects of “money illusion” on risk-taking and well-being this Spring. 

“I am grateful for the opportunity to relate what I’ve learned in my classes in a research environment. Engaging with the practical side of economics is important for developing my understanding and is fantastic preparation for graduate school,” said Ms. Carpenter.

This research will be conducted in CBEEL and explore how nominal price differences affect decision-making over small lotteries and satisfaction before and after the lotteries.

The cognitive bias of money illusion suggests that participants will make decisions based on nominal prices rather than real purchasing power. Understanding the impact of nominal values on risk-taking and well-being can help explain why individuals sometimes make decisions that are not in their long-term financial interest.