Timm Opitz, M.Sc.

Articles in Refereed Journals

Klimm, Felix; Kocher, Martin G.; Opitz, Timm; Schudy, Simeon Andreas (2023). Time Pressure and Regret in Sequential Search, Journal of Economic Behavior & Organization, 206, 406-424. DOI

• Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities. Theoretically, these strategies result in anticipated and experienced regret, which systematically affect search behavior and thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret. To understand the empirical relevance of these aspects, we study the causal effects of regret, urgency, and their interaction on search behavior in a pre-registered, theory-based, and well-powered experiment. Empirically, we find that anticipated regret does not affect search behavior either with or without time pressure, while experienced regret leads to systematic adjustments in search length. Urgency reduces decision times and perceived decision quality, but does not generally alter search length. Only very inexperienced decision-makers buy earlier when pressured. Thus, consumer protection measures against pressure selling tactics can help inexperienced consumers in particular.
• Also published as CESifo Working Paper No. 9122

Opitz, Timm; Schuwerk, Tobias; Paulus, Markus; Kloo, Daniela; Osterhaus, Christopher; Lesch, Klaus‐Peter; Sodian, Beate (2021). No Links Between Genetic Variation and Developing Theory of Mind: A Preregistered Replication Attempt of Candidate Gene Studies, Developmental Science 2021. DOI

• Genetic variability is being discussed as a source of inter‐individual differences in Theory of Mind development. Previous studies documented an association between variations in DRD4 VNTR 48 bp, OXTR rs53576, COMT rs4680, and Theory of Mind task performance. As empirical evidence on these associations is sparse, we conducted a preregistered replication attempt of a study reporting a link between DRD4 VNTR 48 bp and false belief understanding in 50‐month‐old children [Lackner, C., Sabbagh, M. A., Hallinan, E., Liu, X., & Holden, J. J. (2012). Developmental Science, 15(2), 272–280.]. Additionally, we attempted a replication of studies on the role of OXTR rs53576 and COMT rs4680 in Theory of Mind. In both replication attempts, we did not find any evidence for associations between the sampled genetic markers and Theory of Mind ability in a series of analyses. Extending the replication attempt of Lackner et al., we employed longitudinal data from several tasks and measurement points, which allowed us to run follow‐up robustness checks with more reliable scores. These extensive analyses corroborated our null finding. This comprehensive non‐replication is important to balance current research on genetic markers of Theory of Mind. In a combined evaluation of our own and previous studies, we point to substantial methodological issues that research on the genetic basis of Theory of Mind development faces. We conclude that these limitations currently prevent firm conclusions on genetic influences on Theory of Mind development.

Discussion Papers

Opitz, Timm; Schwaiger, Christoph (2023). Reciprocal Preferences in Matching Markets, Max Planck Institute for Innovation & Competition Research Paper, No. 23-06.

• Agents with reciprocal preferences prefer to be matched to a partner who also likes to collaborate with them. In this paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for mechanism design. Formally, the preferences of an agent can depend on the preferences of potential partners and there is incomplete information about the
  partners’ preferences. We find that there is no stable mechanism in standard two-sided markets. Observing the final allocation of the mechanism enables agents to learn about each other’s preferences, leading to instability. However, in a school choice setting with one side of the market being non-strategic, modified versions of the deferred acceptance mechanism can achieve stability. These results provide insights into non-standard preferences in matching markets, and their implications for efficient information and mechanism design.
• Available at SSRN

Opitz, Timm; Schwaiger, Christoph (2022). Everyone Likes to Be Liked: Experimental Evidence from Matching Markets, CRC TRR 190 Discussion Paper, No. 366.

• Matching markets can be unstable when individuals prefer to be matched to a partner who also wants to be matched with them. Through a pre-registered and theory-guided laboratory experiment, we provide evidence that such reciprocal preferences exist, significantly decrease stability in matching markets, and are driven both by belief-based and preference-based motives. Participants expect partners who want to be matched with them to be more cooperative, and are more altruistic themselves. This leads to higher cooperation and larger profits when participants can consider each other’s preferences.
• https://rationality-and-competition.de/wp-content/uploads/2023/01/366_.pdf

Klimm, Felix; Kocher, Martin G.; Opitz, Timm; Schudy, Simeon Andreas (2021). Time Pressure and Regret in Sequential Search (CESifo Working Paper, No. 9122 ).

• Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities. Theoretically, these strategies result in anticipated and experienced regret, which systematically affect search behavior and thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret. To understand the empirical relevance of these aspects, we study the causal effects of regret, urgency, and their interaction on search behavior in a pre-registered, theory-based, and well-powered experiment. We find that urgency reduces decision times and perceived decision quality but does not alter search length. Only very inexperienced decision-makers buy earlier when pressured. Anticipated regret does not affect search length (neither with nor without time pressure), while experienced regret leads to systematic adjustments in search length. Thus, we recommend that consumer protection policies should particularly focus on markets with inexperienced first-time buyers.
• https://www.cesifo.org/en/publikationen/2021/working-paper/time-pressure-and-regret-sequential-search
• Also published in: Journal of Economic Behavior & Organization Volume 206, February 2023, Pages 406-424