Long, Iain W. Matthews, Kent Sivarajasingam, Vaseekaran
Year of Publication:
Cardiff Economics Working Papers No. E2022/6
Cardiff University, Cardiff Business School, Cardiff
Alcohol has long been known as the demon drink; an epithet owed to numerous social ills associated with it. Our lab-in-the-field experiment assesses the extent to which intoxication leads to changes in overconfidence or cognitive ability that are often linked to problematic behaviours. Results suggest that it is the joint effect of being intoxicated in a bar that matters. Subjects systematically underestimated their magnitude, suggesting that they cannot be held fully accountable for their actions.