Gift Ratios in Laboratory Experiments

This paper presents statistics of a controlled laboratory gift-exchange-game experiment. These numbers can be used for assumptions about human behavior in analysis of noisy web data. The experiment was described in ‘The Impact of Social Comparisons on Reciprocity’ by Gächter et al. 2012. As already shown in relevant literature from experimental economics, human decisions deviate from rational payoff maximization. The average gift rate was 31%. Gift rate was under no conditions zero. Further, we derive some additional findings and calculate their significance

When retailing and Las Vegas meet: probabilistic free price promotions

A number of retailers offer gambling- or lottery-type price promotions with a chance to receive one’s entire purchase for free. Although these retailers seem to share the intuition that probabilistic free price promotions are attractive to consumers, it is unclear how they compare to traditional sure price promotions of equal expected monetary value. We compared these two risky and sure price promotions for planned purchases across six experiments in the field and in the laboratory. Together, we found that consumers are not only more likely to purchase a product promoted with a probabilistic free discount over the same product promoted with a sure discount but that they are also likely to purchase more of it. This preference seems to be primarily due to a diminishing sensitivity to the prices. In addition, we find that the zero price effect, transaction cost, and novelty considerations are likely not implicated.https://pubsonline.informs.org/doi/pdf/10.1287/mnsc.2015.2328Published versio

A Gift is not Always a Gift: Gift Exchange in a Voucher Experiment

Different from traditional gift exchange experiments, we study a field experiment where a random subsample of participants in the Swiss Labor Force Survey was sent vouchers to be used in adult training courses. Importantly for our purposes, actual voucher redemption can be traced. This gives the unique opportunity to study whether gift exchange in the form of participation in future rounds of the survey depends on the perceived usefulness of the gift. We find that the group of voucher recipients as a whole has significantly higher response rates in the survey six months after the vouchers were sent out. There is considerable heterogeneity, though. Our results point to a long-lasting gift exchange relationship for the sub-group that had redeemed their vouchers. Contrary to this group, the individuals who did not redeem their vouchers, had a response pattern that was not significantly different from the voucher non-recipients.gift exchange, reciprocity, field experiment, long-run effects

Group Prediction in Information Markets With and Without Trading Information and Price Manipulation Incentives

The ability of individuals and groups to forecast a future event, with incomplete information, by using the trading history of an asset market is analyzed in the laboratory. The results show: (1) when forecasters observe the summary of markettransacted prices, they do not perform as well as when they are provided with a complete real-time sequence of bids, asks and contract prices; (2) groups do not outperform individuals in forecasting, and when the market does not have price manipulation incentives, individual prediction is better than the group prediction; (3) in markets with manipulators, where only a summary of contract prices is provided, both groups and individuals are unable to predict better than flipping a coin. This inability to aggregate information is remedied when forecasters see the complete evolution of market bids, asks and contracts.

The Hedonistic Paradox: Is Homo Economicus Happier?

The “Hedonistic Paradox” states that homo economicus, or someone who seeks happiness for him- or herself, will not find it, but the person who helps others will. This study examines two questions in connection with happiness and generosity. First, do more generous people, as identified in dictator experiments, report on average greater happiness, or subjective well-being (SWB), as measured by responses to various questionnaires? Second, if the answer is affirmative, what is the causal relationship between generosity and happiness? We find a favorable correlation between generosity and happiness (i.e., SWB is directly related to several measures of happiness and inversely related to unhappiness) and examine various possible explanations, including that material well-being causes both happiness and generosity. The evidence from this experiment, however, indicates that a tertiary personality variable, sometimes called psychological well-being, is the primary cause of both happiness and greater generosity. In contrast to field studies, the experimental method of this inquiry permits anonymity measures designed to minimize subject misrepresentation of intrinsic generosity (e.g., due to social approval motives) and of actual happiness (e.g., because of social desirability biases) and produces a rich data set with multiple measures of subjective, psychological and material well-being. The results of this and other studies raise the question of whether greater attention should be paid to the potential benefits (beyond solely the material ones) of policies that promote charitable donations, volunteerism, service education, and, more generally, community involvement, political action, and social institutions that foster psychological well-being.Happiness; Subjective well-being; Altruism; Generosity; Psychological well-being; Eudaimonia

Can Competition Spoil Reciprocity? - A Laboratory Experiment

This paper investigates how group membership and competition among trustors interact with trust and trustworthiness in a laboratory one-shot trust game. To analyze these effects, we apply a 2x2 design. We induce group membership by letting subjects play coordination games with clear focal points, leading to higher investments and trustworthiness. Introducing competition leads to a decrease in trustworthiness, especially among partners. We argue that once competition comes into play, trustees perceive trustors’ investments as the outcomes of a competitive bidding process rather than good intentions, which reduces reciprocity.trust, reciprocity, investment game, group membership, competition

A strategy for the characterization of minute chromosome rearrangements using multiple color fluorescence in situ hybridization with chromosome-specific DNA libraries and YAC clones

The identification of marker chromosomes in clinical and tumor cytogenetics by chromosome banding analysis can create problems. In this study, we present a strategy to define minute chromosomal rearrangements by multicolor fluorescence in situ hybridization (FISH) with whole chromosome painting probes derived from chromosome-specific DNA libraries and Alu-polymerase chain reaction (PCR) products of various region-specific yeast artificial chromosome (YAC) clones. To demonstrate the usefulness of this strategy for the characterization of chromosome rearrangements unidentifiable by banding techniques, an 8p+ marker chromosome with two extra bands present in the karyotype of a child with multiple anomalies, malformations, and severe mental retardation was investigated. A series of seven-color FISH experiments with sets of fluorochrome-labeled DNA library probes from flow-sorted chromosomes demonstrated that the additional segment on 8p+ was derived from chromosome 6. For a more detailed characterization of the marker chromosome, three-color FISH experiments with library probes specific to chromosomes 6 and 8 were performed in combination with newly established telomeric and subtelomeric YAC clones from 6q25, 6p23, and 8p23. These experiments demonstrated a trisomy 6pter6p22 and a monosomy 8pter8p23 in the patient. The present limitations for a broad application of this strategy and its possible improvements are discusse

Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment

We conducted a natural field experiment to explore the effect of price changes on charitable contributions. To operationalize our tests, we examine whether an offer to match contributions to a non-profit organization changes the likelihood and amount that an individual donates. Direct mail solicitations were sent to over 50,000 prior donors. We find that the match offer increases both the revenue per solicitation and the probability that an individual donates. While comparisons of the match treatments and the control group consistently reveal this pattern, larger match ratios (i.e., $3:$1 and $2:$1) relative to smaller match ratios ($1:$1) had no additional impact. The results have clear implications for practitioners in the design of fundraising campaigns and provide avenues for future empirical and theoretical work on charitable giving. Further, the data provide an interesting test of important methods used in cost-benefit analysis.microfinance, group lending, information asymmetries, contract theory, experimental economics