The role of payoff parameters for cooperation in the one-shot Prisoner\u27s Dilemma

The Prisoner\u27s Dilemma is arguably the most important model of social dilemmas, but our knowledge about how its material payoff structure affects cooperation is incomplete. We investigate the effect of variation in material payoffs on cooperation in one-shot Prisoner\u27s Dilemma games. We report results from three experiments (N = 1,993): in a preliminary experiment, we vary the payoffs over a large range. In our first main experiment (Study 1), we present a novel design that varies payoffs orthogonally in a within-subjects design. Our second main experiment, Study 2, investigates the orthogonal variation of payoffs in a between-subjects design. In a complementary analysis we also study the closely related payoff indices of normalized loss and gain, and the K-index. A robust finding of our experiments is that cooperation increases with the gains of mutual cooperation over mutual defection

Contextualised strong reciprocity explains selfless cooperation despite selfish intuitions and weak social heuristics

Humans frequently cooperate for collective benefit, even in one-shot social dilemmas. This provides a challenge for theories of cooperation. Two views focus on intuitions but offer conflicting explanations. The Social Heuristics Hypothesis argues that people with selfish preferences rely on cooperative intuitions and predicts that deliberation reduces cooperation. The Self-Control Account emphasizes control over selfish intuitions and is consistent with strong reciprocity—a preference for conditional cooperation in one-shot dilemmas. Here, we reconcile these explanations with each other as well as with strong reciprocity. We study one-shot cooperation across two main dilemma contexts, provision and maintenance, and show that cooperation is higher in provision than maintenance. Using time-limit manipulations, we experimentally study the cognitive processes underlying this robust result. Supporting the Self-Control Account, people are intuitively selfish in maintenance, with deliberation increasing cooperation. In contrast, consistent with the Social Heuristics Hypothesis, deliberation tends to increase the likelihood of free-riding in provision. Contextual differences between maintenance and provision are observed across additional measures: reaction time patterns of cooperation; social dilemma understanding; perceptions of social appropriateness; beliefs about others’ cooperation; and cooperation preferences. Despite these dilemma-specific asymmetries, we show that preferences, coupled with beliefs, successfully predict the high levels of cooperation in both maintenance and provision dilemmas. While the effects of intuitions are context-dependent and small, the widespread preference for strong reciprocity is the primary driver of one-shot cooperation. We advance the Contextualised Strong Reciprocity account as a unifying framework and consider its implications for research and policy

Analysing and controlling the tax evasion dynamics via majority-vote model

Within the context of agent-based Monte-Carlo simulations, we study the well-known majority-vote model (MVM) with noise applied to tax evasion on simple square lattices, Voronoi-Delaunay random lattices, Barabasi-Albert networks, and Erd\"os-R\'enyi random graphs. In the order to analyse and to control the fluctuations for tax evasion in the economics model proposed by Zaklan, MVM is applied in the neighborhod of the noise critical $q_{c}$. The Zaklan model had been studied recently using the equilibrium Ising model. Here we show that the Zaklan model is robust and can be reproduced also through the nonequilibrium MVM on various topologies.Comment: 18 pages, 7 figures, LAWNP'09, 200

Visible inequality breeds more inequality

Experiments suggest that when people can see wealth inequality in their social network, this propels further inequality through reduced cooperation and reduced social connectivity. News & Views comment on Nishi et al, Nature 526, 2015, p. 426-429

Combining ‘‘real effort’’ with induced effort costs: the ball-catching task

We introduce the “ball-catching task”, a novel computerized task, which combines a tangible action (“catching balls”) with induced material cost of effort. The central feature of the ball-catching task is that it allows researchers to manipulate the cost of effort function as well as the production function, which permits quantitative predictions on effort provision. In an experiment with piece-rate incentives we find that the comparative static and the point predictions on effort provision are remarkably accurate. We also present experimental findings from three classic experiments, namely, team production, gift exchange and tournament, using the task. All of the results are closely in line with the stylized facts from experiments using purely induced values. We conclude that the ball-catching task combines the advantages of real effort tasks with the use of induced values, which is useful for theory-testing purposes as well as for applications

If cooperation is likely punish mildly: Insights from economic experiments based on the snowdrift game

Punishment may deter antisocial behavior. Yet to punish is costly, and the costs often do not offset the gains that are due to elevated levels of cooperation. However, the effectiveness of punishment depends not only on how costly it is, but also on the circumstances defining the social dilemma. Using the snowdrift game as the basis, we have conducted a series of economic experiments to determine whether severe punishment is more effective than mild punishment. We have observed that severe punishment is not necessarily more effective, even if the cost of punishment is identical in both cases. The benefits of severe punishment become evident only under extremely adverse conditions, when to cooperate is highly improbable in the absence of sanctions. If cooperation is likely, mild punishment is not less effective and leads to higher average payoffs, and is thus the much preferred alternative. Presented results suggest that the positive effects of punishment stem not only from imposed fines, but may also have a psychological background. Small fines can do wonders in motivating us to chose cooperation over defection, but without the paralyzing effect that may be brought about by large fines. The later should be utilized only when absolutely necessary.Comment: 15 pages, 6 figures; accepted for publication in PLoS ON

Occasional errors can benefit coordination

The chances solving a problem that involves coordination between people are increased by introducing robotic players that sometimes make mistakes. This finding has implications for real-world coordination problems

Conducting interactive experiments online

Online labor markets provide new opportunities for behavioral research, but conducting economic experiments online raises important methodological challenges. This particularly holds for interactive designs. In this paper, we provide a methodological discussion of the similarities and differences between interactive experiments conducted in the laboratory and online. To this end, we conduct a repeated public goods experiment with and without punishment using samples from the laboratory and the online platform Amazon Mechanical Turk. We chose to replicate this experiment because it is long and logistically complex. It therefore provides a good case study for discussing the methodological and practical challenges of online interactive experimentation. We find that basic behavioral patterns of cooperation and punishment in the laboratory are replicable online. The most important challenge of online interactive experiments is participant dropout. We discuss measures for reducing dropout and show that, for our case study, dropouts are exogenous to the experiment. We conclude that data quality for interactive experiments via the Internet is adequate and reliable, making online interactive experimentation a potentially valuable complement to laboratory studies