Signaling Without Common Prior: An Experiment

The common prior assumption is pervasive in game-theoretic models with incomplete information. This paper investigates experimentally the importance of inducing a common prior in a two-person signaling game. For a specific probability distribution of the sender's type, the long-run behavior without an induced common prior is shown to be different from the behavior when a common prior is induced, while for other distributions behavior is similar under both regimes. We also present a learning model that allows players to learn about the other players' strategies and the prior distribution of the sender's type. We show that this learning model accurately accounts for all main features of the data.

Political Motivations and Electoral Competition: Equilibrium Analysis and Experimental Evidence

We study both theoretically and experimentally the complete set of Nash equilibria of a classical one-dimensional, majority rule election game with two candidates, who might be interested in power as well as in ideology, but not necessarily in the same way. Apart from obtaining the well known median voter result and the two-sided policy differentiation outcome, the paper uncovers the existence of two new equilibrium configurations, called 'one-sided' and 'probabilistic' policy differentiation, respectively. Our analysis shows how these equilibrium configurations depend on the relative interests in power (resp., ideology) and the uncertainty about voters' preferences. The theoretical predictions are supported by the data collected from a series of laboratory experiments, as we observe convergence to the Nash equilibrium values at the aggregate as well as the individual levels in all treatments, and the comparative statics effects across treatments are as predicted by the theory.Electoral competition, Power, Ideology, Uncertainty, Nash equilibrium, Experimental evidence

The impact of smiling cues on social cooperation

This is the final version. Available on open access from Wiley via the DOI in this recordWhile there is a plethora of experimental studies on the effects of preplay communication on economic behavior, little is known about the impact of simple cues, such as smiling, on pro-sociality. This article presents a comprehensive analysis exploring how the presence of a smiling opportunity affects pro-social behavior as measured by a one-shot linear public goods game. Our design varies (i) whether smiling is costly or costless and (ii) whether one or both members in a group are given the opportunity to smile. To test for the robustness of our results, we consider two versions of smiling cues: (i) a smiling label and (ii) a smiling face (emoji). Our findings indicate that introducing a cost for smiling has detrimental behavioral consequences regardless of the cue. Specifically, when smiling is costly, only a small minority of subjects are willing to smile as opposed to when smiling is costless. As a result, subjects contribute significantly less. These results remain the same regardless of the type of smiling cue that subjects can send. Overall, our findings provide new evidence that simple cues such as smiles embody information that influences pro-social behavior in social interactions.University of BirminghamUniversity of Exete

Does revealing personality data affect prosocial behaviour?

Many modern organisations collect data on individuals’ personality traits as part of their human resource selection processes. We test experimentally whether revealing information on personality data impacts on pro-social behaviour as measured in a one-shot modified dictator game and a public goods game. Our focus is on the personality trait of agreeableness which has been shown to be a significant determinant of pro-sociality. We provide new evidence that revealing personality information for disagreeable individuals has detrimental effects on their pro-social behaviour as compared to the baseline no-information benchmark. This is not the case, however, for agreeable individuals when they are matched with agreeable individuals. Agreeable individuals become less pro-social when matched with disagreeable individuals and are aware of this. Our results suggest that information cues about personality significantly affect economic behaviour and have implications for employees’ personality assessments as part of standard hiring processes

Alleviation and Sanctions in Social Dilemma Games

This paper reports an experiment which compares behaviour in two punishment regimes: (i) a standard public goods game with punishment in which subjects are given the opportunity to punish other group members (democratic punishment regime) and (ii) a public goods game environment where all group members exogenously experience an automatic reduction of their income (irrespective of their behaviour) and are given the opportunity to alleviate the automatic penalty (undemocratic punishment regime). We employ a within-subjects design where subjects experience both environments and control for order effects by alternating their sequence. Our findings indicate that average contributions and earnings in the undemocratic punishment environment are significantly lower relative to the standard public goods game with punishment. We also observe that in the undemocratic environment average contributions decay over time only when subjects have experienced the standard public goods game with punishment. As a result, alleviation is significantly less when subjects have experienced the standard public goods game with punishment compared to when they do not have such experience. However, the assignment of punishment is robust irrespective of the order in which the games are played