23,629 research outputs found

    Expected Behavior in the Dictator Game.

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    This paper provides novel results for the extensive literature on dictator games: recipients do not expect dictators to behave selfishly, but instead expect the equal split division. We performed a field experiment in Baja California among a population of unexperienced subjects. Using monetary incentives we find that only 10 percent of subjects correctly guessed the expected Nash equilibrium payoff (zero). In sharp contrast, the modal subject predicts the equal split. The predictions made by dictators are notably different: 45% predicted the zero contribution and 40% expected the equal split. Surprisingly, their actions are uncorrelated with their predictions: they choose a donation in the interior of the interval. We conjecture that the equal split is the natural solution to the problem but because the dictators are involved, they also consider the chance of keeping the complete pie for themselves. Dictators solve the puzzle by passing a positive amount of money wh ich reflects the tension between fairness and self-interest. In consequence, any giving smaller than the equal split division may not be considered altruistic behavior. Only a donation larger than the 50/50 split would reflect generosity.expectations, dictator game, equal split, guessing.

    Poverty in Dictator Games: Awakening Solidarity

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    This paper investigates the effect of poverty and good intentions on dictator game giving. Previous experimental studies in which information was supplied to dictators about recipients have shown that dictator giving increases overall in this context. We develop a new design of standard informed dictator games with three main variants: 1) three recipients are used instead of one; 2) dictators are informed that their recipients are poor; 3) dictators give donations in the form of medicines instead of money. We have found that 46% of the experimental subjects (dictators) give the full amount of money (100% of the endowment) in the “poverty” treatment, while in the “medicines” treatment this percentage increases to 72%. Such extremely generous behavior has seldom been observed in the previous literature on dictator games.dictator giving, poverty effect, good intentions effect, medicines.

    Organizing effects of testosterone and economic behavior: not just risk taking

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    Recent literature emphasizes the role that testosterone, as well as markers indicating early exposure to T and its organizing effect on the brain (such as the ratio of second to fourth finger,D2:D4), have on performance in financial markets. These results may suggest that the main effect of T, either circulating or in fetal exposure, on economic behavior occurs through the increased willingness to take risks. However, these findings indicate that traders with a low digit ratio are not only more profitable, but more able to survive in the long run, thus the effect might consist of more than just lower risk aversion. In addition, recent literature suggests a positive correlation between abstract reasoning ability and higher willingness to take risks. To test the two hypotheses of testosterone on performance in financial activities (effect on risk attitude versus a complex effect involving risk attitude and reasoning ability), we gather data on the three variables in a sample of 188 ethnically homogeneous college students (Caucasians). We measure a D2:D4 digit ratio, abstract reasoning ability with the Raven Progressive Matrices task, and risk attitude with choice among lotteries. Low digit ratio in men is associated with higher risk taking and higher scores in abstract reasoning ability when a combined measure of risk aversion over different tasks is used. This explains both the higher performance and higher survival rate observed in traders, as well as the observed correlation between abstract reasoning ability and risk taking. We also analyze how much of the total effect of digit ratio on risk attitude is direct, and how much is mediated. Mediation analysis shows that a substantial part of the effect of T on attitude to risk is mediated by abstract reasoning ability

    Church attendance in Spain (1930-1992): Gender differences and secularization

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    This paper uses retrospective data from the ISSP98 database to reconstruct church-attendance trends in Spain from 1930 to 1992. Time series analysis is performed to examine religious changes in two parallel ways: first, to determine both male and female church-attendance trends and second, to study the gender effect, that is, differences between males and females regarding church attendance. Our results indicate that: i) both male and female church attendance is declining at a rate of 2% annually ii) gender differences remain unaltered for the period analyzed.church-attendance trends

    Promoting Helping Behavior with Framing in Dictator games.

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    A number of recent papers on double-blind dictator games have obtained significant generous behavior when information regarding the recipient or any other social context is provided. In contrast, the lack of information discourages other-regarding behavior and the subject’s behavior closely approximates the game-theoretic prediction based on the selfishness assumption. This paper uses framing to explore the role of helping—behavior in dictator games. The whole experiment includes both classroom and regular experiments for the baseline and the framing treatment. To promote these motivations we included a “non—neutral” sentence at the end of the instructions, which reads “Note that he relies on you”. Our baseline and framed DG are statistically different from each other, indicating that the additional sentence promotes generous-regarding behavior.dictator game, framing effects, helping behavior, altruism.
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