9 March 2011. Does Studying Economics Inhibit Cooperation? Summary: This articles aims at studying the impact of study of economics on the cooperative behavior of individuals. Through various tests and games, the researchers have compared the behaviors of economists and non-economists on the scale of self interest…
25 per cent of the non-economists called “all of the endowment” as fair investment whereas 75 per cent of them considered it to be “half or more” of the donation. The behavior of economics students was significantly different. To public account, they offered no more than 20 per cent of the donation. All non-economists said that they valued “fairness” in deciding about the investment whereas most of the economics students did not know what “fairness” is. Likewise, Carter and Irons (1991) who compared the behavior of economists and non-economists using an ultimatum bargaining game, found economists to be more complying with the characteristics of the self-interest model in the roles of both the allocator and the receiver than their non-economics counterparts. The charitable giving survey and results of the prisoner’s dilemma also supported the opinion that the likelihood of free riding is more profound in economists than non-economists. ...
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(“Experimental economic summary paper Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
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(Experimental Economic Summary Paper Essay Example | Topics and Well Written Essays - 500 Words)
“Experimental Economic Summary Paper Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/other/22036-experimental-economic-summary-paper.
The basic assumption presented in the article is that in the bargaining situation in the Ultimatum Game, the allocators will tend to offer something closer to zero while the recipients will receive something positive offer. Something positive may be uncertain because the article presented some facts that recipients somehow have either rational or irrational reasons (Thaler 202).
The economic point of view specifically states that interest and personal consumption are highly associated, more consumption is preferred than less and current and future consumptions influence behavior (Berg, Dickhaut, & McCabe 122). In line with this assumption, there is a need to challenge existing belief that an individual’s self-interested behavior prevails in the social context of the economic standpoint.
The authors indicated that the game would require a “volunteer” in order to enjoy a stipulated benefit by all participants of the game. Equilibrium properties were used to predict the outcomes of the probabilities of volunteering depending on the size of the group: the Nash predictions that contend that the probability of volunteering decreases as the number of members in a group increases, attributed to a “diffusion of responsibility” (Goeree, et.al, 3); the quantal response equilibrium (QRE) which incorporates the effects of noice factors requiring “choice probabilities to be consistent with beliefs” (ibid, 4); and the inequity aversion that indicates that “a person who volun
Three Newspaper experiments were carried out. Data from the respondents was collected through a Beauty-contest game in which every player had to simultaneously select any decimal number from 0 to 100. The data and comments were analyzed in accordance with 5 different sorts of reasoning processes, of which two were centered on the theoretical analysis of game.
They focus was on Jerusalem, Tokyo, Pittsburg and Ljubljana in Israel, Japan, USA and Yugoslavia, respectively. The researchers state that these locations were picked since they were ideal for the experiment and equilibrium-point predictions were available to use as control experiments in gauging accuracy.
The experiment consisted of 12 experimental sessions. The laboratory design of each experiment question consisted of an auction market with four buyers and sellers. Buyers made money by buying from the sellers and reselling to the experimenter, while sellers made money by buying from the experimenter and reselling to the buyers.
The article describes empirical regularities that have been observed in auction markets of these two items. In the English auction system there is a mechanism known as a reserve price. The reserve price is the minimum price the bidders have to reach for the sale to occur.
Status Quo Bias involves a bias for the present state and not accepting changes. Loss aversion states that the disadvantage in losing an object is considered greater than the advantage of acquiring an object. The research paper explores the relation