10 March 2011. One, Two, (Three), Infinity, … : Newspaper and Lab Beauty-Contest Experiments Summary: The research fundamentally evaluated the usability of newspapers as research tools. The researchers classified the explanations offered by the research participants for their respective choices of response, quantified the frequencies of explanations, and studied the patterns of reasoning which most past studies did not achieve…
It was found that the respondents were provided with much bigger rewards in the newspaper research as compared to the lab research. The research identified the existence of parallelism between the field and lab. The researchers also studied the thought processes of the research participants who were involved in the game. The respondents’ choice of subjects and comments were analyzed. In addition to that, the research conducted an in-depth analysis of the newspaper experiments and concluded that they are a potential means of conducting research and the response through newspapers is marvelous. One of the results of the research that I found quite interesting was the researchers’ increased confidence in the newspaper research. I personally think that the lab research is too hectic. Difficulty of approaching the required individuals is one potential factor that complicates the process of research and becomes a fundamental cause of the disinterest of many researchers in the process. ...
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(“Experimental economic summary paper Essay Example | Topics and Well Written Essays - 500 words - 1”, n.d.)
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(Experimental Economic Summary Paper Essay Example | Topics and Well Written Essays - 500 Words - 1)
“Experimental Economic Summary Paper Essay Example | Topics and Well Written Essays - 500 Words - 1”, n.d. https://studentshare.net/other/22040-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
By making reference to several empirical studies, the self-interested behavior of economists has been explored. The researchers have mainly found that economists’ experience with the self-interest model inculcates self-interested behavior in them. Marwell and Ames (1981) involved economics and non-economics students in their research to study the understanding of either of them on the “fair” investment.
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