101. Do people accurately anticipate sanctions?
- Author
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Hubert Janos Kiss, Raúl López-Pérez, and UAM. Departamento de Análisis Económico, Teoría Económica e Historia Económica
- Subjects
Finance ,Economics and Econometrics ,Punishment (psychology) ,business.industry ,Welfare economics ,Expectations ,Economía ,Microeconomics ,Disapproval ,Social norms ,Incentive ,Punishment ,Economics ,First-mover advantage ,Sanctions ,Christian ministry ,Monetary sanctions ,business ,Approval ,Non-monetary sanctions ,Rewards ,Sign (mathematics) - Abstract
We provide lab data from four different games that allow us to study whether people have accurate expectations regarding monetary sanctions (punishment/reward) and non-monetary sanctions (disapproval/approval). Although the strength of the sanction is always predicted with some error (particularly in the case of monetary sanctions), we observe that (i) most subjects anticipate correctly the sign of the average sanction, (ii) expectations co-vary with sanctions, (iii) the average expectation is very often not significantly different than the average actual sanction, and (iv) the errors exhibit no systematic bias, except in those situations where rewards are frequent. In this line, we find some evidence that punishment is better anticipated than rewards., Financial support from the Spanish Ministry of Education through the research project ECO2008-00510
- Published
- 2012
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