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Game harmony describes how harmonious (nonconflictual) or disharmonious (conflictual) the interests of players are in a game, as embodied in the game’s raw payoffs. It departs from the traditional game-theoretic approach in that it is a nonequilibrium behavioral approach that can be psychologically founded. The authors experimentally test the predictive power of basic game harmony measures on a variety of well-known 2 × 2 games and randomly generated 2 × 2 and 3 × 3 generic games. The findings support its all-rounded predictive power. Game harmony provides an alternative tool that is both powerful and parsimonious, as it does not require information on a player’s degree of rationality, social preferences, beliefs, and perceptions. [ABSTRACT FROM PUBLISHER]

Experimenter demand effects refer to changes in behavior by experimental subjects due to cues about what constitutes appropriate behavior. We argue that they can either be social or purely cognitive, and that, when they may exist, it crucially matters how they relate to the true experimental objectives. They are usually a potential problem only when they are positively correlated with the true experimental objectives’ predictions, and we identify techniques such as non-deceptive obfuscation to minimize this correlation. We discuss the persuasiveness or otherwise of defenses that can be used against demand effects criticisms when such correlation remains an issue. [ABSTRACT FROM AUTHOR]

We present the results of an experiment that attempts to measure the social value of groups. In the experiment, group membership is induced artificially: subjects interact with insiders and outsiders in trust games and periodically enter markets where they can trade group membership. We find that trust falls with groups because of negative discrimination against outsiders. Against this, however, there is evidence that group membership provides a psychological benefit, albeit one that may induce social inertia. Overall, the welfare effects of groups are at best neutral and could be negative. (JEL: D17, Z13) [ABSTRACT FROM AUTHOR]

Abstract: Inter-group and intra-group cooperation and conflict are as important as difficult to understand. We focus on how they can be predicted using simple game harmony measures based purely on material game payoffs, and on situational group factors going beyond strategic incentives and the remit of interdependent preferences models. We discuss the relationship between game harmony, group identity and other related psychological mechanisms, such as team reasoning. Cooperation should vary according to group salience, the degree of common fate, the method of group formation, and mediating factors such as communication and procedural fairness. [Copyright &y& Elsevier]

A person is said to be ‘trust responsive’ if she fulfils trust because she believes the truster trusts her. The experiment we report was designed to test for trust responsiveness and its robustness across payoff structures, and to discriminate it from other possible factors making for trustworthiness, including perceived kindness, perceived need and inequality aversion. We elicit the truster’s confidence that the trustee will fulfil, and the trustee’s belief about the truster’s confidence after the trustee receives evidence relevant to this. We find evidence of strong trust responsiveness. We also find that perceptions of kindness and of need increase trust responsiveness, and that they do so only in conjunction with trust responsiveness. [ABSTRACT FROM AUTHOR]

Trust responsiveness is “a tendency to fulfil trust because you believe that it has been placed on you” [Is trust self-fulfilling? An experimental study. Discussion Paper no. 76 (October), Department of Economics, University of Oxford, 2001]. We use two simple trust games to measure directly or indirectly the robustness of trust responsiveness in three conditions: when beliefs are elicited and a summary of these beliefs is transmitted, when beliefs are elicited but not transmitted, when beliefs are not elicited. Insofar as we can tell, trust responsiveness is robust to our belief manipulations, strengthening the case for the real-world significance of trust responsiveness. [Copyright &y& Elsevier]

This paper discusses empirical evidence for interdependent preferences from the point of view of the neurosciences, of heritability studies, and of cross-cultural and developmental psychology: it shows how interdependent preferences are determined to a significant degree by environmental factors. This result has meaningful implications for economic theory, policy and experimentation. A theory of interdependent preferences should also be a theory of their endogenous determination. Normative analyses ignore the endogeneity of interdependent preferences at their own peril. Caution is required in experimental analyses attempting to measure the distribution of interdependent preferences in the population. [ABSTRACT FROM AUTHOR]

The conjunction fallacy occurs whenever probability compounds are thought of as more likely than its component probabilities alone. In the experiment we present, subjects chose between simple and compound lotteries after some practice. Depending on the condition, they were given more or less information about the nature of probability compounds. The conjunction fallacy was surprisingly robust. There was, however, a puzzling dissociation between verbal and behavioral learning: verbal responses were sensitive, but actual choices entirely insensitive, to the amount of verbal instructions being provided. This might reflect a dichotomy between implicit and explicit learning. Caution must be exercised in generalizing results from what people say to what people do. [ABSTRACT FROM AUTHOR]

A neurobiological argument has been used to defend the measurability and interpersonal comparability of cardinal utility. If true, a strong case could be made for the practical relevance of utility-based social welfare functions. In this paper I demonstrate that the current evidence does not corroborate the cardinal measurability and comparability of utility. Electrical stimulation of brain parts, or asymmetries in brain hemispherical activation, cannot be used to build a hedonimeter. The role of the neurotransmitter dopamine is that of a saliency detector or alternatively one validating adaptive learning models, but either way is not that of a general cardinal utility measure. [ABSTRACT FROM AUTHOR]

Presents experiment results showing how dynamic feedback and monetary incentives affect the conjunction fallacy rate in human reasoning and decision-making. Background on conjunction fallacy; Variation of conjunction fallacies across different conditions; Manners by which the fallacy violates the monotonicity axiom of probability and preferences.

• We present an experiment on information defaults. • The cost of information, is positive, zero or negative. • A third of subjects values information even at a cost. • A default of no information reduces cooperation unraveling. We study an unexplored type of defaults - information defaults - in a repeated public good provision setting. In our treatments, we vary the default of having or not having contribution information as well as whether the information comes with a positive, zero or negative financial incentive. We find that almost all subjects have the information when this is cost-free or financially beneficial, but around a third have the information even when this is costly. Moreover, a default of not having information leads to a slower unraveling of cooperation which is matched by the beliefs about others' contributions in these treatments. We also find a secondary informational default effect, challenging previous findings on how defaults work: when the default is no information, subjects do not seek information more often, but they tend to believe that more other subjects seek information. [ABSTRACT FROM AUTHOR]

We present an experiment that examines three mechanisms through which the extent of inclusivity in an organization's governance arrangements might affect its performance. We distinguish extent of inclusivity along two dimensions: members of the organization may or may not be able to (a) vote on collective decisions ('vote') and (b) discuss with others what should be done ('voice'). We find that the inclusivity can affect performance and that each dimension of inclusivity matters, but for different decision problems within an organization. The 'voice' matters for motivation whereas 'voting' matters for processing and aggregating information; and the decisive difference for performance comes from 'voice', not 'voting'. [ABSTRACT FROM AUTHOR]

• Our experiment studies behavioural influences on responses to time-limited offers. • Time-limited offers are less likely to be chosen when time constraints are very tight. • We find no evidence that time-limited offers are chosen to avoid exposure to regret. • Aversion to small-scale risk contributes to the choice of time-limited offers. • Risk aversion is greater in price search problems than in choices between lotteries. Making time-limited offers is a common retail pricing strategy. Economic theory implies that such offers inhibit price search, making markets less competitive. We investigate experimentally whether this effect is intensified by behavioural factors – specifically, feedback-conditional regret, reduced decision quality due to time constraints, and aversion to small-scale risk. Participants choose from a sequence of alternative price offers, one of which might be time-limited, under various conditions. These price search problems were matched with equivalent, time-unconstrained binary choices between lotteries. We find no evidence of regret effects. Surprisingly, time-limited offers are more likely to be chosen when the time available for decision-making is longer. Overall, individuals show aversion to small-scale risk; this is stronger in price search than lottery choice. Allowing for this, choices in the two types of task tend to be mutually consistent at the individual level, even when decision-making is subject to tight time constraints. [ABSTRACT FROM AUTHOR]

Comments on the experimental practices of economists. Benefits of deception without deceiving anyone; Problems with stationary replication; Arguments against script enactment; Discussion on conjunction fallacy.

We experimentally test preferences for employment in a collective wage bargaining situation with heterogeneous workers. We vary the size of the union and introduce a treatment mechanism transforming the voting game into an individual allocation task. Our results show that highly productive workers do not take employment of low productive workers into account when making wage proposals, regardless of whether only union members determine the wage or all workers. The level of pro-social preferences is small in the voting game, but it increases if the game becomes an individual allocation task. We interpret this as an accountability effect. [ABSTRACT FROM AUTHOR]

Abstract: The extensive form game we study has multiple perfect equilibria, but it has a unique limiting logit equilibrium (QRE) and a unique level-k prediction as k approaches infinity. The convergence paths of QRE and level-k are different, but they converge to the same limit point. We analyze whether subjects adapt beliefs when gaining experience, and if so whether they take the QRE or the level-k learning path. We estimate transitions between level-k and QRE belief rules using Markov-switching rule learning models. The analysis reveals that subjects take the level-k learning path and that they advance gradually, switching from level 1 to 2, from level 2 to equilibrium, and reverting to level 1 after observing opponents deviating from equilibrium. The steady state therefore contains a mixture of behavioral rules: levels 0, 1, 2, and equilibrium with weights of 2.9%, 16.6%, 37.9%, and 42.6%, respectively. [Copyright &y& Elsevier]

Five studies investigated the conjunction effect (or conjunction fallacy), in which participants report that the conjunction of two events is more rather than less likely than one of the events alone. There was no evidence that feedback or monetary reinforcement for correct answers affected students' performance on conjunction problems. Under some circumstances the context in which the conjunction problem was presented (after questions emphasizing logic or questions emphasizing opinions) affected occurrence of the effect. Location of the conjunction among the statements being rated had a significant effect. The effect occurred with or without a framing description and whether the conjunction consisted of two or three simple statements. However, statements representing the conjunction of three simple statements were (appropriately) judged less likely than those representing the conjunction of two simple statements. The substantial incidence of the effect, even without the descriptive frame and even when incentive and feedback were provided for correct answers, argues for its robustness. [ABSTRACT FROM AUTHOR]

This study uses an incentive-compatible experimental online supermarket to assess whether prior environmentally-friendly behaviour outside the store and carbon taxes motivate sustainable consumption. Previous research suggests that past decisions may influence current decisions because consumers compensate morally desirable and undesirable acts over time, and carbon taxes have been promoted as effective tools to reduce the carbon footprint of food baskets. After controlling for past consumption, results show that being required to recall past environmentally-friendly behaviour before shopping led consumers to purchase more sustainable food baskets. Carbon taxation also strongly reduces the carbon footprint of food baskets, showing no interaction with the task of recalling past behaviours. • We study sustainable food consumption using an experimental online supermarket. • Participants make real choices knowing the carbon footprint of all goods. • Interventions aim at reducing the carbon footprint of food baskets. • Recall of past environmentally-friendly behaviour leads to more sustainable baskets. • Carbon taxation strongly reduces the carbon footprint of food baskets. [ABSTRACT FROM AUTHOR]

Unlawful digital media sharing is common and believed to be extremely damaging to business. Understanding unlawful file sharers' motivations offers the opportunity to develop business models and behavioral interventions to maximize consumers' and businesses’ benefit. This paper uses a systematic review of unlawful file sharing research, and the Theory of Planned Behavior, to motivate a large-scale panel study in which initial determinants were used to predict subsequent behavior. A meta-analysis found Attitudes, Subjective Norms and Perceived Behavioral Control were all associated with unlawful file sharing. Media type and demographic differences in the importance of Perceived Behavioral Control were found and attributed to more accurate evaluation of familiar activities, i.e., greater experience increases the influence of Perceived Behavioral Control but age does not. The panel study confirmed that greater past experience was associated with Perceived Behavioral Control and Intention. We conclude that past experience increases the efficacy of the Theory of Planned Behavior and specifically Perceived Behavioral control in predicting behavior, contrary to some widely held beliefs about the role of experience. The role of experience is therefore crucial to understanding people's choices. Practically, improving social approval, positive evaluation and access to lawful media should reduce unlawful behavior. [ABSTRACT FROM AUTHOR]

We report the results of an experiment on how individual risk taking clusters together when subjects are informed of peers' previous risk taking decisions. Subjects are asked how much of their endowment they wish to allocate in a lottery in which there is a 50% chance the amount they invest will be tripled and a 50% chance their investment will be lost. We use a 2 × 2 factorial design varying: (i) whether the subjects initially observed high or low investment social anchors, (ii) whether information about the investment decisions of other subjects in their social group is provided. We find strong evidence that individuals' risk taking decisions are malleable to that of their peers, which in turn leads to social clustering of risk taking. Social anchors shape initial risk taking, with mean investment then converging to a high level across treatments., Supplementary Information: The online version contains supplementary material available at 10.1007/s11238-023-09927-x., Competing Interests: Conflict of interestThe third author (Zizzo) is one of the Editors of this journal. The authors have no other competing interests to declare that are relevant to the content of this article. All authors certify that they have no affiliations with or involvement in any organization or entity with any financial interest or non-financial interest in the subject matter or materials discussed in this manuscript. They have no financial or proprietary interests in any material discussed in this article., (© The Author(s) 2023.)

Increasing the perception of legal risk via publicized litigation and lobbying for copyright law enforcement has had limited success in reducing unlawful content sharing by the public. We consider the extent to which engaging in file sharing online is motivated by the perceived benefits of this activity as opposed to perceived legal risks. Moreover, we explore moderators of the relationship between perceived risk and perceived benefits; namely, trust in industry and legal regulators, and perceived online anonymity. We examine these questions via a large two-part survey of consumers of music (n = 658) and eBooks (n = 737). We find that perceptions of benefit, but not of legal risk, predict stated file-sharing behavior. An affect heuristic is employed: as perceived benefit increases, perceived risk falls. This relationship is increased under high regulator and industry trust (which actually increases perceived risk in this study) and low anonymity (which also increases perceived risk). We propose that, given the limited impact of perceived legal risk upon unlawful downloading, it would be better for the media industries to target enhancing the perceived benefit and availability of lawful alternatives., (© 2016 The Authors Risk Analysis published by Wiley Periodicals, Inc. on behalf of Society for Risk Analysis.)

We propose a triple test to evaluate the usefulness of behavioral economics models for public health policy. Test 1 is whether the model provides reasonably new insights. Test 2 is on whether these have been properly applied to policy settings. Test 3 is whether they are corroborated by evidence. We exemplify by considering the cases of social interactions models, self-control models and, in relation to health message framing, prospect theory. Out of these sets of models, only a correctly applied prospect theory fully passes the tests at present. Specifically, in broad agreement with the evidence, a gain frame has positive implications for welfare encourages disease prevention activity, though this does not apply if the perceived probability of the bad health outcome is large enough. We see our tests as being useful to identify how much health policy weight policy makers should assign to specific behavioral economic models; they are also useful to verify what next steps would be most useful in further research., (© The Author(s) 2017.)