Search results for "Experimental Economics"
showing 10 items of 31 documents
Shame in decision making under risk conditions: Understanding the effect of transparency.
2017
The role played by the emotion of shame in the area of decision-making in situations of risk has hardly been studied. In this article, we show how the socio-moral emotions and the anticipated feeling of shame associated with different options can determine our decisions, even overriding the cognitive choice tendency proposed by the certainty effect. To do so, we carried out an experiment with university students as participants, dividing them into four experimental conditions. Our findings suggest that people avoid making unethical decisions, both when these decisions are made public to others and when they remain in the private sphere. This result seems to indicate that the main factor in …
Decisions, externalitats i economia pública en un context de localització
2009
In this paper, we propose a learning application of the theory of market failure as part of a degree in Economics. They are new contexts in which adapt existing knowledge. Even a small contribution from our clasrrom experience, we can say that one side is extremely motivating for students and the other opens a new methodological framework in which student participation in learning becomes crucial.
Carry a big stick, or no stick at all: Punishment and endowment heterogeneity in the trust game
2016
AbstractWe investigate the effect of costly punishment in a trust game with endowment heterogeneity. Our findings indicate that the difference between the investor and the allocator’s initial endowments determines the effect of punishment on trust and trustworthiness. Punishment fosters trust only when the investor is wealthier than the allocator. Otherwise, punishment fails to promote trusting behavior. As for trustworthiness, the effect is just the opposite. The higher the difference between the investor and the allocator’s initial endowments, the less willing allocators are to pay back. We discuss the consistency of our findings with social preference models (like inequality aversion, re…
Are Low Prices Compromises Collusion Guarantees? An Experimental Analysis of Price Matching Policies
2001
In this paper we experimentally test the ability of Price-Matching Guarantees (PMG) to rise prices above the competitive level. We implement three different treatments of symmetric duopolies to check the effect of PMG both as a market institution and as a business strategy. In the absence of any low-price guarantee, prices get close to the Bertrand-Nash equilibrium although in the 50 rounds of the experiment no full convergence is obtained. The existence of PMG as an institution in a market where firms decide only about prices results in a clear collusive outcome as all markets quickly and fully converge to the collusive prediction. If we allow subjects to decide whether they adopt price ma…
Revista electrónica de investigación y evaluación educativa
2014
La Economía Experimental ha desarrollado diferentes experimentos que pueden ser aprovechados como una actividad docente en la enseñanza de la Economía. Su naturaleza activa y participativa motiva a los alumnos y estimula la reflexión y la mejor comprensión de algunos fenómenos económicos como el funcionamiento de los mercados, donde los resultados individuales dependen del conjunto de las decisiones de los agentes y de sus interacciones. Los experimentos económicos tienen ya una larga tradición, y han proporcionado resultados espectaculares y conclusiones ampliamente admitidas sobre la dinámica de mercados y el efecto de las instituciones económicas. Las nuevas tecnologías facilitan la real…
Gender Behavioral Issues and Entrepreneurship
2017
Women, despite the fact that they make up around 50% of the world’s population, own and manage significantly fewer businesses than men worldwide. Previous empirical research indicates that the gender gap in entrepreneurial propensity mainly comes from subjective perceptions as self-confidence in one’s own skills and fear of failure, and from women’s lower exposure to other entrepreneurs. In this chapter we present laboratory economic experiments that study, under controlled conditions, subjective perceptions of women and men that seem to affect entrepreneurial propensity. The results of the reviewed experiments indicate that correcting factors such as self-confidence is possible (due to its…
Aprender finanzas conductuales experimentando
2021
[EN] In an ever-changing economic and business environment, it is especially interesting that students learn, and experiment with their own decision-making, about behavioral finance. This experience will provide them with a better understanding of the economic agents’ behavior in different real- life situations (auctions, pricing, negotiations, investing and financing decisions). By experimenting, they acquire solid knowledge about biases, rational and irrational behaviors, and motivations that govern economic life. Controlled economic experiments in the classroom, a gamification learning methodology, allow students to better understand complex economic-financial concepts such as the herdin…
Assortment, but not knowledge of assortment, affects cooperation and individual success in human groups
2017
The success or failure of human collective action often depends on the cooperation tendencies of individuals in groups, and on the information that individuals have about each other's cooperativeness. However, it is unclear whether these two factors have an interactive effect on cooperation dynamics. Using a decision-making experiment, we confirm that groups comprising individuals with higher cooperation tendencies cooperate at a higher level than groups comprising individuals with low cooperation tendencies. Moreover, assorting individuals with similar cooperation tendency together affected behaviour so that the most cooperative individuals tended to cooperate more and the least cooperativ…
Large scale and information effects on cooperation in public good games
2019
AbstractThe problem of public good provision is central in economics and touches upon many challenging societal issues, ranging from climate change mitigation to vaccination schemes. However, results which are supposed to be applied to a societal scale have only been obtained with small groups of people, with a maximum group size of 100 being reported in the literature. This work takes this research to a new level by carrying out and analysing experiments on public good games with up to 1000 simultaneous players. The experiments are carried out via an online protocol involving daily decisions for extended periods. Our results show that within those limits, participants’ behaviour and collec…
Vertical Separation v. Independent Downstream Entry in the Spanish Electricity Network: An Experimental Approach
2007
We present experimental results from a series of sessions organized using the Power Market simulator; a software designed to realistically replicate the Spanish Electricity Market. In the experiments reported here we compare the status quo to two alternative treatments which represent alternative market structures. In one of them, labeled as vertical separation, we assume that power generating firms and electricity distributors-endsuppliers belong to separate business groups. In the second, we study the effect of entry by independent end-suppliers. Both alternative scenarios dominate the status quo in terms of market efficiency, whereas the latter of them dominates the former.