ps3_07 - Psychology and Economics Problem Set 3 Professor...

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Unformatted text preview: Psychology and Economics Problem Set 3 Professor Botond Koszegi Due May 1, 2007 1. Researchers conducted a version of the standard dictator-game exper- iment (to be) discussed in class. Dictators were divided into two con- ditions. Condition I was a standard dictator-game experiment. Each dictator was paired with an anonymous recipient, and divided 10 Euros between herself and the recipient. Once the dictator made her decision, an experimenter called the recipient into a room, gave her the money, and explained to her that it had been allocated to her out of 10 Eu- ros by an anonymous other subject. (The dictators knew that all this would happen.) In Condition II, dictators had the possibility to opt out. If a dictator opted in, the same thing happened as in Condition I. If a dictator opted out, she received 10 Euros, and the recipient was simply excused from the experiment without being told anything. When dictators could not opt out, they shared 1.87 Euros on average. (This is typical for dictator-game experiments.) When they could opt out, they shared 0.58 Euros on average. While 61% share a positive amount in the standard dictator game without sorting, only 23% do so...
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ps3_07 - Psychology and Economics Problem Set 3 Professor...

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