Showing papers by "Gregory DeAngelo published in 2018"

Law and economics in the laboratory

Abstract: Experimental methods have become increasingly prominent in the social sciences. While field data are indeed rich and abundant, reflecting a variety of environmental factors, disentangling these factors is difficult, if not impossible. The intertwining of potential causal factors in the field is particularly acute in law and economics. Laboratory experiments have some important advantages over other approaches. The purpose of this chapter is to familiarize the reader with a handful of the vast array of techniques experimentalists use to explore theories related to law and decision-making in (mock) legal environments. The authors describe a set of experiments conducted to study decisions of judges, juries and attorneys and review experiments designed to study the effects of law enforcement. They also describe a set of experiments that study the bargaining behavior of principals and their agents and the role that communication plays in negotiations.

Police Incentives, Policy Spillovers, and the Enforcement of Drug Crimes

Abstract: We consider the impact of a low priority initiative adopted in specific jurisdictions within Los Angeles (LA) County on police behavior. Low priority initiatives instruct police to make the enforcement of low level marijuana possession offenses their “lowest priority.” Using detailed data from the LA County Sheriff’s Department, a difference-in-differences strategy suggests that the mandate resulted in fewer arrests for misdemeanor marijuana possession in adopting areas relative to non-adopting. However, the lower relative reduction in marijuana arrests appears to be driven by an increase in misdemeanor marijuana arrests in nearby areas not affected by the mandate rather than a reduction in adopting areas. We interpret this result as suggestive evidence of policy spillovers from the low priority initiative.

Peers or Police? Detection and Sanctions in the Provision of Public Goods

Abstract: Sanctions are a common method to discourage free-riding in the provision of public goods. However, we can usually only sanction those who are detected performing the bad act of free-riding. There has been considerable research on the type of sanctions imposed, but this research almost always automatically detects everyone's actions and broadcasts them to the group. This is akin to assuming that a group always has a police force or motivated peer reporting to detect and announce the actions of bad actors. However, in many situations bad acts go undetected and unknown to others. We use a lab experiment to compare public good contribution decisions in an environment where we relax the assumption that detection is automated. The common result that sanctions and the likelihood of detection share an inverse relationship continues to be found in our results. However, free-riders are unwilling to pay for detection when sanctioning is conducted at the group level, because a criminal does not want to fund the police who will catch his bad acts. But, when detection is conducted among peers, free-riders are willing to pay to detect other individuals that free-ride.

Theory of Mind and General Intelligence in Dictator and Ultimatum Games

Abstract: Decreasing social sensitivity (i.e., the ability of a person to perceive, understand, and respect the feelings and viewpoints of others), has been shown to facilitate selfish behavior. This is not only true for exogenous changes in social sensitivity, but also for social sensitivity influenced by someone’s social cognition. In this analysis, we examined one measure of social cognition, namely a person’s Theory of Mind (ToM), to examine differences in decision-making in standard non-strategic and strategic environments (dictator and ultimatum games). We found that participants with higher ToM gave a greater share in the non-strategic environment. In the ultimatum game, however, ToM showed no correlation with the offers of the ultimators. Instead, we found that general intelligence scores—measured by the Wonderlic test—shared a negative, albeit weak, correlation with the amount offered in the ultimatum game. Thus, we find that lower social cognition is an important explanatory variable for selfish behavior in a non-strategic environment, while general intelligence shares some correlation in a strategic environment. Similar to the change in social sensitivity created by a specific game design, social sensitivity influenced by individual personality traits can influence behavior in non-strategic environments.

Explaining Public Goods Game Contributions with Rational Ability

Abstract: As the link between psychology and economics has grown, so too has research on the link between personality traits and economic behavior. We build on this previous work, bringing to light the relationship between personality traits and contributions in a one-shot public goods game. We find that contributions to the public good are smaller for rational participants as measured by the Rational-Experiential Inventory—revised 40 (REI-40) item scale. We find no effect on contributions for the measures of the Big Five personality traits or the remaining measures from the REI-40.

Examining regulatory capture: evidence from the nhl

Abstract: Regulatory capture has garnered significant attention, but poses a difficult empirical exercise since most relationships between regulators and regulated parties occur behind closed doors. In this research, we overcome this problem by analyzing an environment where the behavior of both the regulator and regulated parties are publicly available. Specifically, we utilize data from the National Hockey League (NHL) to examine the impact of general experience as a referee as well as experience refereeing a particular team on the assignation of penalties. We find that gaining general experience as a referee significantly reduces the number of penalties that a referee assigns. However, as a referee gains experience refereeing a specific team, they significantly reduce the number of penalties assessed to this team relative to teams that they have less experience refereeing, confirming that regulatory capture is observed among referees and teams in the NHL. (JEL G18, L51, K42)

The perils of democracy

Abstract: In this work we examine a common social dilemma in experimental economics, the public goods game, to determine how voting impacts pro-social behavior. As noted in Markussen et al. (2014), a democratic dividend exists. Couching the public goods game in a phe- nomenon that is playing out in much of the world –drasticincome inequality –weex- amine the decision of groups to share local public goods with groups that have, effectively, no endowment to contribute toward public nor private consumption. Our results show the perils of democracy in that subjects in the position to vote use their advantageous situa- tion to reward the ingroups at the expense of the less endowed outgroup members