Journal ArticleDOI
Lavish returns on cheap talk: Two-way communication in trust games
TLDR
In this paper, the authors conduct trust game experiments in which subjects can sometimes exchange proposals either in numerical (tabular) form, or using chat messages followed by exchange of numerical proposals.Abstract:
We conduct trust game experiments in which subjects can sometimes exchange proposals either in numerical (tabular) form, or using chat messages followed by exchange of numerical proposals. Numerical communication significantly increases trusting and trustworthiness; inclusion of 1-min verbal communication in a chat room generates an even larger and more robust effect. On average, trustors send $9.21 of their $10 endowment as compared to $7.66 in the standard trust game, and trustees return 56% vs. 45%. Chat enhances the likelihood that trustors and trustees will adhere to non-binding agreements they make—an additional interpretation of trusting and trustworthiness—and increases the probability that subjects will propose, accept, and abide by equal-division agreements. Analysis of the content of subjects’ verbal communication shows that what is said, and not only the fact that things are said, significantly affects outcomes.read more
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Let's talk: How communication affects contract design
TL;DR: In this article, the authors study how the ability to communicate affects the frequency and effectiveness of flexible and inflexible contracts in a bilateral trade context where sellers can adjust trade quality after observing a post-contractual cost shock and a discretionary buy-ertransfer.
Journal ArticleDOI
Continuous time and communication in a public-goods experiment
TL;DR: This paper investigated the effect of continuous time strategic interaction in public-goods games and found that widespread coordination problems are to blame for the poor performance of such games compared to simpler social dilemmas.
Book
Deliberative Democracy between Theory and Practice
TL;DR: Deliberative democracy between theory and practice as mentioned in this paper proposes to link political choices more closely to the deliberations of common citizens, rather than consigning them to speak only in the desiccated language of checks on a ballot.
Journal ArticleDOI
Honor Among Thieves: Open Internal Reporting and Managerial Collusion†
TL;DR: In this article, the authors show that managers honor their nonbinding collusive agreements and successfully collude more often in an open versus closed internal reporting environment, leading to lower firm welfare in the open environment.
Journal ArticleDOI
Testing Guilt Aversion with an Exogenous Shift in Beliefs
TL;DR: The results show that the rate of lying is significantly lower when the receiver is supposed to have higher payoff expectations, however only in the case when the monetary incentives for lying are fixed at a moderate level.
References
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Journal ArticleDOI
Trust, Reciprocity, and Social History
TL;DR: In this article, the authors designed an experiment to study trust and reciprocity in an investment setting and found that observed decisions suggest that reciprocity exists as a basic element of human behavior and that this is accounted for in the trust extended to an anonymous counterpart.
Journal ArticleDOI
Culture and the evolutionary process
Robert Boyd,Peter J. Richerson +1 more
TL;DR: Using methods developed by population biologists, a theory of cultural evolution is proposed that is an original and fair-minded alternative to the sociobiology debate.
Journal ArticleDOI
Fairness and Retaliation: The Economics of Reciprocity
Ernst Fehr,Simon Gächter +1 more
TL;DR: The authors discusses the economic implications of reciprocity and shows that a substantial fraction of people behave according to this dictum: people repay gifts and take revenge even in interactions with complete strangers and even if it is costly for them and yields neither present nor future material rewards.
Journal ArticleDOI
Rational cooperation in the finitely repeated prisoners' dilemma
TL;DR: In this article, the authors provide a bound on the number of rounds at which Fink may be played, when one player may possibly be committed to a "Tit-for-Tat" strategy.
Posted ContentDOI
A Theory of Reciprocity
Armin Falk,Urs Fischbacher +1 more
TL;DR: The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action, and explains the relevant stylized facts of a wide range of experimental games.