economic games on the internet: the effect of $1 stakes ofra amir, david g. rand and yaakov (kobi)...
TRANSCRIPT
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Economic games on the internet: the effect of $1 stakes
Ofra Amir, David G. Rand and Ya’akov (Kobi) Gal
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Background – Amazon Mechanical Turk
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Background – Amazon Mechanical Turk
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Motivation – experiments with online markets
• Fast, cheap, low effort
• Incentive compatible
• Cross-cultural
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But aren’t the stakes too low?• Payments on MTurk are usually low
• Previous studies found quantitative agreement between low-stakes games on Mturk and high-stakes games in the lab
[Suri & Watts 2011; Horton Rand Zeckhauser 2011]
• Contributions of the current study:– Testing, within one consistent experimental platform,
whether having $1 stakes matters on Mturk
– Comparing the effect of stakes on MTurk to the effect of stakes in physical labs
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Experimental Design• Four canonical economic games – – dictator game– public goods game– ultimatum game– trust game
• Two payoff conditions: – stakes condition– no-stakes condition
• 1129 subjects, each assigned randomly to one of the four games and one of the two conditions.
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Related work – the effect of stakes• Dictator Game (Forsythe, 1991; Carpenter et al., 2005)
– Significant difference in decisions between stakes and no stakes
• Public goods game (Kocher, 2008)
– No significant difference in contributions when raising stakes
• Ultimatum Game (Forsythe, 1991; Carpenter et al., 2005; Hoffman et al. 1996)
– No significant difference in offers between stakes and no stakes
– Player 2 rejection rate – No difference \ decreases when raising stakes
• Trust Game (Johansson-Stenman et al., 2005; Sutter & Kocher, 2007)
– No effect in behavior \ Decrease in fraction sent when raising stakes
– No change in fraction returned by the trustee
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Results - Dictator game
• Mean transfers of player 1 (stakes condition transferred 10 units less on average)
Stakes No Stakes
Play
er 1
tran
sfer
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• Distribution of transfers(sig. difference, p-value=0.022)
Dictator game
Stakes
No Stakes
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Public goods game
• Mean contribution to the public goods, possible contribution between 0-40
Stakes No Stakes
Cont
ributi
on
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Public goods game
• Distribution of contributions (no sig. difference, p-value=0.656)
Stakes
No Stakes
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Ultimatum game – player 1
• Mean player 1 offers
Stakes No Stakes
Offe
r
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Ultimatum game – player 1
• Distribution of player 1 offers(no sig. difference, p-value=0.1659)
Stakes
No Stakes
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Ultimatum game – player 2
• Minimum accepted offer (p-value= 0.1941)
Stakes No Stakes
Min
imum
Ac
cept
ed
Offe
r
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Ultimatum game – player 2
• Probability to reject by player 1 offer
Fraction offered
Reje
ction
pr
obab
ility
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Trust game – player 1
• Means of player 1 transfers, possible values between 0-40
Stakes No Stakes
Tran
sfer
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Trust game – player 1
• Distribution of player 1 transfers(no sig. difference, p-value=0.3863)
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Trust game – player 2
• Fraction returned by player 2
Fraction transferred by player 1
Frac
tion
retu
rned
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Comparison with labs results
• Dictator game:
616 studiesfrom Engel
2010
Real money: mean = 0.332
Hypothetical: mean = 0.44
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Comparison with labs results
• Trust game – player 1:
Real money: mean = 0.58
Hypothetical: mean = 0.551
Fraction sent by P1
143 studiesfrom Johnson
&Mislin2010
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Comparison with labs results
• Trust game – player 2:
Real money: mean = 0.47
Hypothetical: mean = 0.45
Fraction returned by P2
143 studiesfrom Johnson
&Mislin2010
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Summary
• Significant decrease in transfers in Dictator Game when using $1 stakes compared to no stakes
• No effect of stakes in public goods, ultimatum game and trust game
• Consistent with previous lab studies that used higher stakes
• Supports findings from replication studies which validated results of experiments run on MTurk
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Questions?