Bhirombhakdi, Kornpob and Potipiti, Tanapong (2012): Performance of a reciprocity model in predicting a positive reciprocity decision.
Download (523Kb) | Preview
This study experimentally tests the performance in predicting decisions of a reciprocity model that was proposed by Dufwenberg et al. (2004). By applying a new approach, the study directly and individually predicts a subject's future decision from his past decision. The prediction performance is measured by the rate of correct predictions (accuracy) and the gain in the rate of the correct predictions (informativeness). Six scenarios of trust game are used to test the model's performance. Further, we compare the performance of the model with two other prediction methods; one method uses a decision in a dictator game to predict a decision in a trust game; the other uses personal information including IQ-test scores, personal attitudes and socio-economic factors. Seventy-nine undergraduate students participated in this hand-run experimental study. The results show that the reciprocity model has the best performance when compared with other prediction methods.
|Item Type:||MPRA Paper|
|Original Title:||Performance of a reciprocity model in predicting a positive reciprocity decision|
|Keywords:||Reciprocity, Model performance, Trust game|
|Subjects:||C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior|
|Depositing User:||Kornpob Bhirombhakdi|
|Date Deposited:||30. Aug 2012 11:24|
|Last Modified:||15. Feb 2013 21:21|
Battigalli, P., & Dufwenberg, M. (2007). Guilt in Games.
American Economic Review, Papers & Proceeding, 170-176.
Bhirombhakdi, K. (2011). Performance of a reciprocity model in predicting a positive reciprocity decision. International Conference on Management, Economics and Social Sciences (ICMESS'2011), (pp. 504-508). Bangkok, Thailand.
Bhirombhakdi, K., & Potipiti, T. (2012). Cost of action, perceived intention, positive reciprocity, and signalling model. 6th Asian Business Research Conference. Bangkok, Thailand.
Bolle, F. (1998). Rewarding trust: an experiment study. Theory and Decision, 45(1), 83-98.
Bolton, G. E., & Ockenfels, A. (2000). ERC: A theory of equity, reciprocity, and competition. The American Economic Review, 166-193.
Bolton, G. E., & Ockenfels, A. (2005). A stress test of fairness measures in models of social utility. Economic Theory, 957-982.
Brülhart, M., & Usunier, J. C. (2004). Verified trust: reciprocity, altruism and noise in trust games. Centre for Economic Policy Research (CEPR) Discussion Paper.
Charness, G., & Rabin, M. (2002). Understanding social preferences with simple tests. The Quarterly Journal of Economics, 817-869.
Cox, J. C., & Deck, C. A. (2005). On the nature of reciprocal motives. Economic Inquiry, 623-635.
Csukás, C., Fracalanza, P., Kovács, T., & Willinger, M. (2008, June). The determinants of trusting and reciprocal behavior: evidence from and intercultural experiment. Journal of Economic Development, 33(1), 71-95.
Dufwenberg, M., & Kirchsteiger, G. (2004). A theory of sequential reciprocity. Games and Economic Behavior, 268-298.
Falk, A., & Fischbacher, U. (2006). A theory of reciprocity. Games and Economic Behavior, 293-315.
Falk, A., Fehr, E., & Fischbacher, U. (2003). On the nature of fair behavior. Economic Inquiry, 20-26.
Falk, A., Fehr, E., & Fischbacher, U. (2008). Testing theories of fairness- Intentions matter. Games and Economic Behavior, 287-303.
Fehr, E., & Gächter, S. (2000). Fairness and Retaliation: The Economics of Reciprocity. Journal of Economic Perspectives, 159-181.
Fehr, E., & Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. The Quarterly Journal of Economics, 817-868.
Friedman, D., & Sunder, S. (1947). Experimental methods: a primer for economists. Cambridge University Press.
Geanakoplos, J., Pearce, D., & Stacchetti, E. (1989). Psychological games and sequential rationality. Games and Economic Behavior, 60-79.
Guala, F., & Mittone, L. (2010). Paradigmatic experiments: the dictator game. Journal of Socio-Economics, 39, 578-584.
McCabe, K. A., Rigdon, M. L., & Smith, V. L. (2003). Positive reciprocity and intentions in trust games. Journal of Economic Behavior and Organization, 267-275.
Stanca, L., Bruni, L., & Corazzini, L. (2009). Testing theories of reciprocity: Do motivations matter? Journal of Economic Behavior and Organization.
Zizzo, D. J. (2010). Experimenter demand effects in economic experiments. Experimental Economics, 13, 75-98.