Behavioral Game Theory: Markets, Religion, Community Size, and the - - PowerPoint PPT Presentation

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Behavioral Game Theory: Markets, Religion, Community Size, and the - - PowerPoint PPT Presentation

Behavioral Game Theory: Markets, Religion, Community Size, and the Evolution of Fairness and Punishment by Joseph Henrich Tim Nees Benedikt Gottschlich Theory Experiment Conclusion The Dictator Game Maximization of


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Markets, Religion, Community Size, and the Evolution of Fairness and Punishment

by Joseph Henrich

Tim Nees 倪家泰

Behavioral Game Theory:

Theory Experiment Conclusion

Benedikt Gottschlich 高家志

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The Dictator Game

Maximization of Pay-off Costly Fairness vs.

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Expansion Theory

Conflictive Theories

Social Norm

Evolution Theory

Social Norm

Social Norm

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How Do We Measure Societies?

Subsistence Economy Market Economy Tribal Religion World Religion Big Communities Small Communities

Markets Religion Community Size

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What makes the difference?

Anonymity/ Institutions Family/ Clan

Applies to known people

Fairness Punishment

Applies to unknown people

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How to find out:

Test for Norms in anonymious setting

Evolution

Experiment

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A B C

makes an offer receives one-half

  • f the stake

(guaranteed!) can invest 20% of his allo- cation to punish player A  if so, A looses triple the amount paid by C

100$ 50$ 20$ 100-20= 80$ 50-10=40$ 80-30=50$

“Third-Party Punishment Game”

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Dictator Game (DG) Ultimatum Game (UG) Third-Party Punishment Game (TPG)

Measure of behavioral fairness Measure of behavioral fairness Measure of behavioral fairness Measure of punishment Measure of punishment

Experimental Setting

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Results: Linear Regression Model for Offers

(additional control variables: sex, age, community size, education)

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Results: Market Integration & Mean Dictator Game offers

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 The bigger the com- munity, the earlier unfair behaviour is punished

Community Size & Punishment

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Evolution of Norms Societies are different

  • Caution with interpretation
  • f experiments

Expansion of Norms Two Theories:

Conclusion