Behavioural Economics of Social Preferences
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Questions and Answers

What factor significantly affects the effectiveness of punishment in sustaining cooperation?

  • The duration of cooperation
  • The level of education of individuals
  • The frequency of interaction among individuals
  • The legitimacy of punishment (correct)

    • In which cultures was the punishment of free-riders considered legitimate?

  • London and Tokyo
  • Muscat and Athens
  • Sydney and New Delhi
  • Boston and Chengdu (correct)

    • What is a common characteristic of altruistic punishment?

  • It encourages free-riding
  • It sustains cooperation within the group (correct)
  • It only benefits the punisher
  • It has no impact on group dynamics

    • What is a consequence of free-riders in cooperative environments?

    <p>They undermine cooperation.</p> Signup and view all the answers

    What type of punishment is most often reported in environments lacking legitimacy?

    <p>Punishment coordinated by ridicule or gossip</p> Signup and view all the answers

    Which factor influences the effectiveness of punishment in sustaining cooperation?

    <p>The perceived legitimacy of the punishment.</p> Signup and view all the answers

    What prediction was tested by Cookson (2000) regarding subjects in a public goods game?

    <p>Subjects will contribute less in their first round of the second game.</p> Signup and view all the answers

    How does group membership influence behavior related to punishment?

    <p>It conditions behavior regarding punishment</p> Signup and view all the answers

    What role does altruistic punishment play in cooperation?

    <p>It sustains cooperation within groups.</p> Signup and view all the answers

    Why do people enjoy punishing free-riders according to the findings?

    <p>It creates a sense of fairness</p> Signup and view all the answers

    Which of the following reflects ecological validity in the context of public goods games?

    <p>Games that mimic real-world social interactions.</p> Signup and view all the answers

    What is the outcome of having the punishment option in repeated interactions?

    <p>Net benefits significantly exceed no-punishment scenarios</p> Signup and view all the answers

    What does the model of ecological validity in the context of behavior seem to suggest?

    <p>Punishment practices vary with cultural context</p> Signup and view all the answers

    How is behavior in cooperative settings influenced according to the content?

    <p>Through conditioned responses based on group membership.</p> Signup and view all the answers

    What is the implication of strong reciprocity in social behavior?

    <p>It fosters mutual cooperation amongst group members.</p> Signup and view all the answers

    What does the enjoyment of punishing free riders suggest about social dynamics?

    <p>Punishment serves as a social bonding mechanism.</p> Signup and view all the answers

    What is the main finding regarding the use of punishment in public goods games?

    <p>Punishment contributes to higher average payoffs when not allowed.</p> Signup and view all the answers

    Which statement accurately describes 'Strong Reciprocity'?

    <p>It is a common behavior observed across various populations.</p> Signup and view all the answers

    What does effective punishment depend on according to the findings?

    <p>The legitimacy of the punishment process.</p> Signup and view all the answers

    What is characteristic of 'Altruistic Punishment'?

    <p>It helps to sustain cooperation among group members.</p> Signup and view all the answers

    What is indicated about symbolic punishment based on the findings?

    <p>It can be effective in promoting cooperative behavior.</p> Signup and view all the answers

    How is behavior conditioned according to the research findings?

    <p>It relies heavily on group membership dynamics.</p> Signup and view all the answers

    What common phenomenon was observed in victim responses to high contributors?

    <p>Punishment was directed at high contributors as retaliation.</p> Signup and view all the answers

    What is noted about ecological validity in the study's context?

    <p>It enhances the applicability of findings to real-world situations.</p> Signup and view all the answers

    What characterizes a strong reciprocator in social behavior?

    <p>Sacrificing resources for rewarding fair and punishing unfair behavior</p> Signup and view all the answers

    What role does positive reciprocity play in social interactions?

    <p>It promotes cooperation between individuals</p> Signup and view all the answers

    In the ultimatum game, what happens if the receiver rejects the proposer's offer?

    <p>Both players receive nothing</p> Signup and view all the answers

    How does negative reciprocity function in social interactions?

    <p>It involves meeting hostility with hostility</p> Signup and view all the answers

    What is the impact of free-riders on cooperation?

    <p>They undermine the collaborative efforts of a group</p> Signup and view all the answers

    What kind of punishment is commonly enjoyed by individuals when dealing with free-riders?

    <p>Altruistic punishment that enhances future cooperation</p> Signup and view all the answers

    What factor is crucial for effective punishment in social behavior?

    <p>Legitimacy of the punishment</p> Signup and view all the answers

    How does group membership influence behavior according to the findings?

    <p>It conditions behavior based on shared norms and expectations</p> Signup and view all the answers

    What is a key reason altruistic punishment is effective in sustaining cooperation?

    <p>It is based on the perception of legitimacy.</p> Signup and view all the answers

    Which of the following can undermine cooperation within a group?

    <p>Presence of free-riders.</p> Signup and view all the answers

    What role do strong reciprocity and altruistic punishment play in social preferences?

    <p>They sustain cooperation by discouraging free-riding.</p> Signup and view all the answers

    What role does ecological validity play in the studies mentioned?

    <p>It ensures results can be applied in real-world situations.</p> Signup and view all the answers

    How does symbolic punishment influence group behavior?

    <p>It promotes cooperation without material consequences.</p> Signup and view all the answers

    Which factor is essential for effective punishment in fostering cooperation?

    <p>Legitimacy of the punishment.</p> Signup and view all the answers

    What can lead to effective punishment in a group setting?

    <p>High frequency of interactions among members.</p> Signup and view all the answers

    How does the presence of social preferences challenge the self-interest axiom of traditional economics?

    <p>Humans often make decisions based on fairness and altruism.</p> Signup and view all the answers

    Which behavior demonstrates that individuals can act in ways that favor the collective good?

    <p>Participating in collective actions.</p> Signup and view all the answers

    What must be considered to avoid vendetta-like retaliation among group members?

    <p>The legitimacy of punishment must be established.</p> Signup and view all the answers

    How does group membership influence individual behavior?

    <p>It can condition behaviors based on social context.</p> Signup and view all the answers

    What is a consequence of free-riding behavior in social groups?

    <p>It undermines overall cooperation.</p> Signup and view all the answers

    Which statement about free-riders is most accurate?

    <p>They tend to undermine cooperative efforts in groups.</p> Signup and view all the answers

    In what way do social preferences affect individual behavior towards others?

    <p>They condition behavior based on group membership.</p> Signup and view all the answers

    What is one possible effect of symbolic punishment on social behavior?

    <p>It can reinforce community standards and norms.</p> Signup and view all the answers

    Why do people engage in punishing free-riders?

    <p>To promote fairness and deter undesirable behavior.</p> Signup and view all the answers

    Study Notes

    Behavioural Economics of Social Preferences

    • Behavioural economics bridges economics and psychology
    • The standard economic model is a normative theory, not a descriptive one
    • It assumes humans are perfectly selfish, rational actors
    • This assumption has been challenged by psychologists
    • Social preferences include concern for others, upholding ethical norms, and a preference for fairness and honesty
    • Evidence from experiments like the ultimatum game show subjects often reject unfair offers, even if it means losing some money
    • Proposers in the ultimatum game often offer a significant portion of the money ($1 is not usual)
    • Receivers in the ultimatum game often reject low offers
    • This suggests that strong reciprocity and social preferences are common
    • Free-riders can undermine cooperation in repeated social dilemmas, like public goods games
    • Altruistic punishment sustains cooperation by punishing free-riders
    • Effective punishment depends on legitimacy, symbolic punishment (criticism by peers) is effective
    • Subjects punish those who hurt others, regardless of the hurt being to themselves or others, reflecting a consideration of social norms
    • Behaviour is often conditioned on group membership, with subjects cooperating more with in-group members and punishing out-group members, which is a recurring theme in experiments
    • Laboratory experiments can reflect real-life behaviour, despite the inherent limitations of controlled settings
    • The frequency of interactions can affect the net returns of having a punishment option in group interactions, which is a factor in the study of cooperation
    • Cooperation results from the “fear” of punishment
    • Punishment is effective, even if it doesn't involve a reduction in material payoffs

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    Behavioral Economics of Social Preferences PDF

    Description

    Explore the intersection of psychology and economics through the lens of behavioural economics. This quiz delves into social preferences, such as fairness and altruism, and examines experimental evidence like the ultimatum game that challenges the traditional view of humans as purely rational and selfish actors. Test your understanding of how social dynamics affect decision-making in economic contexts.

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