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Are Economists Different? Economic Model

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Author Info
Jitka Šeneklová
Jiří Špalek
Abstract

One of the key assumptions of neoclassical economics is the existence of the rational individual, who always tries to maximize his or her utility. The paper shows possibilities of experimental evaluation of this hypothesis with respect to the various groups of people who undertake the experiment. Our experiments try to (1) Evaluate real outcomes of model situations, and (2) Find differences between various groups of treated people with respect to our main research question - whether economists behave more selfishly than any other group of people. We employed game theory and its fundamental models - Prisoner's dilemma and Ultimate and Dictator Games. In accordance to previous foreign experiments, we conclude that in real situations people behave in a much less self-interested way than predicted by the economic model. In situations favouring free-riding, people voluntarily contributed to public goods. According to the results of our experiments, the hypothesis that economists are more likely to act for their own self interest cannot be rejected. In both experiments economists behaved in a self interested way, but these results were not prevailing.

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Publisher Info
Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2009 (2009)
Issue (Month): 1 ()
Pages: 21-45
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Handle: RePEc:prg:jnlpol:v:2009:y:2009:i:1:id:668:p:21-45

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Related research
Keywords: Experimental economics; public goods; game theory; cooperation; prisoner's dilemma;

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
H00 - Public Economics - - General - - - General
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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