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Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments

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  • Martin G. Kocher
  • Matthias Sutter

Abstract

We test for behavioral differences between groups and individuals in gift-exchange experiments. Related studies establish group behavior as typically closer to the game-theoretic equilibrium. We show that this result may depend crucially on the decision making procedure within groups. A novel decision making protocol opens up the black box of group decision making and allows to track important features of the group interaction process. We are able to show that the mere fact of being a group member shifts initial individual choices towards the game-theoretic equilibrium.

Suggested Citation

  • Martin G. Kocher & Matthias Sutter, "undated". "Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments," Papers on Strategic Interaction 2002-27, Max Planck Institute of Economics, Strategic Interaction Group.
  • Handle: RePEc:esi:discus:2002-27
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gift-exchange experiment; group behavior; individual behavior; decision making; reciprocity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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