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Rewards in an Experimental Sender-Receiver Game

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Author Info

  • Peeters, Ronald
  • Vorsatz, Marc
  • Walzl, Markus

    (METEOR)

Abstract

We show in a sender-receiver game with strictly opposing interests that rewards enhance trust but do not influence truth-telling. Subjects who reward tend to tell the truth and trust more often in the presence and absence of reward opportunities. The amount of obtained rewards thereby enhances truth-telling.

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Bibliographic Info

Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 019.

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Date of creation: 2007
Date of revision:
Handle: RePEc:unm:umamet:2007019

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Keywords: microeconomics ;

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References

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  1. Martin Sefton & Robert Shupp & James M. Walker, 2006. "The Effect of Rewards and Sanctions in Provision of Public Goods," Caepr Working Papers 2006-005, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington, revised Aug 2006.
  2. V. Crawford & J. Sobel, 2010. "Strategic Information Transmission," Levine's Working Paper Archive 544, David K. Levine.
  3. Peeters, Ronald & Vorsatz, Marc & Walzl, Markus, 2007. "Rewards in an Experimental Sender-Receiver Game," Research Memorandum 019, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  4. Santiago Sanchez-Pages & Marc Vorsatz, 2004. "An Experimental Study of Truth-Telling in a Sender-Receiver Game," ESE Discussion Papers 128, Edinburgh School of Economics, University of Edinburgh.
  5. Jordi Brandts & Gary Charness, 2003. "Truth or Consequences: An Experiment," Management Science, INFORMS, vol. 49(1), pages 116-130, January.
  6. Cai, Hongbin & Wang, Joseph Tao-Yi, 2006. "Overcommunication in strategic information transmission games," Games and Economic Behavior, Elsevier, vol. 56(1), pages 7-36, July.
  7. James Andreoni & William Harbaugh & Lise Vesterlund, 2003. "The Carrot or the Stick: Rewards, Punishments, and Cooperation," American Economic Review, American Economic Association, vol. 93(3), pages 893-902, June.
  8. David Dickinson, . "The carrot vs. the stick in work team motivation," Working Papers 2000-06, Utah State University, Department of Economics.
  9. Vincent P. Crawford, 2003. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," American Economic Review, American Economic Association, vol. 93(1), pages 133-149, March.
  10. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  11. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  12. Offerman, Theo, 2002. "Hurting hurts more than helping helps," European Economic Review, Elsevier, vol. 46(8), pages 1423-1437, September.
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Citations

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Cited by:
  1. Mehmet Y. Gurdal & Ayca Ozdogan & Ismail Saglam, 2011. "Truth-Telling and Trust in Sender-Receiver Games with Intervention," Working Papers 1106, TOBB University of Economics and Technology, Department of Economics.
  2. Vera Angelova & Tobias Regner, 2012. "Do voluntary payments to advisors improve the quality of financial advice? An experimental sender-receiver game," Jena Economic Research Papers 2012-011, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Katharina Eckartz & Christiane Ehses-Friedrich, 2014. "Strategic Communication: An Experimental Investigation," Jena Economic Research Papers 2014-007, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Mehmet Gurdal & Ayca Ozdogan & Ismail Saglam, 2014. "Truth-telling and trust in sender–receiver games with intervention: an experimental study," Review of Economic Design, Springer, vol. 18(2), pages 83-103, June.
  5. Gurdal, Mehmet Y. & Ozdogan, Ayca & Saglam, Ismail, 2013. "Cheap talk with simultaneous versus sequential messages," MPRA Paper 45727, University Library of Munich, Germany.
  6. Angelova, Vera & Regner, Tobias, 2013. "Do voluntary payments to advisors improve the quality of financial advice? An experimental deception game," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 205-218.
  7. Peeters, Ronald & Vorsatz, Marc & Walzl, Markus, 2007. "Rewards in an Experimental Sender-Receiver Game," Research Memorandum 019, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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