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Can we neutralize social preference in experimental games?

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  • Krawczyk, Michal
  • Le Lec, Fabrice

Abstract

We propose an experimental method whose purpose is to remove social concerns in games. The core idea is to adapt the binary-lottery incentive scheme, so that an individual payoff is a probability to see one's preferred social allocation implemented. For a large class of social preference models, the method induces payoffs in the game that are in line with subjects’ (social) preferences. We test the method in several popular experimental games, contrasting behaviors with and without our methodology. Our results suggest that a substantial part of the difference between predictions based on selfishness and observed behaviors seems driven by such preferences, since our method does induce more “selfish” behaviors. But they also indicate that a considerable share is left unexplained, perhaps giving weight to alternative explanations or other types of social concerns.

Suggested Citation

  • Krawczyk, Michal & Le Lec, Fabrice, 2015. "Can we neutralize social preference in experimental games?," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 340-355.
  • Handle: RePEc:eee:jeborg:v:117:y:2015:i:c:p:340-355
    DOI: 10.1016/j.jebo.2015.05.021
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    1. Despoina Alempaki & Andrew M. Colman & Felix Kölle & Graham Loomes & Briony D. Pulford, 2022. "Investigating the failure to best respond in experimental games," Experimental Economics, Springer;Economic Science Association, vol. 25(2), pages 656-679, April.

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    More about this item

    Keywords

    Social preferences; Experimental game theory; Ultimatum game; Public goods game; Trust game; Prisoner's dilemma;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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