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Testing for Heterogeneity of Preferences in Randomized Experiments: A Satisfaction-Based Approach Applied to Multiplayer Prisoners’ Dilemmas

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Abstract

We use experimental data from the “vote with the wallet” multiplayer prisoner’s dilemma to investigate with a finite mixture approach the effect of a responsible purchase on players’ satisfaction. We find clear-cut evidence of heterogeneity of preferences with two groups of players that differ significantly in terms of effects of the responsible choice on satisfaction.

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  • Leonardo Becchetti & Vittorio Pelligra & Francesco Salustri, 2016. "Testing for Heterogeneity of Preferences in Randomized Experiments: A Satisfaction-Based Approach Applied to Multiplayer Prisoners’ Dilemmas," CEIS Research Paper 383, Tor Vergata University, CEIS, revised 19 Jun 2015.
    • Handle: RePEc:rtv:ceisrp:383
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    References listed on IDEAS

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    1. Erlei, Mathias, 2008. "Heterogeneous social preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 436-457, March.
    2. Leonardo Becchetti & Francesco Salustri, 2015. "The Vote With the Wallet as a Multiplayer Prisoner's Dilemma," AICCON Working Papers 141-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    3. Besley, Timothy & Ghatak, Maitreesh, 2007. "Retailing public goods: The economics of corporate social responsibility," Journal of Public Economics, Elsevier, vol. 91(9), pages 1645-1663, September.
    4. Rotemberg, Julio J., 2008. "Minimally acceptable altruism and the ultimatum game," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 457-476, June.
    5. G. Daniel & M. Arce & Todd Sandler, 2005. "The Dilemma of the Prisoners’ Dilemmas," Kyklos, Wiley Blackwell, vol. 58(1), pages 3-24, February.
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    Cited by:

    1. Engel, Christoph, 2020. "Estimating heterogeneous reactions to experimental treatments," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 124-147.
    2. Solferino, Nazaria & Solferino, Viviana & Taurino, SerenaFiona, 2018. "Quantum entanglement and the emergence of collaboration in social media," MPRA Paper 86228, University Library of Munich, Germany.
    3. Alexander Usvitskiy, 2024. "A dynamic model of endogenous development: the role of pioneers," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(2), pages 289-320, March.

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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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