Year: 2007
Type: preprint
Abstract: We conduct a prisoner’s dilemma experiment with a punishment/reward stage, where punishments and rewards are risky. This is compared with a risk free treatment. We find that subjects do not change their behavior in the face of risky outcomes. Additionally, we measure risk attitude and the emotions of subjects. While we find a strong influence of emotions, individual risk aversion has no effect on the decision to punish or reward. This is good news for lab experiments who abstract from risky outcomes. From the perspective of social preferences, our results provide evidence for risk neutral inclusion of other player’s payoffs in the decisionmaker’s utility function.
Authors: Peter Dürsch, Maroš Servátka
Institutions: Heidelberg University, University of Canterbury
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Award: G2846299926
OpenAlex ID: W1874717900