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Sharing as risk pooling in a social dilemma experiment Ecology and Society
Cherry, Todd L.; Appalachian State University; Center for International Climate and Environmental Research (CICERO); cherrytl@appstate.edu; Howe, E. Lance; University of Alaska Anchorage; elhowe@uaa.alaska.edu; Murphy, James J.; University of Alaska Anchorage; Nankai University; Chapman University; murphy@uaa.alaska.edu.
In rural economies with missing or incomplete markets, idiosyncratic risk is frequently pooled through informal networks. Idiosyncratic shocks, however, are not limited to private goods but can also restrict an individual from partaking in or benefiting from a collective activity. In these situations, a group must decide whether to provide insurance to the affected member. We describe results of a laboratory experiment designed to test whether a simple sharing institution can sustain risk pooling in a social dilemma with idiosyncratic risk. We tested whether risk could be pooled without a commitment device and, separately, whether effective risk pooling induced greater cooperation in the social dilemma. We found that even in the absence of a commitment...
Tipo: Peer-Reviewed article Palavras-chave: Collective action; Experimental economics; Idiosyncratic risk; Income smoothing; Insurance; Lab experiment; Public goods; Resource sharing; Risk pooling; Social dilemma; Social-ecological systems; Team production.
Ano: 2015
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The Relation Between Income and Hunting in Tropical Forests: an Economic Experiment in the Field Ecology and Society
Cardenas, Juan Camilo; Universidad de los Andes; jccarden@uniandes.edu.co.
Hunting in tropical forests is both a major cause of biodiversity loss and an important food source for millions of people. A question with important policy implications is how changes in income level affect how much people hunt. This study, which was carried out in an indigenous community in the Amazon, explored the relation between income and consumption of wild meat using an economic experiment in the form of a lottery, and involved the local people, not only as experimental subjects, but also in the interpretation of results. The results suggested that an increase in steady employment, rather than in income alone, may lead to the substitution of non-hunted foods for wild meat. The kind of social learning that participation in this type of economic...
Tipo: Peer-Reviewed Reports Palavras-chave: Amazon; Economic development; Experimental economics; Hunting; Income; Lottery; Participatory research; Tropical forest; Wild meat.
Ano: 2006
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Advancing the understanding of behavior in social-ecological systems: results from lab and field experiments Ecology and Society
Janssen, Marco A; Arizona State University; Marco.Janssen@asu.edu; Lindahl, Therese; Beijer Institute of Ecological Economics, Royal Swedish Academy of Science; Stockholm Resilience Centre, Stockholm University; therese.lindahl@beijer.kva.se; Murphy, James J; Nankai University; University of Alaska Anchorage; Chapman University; murphy@uaa.alaska.edu.
Tipo: Peer-Reviewed Synthesis Palavras-chave: Behavioral economics; Common-pool resources; Experimental economics; Public goods; Social-ecological systems.
Ano: 2015
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Economic Behavior in the Face of Resource Variability and Uncertainty Ecology and Society
McAllister, Ryan R J; CSIRO Ecosystem Sciences; ryan.mcallister@csiro.au; Tisdell, John G; University of Tasmania; John.Tisdell@utas.edu.au; Reeson, Andrew F; CSIRO Ecosystem Sciences; andrew.reeson@csiro.au; Gordon, Iain J; CSIRO Ecosystem Sciences; The James Hutton Institute (Current Address); iain.gordon@csiro.au.
Policy design is largely informed by the traditional economic viewpoint that humans behave rationally in the pursuit of their own economic welfare, with little consideration of other regarding behavior or reciprocal altruism. New paradigms of economic behavior theory are emerging that build an empirical basis for understanding how humans respond to specific contexts. Our interest is in the role of human relationships in managing natural resources (forage and livestock) in semiarid systems, where spatial and temporal variability and uncertainty in resource availability are fundamental system drivers. In this paper we present the results of an economic experiment designed to explore how reciprocity interacts with variability and uncertainty. This behavior...
Tipo: Peer-Reviewed Reports Palavras-chave: Agistment; Experimental economics; Grazing; Investment game; Livestock mobility; Nomadism; Reciprocity; Trust game.
Ano: 2011
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Can the Threat of Economic Sanctions Ensure the Sustainability of International Fisheries? An Experiment of a Dynamic Non-cooperative CPR Game with Uncertain Tipping Point ArchiMer
Selles, Jules; Bonhommeau, Sylvain; Guillotreau, Patrice; Vallee, Thomas.
Complex dynamic systems such as common-pool resource systems can undergo a critical shift at a given threshold, the so-called tipping point, which potentially requires substantial changes from the management system. We present in this research a framed laboratory experiment design to examine how the threat of economic sanctions influences the strategic management of a common-pool resource. We use the context of the East Atlantic bluefin tuna international fishery as it has been the archetype of an overfished and mismanaged fishery until a dramatic reinforcement of its regulations followed the threat of a trade ban. We consider endogenous threats and examine their effects on cooperation through harvest decisions taken in the context of non-cooperative game...
Tipo: Text Palavras-chave: Common-pool resources; Experimental economics; Fisheries management; International fisheries; Policy making; Tipping points.
Ano: 2020 URL: https://archimer.ifremer.fr/doc/00623/73488/72786.pdf
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The Development of the Willingness to Cooperate: Collective-Action under the Light of the Constructivist Conception of Adult Development AgEcon
Meyer, Leandro Fredrico Ferraz; Braga, Marcelo Jose.
The paper presents experimental results connecting the participant’s behaviors in a common-pool resource dilemma, including communication and sanctioning conditions, with the constructs in a selected theory of adult personality systems development including value judgment and moral reasoning.
Tipo: Conference Paper or Presentation Palavras-chave: Commons dilemma; Experimental economics; Institutional analysis; Psychosocial development; Community/Rural/Urban Development; Environmental Economics and Policy; Institutional and Behavioral Economics; C72; C92; D74.
Ano: 2009 URL: http://purl.umn.edu/51340
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Chapter 06: EXPERIMENTAL AUCTIONS TO MEASURE WILLINGNESS TO PAY FOR FOOD SAFETY AgEcon
Fox, John A.; Shogren, Jason F.; Hayes, Dermot J.; Kliebenstein, James B..
This book was originally published by Westview Press, Boulder CO, 1995.
Tipo: Book Chapter Palavras-chave: Food safety; Experimental economics; Auctions; Willingness to pay; Food Consumption/Nutrition/Food Safety.
Ano: 1995 URL: http://purl.umn.edu/25986
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Health Benefits and Uncertainty: An Experimental Analysis of the Effects of Risk Presentation on Auction Bids for a Healthful Product AgEcon
Shaw, W. Douglass; Nayga, Rodolfo M., Jr.; Silva, Andres.
Experimental subjects receive a different presentation of a food product's potential health risk reductions if people habitually eat it, and then asked to bid for the product. Results suggest that the bids vary across the groups that receive differing risk information.
Tipo: Working or Discussion Paper Palavras-chave: Health risks; Experimental economics; Auctions; Uncertainty; Risk and Uncertainty; D81; I12.
Ano: 2005 URL: http://purl.umn.edu/23961
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Optimal Institutional Mechanisms for Funding Generic Advertising: An Experimental Analysis AgEcon
Messer, Kent D.; Schmit, Todd M.; Kaiser, Harry M..
Given the uncertain legal status of generic advertising programs for agricultural commodities, alternative voluntary funding institutions are investigated hat could provide a high level of benefits to producers. This experimental study simulates key economic and psychological factors that affect producer contributions to generic advertising. The results suggests that producer referendum play a critical role in increasing contributions and that producer surplus is maximized by a Provision Point Mechanism instituted by producer referendum with thresholds ranging from 68% to 90%, and expected funding from 47% to 77% of the time, depending on the level of advertising effectiveness.
Tipo: Technical Report Palavras-chave: Generic commodity advertising; Experimental economics; Producer referendum; Provision point mechanism; Marketing.
Ano: 2004 URL: http://purl.umn.edu/122106
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The Choice of Fish Species: An Experiment Measuring the Impact of Risk and Benefit Information AgEcon
Marette, Stephan; Roosen, Jutta; Blanchemanche, Sandrine; Verger, Philippe.
An experiment was conducted in France to evaluate the impact of health information on consumer’s choice. Fish have positive and negative health attributes, and we focus on fish species of diverging risk-benefit ratios. Successive messages revealing risks (methylmercury) and benefits (omega-3s), along with consumption recommendations, were delivered to experiment participants. Results show significant differences in reaction among participants depending on the sequencing order of information on risks and benefits. The results of the experiment are combined with a partial equilibrium model to determine the value of information. Acknowledging adjustments of equilibrium prices, health information is shown to have significant value to consumers.
Tipo: Journal Article Palavras-chave: Experimental economics; Fish consumption; Health information; Nutrition; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/36701
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Linking Policies for Biodiversity Conservation with Advances in Behavioral Economics AgEcon
Tisdell, Clement A..
Global biodiversity loss and its consequences for human welfare and sustainable development have become major concerns. Economists have, therefore, given increasing attention to the policy issues involved in the management of genetic resources. To do so, they often apply empirical methods developed in behavioral and experimental economics to estimate economic values placed on genetic resources. This trend away from almost exclusive dependence on axiomatic methods is welcomed. However, major valuation methods used in behavioral economics raise new scientific challenges. Possibly the most important of these include deficiencies in the knowledge of the public (and researchers) about genetic resources, implications for the formation of values of supplying...
Tipo: Working or Discussion Paper Palavras-chave: Biodiversity; Behavioral economics; Contingent valuation; Experimental economics; Travel cost method.; Environmental Economics and Policy; Institutional and Behavioral Economics.
Ano: 2005 URL: http://purl.umn.edu/55087
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THE EFFECTS OF INFORMATION ON CONSUMER DEMAND FOR BIOTECH FOODS: EVIDENCE FROM EXPERIMENTAL AUCTIONS AgEcon
Tegene, Abebayehu; Huffman, Wallace E.; Rousu, Matthew C.; Shogren, Jason F..
Consumers' willingness to pay for food products decreases when the food label indicates that a food product is produced with the aid of modern biotechnology. This bulletin presents empirical evidence on consumers' willingness to pay for biotech foods based on the presence or absence of labels advising that the food was prepared with the aid of biotechnology. The authors designed and conducted an experimental auction to elicit consumers' willingness to pay for "genetically modified" (GM)-labeled and standard-labeled foods under different information regimes. The evidence gathered for vegetable oil, tortilla chips, and potatoes shows that labels matter. In particular, under all information treatments, consumers discounted food items labeled "GM" by an...
Tipo: Report Palavras-chave: Biotech; Bioengineering; Biotechnology; Food labels; Auctions; Experimental economics; Random nth price; Willingness to pay; Demand and Price Analysis; Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/33577
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Using Experimental Economics to Measure Social Capital and Predict Financial Decisions AgEcon
Karlan, Dean S..
Questions remain as to whether results from experimental economics games are generalizable to real decisions in non-laboratory settings. Furthermore, important questions persist about whether social capital can help solve seemingly missing credit markets. I conduct two experiments, a Trust game and a Public Goods game, and a survey to measure social capital. I then examine whether behavior in the games predicts repayment of loans to a Peruvian group lending microfinance program. Since the structure of these loans relies heavily on social capital to enforce repayment, this is a relevant and important test of the games, as well as of other measures of social capital. I find that individuals identified as "trustworthy" by the Trust game are in fact less...
Tipo: Working or Discussion Paper Palavras-chave: Trust game; Experimental economics; Microfinance; Institutional and Behavioral Economics; B4; C9; D8; O1.
Ano: 2005 URL: http://purl.umn.edu/28429
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Mixed Tournaments, Common Shocks, and Disincentives: An Experimental Study AgEcon
Wu, Steven Y.; Roe, Brian E.; Sporleder, Thomas L..
Two well-known hypotheses from the literature on tournaments are that (1) tournaments can filter out common shocks thereby reducing agents’ risk exposure; and (2) disincentive effects can arise when a tournament scheme is administered on a group of mixed ability agents. While handicapping and/or the creation of homogeneous groups have been suggested as mechanisms for mitigating disincentive effects, it is often impractical to use handicapping schemes and nearly impossible to create a completely homogeneous labor force. Hence, contract administrators who intend to use tournaments to elicit effort must be able to assess the positive effects of tournaments (eliminate common shocks) against the negative effects (disincentive effects). Using economic...
Tipo: Conference Paper or Presentation Palavras-chave: Mixed tournaments; Incentives; Relative performance contracts; Experimental economics; Research Methods/ Statistical Methods; C91 D01; D81; D82; D86.
Ano: 2007 URL: http://purl.umn.edu/9703
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The Effect of Information Choice and Discussion on Consumers' Willingness-to-Pay for Nanotechnologies in Food AgEcon
Roosen, Jutta; Bieberstein, Andrea; Marette, Stephan; Blanchemanche, Sandrine; Vandermoere, Frederic.
We evaluate the impact of different information sequences on participants’ hypothetical willingness to pay (WTP) for food produced using nanotechnology. In three treatment groups, information on the health, societal, or environmental impact linked to nanotechnology was revealed in different sequences: an imposed order, a chosen order, and a chosen order after a discussion among participants. Results show that information choice is important. While in the imposed order, the first information revealed has no effect on WTP, the information chosen first has a strong impact. Discussion has no further impact. Health information was a priority and significantly decreased WTP, while societal and environmental information did not significantly influence WTP.
Tipo: Journal Article Palavras-chave: Discussion; Experimental economics; Food nanotechnology; Information choice; Willingness to pay; Demand and Price Analysis.
Ano: 2011 URL: http://purl.umn.edu/117398
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The Effective Use of Limited Information: Do Bid Maximums Reduce Procurement Cost in Asymmetric Auctions? AgEcon
Hellerstein, Daniel; Higgins, Nathaniel.
Conservation programs faced with limited budgets often use a competitive enrollment mechanism. Goals of enrollment might include minimizing program expenditures, encouraging broad participation, and inducing adoption of enhanced environmental practices. We use experimental methods to evaluate an auction mechanism that incorporates bid maximums and quality adjustments. We examine this mechanism’s performance characteristics when opportunity costs are heterogeneous across potential participants, and when costs are only approximately known by the purchaser. We find that overly stringent maximums can increase overall expenditures, and that when quality of offers is important, substantial increases in offer maximums can yield a better quality-adjusted result.
Tipo: Journal Article Palavras-chave: Conservation auctions; Conservation Reserve Program; CRP; Bid caps; Experimental economics; Institutional and Behavioral Economics; Land Economics/Use.
Ano: 2010 URL: http://purl.umn.edu/90850
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Using Experimental Auctions for Marketing Applications: A Discussion AgEcon
Lusk, Jayson L..
The present article discusses general issues associated with experimental auctions and their relative advantages and disadvantages over other marketing research techniques. Experimental auctions create an active market environment with feedback where subjects exchange real goods and real money, which is not generally the case with other methods. The article also discusses four experimental design issues associated with experimental auctions: auction mechanism, market feedback and bidder affiliation, demand reduction and wealth effects, and multiple attribute valuation. Each of these experimental design issues, if not properly controlled, have the potential to create serious flaws in marketing recommendations.
Tipo: Journal Article Palavras-chave: Auctions; Experimental economics; Marketing; Valuation; Willingness-to-pay; D44; C92; Q13; M31.
Ano: 2003 URL: http://purl.umn.edu/43210
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Health Information and the Choice of Fish Species: An Experiment Measuring the Impact of Risk and Benefit Information AgEcon
Marette, Stephan; Roosen, Jutta; Blanchemanche, Sandrine; Verger, Philippe.
Replaced with revised version of paper 06/10/07.
Tipo: Working or Discussion Paper Palavras-chave: Experimental economics; Fish consumption; Health information; Nutrition; Food Consumption/Nutrition/Food Safety.
Ano: 2006 URL: http://purl.umn.edu/18425
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Can Calibration Reconcile Stated and Observed Preferences? AgEcon
Norwood, F. Bailey.
Hypothetical bias is a pervasive problem in stated-preference experiments. Recent research has developed two empirically successful calibrations to remove hypothetical bias, though the calibrations have not been tested using the same data or in a conjoint analysis. This study compares the two calibrations in a conjoint analysis involving donations to a public good. Results find the calibrations are biased predictors of true donations but that calibrated and uncalibrated models together provide upper and lower bounds to true donations.
Tipo: Journal Article Palavras-chave: Calibration; Experimental economics; Forecasting; Hypothetical bias; Public goods; Stated preference; Voluntary contributions; Research Methods/ Statistical Methods; Q51; H41.
Ano: 2005 URL: http://purl.umn.edu/43735
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Risk Preferences and Demand for Insurance in Peru: A Field Experiment AgEcon
Galarza, Francisco B.; Carter, Michael R..
This paper reports the results of behavioral economic experiments conducted in Peru to examine the relationship amongst risk preferences, loan take-up, and insurance purchase decisions. This area-based yield insurance can help reduce people's vulnerability to large scale covariate shocks, and can also lower the loan default probability under extreme negative covariate shocks. In a context of collateralized formal credit markets, we provide suggestive evidence that insurance may help reduce the fear of losing collateral that prevents potential borrowers from taking loans. Framing these experiments to recreate a real life situation, we started with a Baseline Game where subjects had to choose between a fallback production project and an uninsured loan. We...
Tipo: Conference Paper or Presentation Palavras-chave: Area-yield insurance; Credit; Covariate risk; Idiosyncratic risk; Risk aversion; Experimental economics; Peru; Risk and Uncertainty; C93; D81.
Ano: 2010 URL: http://purl.umn.edu/61871
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