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How the Emotions Enforce the Cooperative Behavior in Social Dilemma Games

Explore how emotions drive cooperative behavior in social dilemma games, delving into experimental economics, neuroeconomics, public goods, punishment, and the role of emotions. This speech analyzes the importance, reasons for cooperation, strategies, and results in various game experiments.

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How the Emotions Enforce the Cooperative Behavior in Social Dilemma Games

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  1. How the Emotions Enforce the Cooperative Behavior in Social Dilemma Games Speaker：林 家 仰

  2. Before start • The main contents in this speech are discussing Prof. Ernesto Reuben’s paper and using the materials in his courses • http://ereuben.googlepages.com/home

  3. Outline • What’s experimental economics? • A very brief history • Neuroeconomics • Public goods • Punishment • Emotions

  4. A discipline in which data are collected in a controlled environment. What’s experimental economics?

  5. A Brief History Market experiments • Decentralized markets • Chamberlin (1948) induced demand and cost structure • Double auction • Vernon Smith (1962, 1964) Game experiments • Prisoners‘dilemma 1950’s • Originally by psychologists and sociologists • Oligopoly games • Reinhard Selten(1959) Individual choice experiments • Choice under uncertainty • Savage (1954) • Allais paradox (1953)

  6. Why experimental method • Advantages of the experiments • Control • Institutions (e.g. voting rules, communication, etc.) • Not always complete control (e.g. social norms) • Incentives (payoffs) • Not always complete control (e.g. altruism) • Measure confounding variables (e.g. beliefs) • Randomization (avoids some self-selection problems) • Replication • Check for robustness, experimenter effects, etc. • Gives an incentive to do it right • Make available: data, instructions, program, and procedures

  7. Importance • Economics is becoming an experimental science like physics and biology.􀂃 • Like theory, running experiments is an established method to explain and/or describe economic activity.

  8. Neuroeconomics • See lecture 1 on Prof. Ernesto Reuben’s web site http://ereuben.googlepages.com/expteach

  9. Public Goods Real-world problems of cooperation • Cooperative hunting and warfare • Teamwork in firms • Charities and gift-giving • Environmental protection • Economic public goods • Paying taxes • Fishing • Security • Political collective action • Voting • Lobbying • Revolutions

  10. The voluntary contributions mechanism (VCM) • The profit of each subject • endowment: ei • Contribute to public account: ci • Contributions to the public good benefit each member by: αi(marginal per capita return, MPCR) • Group of n members

  11. Reasons for cooperation • By mistake! • Do not understand that ci= 0 is dominant • Do understand dominance but make systematic errors • Social preferences • Altruism, warm glow, efficiency-seeking motives • Conditional cooperation, reciprocity • Strategic cooperation • Strategies such as Tit-for-Tat can support cooperation among selfish players • mostly infinitely repeated games but see also Kreps et al. (1982)

  12. By mistake • Cooperating by Mistake Brandts et al. 2004 • Design • VCM: n= 4, e= 9, repeated for 10 periods • 72 subjects, within subjects • On every period the MPCR is randomly drawn from 10 values • MPCR ≤0.1875: efficient 􀃆ci= 0, dominant strategy 􀃆ci= 0 • 0.3125 ≤MPCR ≤0.9375: efficient 􀃆ci= 9, dominant strategy 􀃆ci= 0 • MPCR ≥1.0625:efficient 􀃆ci= 9, dominant strategy 􀃆ci= 9

  13. By mistake • Result

  14. Conditional Cooperation • Conditional or unconditional cooperation? Fischbacher & Gächeter 2006 • Design • 140 subjects, within subjects • VCM: n= 4, e= 20, MPCR = 0.4 • 2 stages: strategy method and normal • Decisions 1: unconditional contribution decision • Decision 2: use strategy method to elicit contribution schedule with respect to average contribution of decision 1 • Pick randomly three decision 1’s and one decision 2 • Predictions • Altruism or ‘warm glow’: contribution is positive but independent of others contribution • Reciprocity: contribution increases with the average contribution of others • Selfish: always contribute zero

  15. Conditional Cooperation Results􀂃 • Little unconditional cooperation􀂃 • Heterogeneity in types: • 55% conditional cooperators • 23% selfish • 12% ‘hump-shape’contributors • 10% other

  16. Strategiccooperation • Is there strategic cooperation?Keser& van Winden2000 • Compare partners vs. strangers • If partners cooperate more → supports strategic cooperation? Design􀂃 • VCM: • n= 4, e= 10, 25 periods, MPCR = 0.5 • 160 subjects between subjects Results • Strong effect of the partner’s treatment

  17. Explaining the decline in cooperation Croson 1996 • Why does cooperation decline with time • Strategic cooperation • Learning to play the dominant strategy • Design: surprise restart • VCM: • n= 4, e= 25, MPCR = 0.5 • Repeated 10 + 10 periods • 24 subjects • Results • Clear evidence of restart specially for partners

  18. Punishment • The effectiveness of punishmentNikiforakis and Normann 2006 • Results􀂃 • Punishment sustains cooperation with a damage/cost ratio greater than 2/1􀂃 • Punishment increases welfare with a damage/cost ratio greater than 3/1

  19. To punish or not to punish Sanfreyet al. 2003 • Results • Higher activation in anterior insulafor unfair human offers • Activation is higher with degree of unfairness

  20. Results • Higher activation in anterior insulafor unfair human offers • Activation is higher with degree of unfairness • Activation is highest with rejection • Higher activation in right dorsolateral prefrontal cortex • Not sensitive to rejection

  21. Emotions Prosocial emotions Hopfensitz and Reuben 2006 • For punishment to be effective: • Punished subjects should switch to cooperation • Punished subjects should not punish back • Design • Trust game with ‘infinite’ rounds of punishment (costs 1 to reduce 4) • 2 periods, perfect strangers • emotions are measured before making decisions

  22. Measurement of Emotions • Is self reports a good idea ? • experimental economists • self reports is sometimes regarded with suspicion (Smith and Walker, 1993) • self reports will often overstate the true amount that individuals are will-ing to pay (Murphy et al., 2005)

  23. Measurement of Emotions • Social psychology • emotions are internal, difficult to observe states, self reports of emotions are an often used technique (Robinson and Clore, 2002) • self reports of anger have been related to skin • conductance levels for emotional reactions in the power to take game (Ben-Shakhar et al., 2007 • self reported are indeed reliable can be deduced from a recent neuroimaging study (Takahashi et al., 2004)

  24. Measurement of Emotions • measured emotions included: anger, gratitude, guilt, happiness, irritation, shame, and surprise.

  25. Results • first movers cooperate more often and second movers return more in the presence ofpunishment

  26. Results • 2nd movers cooperate after being punished only if they feel guilt

  27. Results • 2nd movers cooperate after being punished only if they feel guilt

  28. Results • Considerable retaliation after receiving punishment • 40% of second movers punish back if punished • 2nd movers retaliate because: • They are angry and feel no guilt

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