Friday, August 31, 2018

We ask whether people in a strategic situation follow the Golden Rule, that is, do not treat others in ways that they find disagreeable to themselves; over three quarters of the experiments' subjects do so

Role-Reversal Consistency: An Experimental Study of the Golden Rule. Miguel A. Costa‐Gomes, Yuan Ju, Jiawen Li. Economic Inquiry, https://doi.org/10.1111/ecin.12708

Abstract: We report an experiment that asks whether people in a strategic situation behave according to the Golden Rule, that is, do not treat others in ways that they find disagreeable to themselves, a property that we call role‐reversal consistency. Overall, we find that over three quarters of the subjects are role‐reversal consistent. Regression analysis suggests that this finding is not driven by players maximizing their subjective expected monetary earnings given their stated beliefs about their opponents' behavior. We find that subjects' stated beliefs and actions reveal mild projection bias. (JEL C78, C91)

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