Should We Display Behavioral Heterogeneity?

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PUNISHMENT AS A MECHANISM TO MAINTAIN BILATERAL COOPERATION: A SOCIAL BEHAVIOR EXPERIMENT October 1st 2014 KAIRONG HONG AND LIANG ZHANG Central South University Hypothesis and Methodology. Hypothesis 1: Individuals will display behavioral heterogeneity in their response to different punishment experiments. Hypothesis 2: In comparison with second-party punishment, third-party punishment will involve a reduction in the punishment cost. Hypothesis 3: Third-party intervention will enhance the potential impact of punishment for behavior that would result in unfair income distribution. Hypothesis 4: In comparison with second-party punishment, third-party intervention will enhance the probability of punishment occurring. Method: They recruited a total of 88 students from Central South University in Changsha, China. The students were put into 4 groups . Students were from different classes, years and 56% were women and 44% men. The experiment: Which was composed of three parts. The first part, included reading and following the instructions. In the second part, were question about them self for example age, birthdate, where they lived. The third part, was computer-based experiments. …show more content…

Under the premise of compulsory expropriation, Player B (the relocating household) received a passive income distribution from the developer (Player A, in the role of dictator). In this experiment a third party was not introduced. Assuming the initial market average price of the real estate being expropriated is US$800, Players A and B both know that expropriation produces an appreciation in its value assumed here to be US$1,600. Therefore, the assumption in the game was that the income distribution would include both the value-added income of Player A and the compensation income of Player

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