ebook img

Selfishness and altruism in the distribution of travel time and income PDF

19 Pages·2013·0.46 MB·English
by  
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview Selfishness and altruism in the distribution of travel time and income

Transportation(2013)40:1043–1061 DOI10.1007/s11116-013-9456-7 Selfishness and altruism in the distribution of travel time and income Nebiyou Tilahun • David Levinson Received:30October2011/Accepted:12January2013/Publishedonline:6March2013 (cid:2)SpringerScience+BusinessMediaNewYork2013 Abstract Mosteconomicmodelsassumethatindividualsactouttheirpreferencesbased on self-interest alone. However, there have also been other paradigms in economics that aim to capture aspects of behavior that include fairness, reciprocity, and altruism. In this studyweempiricallyexaminepreferencesoftraveltimeandincomedistributionswithand without the respondent knowing their own position in each distribution. The data comes from a Stated Preference experiment where subjects were presented paired alternative distributions of travel time and income. The alternatives require a tradeoff between dis- tributional concerns and the respondent’s own position. Choices also do not penalize or reward any particular choice. Overall, choices show individuals are willing forgo alter- nativeswheretheywouldbeindividuallywelloffintheinterestofdistributionalconcerns inboththetraveltimeandincomecases.Exclusivelyself-interestedchoicesareseenmore intheincomequestions,wherenearly25 %ofrespondentsexpresssuchpreferences,than inthetraveltimecase,whereonly5 %ofrespondentsmakesuchchoices.Theresultsalso suggest that respondents prioritize their own position differently relative to regional dis- tributionsoftraveltimeandincome.Estimatedchoicemodelsshowthatwhenitcomesto traveltime,individualsaremoreconcernedwithsocietalaveragetraveltimefollowedby thestandarddeviationintheregionandfinallytheirowntraveltime,whileinthecaseof income they are more concerned with their own income, followed by a desire for more variability, and finally increasing the minimum income in their region. When individuals donotknowtheirfateafterapolicychangethataffectsregionaltraveltime,theirchoices appear to be mainly motivated by risk averse behavior and aim to reduce variability in outcomes. On the other hand, in the income context, the expected value appears to drive choices. In all cases, population-wide tastes are also estimated and reported. N.Tilahun(&) DepartmentofUrbanPlanningandPolicy,UniversityofIllinoisatChicago, 412S.PeoriaSt.Suite254,Chicago,IL60607,USA e-mail:[email protected] D.Levinson DepartmentofCivilEngineering,UniversityofMinnesota,500PillsburyDriveSE,Minneapolis, MN55455,USA e-mail:[email protected] URL:http://nexus.umn.edu 123 1044 Transportation(2013)40:1043–1061 Keywords Selfishness (cid:2) Altruism (cid:2) Travel time distribution (cid:2) Income distribution (cid:2) Preferences (cid:2) Inequality (cid:2) Choice experiment Introduction Bothtimeandmoneyarescarceresources.Wescheduleourdailyactivitiesandprioritize among them in the 24 h available. We are willing to use some of that time to travel to activitiesoftenbalancingbetweenthetimetravelled,timespentatthedestination,andtime leftforotheractivities.Wetreatmoneyinthesamefashion.Mostofushavetolivewithin a budget and prioritize how it is spent or saved for other purposes. There are of course differencesbetweenthetwo.Thevalueoftimeiscontingentontheactivitiesitistiedto. Time during a leisurely drive has a different value from that spent over the morning commutewhichisagaindifferentfromwhatitwouldbeduringanemergency.Moneyon theotherhanddoesn’tusuallysufferfromsuchfluctuationsintheshortrun,whileoverthe long run its value can change dramatically. Distributionalconcernsoverincomehavelongbeenapartofpoliticalandeconomicdis- course.Theimpactofhowincomeisdistributedinasocietyshowsupindisparitiesinliving conditions,education,skills,andhealthoutcomes.Manygovernmentsputinplaceredistrib- utivepoliciesthroughtaxationandspendingtoaddressthesedisparities.Comparatively,the distributionoftraveltimeattractsmuchlessattentioneventhoughmanytransportationpolicies alsoaltertraveltimedistributionseitherimplicitlyorexplicitly.Butdebatesareseldomframed in terms of travel time distribution. These views prevail because travel time outcomes are mostlyseenasarisingfromhouseholdchoicesofresidenceanddestinations. Transportationsystemchanges,includingtrafficsignalsandrampmeters,advancedtravel guidancesystems,androuteexpansions,altertraveltimedistributionsandcreatewinnersand losers.Individualreactionstotheseoutcomesmaydependonhowmuchthelosersfromthese policiesloseaswellaswhethertheyunderstandtheoverallsocietalgainstobehadfromthe change.Properlyunderstandingthethresholdsthatpeopleacceptcanhelpengineers,plan- ners, and policy makers adjust their prescriptions by balancing efficiency with what is behaviorallyacceptable.Preferencesaboutpolicieswherepeoplearefullyinformedabout whattheymaygiveuppersonallyandwhatisbroadlygainedbytheregionorcommunitymay bedifferentfromsituationswheresuchinformationismissingorincorrect. Thispaperreportsonanexperimentwhereindividualsareaskedtotradeofftheirown travel time and income for overall changes in travel time distributions and income dis- tributions, respectively. The travel time questions in the experiments are framed in the context of a transportation improvement. The end distribution of the improvements and whereitleavesthetravellerareexplicitlyshown.Intheincomecontext,preferencesreflect achoicebetweenalternatelocationswherethepersonwishestolive.Inthiscasenopolicy is presented which alters the individuals own income to avoid the intricacies of political debatesaroundtaxationandtheroleofgovernmentinredistributingincome.Respondents choosearegiontoliveingiventwosimilarjobsinplaceswheretheincomedistributions andofferedsalariesaredifferent.Bothsetsofquestionsarealsoaskedinacontextwhere respondents do not know their own position. This allows us to discuss how preferences change when uncertainty about one’s own fate is introduced. Thenextsectionprovidesabriefbackgroundoneconomicmodelsthatconsiderfairness anddistributionaspartofdecisionmaking.Thatisfollowedbyadiscussionofthesurvey and a section on the data. The choice patterns under conditions where respondents know 123 Transportation(2013)40:1043–1061 1045 their position in the travel time and income distributions are then discussed. That is followed by a section where a choice model is estimated using the data. Finally, ‘‘Model estimates’’ section provides summary and conclusions. Background Thetraditionaleconomicparadigmisthatpeopleareself-interestedactorswhosechoices derive from a goal of maximizing their individual utility. The rational utility maximizing actor is concerned about getting the highest utility given his budget by allocating it to consumption at prevailing prices. Increases in income lead to higher utilities and maxi- mization of individual utility drives consumption decisions. Allocation of time for the utilitymaximizingindividualalsoproceedssimilarlythoughthereexistsahardconstraint where increases in time are not possible. Given this constraint the individual chooses an allocation of time between different activities that leads to the highest utility. Some activitiessuchasworkarelinkedtogeneratingtheincomethatgoestoconsumption;other timeisallocatedtoleisureandstillotherisallocatedtoactivitiessuchastravelwherethere are minimum time requirements (DeSerpa 1971; Evans 1972). This formulation leads to the derivation of different values of time and also provides the basis for a valueof travel timesavingsforactivitiessuchastravelwhereapersonspendstheminimumrequiredtime (DeSerpa 1971; Mackie et al. 2001). Wedonotdisputethatchoicesareinlargepartself-interested.Peoplechoosewhereto live so that the location best suits their needs subject to a budget. They choose particular routestogotoworkbecausetheyexpectitwillbringthemtotheirdestinationfaster.We have no evidence that any traveler makes systematic route or destination choices so that others are able to have shorter travel times (though individuals often yield to others at intersections, merges, or lane changes, which is a small version of this phenomenon, accruing delay to avoid delay for another). This is however not to argue that individuals would not want reduced travel time for others even while being self-interested. Such behavior may be observed because individuals see benefits from redistribution even if it leavesthempersonallyworseoffinonedimension.Forinstancehighertraveltimemaybe acceptable if individuals see that the change that increases their travel time also reduces overall pollution, the benefits of which they will share directly. Alternatively, altruistic preferences,wherepeopleaccepthighertraveltimesforsomeotherglobalgainmayalso be present. Personal position may be sacrificed if people believe some level of overall efficiency is realized, or if they perceive that being fair to others, a group that includes friendsandrelatives,isagoodthingorisconsistentwiththeirmoralvalues.Thesekindsof choices are presented to people often through policy initiatives that have the effect of altering their own experiences as well as that of those around them. In the transportation context, the willingness for such tradeoffs can inform implementation of ramp metering, signals, advanced traveler information systems, and other Intelligent Transportation Sys- tems technologies, which by their very nature adjust time distributions while fulfilling differentsocietal/globalobjectives[e.g.see(ZhangandLevinson2005)].Theimplication herewouldbethatindividualsmayhaveawillingnesstopay(oratleasthaveawillingness togiveup)someoftheirowntraveltime,iftheyknewthatpolicymeasurescouldleavea majority of others well off. Awillingnesstoforegoone’sownincomeforadistributionthatavoidsextremepoverty is also possible. One can be motivated by a variety of concerns none of which are nec- essarily looking at fairness itself as an end (Scanlon 1997). If one perceives that more 123 1046 Transportation(2013)40:1043–1061 equalitywillleadtoabetterqualityoflife,betterhealthcare,lesscrime,orbetterschools, these may in fact be within the individuals self-interest since these benefits apply to the individual as well as their kin. The self-interested paradigm need not change to accom- modatetheseconcerns.Butpreferencescanalsobedrivenbythedesiretoseeotherswell off, though the motivations behind such willingness could be difficult to discern (Elster 2006). Several experiments from ultimatum games summarized in Thaler (1988) provide evidencefortheexistenceoffairnessconsiderationindecisionmaking.Insuchgamesone person would offer another a share s of a total amount x. In the event of acceptance, the proposer gets x - s and the acceptor s. If the acceptor rejects the offer, then both get nothing. While the game theoretic solution (for a non-repeated game) to this problem is thatthepersonproposingshouldofferaverysmallamountandthepersongettingtheoffer should accept any positive gain, experimental findings do not reflect this outcome. For instance,intheexperimentsofGuthet al.(1982),mostoftheoffersmadeweregenerous andwereaccepted,whileintheexperimentsofKahnemanet al.(1986),respondentswere willing to reject what were unfair offers even when it meant the payoffs to themselves would have been positive. More recently, Marchetti et al. (2011) have shown acceptance ratesalsodependonthecharacteristicsofthosemakingtheoffer.Therejectionsshowthe existence of a willingness to pay to attain fairness from others (Kahneman et al. 1986). While those who offered generous amounts may have been motivated by a need for fairness, fear of rejection might also induce a similar behavior. Attemptstoincorporatefairnessintotraditionaleconomicmodelshavebeenmade.For instanceRabin(1993)proposesamodelwherepeoplearenicetothosewhoarenicetothem, andmeantothosewhoaremeantothem.FehrandSchmidt(1999)offersatheoryoffairness basedonthehypothesisthatindividualswantequitableoutcomes.Autilityformisproposed that penalizes an unfair allocation. In this framework, both an advantageous (where the individualisearningmorethanothers)aswellasadisadvantageousinequality(wherethey areearningless)arepenalized.BoltonandOckenfels(2000)alsofindsupportforinequality aversionusingtheirtheoryofEquity,ReciprocityandCompetition.Theyproposetoaccount fortheanomaliesintheexperimentswithamodelwhereplayerstrytomaximizea‘‘moti- vationfunction’’whichdependsontheirpayoff(inabsoluteterms)andtheirrelativeshareof the payoff. Engelmann and Strobel (2004), on the other hand, argue that efficiency and maximinstrategiesexplaintheobservedbehaviorratherthantheinequalityaversionmodels offeredinFehrandSchmidt(1999)andBoltonandOckenfels(2000). Adoptingadifferentstrategyfromthegametheoreticapproach,Carlssonet al.(2005)try tounderstandwhetherindividualsareinequalityaverseorjustriskaverse.Intheirstudythey ask respondents to choose a society for their grandchild to live in using uniform income distributions.Inonesetofcases,thepositionofthegrandchildisgivenandinanotherthe position is not known. They propose utility forms from which both risk aversion and inequality aversion coefficients can be extracted. When the position for the grandchild is known,thereisnorisktothegrandchildandchoicesreflectpreferencesoninequality.When thegrandchild’spositionisunknown,bothriskandinequalityaversioncanplayaroleinthe decision.Theyfindthatmanypeopleareinequalityaverseaswellasriskaverse.Inaddition theyreportasizablecorrelationbetweenindividualriskandinequalityaversion. ThesurveyforourstudyissimilartotheoneusedbyCarlssonet al.(2005)butwitha few notable differences including the types of distributions used and the method of analysis.Ouraimistotestwhetherdistributionalconsiderationsaffectchoicesaboutown traveltimeandincomedistributions,howthesepreferenceschangeonceuncertaintyabout own position is introduced, and whether these preferences are informed by different 123 Transportation(2013)40:1043–1061 1047 aspectsofthedistributionsfortraveltimeandincome.Thefollowingsectionsdiscussthe surveyusedtogatherdataforthisstudyandtheparticipantsfollowedbytheanalysisand interpretations of what respondents choices imply. Survey The data for this analysis comes from a computer-based Stated Preference survey administeredattheUniversityofMinnesotainMarchof2006.Thestatedpreference(SP) approachwaschosenbecauseitallowstheexplorationoftradeoffsthatarehardtoobserve in real life. In this setting we are able to test preferences over a range of individual and societaltraveltimeandincomedistributions thatinreality wouldnotbeobservedforthe same individual. A revealed preference approach would be difficult to undertake because therearemanyfactorsoutsideoftheresearcher’sandtherespondent’scontrolthatdictate whereonelives.TheSPapproachgivesusmorecontroloverthevariablesofinterest.Even with some of its limitations, a stated preference approach seems to be the most straight forward way to empirically evaluate the tradeoffs we are interested in this paper. The survey consistsof two parts. One part deals with the distribution of travel time in the community where people live and their own position in that distribution. These questions are posed in the context of a project which is about to alter travel time distri- butionsintherespondentsarea.Asecondpartdealswiththedistributionofincomeandthe personspositioninthatdistribution.Sincepolicyscenariosthatredistributeincomemaybe politicized,thesequestionsareposedwithinthecontextofarelocationdecisiontooneof two locations because of a job change where different income distributions are observed. Survey design Thetraveltimequestionsareposedasbeforeandafterscenariosresultingfromachangein policy.Respondentsaretoldthatastudyisunderwaytoputinplaceanewrampmetering strategy.Theyareinformedthatwhenputinplace,thisstrategywillleadtoaredistribution oftraveltimeforpeopleintheTwinCitiesarea.Histogramsareusedtodepictthetravel time distributions in the before and after scenarios. The respondent’s personal position in either case is also identified. An example of the question is given in Fig. 1a. The respondent is then asked to choose between the before and after conditions. Inthesecondcase,weconsiderincome.Inthiscase,respondentsaretoldthatajobofferis onthetableforthemwhichrequiresthemtorelocatetoanewarea.Therearetwojoboffers locatedintwodifferentcities.Therespondentistoldthatthepositionsarevirtuallyidentical andthatthecostoflivingisequalineithercity.Theincomedistributioninthetwolocationsis howeverdifferent.Ineithercasethedistributionofincomeforresidentsofeachcityisgiven usingahistogramandtheofferedsalaryfortherespondentisalsogiven.Figure 1bshowsone ofthequestions.Therespondentisthenaskedtochoosebetweenthetwooffers. The design of both the travel time and income questionnaires were based on the dif- ferencesinpersonalposition,differencesinsocialaverage,anddifferencesinthestandard deviation of the distributions in question. For travel time, the before after differences betweenowntimewassetupsothatthedifferencecouldbeaatleastasgoodasbeforethe change or loss, the societal average difference was setup to be either negative (societal averageincreasing)orpositive(decreasinginafterperiod).Thesewereinadditionpaired with large and small differences in the standard deviation of the population distribution. This roughly 2 9 2 9 2 design has 8 potential combinations for the three factors. Next 123 1048 Transportation(2013)40:1043–1061 (a) Exampletraveltimequestion (b) Exampleincomedistributionquestion Fig.1 Statedpreferencequestions alternative distributions whose differences would satisfy these requirements were gener- ated. Since we are using continuous variables, these alternatives were generated with the goalofalsolimitingthecorrelationbetweenthedesignvariables.Thefinalcoverageofthe traveltimequestionsofdifferencesinowntime,societalaveragetraveltimeandstandard deviation is as shown in Fig. 2a. The figure shows just differences in the variables of interestinthepairedpresentations.The‘Base’isarelativeoriginforeachpresentationand doesn’t refer to the same before distribution. A similar approach is used in developing the paired differences for the income ques- tions.ThecoveragefortheincomequestionsisalsogiveninFig.2b.Again,thepresented diagramreflectsthedifferencesinthepairedchoices.Inthefigure,sinceplace1and2are 123 Transportation(2013)40:1043–1061 1049 Fig.2 Differencesintraveltime Changes in variance 8 andincomeconditionsamong er) mlarogdeerate alternatives aft e− 6 or ef b e ( 4 g a er v 2 a al et ci 0 Base o s n es i −2 g n a Ch −4 −15 −10 −5 0 5 10 15 Changes in personal position (before−after) positive values are time savings (a) Travel time differences ce2) 0000 Changemlasro gidnee vraatreiance a 2 Pl − 1 e c 0 a 0 e (Pl 100 g a er v a al 0 et ci o s n 0 s i 00 e 0 ng −1 a h C 0 10000 20000 30000 40000 Changes in personal position (Place1−Place2) (b) Income differences interchangable as opposed to the travel time case where there is a clear ’before’ case, switching them for a subset of the presentations would occupy the two remaining quad- rants. Correlations between own position, societal average and standard deviation were within ±0.1 for the travel time case and within ±0.3 for the income case. Threeofthetraveltimequestionsandfouroftheincomepresentationswereaskedina different format of each respondent. Respondents were asked to choose a distribution, under the same conditionsas before, butwithout knowingwhat theirpersonal position in thedistributionswere(i.e.frombehindaveilofignorance).Thesequestionswillallowus 123 1050 Transportation(2013)40:1043–1061 to test whether distributional concerns are different when people do not know their own position. In the other scenarios, the respondent must decide if they are willing to trade some of their own income or travel time to live in a region that has a more equal distri- bution. In total, respondents were given a eighteen questions relating to time preferences and seventeen questions relating to income preferences. Survey administration Prior to starting the survey individuals are given a quick tutorial on interpreting distri- butionsthatarepresentedbyusinghistograms.Thetutorialtakesthemthroughmeanand variance identification, comparing mean and variance of different distributions, reading frequency of an event occurrence based on given distributions and identifying their own positions within a distribution when explicitly indicated. The survey then presents the respondents with a series of binary alternatives where they make choices based on their own personalposition as well as the position of thosearoundthem inthe travel timeand income contexts discussed above. There were a total of three randomizations that were used to preorder the survey questions. In addition the information was presented in two ways.Inonecasethedistributionsforthealternativeswereplacedoneovertheotherand in the other they were placed side by side. One of these was installed per computer. As respondents came in, they were each randomly assigned to a computer. Participants Subjects for the survey were recruited via email from the University of Minnesota’s employeedatabase.Invitationsweresentoutto2,500randomlyselectednon-faculty,non- student employees who had not participated in previous transportation studies conducted bytheauthors.Therecruitmentemailindicatedthatindividualswereinvitedtoparticipate in a computer based commute study and offered $15 for participation. Participants were asked to come to a central testing station, where the survey was administered. Based on previous experience of similar recruitments, a target of 200 participants was set (split evenlybetweenmaleandfemale).Atotalof187respondentsagreedandparticipatedinthe study. Descriptive statistics for the subjects are given in Table 1. In addition to the income and travel time questions, a separate set of questions about route preferences was also administered along with the survey (Tilahun and Levinson 2010). Two questions in that set were control questions that were used to gauge whether respondents understood the distributions that they were making choices over. Briefly, the questionsaskediftherespondentwouldpayahighertolltousearoutethathadonaverage alongertraveltimeandlargevarianceoftraveltimebetweenthesameorigin-destination pair. Only eight of the 187 respondents made what appeared to be an irrational choice, illustrating respondents largely understood the questions. Analysis and results Self-interested choices Inamajorityofthetraveltimeandincomechoicesthatarespondentfaces,onealternative leaveshimpersonallybetteroffthantheother(eitherwithalowertraveltimeorahigher personalincome,respectively).Thiswastruein12ofthe15traveltimequestionsand11 123 Transportation(2013)40:1043–1061 1051 Table1 Demographiccharacteristicsofrespondents(total=187) Variable Description Count Proportion Sex Male 99 52.9% Female 88 47.1% Age Mean(range) 40.6(2265) Education Collegelevel 151 80.7% Lessthancollegelevel 35 18.7% Unknown 1 0.5% Personalincome \$30,000 34 18.2% $30,000–$45,000 84 44.9% $45,000–$60,000 45 24.1% $60,000–$75,000 17 9.1% $75,000–$100,000 6 3.2% [$100,000 0 0% Unknown 1 0.5% Householdsize 1 47 25.1% 2 69 36.9% 3 34 18.2% 4? 32 17.1% Unknown(5) 5 2.7% Usualmode(yearround) Car 138 73.8% Transit 32 17.1% Bike 10 5.3% Walk 5 2.7% Unknown 2 1.1% Commutetime \15min 22 11.8% 15–29min 98 52.4% 30–44min 47 25.1% 45–59min 10 5.3% C60min 9 4.8% Unknown 1 0.5% of the 13 income questions. The remaining questions leave the respondent at the same position in either scenario while altering the distribution of travel time and income. If respondents were solely interested in their own well-being, they would simply pick the alternative that would leave them better off in the questions where their positions were unequal. However, purely self-interested choices were observed only for a subset of the respondents.Inthetraveltimequestions,only10ofthe187respondents(5.3 %)chosethe lower travel time alternative for themselves in all 12 questions. The proportion that con- sistentlychosethehigherpersonalincomealternativewasrelativelylargerfortheincome questions. Here, 47 of the 187 respondents (25.1 %) chose in a solely self-interested manneronall11questions.Thisstillleaves75 %oftherespondentswhowerewillingto foregopersonalincomeforotherdistributionalconcerns.Table 2presentsthecumulative proportion of respondents who chose in a manner consistent with self-interest. Whilenoonealwayschosethehighertraveltimeorlowerincomealternative,abouta third of the respondents for income (33.2 %) and nearly a quarter for travel time (23 %) 123 1052 Transportation(2013)40:1043–1061 Table2 Cumulativefrequency Percentofquestionsanswered Percentofrespondents ofself-interestedchoicesinthe inself-interest(%) incomeandtraveltimequestions Traveltime(%) Income(%) 100 5.3 25.1 C75 29.4 44.4 C50 77.0 66.8 \50 23.0 33.2 100%ofquestions=11for 0 0 0 incomeand12fortraveltime chose alternatives that were not to their personal advantage in over half the questions. Lookingatper-subjectchoices,themedianproportionofquestionsasubjectansweredina self-interested manner is 72 % for income (out of 11 questions) while it was 58 % for travel time (out of 13 questions). Unlike results in ultimatum games which involve pen- alties,subjectsinthissurveyhadnodirectincentivethatcouldinfluencetheirdecisionto befairtoothers(asidefromsomepsychicrewardofbeingperceivedasafairpersoneither to themselves or to the research team). Yet, the choices show altruistic motivations for a large portion of the subjects. Choices where own position is uncertain Asdiscussedearlier,alimitednumberofquestionsposedtraveltimeandincomequestions where the respondent did not know their own position. Because there is an element of uncertainty,choicesinthisinstancemaybequitedifferentfromchoiceswhererespondents knowtheirposition(wherethereisnouncertainty).Sevenquestionsfromthepreviousset (3 for travel time, 4 for income) were takes and the respondent’s income removed from thesequestions.ThesewouldbetheoriginalpositioninRawls(1999)formulation,where the respondent would choose a fair distribution lest they find themselves in either the highest travel time or lowest income group, respectively. Here again, there is a great deal of variation in how respondents evaluate these alter- natives. Relatively simple choices mechanisms are possible in each case that can neatly explain one motivation or another. For example in the income case, respondents may be motivated by the risk of falling into the lowest income category and may seek to avoid those situations. Or, they may seek the distribution with the highest expected income (average) for the distribution - regarding this as their most likely outcome. In the travel time case, the risk of ending up with the highest travel time may lead them to select the distributionwithalessextremeoutcome,ortheloweraveragemaybethemostattractive. Alternatively,highlyrisk-seekingbehaviormaydominatewhererespondentsalignchoices with the most optimistic outcomes. InTables 3and4wesummarizethefrequencywithwhichsimilarconsistentbehavior wasobserved.Ascanbeseen,theproportionwhoconsistentlyselectedalternativesbased on simple rules is not very large especially in the income case. The most consistent behaviorinthetraveltimecase,istooptforasmallerstandarddeviationwhenowntravel time is not known, where 42 % of respondents consistently chose this alternative. In the income case, the largest percentage is for the highest average income where 35.8 % of respondentschosethehigheraverageincomealternativeeverytime.Thehighestminimum incomealternative,whichwaschosenalwaysinby65.2 %ofrespondents,isnotincluded in this table because only two of the four veiled income choices had unequal minimums. 123

Description:
Several experiments from ultimatum games summarized in Thaler (1988) In the event of acceptance, the proposer gets x − s and the acceptor s.
See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.