In 2007, Steven Levitt and John List published a paper called ‘What Do Laboratory Experiments Measuring Social Preferences Reveal about the Real World?’. Read the paper to answer these two questions. a.According to their paper, why and how might people’s behaviour in real life vary from what has been observed in laboratory experiments? Steven D. Levitt, and John
A. List. 2007. ‘What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?’ Journal of Economic Perspectives 21 (2): pp. 153–174.
B.Using the example of the public goods experiment in this section, explain why you might observe systematic differences between the observations recorded in Figures 4.9a and 4.9b, and what might happen in real life.
People's behavior in real life may differ from what has been observed in laboratory experiments.
Results in the laboratory are being influenced by the following factors:
1. The presence of moral and ethical consideration.
2. The nature and extent of scrutiny of one's answer by the other.
3. The context in which the decision is embedded.
4. Self selection of the individuals making
In 2007, Steven Levitt and John List published a paper called ‘What Do Laboratory Experiments Measuring...