The analysis of the decision-making process is split into a part on decision rules and a part on expectation formation. This chapter reports the experimental results on decision rules. In the analysis individuals’ expectations concerning others’ behavior are treated as exogenous. The expectation formation process will be the subject of investigation of chapter 5. In the experiments, independent measures of players’ expectations with respect to other players’ behavior and independent measures on players’ attitudes towards others are obtained. Thus, the analysis hardly needs any auxiliary hypotheses on these issues. This procedure allows for sharp tests of decision rules.
KeywordsDecision Rule Prospect Theory Common Pool Payoff Matrix Public Good Game
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