Human Behavior in Response to Incentives and Opportunity Costs : Experimental Method

Abstract

We use experimental methods in examining several aspects of psychology and economics to understand economic phenomena in simulation processes and behavior. We examine human behavior in response to incentives and opportunity costs. We recruited 80 participants by classifying them based on income level, debt owned, cost of living and family dependents. We use a game method where participants play a game in the form of choosing a box that has a cost per box and there is a mystery prize from each box or not choosing at all. each participant can get a prize money based on the decision he made. From the results of the study, almost all participants expected the same results, namely to be able to bring as much money as possible as research incentives. However, variations in decision making, readiness to take risks, and readiness to return home without getting any money can be seen to be influenced by income level, debt owned, cost of living, and family dependents.