Experimental Economics Research Articles

Introduction to the special issue on computational and experimental economics in memory of Jasmina Arifovic

Introduction to the special issue on computational and experimental economics in memory of Jasmina Arifovic

Towards a history of behavioural and experimental economics in France

Existing histories of behavioral and experimental economics (BE-XP) are primarily focused on its developments in the United States. While French economist Maurice Allais made significant contributions in the 1950s, the subsequent trajectory of BE-XP in France is understudied. This article addresses this gap by comparing the history of BE-XP in France to international trends previously identified in the literature. We find that, after an initial ambivalent influence from Allais, French BE-XP subsequently aligned with international trends. We nevertheless identify some distinctive national features in utility measurement and social preference modeling that are heterogeneously distributed across the French territory.

A systematic review of unique methods for measuring discount rates

AbstractDiscount rates play a pivotal role in various fields, capturing the trade-off between present and future, influencing predictions of unhealthy behaviors. Despite substantial variations in discount rates across studies, methods, and individuals, our goal was to systematically overview diverse methods for measuring discount rates. We conducted a comprehensive literature review across multiple databases, targeting English studies introducing and utilizing discounting measurement methods in human subjects. Two authors screened titles and abstracts, with full text review split between them. Extracted data encompassed bibliographic details, theoretical aspects (e.g., discount function), and operational features (e.g., elicitation procedure). After deduplication, 4976, 218, and 83 records underwent title and abstract screening, full text screening, and inclusion, respectively. A total of 86 unique methods were identified. Predominantly, methods were devised for money (75%) and health (22%) discounting. Network analysis on citations indicated limited cross-disciplinary overlap. Only about one fourth, one third, and one third of methods possessed theoretically desirable traits: i) allowance for negative discount rates, ii) application of multiple discount functions, and iii) correction for non-linear utility of outcomes. Diverse discounting measurement methods exist, showcasing varied theoretical and operational characteristics. These differences may stem from the isolation of development in fields like psychology, experimental economics, and health economics. Our systematic review aids readers in choosing methods aligned with their priorities when measuring discount rates.

Corporate political action and R&D investments: complementary effects and the role of communication in overcoming ex-post transaction costs

Purpose This study aims to investigate the role of interfirm communication on the complementary effect between corporate political action (CPA) and research and development (R&D) investments under transaction costs. Design/methodology/approach A quasi-experiment study design was used, combining business game simulation and a public goods experiment with communication as a controlled variable. A fixed-effect regression analysis was performed on panel data collected from 72 students. Findings The findings indicate that collective CPA is positively and significantly associated with R&D investments, particularly when interfirm communication is present. Conversely, for non-communicating firms, the effect is limited to the relationship between individual CPA and R&D investment. Research limitations/implications Despite advancing the research on political ties and innovation, the study acknowledges limitations related to framing effects and institutional variability. Practical implications The complementary effects indicate that institutional arrangements (i.e. business associations) may foster interfirm communication and cooperation in CPA efforts, mitigating opportunistic behaviours and legitimising CPA strategy towards innovation. Social implications This study contributes to understanding how firms’ political and R&D decisions can positively impact innovation, despite the challenges of ex post transaction costs. Originality/value The positive effect of communication on political action and cooperation on firms’ innovation, even in weak institutional environments, is highlighted. An innovative methodological approach combining business games and economic experiments was used to examine participants’ decisions under transaction costs.

Physician Altruism and Spending, Hospital Admissions, and Emergency Department Visits

Altruism-putting the patient first-is a fundamental component of physician professionalism. Evidence is lacking about the relationship between physician altruism, care quality, and spending. To determine whether there is a relationship between physician altruism, measures of quality, and spending, hypothesizing that altruistic physicians have better results. This cross-sectional study that used a validated economic experiment to measure altruism was carried out between October 2018 and November 2019 using a nationwide sample of US primary care physicians and cardiologists. Altruism data were linked to 2019 Medicare claims and multivariable regressions were used to examine the relationship between altruism and quality and spending measures. Overall, 250 physicians in 43 medical practices that varied in size, location, and ownership, and 7626 Medicare fee-for-service beneficiaries attributed to the physicians were included. The analysis was conducted from April 2022 to August 2024. Physicians completed a widely used modified dictator-game style web-based experiment; based on their responses, they were categorized as more or less altruistic. Potentially preventable hospital admissions, potentially preventable emergency department visits, and Medicare spending. In all, 1599 beneficiaries (21%) were attributed to the 45 physicians (18%) categorized as altruistic and 6027 patients were attributed to the 205 physicians not categorized as altruistic. Adjusting for patient, physician, and practice characteristics, patients of altruistic physicians had a lower likelihood of any potentially preventable admission (odds ratio [OR], 0.60; 95% CI, 0.38-0.97; P = .03) and any potentially preventable emergency department visit (OR, 0.64; CI, 0.43-0.94; P = .02). Adjusted spending was 9.26% lower (95% CI, -16.24% to -2.27%; P = .01). This cross-sectional study found that Medicare patients treated by altruistic physicians had fewer potentially preventable hospitalizations and emergency department visits and lower spending. Policymakers and leaders of hospitals, medical practices, and medical schools may want to consider creating incentives, organizational structures, and cultures that may increase, or at least do not decrease, physician altruism. Further research should seek to identify these and other modifiable factors, such as physician selection and training, that may shape physician altruism. Research could also analyze the relationship between altruism and quality and spending in additional medical practices, specialties, and countries, and use additional measures of quality and of patient experience.

Effects of Risk and Time Preferences on Diet Quality: Empirical Evidence from Rural Madagascar

Malnutrition is a major concern in Madagascar. Eating a wide variety of nutritious food is necessary because Malagasy diets heavily rely on rice consumption. This study explored the barriers to dietary change towards diversification from the perspective of consumer behaviour. We analysed the impact of risk and time preferences on dietary diversity using economic experiments conducted with 539 rural lowland rice farmers in Central Highlands in Madagascar. The results showed that risk-averse or impatient individuals were more likely to have lower Household Dietary Diversity Score (HDDS), indicating poorer diet quality. Risk-averse people may not want to add different foods to meals as they perceive unfamiliar food as a ‘risk’; people who prefer immediate gratification may fail to invest in nutritious diets now to achieve better health in the future. Additionally, higher HDDS was observed among households with a female head who earned off-farm income and who had frequent market visits. These findings contribute to explaining the limited shift in nutritional transition in Madagascar and provide useful insights into nutritional policies promoting healthier food choices. Depending on the preferences, more focused support such as nutritional education, financial support, market development, and pre-commitment mechanisms could be provided to reward long-term nutritional benefits.

The Efficiency of Intellectual Capital Formation at the Scientific Institutions of Engineering and Computer Sciences

The research of the formation of intellectual capital (IC) of engineering and computer sciences (E&CSs) at scientific institutions (SIs) in Latvia in the present situation is highly topical. The object of the research is the formation of IC of E&CSs at SIs while the subject of the research is the comparative analysis of the efficiency of the involvement of academic staff and students in the formation of IC of E&CSs at SIs of Latvia. The objective of the research is to study the involvement of academic staff and students in the formation of IC of E&CSs at SIs in Latvia in the period from 2013 to 2018. The following tasks were determined to reach the objective: to study the formation of IC of E&CSs at SIs; to identify the concept of the efficiency of the involvement of academic staff and students in the formation of IC of E&CSs; to calculate main indicators thereof, and, to carry out the comparative analysis of indicators characterising the efficiency of the involvement of academic staff and students in the formation of IC of E&CSs at SIs in Latvia. Research methods used in the paper are content analysis, economic analysis, and economic experiment.

Intellectual Capital of Medical and Health Sciences and the Efficiency of its Formation at Scientific Institutions

The formation of intellectual capital (IC) of medical and health sciences at scientific institutions (SIs) is highly topical for all people on the world. The object of the research is formation of IC of medical and health sciences at SIs while the subject of the research is the comparative analyses of the efficiency of the involvement of academic staff and PhD students in the formation of IC of medical and health sciences at SIs of Latvia. The objective of the research is to study the involvement of academic staff and PhD students in the formation of IC of medical and health sciences at SIs in Latvia in the period from 2013 to 2018. The following tasks were determined to reach the objective: to study the formation of IC of medical and health sciences at SIs; to identify the concept of the efficiency of the involvement of academic staff and PhD students in the formation of IC of medical and health sciences; to calculate main indicators thereof, and, to carry out the comparative analysis of indicators characterising the efficiency of the involvement of academic staff and PhD students in the formation of IC of medical and health sciences at SIs in Latvia. Research me-thods used in the paper are content analysis, economic analysis, and economic experiment.

The Geometry of Dynamic Time-Dependent Best–Worst Choice Pairs

There has been increasing interest in best–worst discrete choice experiments (BWDCEs) in health economics, transportation research, and other fields over the last few years. BWDCEs have distinct advantages compared to other measurement approaches in discrete choice experiments (DCEs). A systematic study of best–worst (BW) choice pairs can be traced back to the 1990s. Recently, new ideas have been introduced to the subject. Calculating utility helps measure the attractiveness of BW choices. The goal of this paper is twofold. First, we extend the idea of the BW choice pair to include dynamic, time-dependent transition probability and capture utility at each time and for each choice pair. Second, we used the geometry of BW choice pairs to capture the correlations among them and to characterize and clarify the BW choice pairs in the network, where properties can be derived within each class. This paper discusses BWDCEs, the probability transition matrix of choices over time, and the utility function. The proposed network classification for BW choice pairs is laid out. A detailed simulated example is presented, and the results are compared with the classical K-means classification.

Adam Smith, human betterment, and his erroneous indentification with self-interested human action

In this essay I discuss the proposition that Adam Smith has been widely misinterpreted as asserting in his second book, The Wealth of Nations, that emergent modern economies are driven by the strictly selfish motives of their human inhabitants. The propositions articulated in his first book, The Theory of Moral Sentiments, which offered a theory of society, extended seamlessly into his second book, and continued to be part of his theory of economy. In both works, he distinguished the universal state of being self-interested from actions taken in one's self-interest, and modeled people as creating and following rules of propriety that enabled them to better get along with their neighbors. This distinction explains why, in his second book, he refers to people following their “own interest” in their “own way” explicitly avoiding any suggestion that people pursued only their strictly selfish interests in the process of wealth creation. That cautionary effort failed, although Smith continues to be a spectacularly successful theorist of society and economy, especially of interest to scholars in behavioral and experimental economics.

EBPVis: Visual Analytics of Economic Behavior Patterns in a Virtual Experimental Environment

AbstractExperimental economics is an important branch of economics to study human behaviours in a controlled laboratory setting or out in the field. Scientific experiments are conducted in experimental economics to collect what decisions people make in specific circumstances and verify economic theories. As a significant couple of variables in the virtual experimental environment, decisions and outcomes change with the subjective factors of participants and objective circumstances, making it a difficult task to capture human behaviour patterns and establish correlations to verify economic theories. In this paper, we present a visual analytics system, EBPVis, which enables economists to visually explore human behaviour patterns and faithfully verify economic theories, e.g. the vicious cycle of poverty and poverty trap. We utilize a Doc2Vec model to transform the economic behaviours of participants into a vectorized space according to their sequential decisions, where frequent sequences can be easily perceived and extracted to represent human behaviour patterns. To explore the correlation between decisions and outcomes, an Outcome View is designed to display the outcome variables for behaviour patterns. We also provide a Comparison View to support an efficient comparison between multiple behaviour patterns by revealing their differences in terms of decision combinations and time‐varying profits. Moreover, an Individual View is designed to illustrate the outcome accumulation and behaviour patterns of subjects. Case studies, expert feedback and user studies based on a real‐world dataset have demonstrated the effectiveness and practicability of EBPVis in the representation of economic behaviour patterns and certification of economic theories.

Evaluation of Top Journals and Authors in Behavioral Economics: A Bibliometric Approach

Behavioral economics has become an essential subfield within economics, integrating psychological insights to better understand decision-making processes. This study conducts a comprehensive bibliometric analysis to evaluate the evolution of behavioral economics, identify key research themes, and map the contributions of influential authors. Using data sourced from the Google Scholar database, the study analyzes publication trends, co-authorship networks, and the temporal development of research areas. The findings reveal that core concepts such as behavioral finance, public policy, and experimental economics continue to dominate the field, while emerging areas like consumer behavior and insurance indicate new research directions. The co-authorship analysis highlights the importance of collaboration among scholars in shaping the field's development. These insights provide valuable implications for researchers, educators, policymakers, and funding bodies in guiding future research, curriculum development, and resource allocation. This study contributes to a deeper understanding of the intellectual structure and trajectory of behavioral economics.

Rationing of diets of dairy cows for non-degradable protein with protein supplements of plant origin

Methods. This scientific and economic experiment was conducted under the conditions of the Moscow Region on 3 groups of Holstein breed cows showing milk yield of 8000 kg to study the efficiency of rationing of the content of non-degradable protein in feed rations for highly productive cows upon the use of various sources of protected plant-based protein.Results. It was found that the increase in content of non-degradable protein from 35% in the control group to 40% in experimental groups I and II for the period from day 21 until day 100 of lactation by feeding corn gluten (0.85 kg) and extruded soy protein concentrate (1.0 kg) accordingly instead of sunflower meal (1.2 kg) in the control group, with the similar concentration of raw protein of 17.2% in dry matter of the feed, contributed to the increase in milk yield with 4% fat content over 100 days of lactation by 6.3% and 8.5% (p ≤ 0.05) and the increase in feed costs (ME) by 5.3–6.7%. In physiological studies, an increase in the digestibility of crude protein by 2.0% and 3.2% abs (p ≤ 0.05), in groups of cows receiving protected protein supplements, as well as a tendency for more intensive digestion of crude fat by 1.2% and 2.2% abs. (p ≤ 0.1). Economic calculations showed that the use of the studied protein supplements in the diets of animals of experimental groups I and II made it possible to reduce the cost of 1 c of milk with basic fat content by 41.8 and 56.0 rubles, while receiving additional profit in the amount of 2845.1 and 3861.3 rubles compared to control.

Evaluation of the slaughter indicators of the Edilbaevsky sheep breed depending on the milk productivity of sheep

Relevance. Increasing the milk productivity of ewes is an important factor for improving the meat qualities of the offspring. The study of the influence of the milk productivity of ewes on the results of the control slaughter of rams of the Edilbaev breed, as well as the morphological and chemical composition of lamb, will allow optimizing the technology of growing and fattening young animals to obtain high-quality meat.Methods. A scientific and economic experiment was carried out. The material for the experiment was sheep at the ages of 4 and 7 months. 3 groups of sheep were formed, obtained from abundant dairy queens with milk productivity per lactation (120 days) — 89.55 liters (group I of sheep), medium-dairy — 71.6 liters (group II), low-dairy — 48.4 liters (group III). To conduct the experiment, in accordance with generally accepted methods, young animals were selected according to the principle of analogues, taking into account gender, age, type of birth (males), and body weight.Results. The results obtained indicate that an increase in the milk productivity of ewes leads to an improvement in the meat qualities of rams of the Edilbaev breed. Lambs born from ewes with high milk productivity have higher slaughter weight, slaughter yield and meat quality compared to rams born from ewes with lower milk productivity. These data can be used to develop optimal technologies for growing and fattening young animals to produce high-quality meat.

Hematological parameters of lactating cows when use the feed additives Live protein and Tanrem Sh

The purpose of the research was to study the hematological parameters of lactating cows when use the feed additives Live protein and Tanrem Sh. The scientific and economic experiment was carried out at the breeding farm of Razliv LLC in the Kurgan region on 30 matured lactating cows of Blackand- White breed. Animals were selected into groups using the analog method, taking into account age, live weight, calving date, and productivity. The experiment was carried out during 2022–2023. Analyzing changes in individual blood parameters, a tendency towards an increase in erythrocytes in the experimental groups by 14.62–14.82 % was observed, compared to the control group). At the same time,erythrocytes in animals of the experimental groups were more saturated with hemoglobin. For example, if in the control group the hemoglobin content in erythrocytes was at the level of 92.03 g/l, then in the experimental groups its quantity was 101.16–11.44 g/l or 9.92–10.22 % higher. The content of leukocytes in all groups was from 7.55 to 8.19×109/l, with the maximum permissible value of 12.0×109/l. The content of lymphocytes in animals of the experimental and control groups did not have large deviations and was from 4.58 to 5.08×109/l with the norm from 2.5 to 7.5×109/l. Eosinophils are an indicator of allergic processes. Their content was also within the permissible norms and was from 7.50 to 8.90 %. Thus, the inclusion of the additives Live protein and Tanrem Sh in the ration of lactating cows had a positive eff ect on hematological parameters. The increase in the number of erythrocytes with increased hemoglobin saturation compared to the control group indicates more intensive metabolic processes in the animals’ bodies.

Use of domestic biological drugs in reproduction of cattle

purpose of the work was to analyze the use of domestic biodrugs in the reproduction of cattle. In the scientifi c and economic experiment, three groups of dry cows (control, 1st and 2nd experimental) were formed according to the principle of analog groups, taking into account the clinical and physiological condition, age and live weight. In the 2nd series of the experiment, 3 groups of newborn heifers were formed in accordance with the groups of dams. The work scientifi cally substantiates and experimentally proves the eff ectiveness of using complex immunomodulatory biodrugs consisting of two main active components (yeast cells and vitamins) Salus-PE and Bovistim-K, in the technology of cow reproduction and calf rearing. It has been established that the use of biodrugs in late pregnant cows improved the course of the calving and postpartum periods, increased milk productivity and colostrum quality, forms stable colostral immunity in newborn calves, reduced the risks of respiratory and gastrointestinal diseases in young animals, contributing to better live weight gains. The tested complex immunomodulatory biodrugs activate hematopoiesis, compensatory mechanisms of the body, the population of immune cells in the blood, increased protein metabolism, the expression profi le of cellular and humoral factors of non-specifi c resistance. The use of the developed biodrugs during decornuation stimulated tissue regeneration, accelerated the process of scab formation, normalized the level of γ-globulins, activated the synthesis of α- and β-globulins, oxidation-reduction processes and metabolism, which ensured an increase in the immune status of the body of calves in the neonatal period. The economic effi ciency of using the biodrugs Salus-PE and Bovistim-K in the technology of cow reproduction in the 1st and 2nd experimental groups based on 1 ruble of additional costs was 2.63 and 4.50 rubles, and in the technology of raising calves 6.85 and 11.20 rubles, respectively.

The MTGO Virtual Economy: A Case Study on a “Play-to-Earn” Game That has Existed Since Before Cryptocurrency Was Even Invented

MTGO is a virtual simulation of the popular tabletop game, Magic: The Gathering Online. For over 20 years, it has developed a robust virtual game economy that is connected to the real-world market through the game's set redemption feature. In this case study, it is shown that the different facets of the MTGO economy have enabled it to thrive while avoiding or naturally addressing problems such as hyperinflation that have commonly arose in other virtual game economies, including those that fall under the contemporary and at times controversial concept of play-to-earn model games. Through this expository paper, it is argued that the MTGO economy is a rich source of information that is worth exploring for the benefit of fields such as game development research, game behaviors research, and experimental economics.

Guidelines for using financial incentives in software-engineering experimentation

Context:Empirical studies with human participants (e.g., controlled experiments) are established methods in Software Engineering (SE) research to understand developers’ activities or the pros and cons of a technique, tool, or practice. Various guidelines and recommendations on designing and conducting different types of empirical studies in SE exist. However, the use of financial incentives (i.e., paying participants to compensate for their effort and improve the validity of a study) is rarely mentionedObjective:In this article, we analyze and discuss the use of financial incentives for human-oriented SE experimentation to derive corresponding guidelines and recommendations for researchers. Specifically, we propose how to extend the current state-of-the-art and provide a better understanding of when and how to incentivize.Method:We captured the state-of-the-art in SE by performing a Systematic Literature Review (SLR) involving 105 publications from six conferences and five journals published in 2020 and 2021. Then, we conducted an interdisciplinary analysis based on guidelines from experimental economics and behavioral psychology, two disciplines that research and use financial incentives.Results:Our results show that financial incentives are sparsely used in SE experimentation, mostly as completion fees. Especially performance-based and task-related financial incentives (i.e., payoff functions) are not used, even though we identified studies for which the validity may benefit from tailored payoff functions. To tackle this issue, we contribute an overview of how experiments in SE may benefit from financial incentivisation, a guideline for deciding on their use, and 11 recommendations on how to design them.Conclusions:We hope that our contributions get incorporated into standards (e.g., the ACM SIGSOFT Empirical Standards), helping researchers understand whether the use of financial incentives is useful for their experiments and how to define a suitable incentivisation strategy.

Field Experiments: Here Today Gone Tomorrow?

Once believed to be an impossibility, field experiments in economics now occupy a central place in the empiricist’s quiver. In the past few decades alone, field experiments have taken on much greater import in academe, across organizations, as well as for policymakers. But is this emergence simply a fad that will soon return field experiments to obscurity? I argue in this article that there is something fundamental about the emergence of field experiments, as controlling the assignment mechanism in the field provides unparalleled power to both understand the “effects of causes” and the “causes of effects”. This knowledge generation then begins to uncover the generalizability of knowledge. Quite the opposite of a withering tool that will be gone tomorrow, I urge economists to “double down” on this comparative advantage and in doing so I provide four methodological paths which I hope will cement the promise and growth of field experiments in the social sciences.

Behavioral finance in a hundred keywords

We analyze leading journals in behavioral finance to identify the most-used keywords in the area and how they have evolved. Using keyword analysis of data between 2000 and 2020 as well as data mapping and visualization tools, a dynamic map of the discipline was constructed. This study assesses the state-of-the-art of the field, main topics of discussion, relationships that arise between the concepts discussed, and emerging issues of interest. The sample comprises 3876 pieces, including 15859 keywords from journals responsible for the growth of the discipline, namely the Journal of Behavioral and Experimental Economics, Journal of Behavioral and Experimental Finance, Journal of Economic Psychology, Journal of Behavioral Finance, and Review of Behavioral Finance. During the period analyzed, our results depict a lively area and highlight the prominent role that experiments play in the field. Two related but different streams of behavioral finance research are revealed.