Critique of an Experimental Study on Generosity

An economist conducts a study on fairness. In the study, pairs of anonymous participants are asked to decide how to split 100 'experimental units'. The results show that the vast majority of participants split the units evenly. The economist concludes that people have a strong, innate preference for equal outcomes. What is the most critical flaw in the economist's reasoning based on the principles of experimental design?

Evaluating Incentive Structures in Economic Experiments

Comparing Experimental Designs

In an experiment where participants decide how to divide a sum of money, replacing real cash rewards with points that can be redeemed for a non-monetary prize of equal market value (like a popular gift card) would likely have no significant effect on their decision-making, as the incentive to maximize their outcome remains.

An economist wants to design an experiment to see if people are willing to trust strangers with money. To ensure the experiment's results are a good indicator of real-world behavior, which of the following payment methods should the economist use?

In an experiment designed to study strategic decision-making, participants are told they can earn actual cash based on the choices they make. What is the primary methodological reason for using real monetary payouts in this context?

An economist is designing an experiment to study decision-making. Match each type of incentive structure with its most likely effect on the behavior of the participants and the validity of the results.

Evaluating Experimental Results

Evaluating Experimental Designs for Studying Altruism