Personality traits and strategic behavior: Anxiousness and aggressiveness in entry games

We demonstrate that personality has a systematic effect on strategic behavior. We focus on two personality traits: anxiousness and aggressiveness, and consider a 2-player entry game, where each player can guarantee a payoff by staying out, a higher payoff if she is the only player to enter, but a lower payoff if both players enter. We find that: anxious players enter less; aggressive players enter more; players are more likely to enter against anxious than non-anxious players; and players are less likely to enter against aggressive than non-aggressive players. We discuss the possible mechanism through which personality affects strategic behavior.     

Measuring social dynamics in a massive multiplayer online game

Quantification of human group-behavior has so far defied an empirical, falsifiable approach. This is due to tremendous difficulties in data acquisition of social systems. Massive multiplayer online games (MMOG) provide a fascinating new way of observing hundreds of thousands of simultaneously socially interacting individuals engaged in virtual economic activities. We have compiled a data set consisting of practically all actions of all players over a period of 3 years from a MMOG played by 300,000 people. This large-scale data set of a socio-economic unit contains all social and economic data from a single and coherent source. Players have to generate a virtual income through economic activities to ‘survive’ and are typically engaged in a multitude of social activities offered within the game. Our analysis of high-frequency log files focuses on three types of social networks, and tests a series of social-dynamics hypotheses. In particular we study the structure and dynamics of friend-, enemy- and communication networks. We find striking differences in topological structure between positive (friend) and negative (enemy) tie networks. All networks confirm the recently observed phenomenon of network densification. We propose two approximate social laws in communication networks, the first expressing betweenness centrality as the inverse square of the overlap, the second relating communication strength to the cube of the overlap. These empirical laws provide strong quantitative evidence for the Weak ties hypothesis of Granovetter. Further, the analysis of triad significance profiles validates well-established assertions from social balance theory. We find overrepresentation (underrepresentation) of complete (incomplete) triads in networks of positive ties, and vice versa for networks of negative ties. Empirical transition probabilities between triad classes provide evidence for triadic closure with extraordinarily high precision. For the first time we provide empirical results for large-scale networks of negative social ties. Whenever possible we compare our findings with data from non-virtual human groups and provide further evidence that online game communities serve as a valid model for a wide class of human societies. With this setup we demonstrate the feasibility for establishing a ‘socio-economic laboratory’ which allows to operate at levels of precision approaching those of the natural sciences.All data used in this study is fully anonymized; the authors have the written consent to publish from the legal department of the Medical University of Vienna.     

Motivational crowding out effects in charitable giving: Experimental evidence

This paper tests motivational crowding out in the domain of charitable giving. A novelty is that our experiment isolates alternative explanations for the decline of giving, such as strategic considerations of decision-makers. Moreover, preference elicitation allows us to focus on the reaction of donors characterized by different degrees of intrinsic motivation. In the charitable-giving setting subjects donate money to the German “Red Cross” in two consecutive donations. The first dictator game is modified, i.e., donors face with equal probability an ex post reimbursement or a subsequent payment. The second game is a standard dictator game. We find that after an ex post change in the price of giving of the first donation, substantially more donors with a high degree of intrinsic motivation decrease donations than subjects with a low degree of intrinsic motivation and donors who did not experience a price effect. In a replication study we find support for these results for subjects who have previously participated in at least one economic experiment.     

PERSONALITY,INFORMATION ACQUISITION,AND CHOICE UNDER UNCERTAINTY: AN EXPERIMENTAL STUDY

This article studies the role of personality in choice under risk and uncertainty. We explore the hypothesis that personality plays a role in decision making in situations of uncertainty but not in situations of risk. In addition to offering support for this main hypothesis, we explore the various pathways through which personality exerts its influence. What we find is that in uncertain environments, where decision makers are able to acquire information about the unknown probability distributions they face, personality variables influence the type of information people acquire, which then influences their choice. Our experimental design brings in two novel aspects of choice under uncertainty: information acquisition and advice. The findings indicate that indeed, under uncertainty, personality matters for choice in a way it does not under risk. Furthermore, the results suggest that personality can play a role at multiple levels, such as people's preferences for certain types of information and the likelihood of following advice. (JEL C90, D03, D81)     

Involuntary job loss and changes in personality traits

Economists consider personality traits to be stable, particularly throughout adulthood. However, evidence from psychological studies suggests that the stability assumption may not always be valid, as personality traits can respond to certain life events. Our paper analyzes whether and to what extent personality traits are malleable over a time span of eight years for a sample of working individuals. Furthermore, we specifically look at changes in personality traits after a major adverse life event: involuntary job loss. We use data from the German Socio-Economic Panel Study (SOEP) from 2004 to 2014 – a period over which individuals’ Big Five personality inventory was measured three times. Our dataset allows us to exploit detailed employment information, particularly reasons for job termination and unemployment spells. We focus solely on plant closures as a reason for job termination. Job loss due to plant closure is widely used as a relatively exogenous event to identify causal effects. Our results suggest that personality traits are indeed malleable during adulthood. Although the Big Five measures are relatively stable within the overall population of workers, we find an increase in openness, that is, the willingness to seek new experiences, for the average displaced worker. This increase, however, is fully driven by individuals with high educational attainment and by those who find a new job immediately after dismissal. The other dimensions of the Big Five personality inventory remain nearly unchanged after an involuntary job loss. Our findings hold for a number of robustness checks and are supported by the results of a falsification test using a placebo treatment.     

Personality and wealth accumulation among older couples: Do dispositional characteristics pay dividends?

This paper explores whether the ‘Big 5’ personality characteristics: Emotional Stability, Extraversion, Conscientiousness, Agreeableness, and Openness to Experience, contribute to net household wealth accumulation among 1172 couple pairs (n = 2344) participating in The Irish Longitudinal Study on Ageing, independent of other socio-demographic and human capital variables. We employ quantile regression to determine whether the effects of personality vary at different levels of the conditional distribution of wealth. Results reveal that the personality characteristics of the financial respondent to the survey are more strongly associated with wealth than those of the non-financial respondent. Specifically, we find that emotional stability and extraversion are positively associated with wealth at the household level among spousal pairs. We also find that conscientiousness is positively associated with wealth, but the relationship is only significant at the lower end of the wealth continuum. In general, agreeableness and openness are negatively associated with wealth although the relationships are non-significant. These findings indicate that personality is an important factor shaping individuals’ consumption preferences and financial decision-making behaviour over the life-course.     

The importance of moral reflection and self-reported data in a dictator game with production

This article studies how individual behavior is affected by moral reflection in a dictator game with production. We make individuals reflect on fairness, in a structured way, before they play the dictator game. Our results suggest that moral reflection not only increases the weight people attach to fairness in distributive choices, but also has a strong effect on what people consider fair. Furthermore, we study the informational value of self-reported data. We find that self-reported data have substantial informational value, but do not add explanatory power to a random utility model estimated on purely behavioral data. Finally, we study whether there is a self-serving bias in the participants’ fairness perceptions, but do not find much evidence of this phenomenon in the data.     

Dictator game variants with probabilistic (and cost-saving) payoffs: A systematic test

Driven by methodological concerns, theoretical considerations, and previous evidence, I systematically test the validity of common dictator game variants with probabilistic payoffs. Using a unified experimental framework, I include four approaches and compare them to a standard dictator game: involving fewer receivers than dictators, paying only some players, paying only some decisions, and role uncertainty. I also relate transfers in the dictator game variants to established complementary individual difference measures of prosociality: social value orientation, personal values, a donation to charity, and the Big Five personality factor agreeableness. My data shows that the standard dictator game presents the expected correlations with the complementary measures of prosociality. Involving fewer receivers yields comparably valid results. By contrast, when only some players or decisions are paid or, particularly, when subjects face role uncertainty, the expected associations with complementary prosociality measures are distorted. Under role uncertainty, generosity is also significantly biased upward. I conclude that the validity of dictator game outcomes is highly sensitive to the applied methods. Not all dictator game variants can be recommended for the valid measurement of social preferences.     

LEADERSHIP BY EXAMPLE IN THE WEAK‐LINK GAME

We investigate the effects of leadership in a four‐player weak‐link game. A weak‐link game is a coordination game with multiple Pareto‐ranked Nash equilibria. Because the more efficient equilibria involve a degree of strategic uncertainty groups typically find it difficult to coordinate on more efficient equilibria. We wanted to see whether leadership by example, in the form of one player acting publicly before the rest of the group, could help groups do better. Our results suggest that leadership can increase efficiency but is far from being a guarantee of success. Specifically, in a significant number of groups we observed successful leadership and increased efficiency, but in most groups efficiency was low despite the efforts of leaders. We did not find any difference between voluntary leaders and leaders that are randomly assigned. (JEL C72, H41)     

Locked into gambling: anticipatory regret as a motivator for playing the National Lottery

Four hundred and eighty-five people were asked about their intentions to play the National Lottery in England a week prior to the introduction of a new midweek draw. We predicted that those people who played the Saturday game with a regular set of numbers would be more inclined to play the new midweek game than those who had not established a routine of using the same set of numbers. We further predicted that their motivation to play would derive from a feeling of 'anticipatory regret'—a sense that they would find it intolerable to discover their regular numbers had been drawn when they hadn't purchased a ticket. Results supported both of these predictions, and an interpretation of the data is given in terms of the circumstances most likely to trigger such counterfactual reasoning.     

RETIREMENT,PERSONALITY, AND WELL‐BEING

This study investigates how two sources of individual heterogeneity—personality and gender—impact the well‐being effects of retirement. Using data on older men and women from the British Household Panel Survey and its continuation, Understanding Society, we estimate the causal effect of retirement on satisfaction with overall life and domains of life in the presence of personality characteristics. As retirement is often considered to be a choice and thus may be endogenous to individual‐level characteristics, we use the eligibility ages for basic state pension in the United Kingdom as instruments for retirement. We find that retirement increases leisure satisfaction of both males and females but not necessarily life satisfaction and income satisfaction. We further show that certain personality characteristics affect the well‐being of female retirees. For males, however, personality does not seem to matter in how they cope with retirement. (JEL I31, J26, A12, C23)     

Personality traits and knowledge sharing

In this paper, we describe an empirical study that relates three personality traits (agreeableness, conscientiousness and openness) to knowledge sharing. In the existing literature considerable attention has been paid to managerial influences on knowledge sharing, technological support through information and communication systems, or individual characteristics like motivation or the perception of conflict of interest or vulnerability. Instead we concentrate on the role that personal dispositions play in individual’s knowledge sharing behavior. By means of structural equation modeling with PLS, we discover significant correlations between the personality traits and knowledge sharing within teams of an engineering company. Our results clearly contribute to the existing literature, as they offer empirical evidence of the impact of enduring individual characteristics on knowledge sharing.     

Personality and community prevention teams: Dimensions of team leader and member personality predicting team functioning

The predictors and correlates of positive functioning among community prevention teams have been examined in a number of research studies; however, the role of personality has been neglected. In this study, we examined whether team member and leader personality dimensions assessed at the time of team formation predicted local prevention team functioning 2.5–3.5 years later. Participants were 159 prevention team members in 14 communities participating in the PROSPER study of prevention program dissemination. Three aspects of personality, aggregated at the team level, were examined as predictors: Openness to Experience, Conscientiousness, and Agreeableness. A series of multivariate regression analyses were performed that accounted for the interdependency of five categories of team functioning. Results showed that average team member Openness was negatively, and Conscientiousness was positively linked to team functioning. The findings have implications for decisions about the level and nature of technical assistance support provided to community prevention teams.     

Effectivity functions, game forms, games, and rights

 In this paper we offer an axiomatic approach for the investigation of rights by means of game forms. We give a new definition of constitution which consists of three components: the set of rights, the assignment of rights to groups of members of the society, and the distribution of power in the society (as a function of the distribution of rights). Using the foregoing definition we investigate game forms that faithfully represent the distribution of power in the society, and allow the members of the society to exercise their rights simultaneously. Several well-known examples are analyzed in the light of our framework. Finally, we find a connection between Sen’s minimal liberalism and Maskin’s result on implementation by Nash equilibria. Received: 25 November 1994/Accepted: 28 June 1996     

Do norms matter for firm boundaries?

Even though norms have been integrated in the formal theory of the firm, we have not seen a clear-cut relationship between norms and firm boundaries. In a simple game of relationship specific investments, I show that the parties’ reputation for being trustworthy may be decisive for optimal asset ownership.     

Unemployment duration and personality

This paper focuses on the role personality traits play in determining individual unemployment duration. We argue that a worker’s job search intensity is decisively driven by her personality traits, reflected in her propensity to motivate and control herself while searching for a job. Moreover, personality traits, in as far as they can be signaled to a potential employer, may also enhance the probability of receiving and accepting a job offer.For our econometric duration analysis, we use the well-accepted taxonomy “Big Five” to classify personality traits. Based on individual unemployment data taken from the German Socio-Economic Panel (SOEP) our empirical findings reveal that the personality traits Conscientiousness and Neuroticism have a strong impact on the instantaneous probability of finding a job, where the former has a positive effect and the latter has a negative effect. The direction of the effect on the subsequent employment duration is the opposite. We do not find any significant effects of the personality traits Extraversion and Agreeableness on the duration of unemployment. The personality trait Openness eases finding a job only for female unemployed workers and workers with migration background.     

Long live Fenerbahçe: The production boosting effects of football

The connection between Turkish industrial production performance and the success of a popular Turkish football team, namely Fenerbahçe, is the central theme of this article. The success of Fenerbahçe is interpreted as a proxy for the workers’ mood or morale. Performing a transfer function analysis on our monthly data set, we reveal positive feedback from Fenerbahçe’s success, which proxies workers’ mood/morale, to economic performance such that the monthly industrial growth rate increases by 0.26% with the number of games won by Fenerbahçe in European cups regardless of where the game is played. Evidence of the effects of games against domestic rivals on industrial performance is not statistically significant.     

Endogenous agenda formation in three-person committees

This paper analyzes a 3-person voting game in which two or three players have the ability to choose alternatives to be considered. Once the set of possible alternatives and the structure of the voting procedure are known, the players can solve for the outcome. Thus, the actual choice over outcomes takes place in the choice of alternatives to be voted on, i.e., the agenda. An equilibrium to this agenda-formation game in shown to exist under different assumptions about the information relative to the order of the players in the voting game. Further, this equilibrium is computed and found to possess certain features which are attractive from a normative point of view.Prepared for delivery at the 1985 Annual Meeting of the American Political Science Association, The New Orleans Hilton, August 29–September 1, 1985. We would like to thank Richard McKelvey, Norman Schofield and two anonymous referees for valuable comments and suggestions. We retain responsibility for remaining errors.     

Do you reward and punish in the way you think others expect you to?

This paper addresses three questions: (1) When deciding on whether to reward or punish someone, how does how you think others expect you to behave affect your decision? (2) Does it depend upon whether others expect you to reward them vs. punish them? (3) What is the interpretation of such a causal effect? We investigate these questions using a modification of the lost wallet trust game (a simplified version of the trust game) that permits punishment. Like previous studies, we collect data on what second-movers think that first-movers expect them to do by directly eliciting the second-movers’ expectations. Unlike previous studies, we ensure exogeneity of these expectations by instrumenting for them. The instrument is the expectations of neutral observers which are disclosed to second-movers prior to the elicitation of second-movers’ expectations. We find that what you think others expect you to do has a zero causal effect on both reward and punishment decisions. We also find that it is important to instrument for second-order expectations because they are endogenous. We interpret these findings in terms of models of guilt-aversion and intentional reciprocity.     

CONSUMPTION BENEFITS OF NATIONAL HOCKEY LEAGUE GAME TRIPS ESTIMATED FROM REVEALED AND STATED PREFERENCE DEMAND DATA

This paper examines the demand for hockey game trips among metropolitan and nonmetropolitan residents of Alberta, Canada. Using data on both revealed and stated preference game‐trip behavior from a telephone survey conducted throughout Alberta, we estimate the effect of ticket prices, team quality, arena amenities, and capacity on the latent demand for National Hockey League hockey games. We find that lower ticket prices, higher team quality, and additional capacity encourage attendance. In the status quo scenario, consumer surplus per game is $50 for those who had attended hockey games and about 50% less for those who had not attended games. Exploiting the stated preference data, we develop a number of other consumer surplus estimates. We also include travel costs in the estimation of the demand function and estimate the full value of the game trip considering both ticket prices and travel costs. Sold‐out arenas in Calgary and Edmonton generate annual consumption benefits of $40 and $35 million when only ticket prices are used to calculate consumer surplus (i.e., excluding travel costs). Considering the full‐price consumer surplus for the Calgary Flames of $103 per game trip, the annual consumption benefits may be as high as $82 million. (JEL R22, L83, D61)