Comparative Experimental Evidence from Peru, Chile & the U.S. Shows Substantial Variation Among Social Groups
Univ. Michigan Business School Working Paper No. 00-020
Posted: 6 Dec 2000
Date Written: 2000
Abstract
This paper reports experimental results from ultimatum and public goods experiments performed among the Machiguenga of the Peruvian Amazon, the Mapuche and Huinca of southern Chile, and with U.S. control groups in Los Angeles and Ann Arbor (MI). We will emphasize three findings. First, results from both our ultimatum and public goods games indicate much greater between-group variation than previous work has suggested (see Chapter 1). Second, if individual economic decisions vary as a consequence of differences in individuals' circumstances, then variables such as wealth, household size, age and sex should provide some explanatory power. However, individual-level economic and demographic variables, including a measure of risk preference, do not account for much, if any, of the variation. Finally, despite the failure of individual-level variables to explain variation, our results do seem to reflect group-level differences in the economic life of these groups, as captured in numerous ethnographic accounts (including our own). To deal with these empirical patterns, new theories will need to provide processes that generate group-level effects while reducing the relevance of individual-level differences.
For organizational purposes, we will not address these three points sequentially. We'll begin with a brief ethno-historical sketch of the Machiguenga, Mapuche and Huinca. Then, we'll describe our ultimatum game methodologies, and present the results. Next, we'll describe the methodologies we used in our public goods games, and present those results-we do this first for the Machiguenga/American comparison and then for the Mapuche/Huinca experiment. As we present this data, we'll emphasize the results pertaining to our three major points. We will conclude with some theoretical and methodological points related to our findings.
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