A Study of Human Decision-Making in Economic Games

This dissertation contains three essays on the impact of other-regarding behavior on human decision-making. Chapter II uses experimental methods to analyze the relative performance of a variety of compensation contracts. This study creates an environment in which individuals are paid via common payment mechanisms employed in the dual-principal agent relationships (Piece Rate, Flat Rate, Salary, Bonus and Socialization) and examines the effect that different incentive structures have on agent behavior. In Chapter III I explore the potential outcomes of blended payment structures in a dual-principal agent environment. I draw from the previously conducted experimental study in Chapter II and simulate agent behavior induced by blended payment mechanisms. In Chapter IV, I move away from studying payment mechanisms to investigate the impact of intentionality and responsibility on an individual's decision-making process. I explore the effects of direct and indirect responsibility as well as selfish and kind intentions using experimental methodology. Each of these essays provides further evidence that other-regarding behavior has a significant impact on the outcome of an economic situation; therefore, emphasizing the need to address such behavior in theoretical designs.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Economics

Department dc:contributor.department

Economics

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

2011

Author dc:creator

• Green, Ellen P.

Chair dc:contributor.committeechair

• Ball, Sheryl B.

Committee members dc:contributor.committeemember

• Ge, Suqin
• Macieira, Joao C.
• Tideman, Nicolaus
• You, Wen

• Principal-agent theory
• moral hazard
• contract enforcement
• reciprocity
• altruism
• other-regarding behavior
• responsibility
• intentionality

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Dc Identifier Other

etd-11082011-152752

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/29505