Behavioral and Experimental Economics

In this assignment, we will analyze data from our experiments where you played the ultimatum game and the dictator game, but this time using the data from Spring 2014. The data contain the following variables:

* treatment: A dummy variable that equals 1 if the observation is from the ultimatum game, and equals 0 if the observation is from the dictator game.

id: the ID number of the subject.
id_opp: The ID number of the subject’s opponent.

* proposer: A dummy variable that equals 1 if the observation is from the proposer, and equals 0 if the observation is from the responder.

* offer: the amount the proposer offers to keep for him/herself.
offer_ult: the amount the proposer offers to keep for him/herself in the ultimatum game
offer_dict: the amount the proposer offers to keep for him/herself in the dictator game

* accept:a dummy variable that equals 1 if the responder accepted the proposer’s offer, and equals 0 if not.
1. The dataset ult_between.csv contains the results of both the ultimatum game and the dictator game. This version of the data is stacked; that is:
– each row is an observation of an offer from a proposer
– the results from each game are stacked on top of each other. The variable “treatment” equals 1 if the offer is from the ultimatum game, and equals 0 if the offer is from the dictator game
– all offers are recorded under the same variable offer.

Each game was played by a different set of subjects, so that we have a between-subject design.

Test whether the offer made by the proposer (i.e., the amount the proposer wants to keep for herself) is different in the two games by performing:

a. a two-sample independent t-test
b. a regression where the dependent variable is offer and the independent variable is treatment

2. The dataset ult_within.csvalso contains the results of both games. However, this version of the data captures the fact that 8 people were proposers in both games. This version of the data has two variables for the offers the person made in the two different games:
– offer_ult is the offer the subject made in the ultimatum game
– offer_dictis the offer the subject made in the dictator game
Test whether the offer is different in the two games by performing a paired t-test.

3. Use a regression to test whether the responders were less likely to accept offers where the proposers kept more for themselves.

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