Abstract:In this essay we provide a brief account and interpretation of The Theory of Moral Sentiments showing that it departs fundamentally from contemporary patterns of thought in economics that are believed to govern individual behavior in small groups, and contains strong testable propositions governing the expression of that behavior. We also state a formal representation of the model for individual choice of action, apply the propositions to the prediction of actions in trust games, report two experiments testing these predictions, and (...) interpret the results in terms directly related to the model. In short, we argue that the system of sociability developed by Adam Smith provides a coherent non-utilitarian model that is consistent with the pattern of results in trust games, and leads to testable new predictions, some of which we test. (shrink)

Researchers from across the social sciences have found consistent deviations from the predictions of the canonical model of self-interest in hundreds of experiments from around the world. This research, however, cannot determine whether the uniformity results from universal patterns of human behavior or from the limited cultural variation available among the university students used in virtually all prior experimental work. To address this, we undertook a cross-cultural study of behavior in ultimatum, public goods, and dictator games in a range of (...) small-scale societies exhibiting a wide variety of economic and cultural conditions. We found, first, that the canonical model – based on self-interest – fails in all of the societies studied. Second, our data reveal substantially more behavioral variability across social groups than has been found in previous research. Third, group-level differences in economic organization and the structure of social interactions explain a substantial portion of the behavioral variation across societies: the higher the degree of market integration and the higher the payoffs to cooperation in everyday life, the greater the level of prosociality expressed in experimental games. Fourth, the available individual-level economic and demographic variables do not consistently explain game behavior, either within or across groups. Fifth, in many cases experimental play appears to reflect the common interactional patterns of everyday life. Key Words: altruism; cooperation; cross-cultural research; experimental economics; game theory; ultimatum game; public goods game; self-interest. (shrink)

Accumulating empirical evidence suggests that anger elicited in one situation can influence trust behaviors in another situation. However, the conditions under which anger influences trust are still unclear. The present study addresses this research gap and examines the ways in which anger influences trust. We hypothesized that the social distance to the trustee, and the trusting person’s gender would moderate the effect of anger on trust. To test this hypothesis, a study using a 2 (Anger vs. Control) × 2 (Low (...) vs. High social distance) × 2 (Men vs. Women) factorial design was conducted in Germany (N= 215) and in China (N= 310). Results reveal that in both countries men’s trust behavior was not influenced by the manipulations (i.e., anger and social distance). The pattern for women, however, differed by country. In Germany, women’s trust to a stranger (i.e., high social distance) was increased by anger; while in China, women’s trust to someone who they have communicated with (i.e., low social distance) was increased by anger. These results indicate that women’s trust levels seem to be more context-sensitive than men’s. (shrink)

A review of extent business ethics research uncovered well over 200 published articles that investigated the role of job functions within a business organization as an explanatory factor of ethical or unethical behavior. While an important body of work, ethical breaches are often found to cut across job functions and involve multiple disciplines embedded in a business organization. This research seeks to explore a crossfunctional explanation for ethical reasoning by using an instrument new to business ethics research, the Wason selection (...) task, but well-grounded and validated in cognitive research and evolutionary psychology, to assess an individual's ability to detect rule-based social contract violations. A sample of 276 full-time business practitioners, enrolled in part-time M.B.A. programs, from the accounting, finance, information technology, marketing, supply chain, and human resource management job functions were compared on their ability to detect rule violators across a series of production scenarios in the Wason selection task. Rates of cheater detection were calculated to determine if substantive differences existed across job functions. This was followed by a series of pairwise comparisons of percentages of cheater detection across the job functions using z-tests for assessing statistical significance. The data analysis showed differences in cheater detection, with most of the variance due to the marketing job function group. Insights from this study for scholars, educators, and practitioners in the business ethics field are discussed. (shrink)

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, (...) UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare. (shrink)

A cross-cultural analysis of trust and cooperation networks in Northern Ghana (NGHA) and Oaxaca (OAX) was carried out by means of ego networks and interviews. These regions were chosen because both are inhabited by several ethnic groups, thus providing a good opportunity to test the cultural group selection hypothesis. Against the predictions of this approach, we found that in both regions cooperation is grounded in personal trust groups, and that social cohesion depends on these emotional bonds. Moreover, in agreement with (...) Fiske's notion of “evolved proclivities”, we also found two distinct kinds of trust networks, one for each region, which vary in terms of the degree of ethnic interrelation. This pattern suggests that social cohesion increases when environmental resources are scarce. (shrink)

The linguistic and cognitive sciences have severely underestimated the degree of linguistic diversity in the world. Part of the reason for this is that we have projected assumptions based on English and familiar languages onto the rest. We focus on some distortions this has introduced, especially in the study of semantics.

Behavioral scientists routinely publish broad claims about human psychology and behavior in the world's top journals based on samples drawn entirely from Western, Educated, Industrialized, Rich, and Democratic (WEIRD) societies. Researchers – often implicitly – assume that either there is little variation across human populations, or that these “standard subjects” are as representative of the species as any other population. Are these assumptions justified? Here, our review of the comparative database from across the behavioral sciences suggests both that there is (...) substantial variability in experimental results across populations and that WEIRD subjects are particularly unusual compared with the rest of the species – frequent outliers. The domains reviewed include visual perception, fairness, cooperation, spatial reasoning, categorization and inferential induction, moral reasoning, reasoning styles, self-concepts and related motivations, and the heritability of IQ. The findings suggest that members of WEIRD societies, including young children, are among the least representative populations one could find for generalizing about humans. Many of these findings involve domains that are associated with fundamental aspects of psychology, motivation, and behavior – hence, there are no obviousa priorigrounds for claiming that a particular behavioral phenomenon is universal based on sampling from a single subpopulation. Overall, these empirical patterns suggests that we need to be less cavalier in addressing questions ofhumannature on the basis of data drawn from this particularly thin, and rather unusual, slice of humanity. We close by proposing ways to structurally re-organize the behavioral sciences to best tackle these challenges. (shrink)

We describe food transfer patterns among Ache Indians living on a permanent reservation. The social atmosphere at the reservation is characterized by a larger group size, a more predictable diet, and more privacy than the Ache typically experience in the forest while on temporary foraging treks. Although sharing patterns vary by resource type and package size, much of the food available at the reservation is given to members of just a few other families. We find significant positive correlations between amounts (...) transferred among pairs of families, a measure of the "contingency" component required of reciprocal altruism models. These preferred sharing partners are usually close kin. We explore implications of these results in light of predictions from current sharing models. (shrink)

Abstract. Since Darwin, scholars have contemplated what our growing understanding of natural selection, combined with the fact that great suffering occurs, allows us to infer about the possibility that a benevolent God created the universe. Building on this long line of thought, I develop a model that illustrates how undesirable characteristics of the world (stylized “evils”) can influence long-run outcomes. More specifically, the model considers an evolutionary process in which each generation faces a risk from a “natural evil” (e.g., predation, (...) disease, or a natural disaster) subsequent to a basic resource allocation game. This allows both resource allocation and the natural evil to influence the number of surviving offspring. As the model shows, when the risk from the natural evil can be mitigated through the benevolent behavior of neighbors, the population may have increasing benevolence as a result of (1) greater risk from the natural evil and (2) a greater degree to which selfish individuals transfer resources to themselves in the resource allocation game. The main implication is that a world with evolutionary processes (in contrast to a world of static design) can allow two factors that have traditionally been considered “evils”—namely, the indiscriminate cruelty of the natural world and the capacity for humans to harm each other—to promote desirable long-run outcomes. (shrink)

Much of the history of game theory has been dominated by the problem of indeterminacy. The very search for better versions of rationality, as well as the long list of attempts to refine Nash equilibrium, can be seen as answers to the indeterminacy that has accompanied game theory through its history. More recently, the experimental approach to game theory has attempted a more radical solution: by directly generating a stream of behavioral observations, one hopes that behavioral hypotheses will be sharper, (...) and predictions more accurate. This article looks at several attempts to address indeterminacy, including the shift to evolutionary models. However, because its goal is to establish whether rational choice models are inescapably doomed to produce indeterminate outcomes, it pays much more attention to the experimental turn in game theory, the difficulty it encounters, and the promising results obtained by more realistic models of rationality that include a social component. (shrink)