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Monetary Efficiency Gains Through Uncensored Feedback

Date & Time:
September 24, 2014 | 1:30 pm - 3:00 pm
SS 423
David Johnson


I extend current understanding of non-monetary punishments by introducing the possibility of unrestricted feedback in laboratory and online ultimatum games. The possibility of unrestricted feedback significantly increases amounts sent by proposers but only in the lab. This effect is statistically significant and large in magnitude, however it is not present in the online experiment. Further, I show people leaving negative feedback
have higher monetary expectations. Such results illustrate social distance and physical proximity can weaken the effectiveness of non-monetary punishments while potential vulgarity creates large effciency gains if the social distance is small.

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