Monetary versus grade incentives depending on personality traits: A field experiment on undergraduate students' performance.

This study aims to examine the role of personality on the effectiveness in improving students' performance of two extrinsic incentives: monetary and grade incentives. To achieve this goal, we conducted a randomized field experiment in which students in a Microeconomics course were offered the opportunity to participate in a practice test program, with no effects on the grade of the course itself. In the call to participate, students were informed that participants would be randomly assigned to one of two groups. Whereas in the control group students would not be monetarily incentivized, participants assigned to the treatment group would be paid according to their performance in the practice tests. In addition, we elicited the big five personality and risk aversion traits of the participants (168 undergraduates). All subjects received grade incentives in the later official course exam, in which no monetary incentives were offered. We used non-parametric tests to carry out both between-subjects and within-subjects performance comparisons. Controlling for potential confounding factors like students' gender and academic record, our OLS regressions indicate that although monetary incentives are effective in improving students' performance in practice tests, their effect does not carry over to the course exam. Furthermore, we find that the effectiveness of grade incentives (used in the course exam) on improvement as a substitute for monetary incentives (adopted in practice tests), is higher the more conscientious the students are.

When Will the Lockdown End? Confinement Duration Forecasts and Self-Reported Life Satisfaction in Spain: A Longitudinal Study.

This paper reports results from a longitudinal study on the impact of the lockdown on daily self-reported life satisfaction levels during the first wave of the COVID-19 pandemic in Spain. A stable panel (N = 1,131) of adult subjects were surveyed during 84 consecutive days (March 29-June 20, 2020). They were asked to report daily life satisfaction and health state levels. Interestingly, daily life satisfaction increased during the lockdown. At the beginning of the experiment, subjects were asked to guess the end-week of the lockdown, against a possible monetary reward for accurate forecasts. Subjects predicting a longer lockdown period reported a higher average level of daily life satisfaction. Females reported on average lower levels of daily life satisfaction, but exhibited a stronger tendency to report higher levels of life satisfaction, the longer their lockdown forecast. Individual heterogeneity in life satisfaction levels can be partly attributed to personality traits, with neuroticism having a negative effect, while extraversion and agreeableness having a positive effect on daily life satisfaction.

Risk-taking and fairness among cocaine-dependent patients in dual diagnoses: Schizophrenia and Anti-Social Personality Disorder.

This study reports experimental results from a clinical sample of patients with a cocaine-related disorder and dual diagnosis: Schizophrenia and Anti-Social Personality Disorder. Both types of patients as well as a non-clinical group of students performed two incentivized decision-making tasks. In the first part of the experiment, they performed a lottery-choice task in order to elicit their degree of risk aversion. In the second part, they decided in two modified dictator games aimed at eliciting their aversion to advantageous and disadvantageous inequality. It is found that the Anti-Social Personality Disorder group exhibits no significant differences from the non-clinical sample in either task. However, compared with the students' sample, subjects from the group with schizophrenia show more risk aversion and exhibit more aversion towards disadvantageous inequality.

Individual Characteristics vs. Experience: An Experimental Study on Cooperation in Prisoner's Dilemma.

Cooperative behavior is often assumed to depend on individuals' characteristics, such as altruism and reasoning ability. Evidence is mixed about what the precise impact of these characteristics is, as the subjects of study are generally randomly paired, generating a heterogeneous mix of the two characteristics. In this study we ex-ante create four different groups of subjects by factoring their higher or lower than the median scores in both altruism and reasoning ability. Then we use these groups in order to analyze the joint effect of the two characteristics on the individual choice of cooperating and on successful paired cooperation. Subjects belonging to each group play first 10 one-shot prisoner's dilemma (PD) games with ten random partners and then three consecutive 10-round repeated PD games with three random partners. In all games, we elicit players' beliefs regarding cooperation using an incentive compatible method. Individuals with high altruism are more optimistic about the cooperative behavior of the other player in the one-shot game. They also show higher individual cooperation and paired cooperation rates in the first repetitions of this game. Contrary to the one-shot PD games where high reasoning ability reduces the probability of playing cooperatively, the sign of the relationship is inverted in the first repeated PD game, showing that high reasoning ability individuals better adjust their behavior to the characteristics of the game they are playing. In this sense, the joint effect of reasoning ability and altruism is not linear, with reasoning ability counteracting the cooperative effect of altruism in the one-shot game and reinforcing it in the first repeated game. However, experience playing the repeated PD games takes over the two individual characteristics in explaining individual and paired cooperation. Thus, in a (PD) setting, altruism and reasoning ability significantly affect behavior in single encounters, while in repeated interactions individual and paired cooperation reach similarly high levels independently of these individual characteristics.

Take the Money and Run: Psychopathic Behavior in the Trust Game.

We study the association among different sources of individual differences such as personality, cognitive ability and risk attitudes with trust and reciprocate behavior in an incentivized experimental binary trust game in a sample of 220 (138 females) undergraduate students. The game involves two players, player 1 (P1) and player 2 (P2). In the first stage, P1 decides whether to trust and let P2 decide, or to secure an egalitarian payoff for both players. If P1 trusts P2, the latter can choose between a symmetric payoff that is double than the secure alternative discarded by P1, and an asymmetric payoff in which P2 earns more than in any other case but makes P1 worse off. Before the main experiment, we obtained participants' scores for Abstract Reasoning (AR), risk attitudes, basic personality characteristics, and specific traits such as psychopathy and impulsivity. During the main experiment, we measured Heart Rate (HR) and ElectroDermal Activity (EDA) variation to account for emotional arousal caused by the decision and feedback processes. Our main findings indicate that, on one hand, P1 trust behavior associates to positive emotionality and, specifically, to the extraversion's warmth facet. In addition, the impulsivity facet of positive urgency also favors trust behavior. No relation to trusting behavior was found for either other major personality aspects or risk attitudes. The physiological results show that participants scoring high in psychopathy exhibit increased EDA and reduced evoked HR deceleration at the moment in which they are asked to decide whether or not to trust. Regarding P2, we find that AR ability and mainly low disagreeable disinhibition favor reciprocal behavior. Specifically, lack of reciprocity significantly relates with a psychopathic, highly disinhibited and impulsive personality. Thus, the present study suggests that personality characteristics would play a significant role in different behaviors underlying cooperation, with extraversion/positive emotionality being more relevant for initiating cooperation, and low disagreeable disinhibition for maintaining it.