Is monetary gain the only motivation?Evidence from Diner`s dilemma experiment
Ekaterina Zhukova
Abstract: The majority of societal problems arise as it is in a human nature to assign higher priority to own interests than to interests of the others. Economic theory predicts agents to behave maximizing in most situations, being followed by rational and selfish motives. Theory claims economic agents don’t take into account interests of the others and expect them to do the same. But is monetary gain the only thing that matters in practice? Numerous experiments and field studies show that it is not always the case: facing a choice between selfish behavior and socially desirable altruism, some agents do choose the last. The research presented in this paper also explores one of the social dilemmas, namely Diner`s dilemma, with a purpose to find evidence against theories based purely on selfish motives and find condition under which participants would cooperate with higher probability.
THE INEFFICIENCY OF SPLITTING THE BILL*
Uri Gneezy, Ernan Haruvy and Hadas Yafe
When agents are ascribed selfish motives, economic theory points to grave inefficiencies resulting from externalities. We study a restaurant setting in which groups of diners are faced with different ways of paying the bill. The two main manipulations are splitting the bill between the diners and having each pay individually. We find that subjects consume more when the costis split, resulting in a substantial loss of efficiency. Diners prefer the individual pay to the inefficient split-bill method. When forced to play according to a less preferred set of rules, they minimise their individual losses by taking advantage of others.