Individual Decision-making In Tipping Point Scenarios With And Without Early Warning Signals - Info and Reading Options
By Florian Diekert, Daniel Heyen and Felix Kotulla
“Individual Decision-making In Tipping Point Scenarios With And Without Early Warning Signals” Metadata:
- Title: ➤ Individual Decision-making In Tipping Point Scenarios With And Without Early Warning Signals
- Authors: Florian DiekertDaniel HeyenFelix Kotulla
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- Internet Archive ID: osf-registrations-kq3e9-v1
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How does the availability of an Early Warning System (EWSys) that warns about an impending tipping point affect individual decision-making? In a given part of the experiment, a participant chooses over six consecutive rounds how many tokens to claim from a pot. The pot can have between 0 and 200 tokens, but the participant does not know the actual number of tokens in a pot in a given part. If the participant claims more tokens than there are in the pot in any given round, the part ends. If she claims less tokens than there are in the pot, she can continue to the next round. Payment is proportional to the sum of successfully claimed tokens in a randomly selected part. In this setting, we compare participants who do or do not have an EWSys sending a warning when the claim leaves less than 40 (or 80) tokens in the pot. Hence, there are three types of decision environments: One without an EWSys, one with a short-range EWSys (warning at less than 40 tokens), and one with a long-range EWSys (warning at less than 80 tokens); the order of EWSys is randomized across treatment conditions. We compare observed participant behavior under the different EWSys to the theoretical benchmark of payoff maximizing behavior. Further, we compare participants’ valuation of the EWSys to its theoretical counterpart.
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