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Lecture 10

PSYC 3100 Lecture Notes - Lecture 10: Marginal Utility, Public Goods Game, Global Warming

Course Code
PSYC 3100
Pat Barclay

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Direct reciprocity: A B B A
- Person A helps B, B will later help A
- Directly help towards a specific individual
Indirect Reciprocity
- Help repaid by s/o other than the recipient
o Get a reputation to help
- A helps B, B helps C, A receives help from D because they observed A helping B and
therefore indirectly helps A.
- Good deeds, karma
- Evolutionary stable, those who help gain a good reputation and therefore ore likely
to receive help
- Individuals who do not help, no one helps them
- Those who harm others receive harm back
- Those who are more cooperative have higher payoff than those who do not
- Evidence?
o Data: Two buttons in box: give or not give
Click yes or no, green light or red, but tangle of wires no one would
know who it was however that was giving or not giving, everything
was anonymous
o If you donate it costs you a buck, receiver receives a buck
o Removed the ability of direct reciprocity
o Image score, every time you give your image score went up by 1
o 8 Independent data points/ Separate Groups
anyone with a positive image score has given more often than
Anyone with a negative image score, has refused to give more than
In each group, black bar is higher than white bar, therefore donors
would give more to receivers with higher scores, and would not help
those who had lower scores
Those who helped received good scores and therefore more likely to
receive back, indirectly from others
Group Cooperation
- Introduction to Public Goods
o A public good is something that is costly to provide, but once provided
everyone benefits from it, including, those who did not help provide it
No one can be excluded from benefits
Example: public radio, not donating but listening
Group diligence and defense, watching out for predators,
risking injuries from predator, so why not sit back and free-
ride everyone else’s defense, and save yourself
o Private incentive, not provide public good and get free ride
o If everyone does this, public good cannot be done
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