Testing for Heterogeneity of Preferences in Randomized Experiments: A Satisfaction-Based Approach Applied to Multiplayer Prisoners’ Dilemmas
32 Pages Posted: 19 Jun 2016
Date Written: June 16, 2016
We use experimental data from the “vote with the wallet” multiplayer prisoner’s dilemma to investigate with a finite mixture approach the effect of a responsible purchase on players’ satisfaction. We find clear-cut evidence of heterogeneity of preferences with two groups of players that differ significantly in terms of effects of the responsible choice on satisfaction.
Keywords: randomized experiment, multiplayer prisoners’ dilemma, mixture models, satisfaction
JEL Classification: C92, D03, D12, D60, D71
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