Goal of research: Development and implementation of methods of structural estimation of the parameters of the utility functions of the participants on the experimental data in individual, group and collective interaction.
Methodology: Theoretical modeling of decision-making, laboratory experiments and survey methods, parametric and non-parametric statistical analysis, structural econometric estimates.
Empirical base of research: Experimental data collected in laboratory experiments with real monetary rewards, online surveys of research participants.
Results of research: In problems of individual choice we have obtained structural estimates of reference-dependent utility functions. It has been shown that the estimated parameters of these functions and their behavioral properties (e.g., tendency to risk aversion or loss aversion) do depend on the assumptions about reference points, which, therefore, cannot be set arbitrarily. In the context of prosocial behavior with third-party decisions under risk, it was shown that participants who are exposed to higher risks are more willing to share with the participants who do not face such risks. In addition, it was discovered that the structural estimates of the utility functions, estimated on individual behavior under risk, are poor predictors of prosocial risk, which once again confirms the contextual nature of pro-social and risk preferences. For the dictator game with third party punishment we have developed and estimated a behavioral model of inequity aversion. In the group decision task we analyzed two types of social contrasts between Russians and Ukrainians – on the ground of psychological questionnaires, and between Russians and Germans – in the context of one of the first online experiments with cross-national interaction. Results of these studies have shown that people from different countries share more characteristics than are different across countries, and that interpersonal interaction could increase the level of cooperation, particularly when they all face common problems – such as the need to prevent a global catastrophe.
Level of implementation, recommendations on implementation or outcomes of the implementation of the results
Results of the study primarily represent the scientific and methodological interest: they contribute to the understanding of the various aspects of behavior under risk, prosocial preferences, and group interaction. Results obtained can also be used for practical purposes — for example, for the design of optimal contracts, and for incentives to cooperate in intergroup and international interactions.