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Title page
Contents
Abstract 3
1. Introduction 4
2. Related literature and some preliminary evidence 9
2.1. Experiments varying payoff parameters 9
2.2. Mengel's meta-analysis 11
2.3. A preliminary experiment 12
3. Methods 14
3.1. Experimental design and procedures for within-subjects Study 1 14
3.2. Experimental design and procedures for between-subjects Study 2 16
4. Results 17
4.1. Results from the within-subject experiment (Study 1) 17
4.2. Discussion of Study 1 23
4.3. Results from the between-subjects experiment (Study 2) 24
4.4. Discussion of Study 2 25
5. Related payoff indices: normalized loss, normalized gain, and K-index 25
5.1. Normalized loss and normalized gain 25
5.2. A summary index of PD parameters: The K-index 30
5.3. Discussion 32
6. Towards an explanation of our results 34
7. Concluding remarks 35
Acknowledgements 37
References 37
Appendix A. Instructions 43
Appendix B. The preliminary experiment: details of design and results 51
Appendix C. Descriptive statistics of subject pools 59
Appendix D. Non-parametric test results of Studies 1 and 2 60
Appendix E. Belief accuracy in Studies 1 and 2 62
Appendix F. Full regression results of Studies 1 and 2 64
Appendix G. Individual beliefs and cooperative choice in Study 1 67
Appendix H. The mediating role of beliefs for cooperation in Studies 1 and 2 68
Appendix I. Monotonicity violations in Study 1 69
Appendix J. Normalized loss, normalized gain, and the K-index in Studies 1 and 2 71
References 81
Fig. 1. Average cooperation rates in the eight Prisoner's Dilemma games of Study 1's UoN sample (Panels a-c), Study 1's AMT sample (Panels d-f) and Study 2... 18
Fig. 2. Average cooperative beliefs in the eight Prisoner's Dilemma games of Study 1's UoN sample (Panels a-c), Study 1's AMT sample (Panels d-f) and Study 2... 19
Fig. 3. Average cooperation rates for each level of a game's K-index, by study and subject pool 31
Fig. B1. Average cooperation rates and payoff indices of the 15 Prisoner's Dilemma games of the preliminary experiment. The line patterns indicate the Bonferroni-adjusted... 53
Fig. B2. Normalized loss l, normalized gain g, and average cooperation rates in the preliminary experiment. The game number is shown in the respective marker.... 56
Fig. B3. Average cooperation rates for each level of a game's K-index in the preliminary experiment 57
Fig. G1. The distribution of individuals' average beliefs by the number of their own cooperative choices (0 = defect in all 8 games; 8 = cooperate in all 8 games)... 67
Fig. H1. Unstandardized path coefficient estimates taken from Table F1-F2 68
Fig. I1. The number of violations of the monotonicity assumption by payoff index in Study 1 70
Fig. I2. The number of violations of the monotonicity assumption across all three payoff indices in Study 1 71
Fig. J1. The variation in RISK, TEMPT and EFF (Panel a) and normalized loss l and gain g (Panel b) across the eight games 72
Fig. J2. Normalized loss l, normalized gain g, and average cooperation rates by study and subject pool. The game number is shown in the respective marker 73
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