This paper contributes to the promotion of multidisciplinary research on ethical consumerism by providing experimental evidence on consumer's willingness to reward sellers by paying higher wages to their workers. We analyze repeated interactions occurring between workers, sellers, and consumers within the framework of an experimental market. By successfully performing a task, workers allow sellers to offer a good through a market. Sellers set the price of goods and decide the wages of workers. Consumers enter the market sequentially and (...) decide whether to accept one of the offers or to leave the market. Our data show that, especially in the first periods of the experiment, some sellers opt to pay high wages to their workers. However, this behavior is not rewarded by consumers, whose purchasing choices are almost exclusively driven by self‐interest. In our interpretation, the connection between workers and sellers that connotes our experimental design, with workers who allow sellers to enter the market, may induce consumers to believe that eventual sacrifices for paying high wages to workers must be entirely on sellers. Our result suggests that the more salient is made the importance of some stakeholders in allowing the firm's activity, the fewer consumers' may be willing to sacrifice their monetary payoff to improve these stakeholders' condition. (shrink)

Prediction markets are increasingly being considered as methods for gathering, summarizing and aggregating diffuse information by governments and businesses alike. Critics worry that these markets are susceptible to price manipulation by agents who wish to distort decision making. We study the effect of manipulators on an experimental market, and find that manipulators are unable to distort price accuracy. Subjects without manipulation incentives compensate for the bias in offers from manipulators by setting a different threshold at which they (...) are willing to accept trades. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 3, Page 875-887, July 2022.

Heath and Tversky (1991, Journal of Risk and Uncertainty 4:5–28) posed that reaction to ambiguity is driven by perceived competence. Competence effects may be inconsistent with ambiguity aversion if betting on own judgement is preferred to betting on a chance event, because judgemental probabilities are more ambiguous than chance events. This laboratory experiment analyses whether ambiguity affects prices and volumes in a double auction market, and contrasts ambiguity aversion to competence effects. In order to test for the presence of competence (...) effects, in the experiment uncertainty is tied to the realisation of events about which the decision maker is more or less knowledgeable. Two experiments are presented: in the first, knowledge is exogenous, whereas in the second the knowledge judgement is endogenous. Market prices provide evidence in favour of the competence hypothesis only when competence is self-assessed. Comparable volumes are observed in both experiments. (shrink)

Heath and Tversky (1991, Journal of Risk and Uncertainty 4:5–28) posed that reaction to ambiguity is driven by perceived competence. Competence effects may be inconsistent with ambiguity aversion if betting on own judgement is preferred to betting on a chance event, because judgemental probabilities are more ambiguous than chance events. This laboratory experiment analyses whether ambiguity affects prices and volumes in a double auction market, and contrasts ambiguity aversion to competence effects. In order to test for the presence of competence (...) effects, in the experiment uncertainty is tied to the realisation of events about which the decision maker is more or less knowledgeable. Two experiments are presented: in the first, knowledge is exogenous, whereas in the second the knowledge judgement is endogenous. Market prices provide evidence in favour of the competence hypothesis only when competence is self-assessed. Comparable volumes are observed in both experiments. (shrink)

On traditional information markets, rewards are tied to the occurrence of events external to the market, such as some particular candidate winning an election. For that reason, they can only be used when it is possible to wait for some external event to resolve the market. In cases involving long time-horizons or counterfactual events, this is not an option. Hence, the need for a self-resolving information market, resolved with reference to factors internal to the market itself. In the present (...) paper, we first offer some theoretical reasons for thinking that, since the only thing that can be expected to be salient to all participants on a SRIM is the content of the question bet on, a convention will arise of taking that question at face value, and betting accordingly, in which case trading behaviour on SRIMs can be expected to be identical to that on TIMs. This is the ‘face value’ hypothesis. If this hypothesis holds, SRIMs have the potential of incorporating the accuracy of TIMs while shedding their limitations in relation to long-term predictions and the evaluation of counterfactuals. We then report on a laboratory experiment that demonstrates that trading behaviour can indeed come out highly similar across SRIMs and TIMs. As such, the study can be thought of as an experimental case study on SRIMs. Finally, we discuss some limitations of the study, and also points towards fruitful areas of future research in light of our results. (shrink)

While a simple information market lets one trade on the probability of each value of a single variable, a full combinatorial information market lets one trade on any combination of values of a set of variables, including any conditional or joint probability. In laboratory experiments, we compare the accuracy of simple markets, two kinds of combinatorial markets, a call market and a market maker, isolated individuals who report to a scoring rule, and two ways to combine those individual (...) reports into a group prediction. We consider two environments with asymmetric information on sparsely correlated binary variables, one with three subjects and three variables, and the other with six subjects and eight variables (and so 256 states). (shrink)

This second Cambridge University Press collection of papers by Vernon L. Smith, a creator of the field of experimental economics, includes many of his primary authored and coauthored contributions on bargaining and market behavior between 1990 and 1998. The essays explore the use of laboratory experiments to test propositions derived from economics and game theory. They also investigate the relationship between experimental economics and psychology, particularly the field of evolutionary psychology, using the latter to broaden the perspective in (...) which experimental results are interpreted. The volume complements Professor Smith's earlier work by demonstrating the importance of institutional features of markets in understanding behavior and market performance. Specific themes investigated include rational choice, the notion of fairness, game theory and extensive form experimental interactions, institutions and market behavior, and the study of laboratory stock markets. (shrink)

We assert that audit quality can be improved to the extent that social norms for honesty and responsibility are activated in the auditor. To test this assertion, we use an experimental audit market setting found in the literature and manipulate factors expected to activate honesty and responsibility norms in the auditor. We find that auditor misreporting is reduced when the investor is another participant in the experiment rather than computer simulated, and thus, the interests of third-party investors are salient (...) to the auditor. We also find that auditor misreporting is reduced when the auditor is required to sign-off on the audit report, but only when the investor is another participant in the experiment. Consistent with our underlying theory, we find that pre-experimental measures of sensitivity to honesty and responsibility norms help explain the effects of our manipulated variables. Finally, we find that these measures of social norm sensitivity are associated with the moral judgment that auditor misreporting is unethical. Our study helps explain previous anomalous findings in the literature and answers the call in Blay et al. for empirical researchers to use social norm theory to develop stronger tests of moral reasoning in the market for auditing services. (shrink)

In 1942 a coalition of twenty scientific societies formed the Conference on the Supply of Experimental Animals in an attempt to pressure the Medical Research Council to accept responsibility for the provision of standardised experimental animals in Britain. The practice of animal experimentation was subject to State regulation under the Cruelty to Animals Act of 1876, but no provision existed for the provision of animals for experimental use. Consequently, day-to-day laboratory work was reliant on a commercial small (...) animal market which had emerged to sustain the hobby of animal fancying. This paper explores how difficulties encountered in experimental practice within the laboratory led to the problematisation of biomedical science’s reliance upon a commercial market for animals during the inter-war period. This is shown to have produced a crisis within animal reliant experimental science in the early 1940s which enabled the left-wing Association of Scientific Workers to cast science’s reliance on a free market as economically inefficient and a threat to the reliability of British research. It is argued that the development of standard experimental animals in Britain was, therefore, embedded within the wider cultural, societal, political and economic national context of the time. (shrink)

We assert that audit quality can be improved to the extent that social norms for honesty and responsibility are activated in the auditor. To test this assertion, we use an experimental audit market setting found in the literature and manipulate factors expected to activate honesty and responsibility norms in the auditor. We find that auditor misreporting is reduced when the investor is another participant in the experiment rather than computer simulated, and thus, the interests of third-party investors are salient (...) to the auditor. We also find that auditor misreporting is reduced when the auditor is required to sign-off on the audit report, but only when the investor is another participant in the experiment. Consistent with our underlying theory, we find that pre-experimental measures of sensitivity to honesty and responsibility norms help explain the effects of our manipulated variables. Finally, we find that these measures of social norm sensitivity are associated with the moral judgment that auditor misreporting is unethical. Our study helps explain previous anomalous findings in the literature and answers the call in Blay et al. (J Bus Ethics 2017. doi:10.1007/s10551-016-3286-4) for empirical researchers to use social norm theory to develop stronger tests of moral reasoning in the market for auditing services. (shrink)

The emerging critique of alternative food networks (AFNs) points to several factors that could impede the participation of low-income, minority communities in the movement, namely, spatial and temporal constraints, and the lack of economic, cultural, and human capital. Based on a semi-experimental study that offers 6 weeks of free produce to 31 low-income African American households located in a New Orleans food desert, this article empirically examines the significance of the impeding factors identified by previous scholarship, through participant surveys (...) before, during, and after the program. Our results suggest economic constraints are more influential in determining where the participants shop for food than spatial and temporal constraints, and the study participants exhibit high levels of human and cultural capital regarding the purchase and consumption of locally grown produce. We also find them undeterred by the market’s predominantly White, middle-class cultural social space, which leads us to question the extent to which cultural exclusivity discourages their participation in AFNs. For all five factors we find that the constraints posed to accessing the local food market were not universal but varied among the participants. Finally, the study reveals some localized social constraints, fragmented social ties in particular, as a possible structural hurdle to engaging these residents in the alternative market in their neighborhood. Conclusions point to the need for a multi-dimensional and dynamic conceptualization of “food access.”. (shrink)

We describe a first experiment on whether product complexity affects competition and consumers in retail markets. We are unable to detect a significant effect of product complexity on prices, except insofar as the demand elasticity for complex products is higher. However, there is qualified evidence that complex products have the potential to induce consumers to buy more than they would otherwise. In this sense, consumer exploitability in quantities cannot be ruled out. We also find evidence for shaping effects: consumers’ (...) preferences are shaped by past experience with prices, and firms may in principle exploit this to sell more. (shrink)

It is a well-documented phenomenon that individuals stop searching earlier than predicted by the optimal, risk-neutral stopping rule, leading to inefficient searches. Individuals' search behaviors during making investment decisions in financial markets can be easily affected by their peers. In this study, we designed a search game in a simplified experimental stock market in which subjects were required to search for the best sell prices for their stocks. By randomly assigning subjects into pairs and presenting them with real-time (...) information on their peers' searches, we investigated the effects of peers' decisions on search behaviors. The results showed that two subjects in the same group with real-time peer information learned and engaged in similar search behaviors. However, this peer effect did not exist when subjects had access to feedback information on the ex-post best response. In addition, we found that the presence of information about peers' decisions alone had no significant impact on search efficiency, whereas access to both information on peers' decisions and feedback information significantly improved subjects' search efficiency. (shrink)

We study the effect of transaction costs (e.g., a trading fee or a transaction tax, like the Tobin tax) on the aggregation of private information in financial markets. We analyze a financial market à la Glosten and Milgrom, in which informed and uninformed traders trade in sequence with a market maker. Traders have to pay a cost in order to trade. We show that, eventually, all informed traders decide not to trade, independently of their private information, i.e., an informational (...) cascade occurs. We replicated our financial market in the laboratory. We found that, in the experiment, informational cascades occur when the theory suggests they should. Nevertheless, the ability of the price to aggregate private information is not significantly affected. (JEL C92, D8, G14). (shrink)

The concept of 'authenticity' is highly valued on social media sites (SMSes), despite its ambiguous nature and definition. One interpretation of 'authenticity' by media scholars is a human's congruence with online portrayals of themselves (e.g. posting spontaneous photographs from their lives, or using real biodata online). For marketers and 'influencers', these patterns of behaviour can achieve certain gains: sales for a business, or success of a campaign. For existentialist philosophers, using 'authenticity' as a means to an end is against its (...) very definition. In this paper, I investigate what SMS users are looking for by their supposed 'authentic' portrayal online. My experimental approach draws upon empirical data from the Instagram social media site. Using machine learning techniques, descriptions and features of posts - including subjects, captions, and contexts - will be categorised and aggregated. I will then interpret these findings, drawing upon work by Taylor, Golomb, and Guignon, whose works on authenticity are based on mid-20th century existentalists. I argue that the existentialist ideals on authenticity are not necessarily present in contemporary SMS use. I will also argue that the popular interpretation of authenticity on SMSes can be self-defeating, when it seeks to turn the 'for-itself' into an 'in-itself'. (shrink)

Great individuals are assumed to cause the success of radical innovations--thus Henry Ford is depicted as the one who established the automobile industry in America. Hayagreeva Rao tells a different story, one that will change the way you think about markets forever. He explains how "market rebels"--activists who defy authority and convention--are the real force behind the success or failure of radical innovations. Rao shows how automobile enthusiasts were the ones who established the new automobile industry by staging highly (...) publicized reliability races and lobbying governments to enact licensing laws. Ford exploited the popularity of the car by using new mass-production technologies. Rao argues that market rebels also establish new niches and new cultural styles. If it were not for craft brewers who crusaded against "industrial beer" and proliferated brewpubs, there would be no specialty beers in America. But for nouvelle cuisine activists who broke the stranglehold of Escoffier's classical cuisine in France, there would have been little hybridization and experimentation in modern cooking. Market rebels also thwart radical innovation. Rao demonstrates how consumer activists have faced down chain stores and big box retailers, and how anti-biotechnology activists in Germany penetrated pharmaceutical firms and delayed the commercialization of patents. Read Market Rebels to learn how activists succeed when they construct "hot causes" that arouse intense emotions, and exploit "cool mobilization"--unconventional techniques that engage audiences in collective action. You will realize how the hands that move markets are the joined hands of market rebels. (shrink)

Firms that wish to be morally responsible in providing products that meet a high standard of safety may face problems competing against firms that make unsafe products and sell these products at cheap prices; these problems may be compounded when consumers do not accurately process information about safety and risk. This paper presents a conceptual argument that the tort system may serve to promulgate information which makes it feasible for firms to market safe products even in the face of these (...) competitive obstacles.To corroborate the conceptual argument, the paper presents the results of an experimental study about the impact of negligence liability information on consumer product safety evaluation. The results show that provision of negligence information heightens consumer concern for safety and firms' ethical behavior, and increases the proportion of consumer choices in favors of the brands sold by manufacturers with a favorable track record for quality. More importantly, they indicate that provision of negligence information reduces the likelihood that brands which conform to inferior safety standards will be chosen by consumers who care about safety standards. (shrink)

We study experimental markets where privately informed traders exchange simple assets, and where uninformed third parties are asked to forecast the values of these assets, guided only by market prices. Although prices only partially aggregate information, they significantly improve the forecasts of third parties. In a second treatment, a portion of traders are given preferences over the forecasts made by observers. Although we find evidence that these traders attempt to manipulate prices in order to influence the beliefs of (...) observers, we find no evidence that observers make less accurate forecasts as a result. (shrink)

A key challenge in experimental social science research is the incentivisation of subjects such that they take the tasks presented to them seriously and answer honestly. If subject responses can be evaluated against an objective baseline, a standard way of incentivising participants is by rewarding them monetarily as a function of their performance. However, the subject area of experimental philosophy is such that this mode of incentivisation is not applicable as participant responses cannot easily be scored along a (...) true-false spectrum by the experimenters. We claim that experimental philosophers’ neglect of and claims of unimportance about incentivisation mechanisms in their surveys and experiments has plausibly led to poorer data quality and worse conclusions drawn overall, potentially threatening the research programme of experimental philosophy in the long run. As a solution to this, we propose the adoption of the Bayesian Truth Serum, an incentive-compatible mechanism used in economics and marketing, designed for eliciting honest responding in subjective data designs by rewarding participant answers that are surprisingly common. We argue that the Bayesian Truth Serum (i) adequately addresses the issue of incentive compatibility in subjective data research designs and (ii) that it should be applied to the vast majority of research in experimental philosophy. Further, we (iii) provide an empirical application of the method, demonstrating its qualified impact on the distribution of answers on a number of standard experimental philosophy items and outline guidance for researchers aiming to apply this mechanism in future research by specifying the additional costs and design steps involved. (shrink)

This paper explores the role of inequity aversion as an explanation for observed behavior in experimental Cournot oligopolies. We show that inequity aversion can change the nature of the strategic interaction: quantities are strategic substitutes for sufficiently asymmetric output levels but strategic complements otherwise. We find that inequity aversion can explain why: some experiments result in higher than Cournot–Nash production levels while others result in lower, collusion often occurs with only two players whereas with three or more players market (...) outcomes are very close to Cournot–Nash, and players often achieve equal profits in asymmetric Cournot oligopoly. (shrink)

In this introduction, we address some of the complexities associated with the emergence of medicine’s bodies, not least as a means to ‘working with the body’ rather than simply producing a critique of medicine. We provide a brief review of some of the recent discussions on how to conceive of medicine and its bodies, noting the increasing attention now given to medicine as a technology or series of technologies active in constituting a multiplicity of entities – bodies, diseases, experimental (...) objects, the individualization of responsibility for health and even the precarity of life. We contrast what feminist theorists in the tradition of Judith Butler have referred to as the question of matter, and Science and Technology Studies with its focus on practice and the nature of emergence. As such we address tensions that exist in analyses of the ontological status of ‘the body’ – human and non-human – as it is enacted in the work of the laboratory, the randomized controlled trial, public health policy and, indeed, the market that is so frequently entangled with these spaces. In keeping with the recent turns toward ontology and affect, we suggest that we can regard medicine as concerned with the contraction and reconfiguration of the body’s capacities to affect and be affected, in order to allow for the subsequent proliferation of affects that, according to Bruno Latour, marks corporeal life. Treating both contraction and proliferation circumspectly, we focus on the patterns of affects wrought in particular by the abstractions of medicine that are described in the contributions to this special issue. Drawing on the work of A.N. Whitehead, we note how abstractions such as ‘medical evidence’, the ‘healthy human body’ or the ‘animal model’ are at once realized and undercut, mediated and resisted through the situated practices that eventuate medicine’s bodies. Along the way, we touch on the implications of this sort of perspective for addressing the distribution of agency and formulations of the ethical and the political in the medical eventuations of bodies. (shrink)

Any experimental field consists of preparing special conditions for examining interesting objects for research. So naturally, the particular ways in which scientists prepare their objects determine the kind and the content of knowledge produced. This book provides a framework for the analysis of experimental practices - the Social Epistemology of Experiment - that incorporates both the ‘material’ and the ‘social’ dimensions of knowledge production. The Social Epistemology of Experiment is applied to experimental economics and in so doing, (...) it introduces the epistemic role of the participation of human subjects in experiments and the causal efficacy of institutions in constraining and enabling human behaviour. It also develops the role of the social and socially established practices in overcoming the methodological difficulties associated with experimenting with humans subjects in the social sciences as well as the effect of scientists’ interventions in the laboratory worlds. This book provides an historical and contextualized account of the emergence of experimental economics, the methodological discussions that have informed and constituted it, its main research programmes, and stylized facts. The analysis of its three main research programmes – market experiments, game theory experiments and individual decision-making experiments – shows how economics experiments are particularly tailored to produce knowledge about market institutions and individual behaviour in contexts where there might be conflicts of individual and social goals, and also about the processes of individual decision-making. (shrink)

A key challenge in experimental social science research is the incentivisation of subjects such that they take the tasks presented to them seriously and answer honestly. If subject responses can be evaluated against an objective baseline, a standard way of incentivising participants is by rewarding them monetarily as a function of their performance. However, the subject area of experimental philosophy is such that this mode of incentivisation is not applicable as participant responses cannot easily be scored along a (...) true-false spectrum by the experimenters. We claim that experimental philosophers’ neglect of and claims of unimportance about incentivisation mechanisms in their surveys and experiments has plausibly led to poorer data quality and worse conclusions drawn overall, potentially threatening the research programme of experimental philosophy in the long run. As a solution to this, we propose the adoption of the Bayesian Truth Serum, an incentive-compatible mechanism used in economics and marketing, designed for eliciting honest responding in subjective data designs by rewarding participant answers that are surprisingly common. We argue that the Bayesian Truth Serum (i) adequately addresses the issue of incentive compatibility in subjective data research designs and (ii) that it should be applied to the vast majority of research in experimental philosophy. Further, we (iii) provide an empirical application of the method, demonstrating its qualified impact on the distribution of answers on a number of standard experimental philosophy items and outline guidance for researchers aiming to apply this mechanism in future research by specifying the additional costs and design steps involved. (shrink)

Around the globe, economists affect markets by saying what markets are doing, what they should do, and what they will do. Increasingly, experimental economists are even designing real-world markets. But, despite these facts, economists are still largely thought of as scientists who merely observe markets from the outside, like astronomers look at the stars. Do Economists Make Markets? boldly challenges this view. It is the first book dedicated to the controversial question of whether economics (...) is performative--of whether, in some cases, economics actually produces the phenomena it analyzes.The book's case studies--including financial derivatives markets, telecommunications-frequency auctions, and individual transferable quotas in fisheries--give substance to the notion of the performativity of economics in an accessible, nontechnical way. Some chapters defend the notion; others attack it vigorously. The book ends with an extended chapter in which Michel Callon, the idea's main formulator, reflects upon the debate and asks what it means to say economics is performative.The book's insights and strong claims about the ways economics is entangled with the markets it studies should interest--and provoke--economic sociologists, economists, and other social scientists.In addition to the editors and Callon, the contributors include Marie-France Garcia-Parpet, Francesco Guala, Emmanuel Didier, Philip Mirowski, Edward Nik-Khah, Petter Holm, Vincent-Antonin Lépinay, and Timothy Mitchell. (shrink)

Consumers are prone to cognitive biases in decision-making due to the impact of time restrictions, specific environment, and project inducements in the process of experience. Compared with traditional marketing scenarios, it is easy to bias decision makers due to the existence of anchor information. Research on anchoring effect focuses on psychology, economics, law, and medicine instead of the price judgment of consumers. This article uses experimental research to explore the existence and influencing factors of anchoring effect when consumers judge (...) and estimate the price of a product in experiencing scenes. In this article, the hypothesis is that anchoring effect exists and is influenced by factors including anchor value, gender, emotion, personality, knowledge and skill, time pressure, early warning indication, cognitive need, and self-confidence level under external and internal anchor conditions. Subjects judged and estimated different prices after product experience through the design of different decision-making scenarios of external and internal anchors, and finally, the anchoring index and the mean skew index were used to calculate the anchoring effect. The experimental results showed that consumers were affected by anchoring effect when making price judgment in experiencing scenes. In addition to the factors of time pressure and self-confidence level, gender, personality, knowledge, and skill all had a significant influence on anchoring effect under external anchor conditions. Finally, this article provides advice for enterprise marketing planners including setting reasonable anchor values, highlighting the design of experiencing scenes, and developing differentiation strategies. (shrink)

This article examines, experimentally, whether inequality affects the social capital of trust in non-market and market settings. We consider three experimental treatments, one with equality, one with inequality but no knowledge of the income of other agents, and one with inequality and knowledge. Inequality, particularly when it is known, has a corrosive effect on trusting behaviours in this experiment. Agents appear to be less sensitive to known relative income differentials in markets than they are in the non-market settings, (...) but trust in markets appears generally more vulnerable to the introduction of inequality than in the non-market setting. (shrink)

Coinciding with the rising development of emerging markets, sustainable consumption practices in these markets are increasingly under scrutiny. In this context, we compare empirical results from consumers in four countries (three emerging markets and one developed market) in an experimental study to uncover patterns of preferences for sustainable luxury products (i.e., products that combine sustainability and luxury characteristics). Our findings illustrate that consumers’ quality, emotional, price, and social value perceptions, as well as purchase and electronic word-of-mouth (...) intentions, are consistently higher in all three emerging markets compared to the developed market. We find that sustainability (vs. conventional) product features increase consumers’ product value perceptions and behavioral intentions, although this effect is partially stronger for the developed compared to the emerging market(s). We further show a positive sustainability effect for luxury products, this effect is stronger for mass-market products. Combining sustainability and luxury signals leads to similar effects in emerging and developed markets. Thus, emerging markets have promise in terms of scope for incorporating sustainability characteristics into luxury products. Sustainable luxury consumption can therefore be understood as a manifestation of global consumer culture. (shrink)

This article examines, experimentally, whether inequality affects the social capital of trust in non-market and market settings. We consider three experimental treatments, one with equality, one with inequality but no knowledge of the income of other agents, and one with inequality and knowledge. Inequality, particularly when it is known, has a corrosive effect on trusting behaviours in this experiment. Agents appear to be less sensitive to known relative income differentials in markets than they are in the non-market settings, (...) but trust in markets appears generally more vulnerable to the introduction of inequality than in the non-market setting. (shrink)

Information and communication technologies are increasingly used for development in the Global South, and mHealth plays key role. This paper analyzes the particular relationship to science that characterizes a global maternal mHealth program deployed in Ghana and India. Using science and technology studies, this research relies on qualitative interviews conducted between 2014 and 2016 with funders, implementers, and beneficiaries of this mHealth program. This story begins with a randomized controlled trial, a biomedical experiment with a strong positioning regarding science and (...) the production of evidence. But rapidly the scientific stance disappears to give way to the testing and marketing of a product for the digital economy. From science to market, this paper offers to revisit a classical STS topic through the lens of mHealth. It shows how the various experimental forms taken by this project fundamentally diverge from scientific methods and evidence production and at the same time how it nurtures an ongoing instrumental relationship with science. Thus, from clinical research to product marketing, this paper highlights the tenuous link between evidence-based and market-based mHealth in the Global South. (shrink)

As in other sciences, an economic experiment is an artificial situation created by a researcher for the purpose of answering one or more scientific questions. Experiments of various types are used in economics to understand the causes of poverty and how it might be alleviated. The methods can identify causal relationships between variables and thereby isolate factors that can lead to poverty as well as to document the behavioral consequences of poverty. Experiments can also be used to provide test beds (...) for proposed policies to alleviate poverty. This essay describes a variety of ways in which experiments have been employed to understand and combat poverty. A line of laboratory experiments that considers which economic institutions are conducive to economic growth is discussed in detail. The results show that decentralized markets are conducive to allowing an economy to operate as efficiently as it can. However, in an economy with a theoretical “poverty trap,” the market works more efficiently if accompanied by a democratic voting process and freedom of communication. (shrink)

In this chapter, we present supporting arguments for the claim that Order Ethics is a school of thought within ethics which is especially open to empirical evidence. With its focus on order frameworks, i.e., incentive structures, Order Ethical advice automatically raises questions on implementability, efficacy, and efficiency of such recommended institutions, all of which are empirical questions to a good extent. We illustrate our arguments by presenting a small selection of experiments from economics that we consider highly informative for Order (...) Ethics. These experiments vary in their details but share one common theme: individual decision-making and its aggregate results are tested against the background of incentive structures. In particular, these studies provide first insights on how unregulated markets influence moral behavior over time, how trial-and-error experiences convince subjects to migrate to more efficient institutions, and how default rules can influence fundamental choices of people. We argue that Order Ethics, for which implementability of any moral claim is an essential requirement, can largely benefit from the use of such experimental methods. Finally, we suggest the provision of self-commitment devices as one example of smart policy design that avoids paternalistic intrusions into individual liberty. (shrink)

In contrast to the behavioral sciences, the nature and impact of ethical procedures such as informed consent and constraints on the use of deception have been addressed infrequently in the marketing discipline. This article describes an initial investigation into the methodological and ethical practices reported in published marketing research articles since the mid-1970s. Empirical articles appearing in the Journal of Marketing Research and the Journal of Consumer Research between 1975 and 1976, 1989 and 1990, and 1996 and 1997 were coded (...) according to methodological and ethical practices employed and compared with recent trends in the social psychological research literature. The marketing findings revealed an increase over time in laboratory experimentation, the utilization of active deception and debriefing, and the use of university student samples. Although the results suggest that marketing researchers use deception with less frequency and intensity overall than social psychologists, the observed rise in deception procedures in marketing investigations stands in stark contrast to the situation in social psychology, where deception rates have been declining along with a corresponding increase in nonexperimental methodologies and nonstudent samples. The article concludes with a call for greater attention to the ethical, methodological, and disciplinary consequences of the increasing use of deception in marketing research and emphasizes the need for more complete reporting of ethical procedures in published research. (shrink)

In the 1970s, experimental economics split from social psychology by embracing rational choice and equilibrium methods. Behavioral economics has recently narrowed the divide, to the dismay of some. The present paper argues that evolutionary dynamics provides a framework which unifies the best features of social psychology with equilibrium and rational choice. Ongoing research in cheating in markets illustrates the main points. A new equilibrium model provides distinctive testable predictions under three regimes: autarky, frictionless free trade, and anonymous foreign (...) trade with opportunities to cheat. The predictions organize quite well the data collected so far. Later phases of the project will allow trader networks to evolve, altering the market institution and perhaps affecting preferences. Thus the ma jor forces recognized by social psychologists can be combined with a rationality and equilibrium to study how markets respond to the risk of cheating. (shrink)

This research uses an experimental approach to investigate the relationship between market orientation of a company and its level of success in international business. The aim of the study was to develop and use a market orientation scale that is appropriate to the sector. It was discovered that there are four hidden traits that drive market orientation. These include customers, rivals, departmental response, and overall customer satisfaction. According to the results, orientation toward one's customers is more essential than any (...) of the other traits, while orientation toward one's competitors has an inverted U-shaped connection with performance. The performance of the firm was not found to correlate in any way with the responsiveness of its departments. With the help of the comprehensive conceptualization, managers are able to develop specific kinds of orientations that are essential for higher levels of performance. (shrink)

Do terminally ill patients who have exhausted all other available, government-approved treatment options have a constitutional right to experimental treatment that may prolong their lives? On May 2, 2006, a divided panel of the U.S. Court of Appeals for the District of Columbia, in a startling opinion, Abigail Alliance for Better Access to Developmental Drugs v. Von Eschenbach, held “Yes.” The plaintiffs, Abigail Alliance for Better Access to Developmental Drugs and Washington Legal Foundation, sought to enjoin the Food and (...) Drug Administration from refusing to allow the sale of investigational new drugs that had not yet received FDA approval. The terminally ill plaintiffs contended that they quite literally could not wait that long for the drugs. With no other treatment options available, the plaintiffs urged the court to recognize a fundamental, constitutional right to take potentially life-saving or life-prolonging drugs, even though the treatment had not been fully tested through human trials for safety and effectiveness and could not be legally marketed to the public. (shrink)

Insurance markets have always relied on large amounts of data to assess risks and price their products. New data-driven technologies, including wearable health trackers, smartphone sensors, predictive modelling and Big Data analytics, are challenging these established practices. In tracking insurance clients’ behaviour, these innovations promise the reduction of insurance costs and more accurate pricing through the personalisation of premiums and products. Building on insights from the sociology of markets and Science and Technology Studies, this article investigates the role (...) of economic experimentation in the making of data-driven personalisation markets in insurance. We document a case study of a car insurance experiment, launched by a Belgian direct insurance company in 2016 to set up an experiment of tracking driving style behavioural data of over 5000 participants over a one-year period. Based on interviews and document analysis, we outline how this in vivo experiment was set-up, which interventions and manipulations were imposed to make the experiment successful, and how the study was evaluated by the actors. Using JL Austin’s distinction between happy and unhappy statements, we argue how the experiment, despite its failure not to provide the desired evidence, could be considered a ‘happy’ event. We conclude by highlighting the role of economic experiments ‘in the wild’ for the making of future markets of data-driven personalisation. (shrink)

Both experimental and therapeutic uses of the new reproductive technologies have been governed not by the medical ideology of the best interests of patients and their children, but by the market ideology of profit maximization under the guise of "reproductive liberty." Government in our constitutional, democratic society has the authority and obligation to make and enforce reasonable regulations to manage the new reproductive market in order to protect the interests of the public, prospective parents, and their future children. The (...) "cloning" debate provides a useful opportunity to compare and contrast the competing regulatory models of the free market, professional guidelines, and government restrictions. (shrink)

Professor Vernon L. Smith is a major creator of the new discipline of experimental economics. This collection of his papers from 1962 to 1990 surveys key developments in the field from early attempts to study economic behaviour in now classic double oral auction markets through recent studies of industrial organization and decision making. Topics covered include monopoly and oligopoly, supply and demand theory under posted pricing, uniform pricing, double continuous auction, and sealed bid-offer auctions; hypothetical valuation and market (...) pricing; asset price bubbles; predatory pricing; market contestability and natural monopoly; and the methodology of experimental economics. Taken together, the papers form a history of the study of economics under controlled conditions. (shrink)

Labor market and real-life studies were not designed to discriminate between evolutionary and taste-based and stereotype explanations for the beauty premium, have too many confounding effects, and lack crucial information. Smaller-stake and experimental studies provide more compelling evidence in favor of mating motives and suggest the direction of future research for the economists' field studies.

The following text is a voice in the discussion around normative problems of innovative therapies. It particularly refers to legal and ethical problems related to the advertisement of experimental medicinal products and medical procedures, also discussed in this issue in the article by Paweł Lipowski "Advertisements of experimental medicinal products and medical procedures in the light of Polish law and media ethics.".

Many believe that colleges of business have a role to play in improving the level of marketing ethics practiced in the business world, while others believe that by the time students reach the level of university education, their ethical beliefs are so ingrained as to be virtually unalterable. The purpose of this study is to add to the literature regarding university students' ethical value judgments. It utilizes scenario studies to assess base line ethical values of junior level undergraduate business administration (...) students, then techniques are employed to influence students' perceptions of the ethics of various marketing practices, and students' values are reassessed. A total of 667 junior and senior level students majoring in business administration participated in the pre-tests and 525 students participated in the post-tests. The results of the before/after studies indicate that some experimental techniques are more effective than others in affecting change, but it is difficult to affect long-run change in those predisposed to unethical behavior. (shrink)

Several experimental studies have reported that an otherwise robust regularity—the disparity between Willingness-To-Accept and Willingness-To-Pay—tends to be greatly reduced in repeated markets, posing a serious challenge to existing reference-dependent and reference-independent models alike. This article offers a new account of the evidence, based on the assumptions that individuals are affected by good and bad deals relative to the expected transaction price (price sensitivity), with bad deals having a larger impact on their utility (`bad-deal’ aversion). These features of preferences (...) explain the existing evidence better than alternative approaches, including the most recent developments of loss aversion models. (shrink)

This study aims to map out the relationships that make up green innovation initiatives in Brazilian industry. The sample comprised 100 managers at manufacturing companies, most of them operating in the business of farm machinery and equipment and steel structures. To develop this study, Medeiros et al. study, mapping critical factors that drive the success of green product innovation and the paradigm of complexity, was used as a reference study. Based on the results, it was possible to identify that the (...) operational dynamic of the factors and variables that affect market success do not happen in an isolated or fragmented way; they occur systematically with different contingencies and structured basic and intermediate skills in order to meet the expectations of consumers, laws, and environmental legislation. Initially, the technological expertise factor was noted as very important for sustaining green product innovation. Furthermore, since proactive leaders are an important factor for successfully developing environmentally sustainable products, it must be added to technological expertise as the foundation for developing green innovation. After defining the basis for green product innovation, the intermediary conditions necessary for using the available technology appropriately were mapped out. In this sense, variables such as “elimination of cultural barriers,” “capacity for critical reflective analysis,” and “experimentation” are also very important. In addition, some of the variables of the cross-functional collaboration and market knowledge factors were a part of the structure that organizations need to transform potential into developing green products, which is the basis for the third level of the model. The fourth level of the model has the “meeting consumer expectations” and “following law and legislation” factors, which make up the main goals for developing environmentally sustainable products according to a number of surveys that were conducted. (shrink)

Ethical leadership has so far mainly been featured in the organizational behavior domain and, as such, treated as an intra-organizational phenomenon. The present study seeks to highlight the relevance of ethical leadership for extra-organizational phenomena by combining the organizational behavior perspective on ethical leadership with a classical marketing approach. In particular, we demonstrate that customers may use perceived ethical leadership cues as additional reference points when forming purchasing intentions. In two experimental studies, we find that ethical leadership positively affects (...) purchasing intentions because of customers’ concerns for moral self-congruence. We show this by means of both mediation and moderation analyses. Interestingly, the effect of perceived ethical leadership on purchasing intentions holds over and above the ethical advertising claims that are commonly used in marketing. We conclude by discussing the possible ramifications of ethical leadership beyond its effects on immediate employees. (shrink)

This paper focuses on the opposition between two contemporary research programs in economics: behavioral economics (BE) and experimental market economics (EME). Our claim is that the arguments of this opposition can be clarified through the lens of another opposition in the philosophy of probability and in probability theory, between Bayesianism and frequentism. We show how this probabilistic opposition has indirectly shaped a controversy in psychology that opposes two research programs – Heuristics and Biases and Ecological Rationality – which play (...) respective roles in the foundations of individual rationality in BE and EME. To understand these theoretical interrelationships, we investigate the 1996 controversy between Kahneman, Tversky, and Gigerenzer. Those psychologists held different views on how probabilistic representations influence the context-dependency of rationality. This provides a rationale to suggest that a probabilistic ghost may be haunting the experimental machine in economics, and explai.. (shrink)

When a new intervention or drug is developed, this has to pass through various phases of clinical testing before it achieves market approval, which can take many years. This raises an issue for drugs which could benefit terminally ill patients. These patients might set their hopes on the experimental drug but are unable to wait since they are likely to pass away before the drug is available. As a means of nevertheless getting access to experimental drug, many seriously (...) ill and terminally ill patients are therefore very willing to participate in randomised controlled trials. However, only very few terminally ill patients are able to actually participate, and those that do participate are at risk of participating solely as a way of getting experimental drugs. Currently, there are, however, ways of getting access to drugs that have not gained market approval. One such mean is via expanded access or compassionate use programs where terminally ill patients receive experimental new drugs that are not yet market approved. In this paper, I examine some of the common justifications for such programs. The most frequently voiced justifications for compassionate use or expanded access programs could be put in one of three categories. First, there are justifications of justice, where compassionate use programs could be seen as a just or fair way to distribute experimental new drugs to patients who are denied access to RCT’s through no fault of their own. Second, such programs could be justified by reference to the ethical principle of beneficence where it could be claimed that terminally ill patients stand to benefit greatly at very little risk. Third, there are considerations of autonomy where, it is claimed, patients should be able to exercise their autonomy and have access to such drugs if that is there free choice and they are fully aware of the risks associated with that choice. In this paper, I argue currently all justifications are potentially problematic. If they truly form the basis for justification, compassionate use programs should be designed to maximize justice, beneficence and autonomy. (shrink)