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ECON 471:  Behavioral Economics

Fall 2022

Lab Report #1

Please review the course syllabus for lab report guidelines.  All of your work should be contained within one file. That is, embed your Excel graphs into your lab report.  Furthermore, do not include a copy of the questions         below in your lab report.  Your submission should only contain your answers.

Scoring:  5 questions, each worth 20 points

Note: In all of the games below, the first payoff listed corresponds to the row player and the second payoff listed corresponds to the column player.

1.    In periods 1-5, you played the following game against a new opponent in each period: Column Player

Choice 1                      Choice 2

Row Player

Choice 1

Choice 2

3.50, 3.50

10, 0

0, 10

8, 8

In periods 6-10 you played the same game above, but you were matched with the same opponent each period.

The data for these two games is located on Brightspace in the Excel file. For this question, you will create a line

chart in Excel.  Please refer tothis websitefor help in constructing line charts from Excel data.

Your line chart should display the frequency (i.e. the total number of times) that “Choice 2” was chosen during each period by the class.  Furthermore, format your graph as follows:

•   The horizontal axis values should be 1-5 and the horizontal axis should be labeled Period”

•    You should create separate lines for periods 1-5 and periods 6-10 but these two lines should be plotted on the same graph (i.e. the lines should overlay one another)

•    Include a legend in your graph to indicate whether each line corresponds to periods 1-5 or periods 6-10

•    It is not necessary to label the vertical axis or to include a title for your graph

Hint:  Excel contains aCOUNTIF functionthat counts an observation if it meets certain criteria.

2.    Briefly (a few sentences should be fine) answer the following questions:

Is there a difference across periods 1-5 vs. periods 6-10?  If there is a difference, why do you think this occurred?

3.    In periods 11-15, you played the following game against a new opponent in each period: Column Player

Choice 1                      Choice 2

20, 20

0, 10

10, 0

3, 3

In periods 16-20, you played the following game against a new opponent in each period: Column Player

Choice 1                      Choice 2

Row Player

Choice 1

Choice 2

13, 13

-7, 10

10, -7

3, 3

Make a new line chart in Excel comparing the data from the two games described above.

Your line chart should display the frequency that “Choice 2” was chosen during each period of play by the class. Furthermore, format your graph as follows:

•   The horizontal axis values should be 1-5 and the horizontal axis should be labeled Period”

•    You should create separate lines for periods 11-15 and periods 16-20 but these two lines should be plotted on the same graph (i.e. the lines should overlay one another)

•    Include a legend in your graph to indicate whether each line corresponds to periods 11-15 or periods 16- 20

•    It is not necessary to label the vertical axis or to include a title for your graph

4.    Briefly (a few sentences should be fine) answer the following questions:

Is there a difference across periods 11-15 vs. periods 16-20?  If there is a difference, why do you think this occurred?

5.    In periods 21-25 you played the following game against the same opponent in each period: Column Player

Choice 1                      Choice 2

1, -1

-1, 1

-1, 1

1, -1

For this question, you will create a table instead of a line chart.  Your table will display the overall behavior of the class in the experiment for periods 21-25.  More specifically, in your table you will report the proportion (i.e. a value between 0 and 1) of times that the class chose Choice 2” during each of these last 5 periods of play.  Your table should look something like this:

Period

Proportion of Class Choosing Choice 2”

21

 

22

 

23

 

24

 

25

 

After creating your table, briefly answer the following questions:

•    Based on the values that you calculated in the table, did the class as a whole seem to prefer one of the strategies over the other strategy?  If so, why do you think this occurred?  If not, why do you think one strategy was not favored over the other strategy?