Three effects of apparently superficial changes in presentation (“framing
effects” in a broad sense), were replicated together in the same repeated linear
public goods experiment with real financial incentives. First, 32 repetitions
were presented as four phases of 8 repetitions with a break and results summary
in between. Contribution levels decayed during each phase but then persistently
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Daniel Friedman, Kai Pommerenke, Rajan Lukose, Garrett Milam, Bernardo A. Huberman
We seek to isolate in the laboratory factors that encourage and discourage the
sunk cost fallacy. Subjects play a computer game in which they decide whether to
keep digging for treasure on an island or to sink a cost (which will turn out to
be either high or low) to move to another island. The research hypothesis is
that subjects will stay longer on islands that were more costly to find. Eleven
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