Game Show Economics: Decision Making in High Stakes Natural Experiments

With the proposed research I will use TV game shows to analyze the economic behavior of people. Much of what we know about individual decision making to date derives from laboratory experiments, and less so from real-life settings. Real-world or ?field? data typically entail a lack of control, which can make it difficult to discriminate between competing hypotheses. Carefully designed laboratory experiments do allow for this and have generated a rich literature, but there is also a persistent concern about the external validity of experimental evidence. One recurring objection is that experimenters are normally unable to employ meaningful stakes, begging the question whether or not the results will be different in situations of more substantial economic importance. TV shows allow the study of behavior in a field setting where the stakes are high. Combined with strict and well-defined rules, a diverse subject pool and a high degree of scrutiny, some game shows are unique natural experiments that can be used to resolve key questions in the debate about the external validity of conventional experiments. In my past work, I have used game shows to study risk taking, cooperation, and bargaining. With the proposed research, I plan to expand this line of research with, among other things, more studies on cooperation and studies on the wisdom of crowds, strategic sophistication, giving behavior, and gender differences in selecting into competitive environments.