The effect of mood induction in Gneezy´s interpersonal cheap talk game Maria Csizmas 2014 BSc in Psychology Author: Maria Csizmas ID number: 111077-2319 Supervisor: XXXXXXXXX Department of Psychology School of Business The effect of mood induction in Gneezy´s interpersonal cheap talk game Foreword Submitted in partial fulfilment of the requirements of the BSc Psychology degree, Reykjavik University, this thesis is presented in the style of an article for submission to a peer-reviewed journal. 2 The effect of mood induction in Gneezy´s interpersonal cheap talk game 3 Abstract Gneezy´s interpersonal cheap talk game was addressed in an Icelandic campus, on the first time with mood inducement. Researchers intended to found out more about human honesty and dishonesty associated with either temporary happy or sad mood. The results of the study were supporting the outcome of previous mood-induced economic experiments, marginal, but significant difference found between the mood effects and dishonesty: students, who were assigned to watch a sad movie and were senders, were more likely to send true, finance related message to receivers than those who were assigned to watch a happy movie. Participants were justifying dishonest messages with the small amount of money that was offered for distribution in the experiment. The effect of mood induction in Gneezy´s interpersonal cheap talk game 4 Introduction People find it difficult to determine in a few words what selfishness means to them. Moreover, they find disturbing, that sometimes both honesty and dishonesty can be related to egocentrism, dependently on the circumstances (Mead, Baumeister, Gino, Schweitzer, & Ariely, 2009). In a world, whereby financial scandals are on the cover of the magazines on daily bases, and the gate between people who are critically poor or extremely reach is growing, the role of economic psychology is more and more emphasized (Brüne , 2012). This study presents an interpersonal, mood-induced “cheap talk game”, conducted at the Reykjavík University of Iceland. The goal of the experiment is to determine the level of honesty and dishonesty in interpersonal situations under temporary mood influence. The non –manipulated cheap talk game, a type of experimental economic game, is a world-wide recognized method in the assessment of human honesty and dishonesty (Henrich & Co, 2005). Important to note, that the CTG (cheap talk game) otherwise has never been introduced to participants before with a mood-induction. In ultimatum games, mood induction is influential not only on the choices of the distributors, but also on the latency of decision making (Forgas & Tan, 2013a). Parallel to the ultimatum games, the outcome of the dictator games indicated too, that temporary bad mood increases concern to social norms in participants and incite them to become externally focused, while short-term happiness recruits internal, selfish processes. A possible explanation of the result constancy in mood manipulated games could be related to physiological reasons, such as separated or convergent neural pathways (Rudebeck, Walton, Smyth, Bannerman, & Rushworth, 2006). Built on the results of these previous, economicrelated games, the hypothesis of this research is that subjects induced into a temporary happy mood will be more likely to lie than subjects induced into a sad mood during Gneezy´s cheap The effect of mood induction in Gneezy´s interpersonal cheap talk game 5 talk game. Result constancy in non-manipulated games The cue, mood-induced, or belief-related manipulations in economic games are purposely distinguished from the non-manipulated experiments (Ockenfels & Werner, 2014). Despite the differences, all finance-related games have the common purpose, and that is to discover agent´s altruism, selfishness, honesty, dishonesty and fairness (Hodgson & Huang, 2012). The most simplified scientific definition of selfishness has been described as controversy between self-interest and the best interest of the group (Caporael, Dawes, Orbell, & van de Kragt, 1989). According to Krupka and Weber (2013) participants find both social norms and financial gain important but their choices are constant across the wide variance of dictator games; subjects generally tend to behave in a way that it could be considered socially appropriate. Therefore, the predicted outcomes of the non-manipulated dictator games are frequently opposing the negative scientific expectations concerning human selfishness. The neurobiology of economic decision making Previous economic experiments are suggest the existence of convergent neural pathways (Weiland, Hewig, Hecht, Mussel, & Miltner, 2012). Happiness, as a neural reaction to stimulus is related to the prefrontal cortexes (Kühn o.fl., 2011). Conversely, in dictator games the dorsal anterior cingulate cortex and the posterior cingulate cortex are responsible for fair offers (Weiland o.fl., 2012). When participants in dictator games were influenced to become sad, they were more likely to become less selfish (Forgas & Tan, 2013b). This outcome is supported by the fact, that the neural pathway of perceived sadness leads through the anterior cingulate cortex, similarly to fairness and altruism (Yoshino o.fl., 2010). Despite the independent experiments and studies on the field of neuropsychology on human decision making, the result constancy of mood-induced economic games is scientifically unexplained. The effect of mood induction in Gneezy´s interpersonal cheap talk game 6 Duration of information process and consistency cues Considering other influential variables that are likely to play role in the outcomes of economic games, the duration of information process could be a concern (Neo, Yu, Weber, & Gonzalez, 2013). The procedure instruction of the cheap talk games require more attention and time to understand than it does in dictator and ultimatum games (van ’t Wout, Kahn, Sanfey, & Aleman, 2006). Therefore the effect of mood induction might not imprint participant´s honest or dishonest actions as strongly as with other games, due to the “rest period” between emotional arousal and the decision making (Reilly & Morris, 1983). Andrade and Ariely (2009) were discovering the issue of consistency cues, when they compared financial decision making between temporary angry and happy participants who were playing both ultimatum and dictator games. The rules of the ultimatum game required a minute more to understand than the rules in dictator games, and that minute significantly lowered participant´s suggestibility by the cue that was signalled to them before the instruction reading. Method Ethical requirements The agent´s ethical requirements were to give up their name and e-mail address and asked to give up their gender and age. None of the students were forced to participate, the rules and purpose of the research was shared with them according to the written, ethical rules. Participants and procedures The participants of the study were 173 student from campus, among them were 73 women and 67 men, 3 persons were withheld their gender. 78% of the subjects were younger than 24 years old. The effect of mood induction in Gneezy´s interpersonal cheap talk game 7 The students who were in the same academic class were approached in campus, and volunteered to participate in the experiment in the computer lab. They were than assigned into two groups. Measures Mood induction and the Cheap talk game One group watched a short comedy that induced happy mood, while the other group watched a tragic historical scene with a sad ending. Subjects were separated, so they couldn´t see each other´s movie, neither the answers. Immediately after the movies the participants were rating their mood on a 7 stage scale; happy-sad, good-bad, heavy-light, and down-frisky. The scores were averaged to create a summary measure: Cronbach´s alpha α = .94. In particular, the design was a replicated version of Gneezy´s cheap talk game. Agents were paired anonymously; one of them was the “receiver” the other was the “sender”. The receiver was required to choose between options A or B, which were associated with the monetary distribution to the sender. In case the receiver chose action A, he or she earned 500 Isk, while action B provided to the sender 600 Isk. The receiver, without knowing the payoff had to decide to take options A or B. Meanwhile the sender, who was aware the amount of money paired with the options was required to send a message to the receiver: “Option A will earn you more money than action B” or “Option B will earn you more money than option A”, in another word: message “A” was true, while message “B” was false. The effect of mood induction in Gneezy´s interpersonal cheap talk game 8 Results Mood validation Participants in the sad mood induction group rated their mood significantly worse than those participants who were assigned to the happy mood manipulation (M = 3.32; SD = 1.08 vs M = 5.02; SD= 1.02; F (1, 141) = 93,76; p < .001. Mood effects associated with dishonesty Mood had effected significantly participant´s dishonesty χ2(1, N = 141) = 1, 74; p = .09 (one sided) Participants who were receiving happy mood inducement were lying about 50% more than those who were influenced to be in a sad mood (Fig. 1). 90% 81% 80% 71% 70% 60% 50% 40% 30% 20% 29% Honest Dishonest 19% 10% 0% sad mood happy mood Figure 1. shows the percentage of subjects which were lying and the percentage of those who were telling the truth after temporary negative or positive mood effects. The effect of mood induction in Gneezy´s interpersonal cheap talk game 33% 35% 30% 25% 21% 21% 20% 15% 15% 10% 10% 5% 0% Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree Figure 2. Percentage of participants who agreed or disagreed about lying in the experiment. 60% 50% 50% 40% 30% 20% 20% 10% 14% 6% 10% 0% I needed the money The amount was This is just game. so low that it I wouldn´t do didn´t matter this in real life what message I´ve sent The receiver would never belive me anyway Something else Figure 3. Participant´s reasons why they were sending a false message to the receiver. Figure 1 displays the percentage of participants who were honest in a temporary sad mood and those who were dishonest in a temporary happy mood 81 % of the subjects. On Figure 2 weobserved the percentage of subjects who agreed or disagreed having sent 9 The effect of mood induction in Gneezy´s interpersonal cheap talk game 10 dishonest message to their receiver, whereby the vast majority of agent´s (33 %) did not admitted of lying. 21 % of the participant´s strongly agreed of having sent false message and 21 % of students were strongly disagreed. The justification of subject´s decisions of sending a false message displayed on Figure 3, and shows that 50% of students found the amount of money was so low, that for them it didn´t matter what message they´ve sent Discussion The present study intended to show that temporary mood-induction can influence the outcome of an interpersonal cheap talk game. According to the research-hypothesis, participants who are conditioned to be in a happy mood will be less fair and honest than those who´s mood are manipulated to a depressive direction. The results of the experiment were in accordance with previous studies on interpersonal mood-induced dictator games and they were supporting the hypothesis above (Forgas & Tan, 2013b). Tan and Forgas (2010) were implicating the participant´s tendency to economic fairness in a temporary sad mood, but encouraging lying in happiness. Similarly to the dictator games, ultimatum games were providing the same outcome after mood manipulation (Forgas & Tan, 2013b). However, the mood effect on unfairness was highly significant in the previous researches. The explanation why the present study provided marginal significance could be explained by longer information process in cheap talk games , that dampens emotional arousal before the decision making (Andrade & Ariely, 2009). This outcome requires neurological measures within the economic game experiments for the better understanding of human cognition. The measures on brain functions under economic decision making are able to distinguish a deliberation locked and a verdict locked neural analyses (Schaich Borg, Sinnott- The effect of mood induction in Gneezy´s interpersonal cheap talk game 11 Armstrong, Calhoun, & Kiehl, 2011). The finding suggests, that morality is related to the cortical regions, including the ventromedial prefrontal cortex, the posterior cingulate cortex and the temporoparietal junction. These brain sections are responsible not for immediate moral deliberations but excluding the moral verdicts, explaining why clinical patients may have intact moral judgment but impaired moral behavior. Certain socio-economic studies, unrelated to neuroscience, are also requiring solid evidence on how experimental inducement can incline participants to make moral decisions (Scheres & Sanfey, 2006). Assumptions on the course of actions during an experimental economy game, such as expecting that people have negative attribution towards certain ethnicities and nations of war crimes, can be misleading (Whitt & Wilson, 2007). When it comes to the data processing stage of a non-manipulated DG, people are often more fair than vengeful and this positive phenomenon requires further examinations by social psychologists (Forgas & Tan, 2013b). From a cognitive point of view unselfish giving became identified as altruism, empathy or sensitivity of justice. The phenomena of altruistic sharing is under the influence of justice sensitivity and affective empathy but cognitive empathy remains detached by these variables (Edele, Dziobek, & Keller, 2013). Cognitive empathy assumes an overall understanding of other´s feelings and needs, but does not require personal involvement or emotional arousal when it comes to economic distribution. Participants with high cognitive empathy are less likely to share money fairly than those subjects, who possess high affective empathy or justice sensitivity. Strengths and limitations of the present study From the viewpoint of an economic psychologist which has a goal to observe and portray the patterns of people´s actions, the mood-induced cheap talk game provides great opportunity for a complete study. Since Gneezy´s cheap talk game has never been induced The effect of mood induction in Gneezy´s interpersonal cheap talk game 12 with mood manipulations before this study can be the contemplation of the mood manipulated dictator and ultimatum games. Considering other scientific positions, similar to the previously mentioned neurological findings, researchers may require more explanations, whereby the observations of economic and moral decisions are paired with fMRI measures or other physiological follow ups (Ben-Shakhar, Bornstein, Hopfensitz, & van Winden, 2007). The environment, type of institution, amount of money or purposely administered manipulations, as mood-inducement and cues, are capital issues in the analization of any economic games, so as the possibility of negative or positive consequences of the participant´s decisions (Boatright, 2010). The economic crisis, that is now spread throughout the world indicates a distributional defeat of the global finances and values, often related to small group of distributors, who may suffer in personality disorders that may impact their moral judgment. The limitations of the experimental economic game, which is the missing explanations of the observed result constancies in both manipulated and non-manipulated experiment, could be avoided with the administration of a study, that includes theoretical representation of all the three economic games (dictator, ultimatum and cheap talk game), moreover paired with fMRI measures, whereby practical explanations of moral behaviour could be processed on the same randomly assigned participants. The effect of mood induction in Gneezy´s interpersonal cheap talk game 13 References Andrade, E. B., & Ariely, D. (2009). The enduring impact of transient emotions on decision making. Organizational behavior and human decision processes, 109(1), 1–8. doi:10.1016/j.obhdp.2009.02.003 Ben-Shakhar, G., Bornstein, G., Hopfensitz, A., & van Winden, F. (2007). Reciprocity and emotions in bargaining using physiological and self-report measures. 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