Findings

Team building

Kevin Lewis

February 09, 2014

Gossip and Ostracism Promote Cooperation in Groups

Matthew Feinberg, Robb Willer & Michael Schultz
Psychological Science, forthcoming

Abstract:
The widespread existence of cooperation is difficult to explain because individuals face strong incentives to exploit the cooperative tendencies of others. In the research reported here, we examined how the spread of reputational information through gossip promotes cooperation in mixed-motive settings. Results showed that individuals readily communicated reputational information about others, and recipients used this information to selectively interact with cooperative individuals and ostracize those who had behaved selfishly, which enabled group members to contribute to the public good with reduced threat of exploitation. Additionally, ostracized individuals responded to exclusion by subsequently cooperating at levels comparable to those who were not ostracized. These results suggest that the spread of reputational information through gossip can mitigate egoistic behavior by facilitating partner selection, thereby helping to solve the problem of cooperation even in noniterated interactions.

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Grief Functions as an Honest Indicator of Commitment

Bo Winegard et al.
Personality and Social Psychology Review, forthcoming

Abstract:
Grief is a puzzling phenomenon. It is often costly and prolonged, potentially increasing mortality rates, drug abuse, withdrawal from social life, and susceptibility to illness. These costs cannot be repaid by the deceased and therefore might appear wasted. In the following article, we propose a possible solution. Using the principles of social selection theory, we argue that an important selective pressure behind the human grief response was the social decisions of other humans. We combine this with insights from signaling theory, noting that grief shares many properties with other hard-to-fake social signals. We therefore contend that grief was shaped by selective forces to function as a hard-to-fake signal of (a) a person's propensity to form strong, non-utilitarian bonds and (b) a person's current level of commitment to a group or cause. This theory explains many of the costly symptoms of grief and provides a progressive framework for future research.

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Theory of Mind: Did Evolution Fool Us?

Marie Devaine, Guillaume Hollard & Jean Daunizeau
PLoS ONE, February 2014

Abstract:
Theory of Mind (ToM) is the ability to attribute mental states (e.g., beliefs and desires) to other people in order to understand and predict their behaviour. If others are rewarded to compete or cooperate with you, then what they will do depends upon what they believe about you. This is the reason why social interaction induces recursive ToM, of the sort "I think that you think that I think, etc.". Critically, recursion is the common notion behind the definition of sophistication of human language, strategic thinking in games, and, arguably, ToM. Although sophisticated ToM is believed to have high adaptive fitness, broad experimental evidence from behavioural economics, experimental psychology and linguistics point towards limited recursivity in representing other's beliefs. In this work, we test whether such apparent limitation may not in fact be proven to be adaptive, i.e. optimal in an evolutionary sense. First, we propose a meta-Bayesian approach that can predict the behaviour of ToM sophistication phenotypes who engage in social interactions. Second, we measure their adaptive fitness using evolutionary game theory. Our main contribution is to show that one does not have to appeal to biological costs to explain our limited ToM sophistication. In fact, the evolutionary cost/benefit ratio of ToM sophistication is non trivial. This is partly because an informational cost prevents highly sophisticated ToM phenotypes to fully exploit less sophisticated ones (in a competitive context). In addition, cooperation surprisingly favours lower levels of ToM sophistication. Taken together, these quantitative corollaries of the "social Bayesian brain" hypothesis provide an evolutionary account for both the limitation of ToM sophistication in humans as well as the persistence of low ToM sophistication levels.

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Barriers to Transforming Hostile Relations: Why Friendly Gestures Can Backfire

Tanya Menon, Oliver Sheldon & Adam Galinsky
Negotiation and Conflict Management Research, February 2014, Pages 17-37

Abstract:
Friendly gestures (e.g., smiles, flattery, favors) typically build trust and earn good will. However, we propose that people feel unsettled when enemies initiate friendly gestures. To resolve these sensemaking difficulties, people find order through superstitious reasoning about friendly enemies. Supporting this theorizing, friendly enemies created sensemaking difficulty, which in turn mediated people's tendencies to blame them for coincidental negative outcomes (Experiment 1). Further implicating these processes, individuals high in need for structure were especially prone to make these attributions (Experiment 2). Finally, we explored consequences of such blame, showing that blame mediates people's beliefs that mere contact with friendly enemies is unlucky and should be avoided (Experiment 3). Taken together, these results suggest that, rather than transforming hostile relationships, an enemy's friendliness can be so unnerving that it sometimes leads people down blind alleys of superstitious reasoning.

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The Signaling Value of Online Social Networks: Lessons from Peer-to-Peer Lending

Seth Freedman & Ginger Zhe Jin
NBER Working Paper, January 2014

Abstract:
We examine whether social networks facilitate online markets using data from a leading peer-to-peer lending website. Borrowers with social ties are consistently more likely to have their loans funded and receive lower interest rates. However, most social loans do not perform better ex post, except for loans with endorsements from friends contributing to the loan or loans with group characteristics most likely to provide screening and monitoring. We also find evidence of gaming on borrower participation in social networks. Overall, our findings suggest that return-maximizing lenders should be careful in interpreting social ties within the risky pool of social borrowers.

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Breaking the Letter vs. Spirit of the Law: How the Interpretation of Contract Violations Affects Trust and the Management of Relationships

Derek Harmon, Peter Kim & Kyle Mayer
Strategic Management Journal, forthcoming

Abstract:
Contract violations are ubiquitous. There has been little attention, however, dedicated to understanding the mechanisms involved in making sense of and addressing such occurrences. Two experimental studies investigated how people interpret contract violations and how these interpretations affect trust and the management of relationships. By drawing on the distinction between violations of the letter versus spirit of the law, we show that letter violations are more difficult to overcome than spirit violations, due to higher perceived intentionality. These effects generalized across different populations, levels of contracting experience, types of contracting contexts, levels of ambiguity within the contract, and degrees of contract complexity. The results yield important implications for understanding contract violations, trust, and organizational responses as a relationship management capability.

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Democratic decisions establish stable authorities that overcome the paradox of second-order punishment

Christian Hilbe et al.
Proceedings of the National Academy of Sciences, 14 January 2014, Pages 752-756

Abstract:
Individuals usually punish free riders but refuse to sanction those who cooperate but do not punish. This missing second-order peer punishment is a fundamental problem for the stabilization of cooperation. To solve this problem, most societies today have implemented central authorities that punish free riders and tax evaders alike, such that second-order punishment is fully established. The emergence of such stable authorities from individual decisions, however, creates a new paradox: it seems absurd to expect individuals who do not engage in second-order punishment to strive for an authority that does. Herein, we provide a mathematical model and experimental results from a public goods game where subjects can choose between a community with and without second-order punishment in two different ways. When subjects can migrate continuously to either community, we identify a bias toward institutions that do not punish tax evaders. When subjects have to vote once for all rounds of the game and have to accept the decision of the majority, they prefer a society with second-order punishment. These findings uncover the existence of a democracy premium. The majority-voting rule allows subjects to commit themselves and to implement institutions that eventually lead to a higher welfare for all.

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Collaboration, Stars, and the Changing Organization of Science: Evidence from Evolutionary Biology

Ajay Agrawal, John McHale & Alexander Oettl
NBER Working Paper, November 2013

Abstract:
We report a puzzling pair of facts concerning the organization of science. The concentration of research output is declining at the department level but increasing at the individual level. For example, in evolutionary biology, over the period 1980 to 2000, the fraction of citation-weighted publications produced by the top 20% of departments falls from approximately 75% to 60% but over the same period rises for the top 20% of individual scientists from 70% to 80%. We speculate that this may be due to changing patterns of collaboration, perhaps caused by the rising burden of knowledge and the falling cost of communication, both of which increase the returns to collaboration. Indeed, we report evidence that the propensity to collaborate is rising over time. Furthermore, the nature of collaboration is also changing. For example, the geographic distance as well as the difference in institution rank between collaborators is increasing over time. Moreover, the relative size of the pool of potential distant collaborators for star versus non-star scientists is rising over time. We develop a simple model based on star advantage in terms of the opportunities for collaboration that provides a unified explanation for these facts. Finally, considering the effect of individual location decisions of stars on the overall distribution of human capital, we speculate on the efficiency of the emerging distribution of scientific activity, given the localized externalities generated by stars on the one hand and the increasing returns to distant collaboration on the other.

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Behavioral and Emotional Dynamics of Two People Struggling to Reach Consensus about a Topic on Which They Disagree

Levent Kurt et al.
PLoS ONE, January 2014

Abstract:
We studied the behavioral and emotional dynamics displayed by two people trying to resolve a conflict. 59 groups of two people were asked to talk for 20 minutes to try to reach a consensus about a topic on which they disagreed. The topics were abortion, affirmative action, death penalty, and euthanasia. Behavior data were determined from audio recordings where each second of the conversation was assessed as proself, neutral, or prosocial. We determined the probability density function of the durations of time spent in each behavioral state. These durations were well fit by a stretched exponential distribution, with an exponent, , of approximately 0.3. This indicates that the switching between behavioral states is not a random Markov process, but one where the probability to switch behavioral states decreases with the time already spent in that behavioral state. The degree of this "memory" was stronger in those groups who did not reach a consensus and where the conflict grew more destructive than in those that did. Emotion data were measured by having each person listen to the audio recording and moving a computer mouse to recall their negative or positive emotional valence at each moment in the conversation. We used the Hurst rescaled range analysis and power spectrum to determine the correlations in the fluctuations of the emotional valence. The emotional valence was well described by a random walk whose increments were uncorrelated. Thus, the behavior data demonstrated a "memory" of the duration already spent in a behavioral state while the emotion data fluctuated as a random walk whose steps did not have a "memory" of previous steps. This work demonstrates that statistical analysis, more commonly used to analyze physical phenomena, can also shed interesting light on the dynamics of processes in social psychology and conflict management.

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Is Avatar-to-avatar Communication as Effective as Face-to-face Communication? - An Ultimatum Game Experiment in First and Second Life

Ben Greiner, Mary Caravella & Alvin Roth
Journal of Economic Behavior & Organization, forthcoming

Abstract:
We report results from an Ultimatum Game experiment with and without pre-play communication, conducted both in a real-world experimental laboratory and in the virtual world Second Life. In the laboratory, we replicate previous results that communication increases offers and agreement rates significantly, and more so for face-to-face communication than for text-chat. In Second Life we detect a level shift to more cooperation when there is no communication, either driven by selection on unobservables or environmental effects. The higher cooperativeness in the virtual world lowers the need for additional communication between avatars in order to achieve efficient outcomes. Consistent with this we are not able to detect an effect of allowing avatar-to-avatar communication.

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The conflict of social norms may cause the collapse of cooperation: Indirect reciprocity with opposing attitudes towards in-group favoritism

Tadasu Matsuo, Marko Jusup & Yoh Iwasa
Journal of Theoretical Biology, 7 April 2014, Pages 34-46

Abstract:
Indirect reciprocity is a cooperation maintaining mechanism based on the social evaluation of players. Here, we consider the case of a group in which two social norms with opposing attitudes towards in-group favoritism are mixed. One norm, called Bushido (the way of warriors), regards cooperation with outsiders as betrayal, whereas the second norm, called Shonindo (the way of merchants), regards cooperation with outsiders as desirable. Each member of the group, irrespective of being a Bushido or a Shonindo player, is evaluated in two different ways and assigned two different labels: "ally" or "enemy" according to the Bushido evaluation; "good" or "bad" according to the Shonindo evaluation. These labels change in response to the action taken (cooperation or defection) when acting as a donor, as well as the label attached to the recipient. In addition to Bushido players, who cooperate with an ally and defect from an enemy, and Shonindo players, who cooperate with a good recipient and defect from a bad recipient, the group contains a third kind of players - unconditional defectors. The fractions of the three types of players follow the replicator dynamics. If the probability of interacting with outsiders is small, and if the cost-to-benefit ratio of cooperation is low, we observe several important patterns. Each social norm is able to maintain a high level of cooperation when dominant. Bushido and Shonindo players evaluate each other unfavorably and engage in a severe conflict. In the end, only one norm permeates the whole group driving the other to the extinction. When both social norms are equally effective, a rare occurrence of unconditional defectors may lead to a successful invasion.


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