Thinking Allowed

Effect of alcohol on promise making - a prisoner

2019-11-26 23:24:01

An Economic Analysis of Business Drinking: Evidence from a Lab-in-the-field Experiment

“Our GAAM (guilt aversion and alcohol myopia) model predicts that intoxication increases promise-making but has no effect on promise-breaking. We test these predictions using a prisoner’s dilemma game with pre-play communication in a lab-in-the-field experiment. Among males, we find behavior consistent with predictions: intoxication promotes promise-making behavior but does not impact the rate at which promises are trusted or broken. Consequently, intoxication increases communication efficiency. We do not observe intoxication to impact female promise-making, trusting, or promise-breaking behaviors. This is consistent with previous empirical findings that females are substantially less sensitive than males to alcohol- induced myopia.“

Source: d.repec.org

intoxication promise-making alcohol promise-breaking myopia lab-in-the-field prisoner males