ECON 584: Experimental Economics Module 5 Lab Report Summer 2023 Please review the course syllabus for lab
Question:
ECON 584: Experimental Economics Module 5 Lab Report Summer 2023
Please review the course syllabus for lab report guidelines. All of your answers for this lab report should be contained within one file. That is, do not submit your graphs in a separate file. Finally, do not include the instructions/questions below in your lab report. Your lab report submission should only contain your graphs and explanations for each question.
Scoring: 5 questions, each worth 20 points
- In periods 1-5, you were randomly assigned into n = 2 person groups. In each period, you incurred a lobbying cost based on your chosen effort level which affected the probability that you would win a prize of $16,000. Each additional unit of effort increased your lobbying cost by $500 and you could choose any effort level between 0 and 16 in whole numbers.
Each individual's probability of winning the prize is proportional to their chosen effort level
relative to the group's total amount of effort. That is, the probability of individualwinning the
prize =whererepresents the effort level chosen by playerand the denominator is=1,,
the sum of the effort levels chosen by all individuals in the group including player.
If both of the two participants in the group chose an effort of 1, then the $16,000 prize would be award randomly with both members having an equal chance of winning the prize. Briefly explain why this outcome just described is not a Nash equilibrium of this lobbying game if we assume that everyone is self-interested.
Hint: In this experiment, we assume that each self-interested player seeks to maximize their expected payoff. The expected payoff for a player equalsprobability win prize prize value effort cost. Under this assumption, why is not optimal for a player to choose an effort of 1 if they believe that their opponent is currently choosing an effort of 1?
- Assume that both participants in the group incur $3,500 in lobbying costs. That is, they each choose an effort level of 7:
What is the actual payoff off the winning individual for that period? What is the actual payoff of the losing individual for that period? What is the expected payoff for each of these 2 participants before the winner is
randomly determined for that period? If one of the participants deviated from an effort level of 7 to and an effort level of 8,
would that individual's expected payoff increase? Use your answer to explain why or why not an effort level of 7 is a Nash equilibrium of the lobbying game.
Be sure to show how arrived at your answers for full credit.
- In periods 6-10, all factors were held constant except that the individual lobbying cost increased to $1,000 per unit of effort expended. The idea here was to study how changes in the lobbying effort cost affected lobbying expenditures in the experiment.
The data for periods 1-10 is on Brightspace. compare average individual lobbying expenditures across these two treatments.
To do this, you will create a LINE chart displaying the average individual lobbying expenditure for each period of play. Furthermore, format your graph as follows:
The horizontal axis values should be 1-5 and the horizontal axis should be labeled "Period"
You should create separate lines for periods 1-5 and periods 6-10 but these two lines should be plotted on the same graph (i.e. the lines should overlay one another)
Include a legend in your graph to indicate whether each line corresponds to periods 1-5 or periods 6-10
It is not necessary to label the vertical axis or to include a title for your graph
- Periods 11-20 were similar to periods 1-10. The only difference is that you were now randomly assigned to n = 4 person groups in each period. In periods 11-15, each unit of effort increased your lobbying cost by $500 (i.e. the same lobbying cost in periods 1-5). In periods 16-20, each unit of effort increased your lobbying cost by $1,000 (i.e. the same lobbying cost in periods 6- 10).
Follow the instructions from question #3, to create a New line chart comparing the average individual lobbying expenditures across periods 11-15 and periods 16-20.
- After creating your line charts in questions #3 and #4, use them to briefly (i.e. in a few sentences) answer the following questions:
- Each line chart analyzed how an increase in the per-unit lobbying effort cost from $500 to $1,000 affected individual lobbying expenditures in the game. Based on your two line charts, how did increasing the lobbying effort cost affect observed individual lobbying expenditures?
- Comparing your line chart in question #3 vs. question #4 will illustrate how an increase in the group size from n = 2 to n = 4 affected individual lobbying expenditures in the game. How did the larger group size affect individual lobbying expenditures (while holding the lobbying effort cost constant)?
Round | ID | Effort | Individual Lobbying Expenditure |
1 | 1 | 8 | $4,000 |
1 | 2 | 1 | $500 |
1 | 3 | 15 | $7,500 |
1 | 4 | 16 | $8,000 |
1 | 5 | 16 | $8,000 |
1 | 6 | 6 | $3,000 |
1 | 7 | 16 | $8,000 |
1 | 8 | 8 | $4,000 |
1 | 9 | 2 | $1,000 |
1 | 10 | 16 | $8,000 |
1 | 11 | 2 | $1,000 |
1 | 12 | 16 | $8,000 |
1 | 13 | 14 | $7,000 |
1 | 14 | 4 | $2,000 |
1 | 15 | 16 | $8,000 |
1 | 16 | 2 | $1,000 |
1 | 17 | 16 | $8,000 |
1 | 18 | 16 | $8,000 |
1 | 19 | 0 | $0 |
1 | 20 | 8 | $4,000 |
1 | 21 | 16 | $8,000 |
1 | 22 | 9 | $4,500 |
1 | 23 | 10 | $5,000 |
1 | 24 | 6 | $3,000 |
2 | 1 | 9 | $4,500 |
2 | 2 | 4 | $2,000 |
2 | 3 | 11 | $5,500 |
2 | 4 | 16 | $8,000 |
2 | 5 | 16 | $8,000 |
2 | 6 | 4 | $2,000 |
2 | 7 | 10 | $5,000 |
2 | 8 | 12 | $6,000 |
2 | 9 | 2 | $1,000 |
2 | 10 | 16 | $8,000 |
2 | 11 | 16 | $8,000 |
2 | 12 | 16 | $8,000 |
2 | 13 | 16 | $8,000 |
2 | 14 | 5 | $2,500 |
2 | 15 | 5 | $2,500 |
2 | 16 | 5 | $2,500 |
2 | 17 | 16 | $8,000 |
2 | 18 | 16 | $8,000 |
2 | 19 | 2 | $1,000 |
2 | 20 | 7 | $3,500 |
2 | 21 | 16 | $8,000 |
2 | 22 | 10 | $5,000 |
2 | 23 | 12 | $6,000 |
2 | 24 | 5 | $2,500 |
3 | 1 | 10 | $5,000 |
3 | 2 | 4 | $2,000 |
3 | 3 | 11 | $5,500 |
3 | 4 | 16 | $8,000 |
3 | 5 | 16 | $8,000 |
3 | 6 | 6 | $3,000 |
3 | 7 | 5 | $2,500 |
3 | 8 | 8 | $4,000 |
3 | 9 | 4 | $2,000 |
3 | 10 | 16 | $8,000 |
3 | 11 | 16 | $8,000 |
3 | 12 | 16 | $8,000 |
3 | 13 | 16 | $8,000 |
3 | 14 | 16 | $8,000 |
3 | 15 | 8 | $4,000 |
3 | 16 | 3 | $1,500 |
3 | 17 | 16 | $8,000 |
3 | 18 | 2 | $1,000 |
3 | 19 | 16 | $8,000 |
3 | 20 | 6 | $3,000 |
3 | 21 | 16 | $8,000 |
3 | 22 | 10 | $5,000 |
3 | 23 | 11 | $5,500 |
3 | 24 | 6 | $3,000 |
4 | 1 | 10 | $5,000 |
4 | 2 | 4 | $2,000 |
4 | 3 | 11 | $5,500 |
4 | 4 | 14 | $7,000 |
4 | 5 | 16 | $8,000 |
4 | 6 | 14 | $7,000 |
4 | 7 | 4 | $2,000 |
4 | 8 | 8 | $4,000 |
4 | 9 | 6 | $3,000 |
4 | 10 | 16 | $8,000 |
4 | 11 | 15 | $7,500 |
4 | 12 | 16 | $8,000 |
4 | 13 | 1 | $500 |
4 | 14 | 16 | $8,000 |
4 | 15 | 7 | $3,500 |
4 | 16 | 8 | $4,000 |
4 | 17 | 16 | $8,000 |
4 | 18 | 15 | $7,500 |
4 | 19 | 4 | $2,000 |
4 | 20 | 7 | $3,500 |
4 | 21 | 16 | $8,000 |
4 | 22 | 10 | $5,000 |
4 | 23 | 12 | $6,000 |
4 | 24 | 8 | $4,000 |
5 | 1 | 10 | $5,000 |
5 | 2 | 8 | $4,000 |
5 | 3 | 11 | $5,500 |
5 | 4 | 14 | $7,000 |
5 | 5 | 16 | $8,000 |
5 | 6 | 14 | $7,000 |
5 | 7 | 1 | $500 |
5 | 8 | 8 | $4,000 |
5 | 9 | 6 | $3,000 |
5 | 10 | 16 | $8,000 |
5 | 11 | 14 | $7,000 |
5 | 12 | 8 | $4,000 |
5 | 13 | 16 | $8,000 |
5 | 14 | 16 | $8,000 |
5 | 15 | 8 | $4,000 |
5 | 16 | 16 | $8,000 |
5 | 17 | 16 | $8,000 |
5 | 18 | 12 | $6,000 |
5 | 19 | 0 | $0 |
5 | 20 | 8 | $4,000 |
5 | 21 | 16 | $8,000 |
5 | 22 | 10 | $5,000 |
5 | 23 | 5 | $2,500 |
5 | 24 | 4 | $2,000 |
6 | 1 | 6 | $6,000 |
6 | 2 | 4 | $4,000 |
6 | 3 | 6 | $6,000 |
6 | 4 | 8 | $8,000 |
6 | 5 | 16 | $16,000 |
6 | 6 | 12 | $12,000 |
6 | 7 | 2 | $2,000 |
6 | 8 | 6 | $6,000 |
6 | 9 | 2 | $2,000 |
6 | 10 | 8 | $8,000 |
6 | 11 | 5 | $5,000 |
6 | 12 | 8 | $8,000 |
6 | 13 | 12 | $12,000 |
6 | 14 | 15 | $15,000 |
6 | 15 | 7 | $7,000 |
6 | 16 | 1 | $1,000 |
6 | 17 | 16 | $16,000 |
6 | 18 | 8 | $8,000 |
6 | 19 | 0 | $0 |
6 | 20 | 8 | $8,000 |
6 | 21 | 1 | $1,000 |
6 | 22 | 7 | $7,000 |
6 | 23 | 4 | $4,000 |
6 | 24 | 8 | $8,000 |
7 | 1 | 8 | $8,000 |
7 | 2 | 1 | $1,000 |
7 | 3 | 8 | $8,000 |
7 | 4 | 8 | $8,000 |
7 | 5 | 8 | $8,000 |
7 | 6 | 12 | $12,000 |
7 | 7 | 2 | $2,000 |
7 | 8 | 4 | $4,000 |
7 | 9 | 2 | $2,000 |
7 | 10 | 8 | $8,000 |
7 | 11 | 10 | $10,000 |
7 | 12 | 8 | $8,000 |
7 | 13 | 12 | $12,000 |
7 | 14 | 15 | $15,000 |
7 | 15 | 8 | $8,000 |
7 | 16 | 12 | $12,000 |
7 | 17 | 8 | $8,000 |
7 | 18 | 4 | $4,000 |
7 | 19 | 1 | $1,000 |
7 | 20 | 7 | $7,000 |
7 | 21 | 1 | $1,000 |
7 | 22 | 7 | $7,000 |
7 | 23 | 6 | $6,000 |
7 | 24 | 4 | $4,000 |
8 | 1 | 10 | $10,000 |
8 | 2 | 8 | $8,000 |
8 | 3 | 9 | $9,000 |
8 | 4 | 8 | $8,000 |
8 | 5 | 8 | $8,000 |
8 | 6 | 14 | $14,000 |
8 | 7 | 2 | $2,000 |
8 | 8 | 2 | $2,000 |
8 | 9 | 2 | $2,000 |
8 | 10 | 8 | $8,000 |
8 | 11 | 10 | $10,000 |
8 | 12 | 6 | $6,000 |
8 | 13 | 12 | $12,000 |
8 | 14 | 14 | $14,000 |
8 | 15 | 9 | $9,000 |
8 | 16 | 15 | $15,000 |
8 | 17 | 8 | $8,000 |
8 | 18 | 8 | $8,000 |
8 | 19 | 1 | $1,000 |
8 | 20 | 6 | $6,000 |
8 | 21 | 1 | $1,000 |
8 | 22 | 6 | $6,000 |
8 | 23 | 7 | $7,000 |
8 | 24 | 6 | $6,000 |
9 | 1 | 10 | $10,000 |
9 | 2 | 8 | $8,000 |
9 | 3 | 9 | $9,000 |
9 | 4 | 8 | $8,000 |
9 | 5 | 8 | $8,000 |
9 | 6 | 6 | $6,000 |
9 | 7 | 2 | $2,000 |
9 | 8 | 8 | $8,000 |
9 | 9 | 3 | $3,000 |
9 | 10 | 8 | $8,000 |
9 | 11 | 10 | $10,000 |
9 | 12 | 3 | $3,000 |
9 | 13 | 10 | $10,000 |
9 | 14 | 14 | $14,000 |
9 | 15 | 8 | $8,000 |
9 | 16 | 0 | $0 |
9 | 17 | 8 | $8,000 |
9 | 18 | 6 | $6,000 |
9 | 19 | 3 | $3,000 |
9 | 20 | 7 | $7,000 |
9 | 21 | 1 | $1,000 |
9 | 22 | 6 | $6,000 |
9 | 23 | 7 | $7,000 |
9 | 24 | 3 | $3,000 |
10 | 1 | 10 | $10,000 |
10 | 2 | 8 | $8,000 |
10 | 3 | 9 | $9,000 |
10 | 4 | 8 | $8,000 |
10 | 5 | 8 | $8,000 |
10 | 6 | 6 | $6,000 |
10 | 7 | 2 | $2,000 |
10 | 8 | 4 | $4,000 |
10 | 9 | 4 | $4,000 |
10 | 10 | 8 | $8,000 |
10 | 11 | 10 | $10,000 |
10 | 12 | 8 | $8,000 |
10 | 13 | 12 | $12,000 |
10 | 14 | 15 | $15,000 |
10 | 15 | 14 | $14,000 |
10 | 16 | 1 | $1,000 |
10 | 17 | 8 | $8,000 |
10 | 18 | 1 | $1,000 |
10 | 19 | 0 | $0 |
10 | 20 | 8 | $8,000 |
10 | 21 | 1 | $1,000 |
10 | 22 | 6 | $6,000 |
10 | 23 | 7 | $7,000 |
10 | 24 | 4 | $4,000 |
11 | 1 | 16 | $8,000 |
11 | 2 | 16 | $8,000 |
11 | 3 | 8 | $4,000 |
11 | 4 | 1 | $500 |
11 | 5 | 16 | $8,000 |
11 | 6 | 16 | $8,000 |
11 | 7 | 1 | $500 |
11 | 8 | 8 | $4,000 |
11 | 9 | 8 | $4,000 |
11 | 10 | 6 | $3,000 |
11 | 11 | 5 | $2,500 |
11 | 12 | 14 | $7,000 |
11 | 13 | 16 | $8,000 |
11 | 14 | 4 | $2,000 |
11 | 15 | 8 | $4,000 |
11 | 16 | 15 | $7,500 |
11 | 17 | 16 | $8,000 |
11 | 18 | 8 | $4,000 |
11 | 19 | 1 | $500 |
11 | 20 | 0 | $0 |
11 | 21 | 16 | $8,000 |
11 | 22 | 9 | $4,500 |
11 | 23 | 15 | $7,500 |
11 | 24 | 4 | $2,000 |
12 | 1 | 2 | $1,000 |
12 | 2 | 16 | $8,000 |
12 | 3 | 8 | $4,000 |
12 | 4 | 16 | $8,000 |
12 | 5 | 16 | $8,000 |
12 | 6 | 4 | $2,000 |
12 | 7 | 0 | $0 |
12 | 8 | 8 | $4,000 |
12 | 9 | 4 | $2,000 |
12 | 10 | 6 | $3,000 |
12 | 11 | 4 | $2,000 |
12 | 12 | 10 | $5,000 |
12 | 13 | 1 | $500 |
12 | 14 | 8 | $4,000 |
12 | 15 | 8 | $4,000 |
12 | 16 | 16 | $8,000 |
12 | 17 | 0 | $0 |
12 | 18 | 16 | $8,000 |
12 | 19 | 0 | $0 |
12 | 20 | 6 | $3,000 |
12 | 21 | 1 | $500 |
12 | 22 | 8 | $4,000 |
12 | 23 | 15 | $7,500 |
12 | 24 | 8 | $4,000 |
13 | 1 | 2 | $1,000 |
13 | 2 | 16 | $8,000 |
13 | 3 | 8 | $4,000 |
13 | 4 | 16 | $8,000 |
13 | 5 | 16 | $8,000 |
13 | 6 | 4 | $2,000 |
13 | 7 | 0 | $0 |
13 | 8 | 8 | $4,000 |
13 | 9 | 8 | $4,000 |
13 | 10 | 6 | $3,000 |
13 | 11 | 3 | $1,500 |
13 | 12 | 10 | $5,000 |
13 | 13 | 1 | $500 |
13 | 14 | 8 | $4,000 |
13 | 15 | 8 | $4,000 |
13 | 16 | 8 | $4,000 |
13 | 17 | 5 | $2,500 |
13 | 18 | 0 | $0 |
13 | 19 | 0 | $0 |
13 | 20 | 0 | $0 |
13 | 21 | 0 | $0 |
13 | 22 | 7 | $3,500 |
13 | 23 | 9 | $4,500 |
13 | 24 | 8 | $4,000 |
14 | 1 | 1 | $500 |
14 | 2 | 16 | $8,000 |
14 | 3 | 8 | $4,000 |
14 | 4 | 1 | $500 |
14 | 5 | 16 | $8,000 |
14 | 6 | 0 | $0 |
14 | 7 | 0 | $0 |
14 | 8 | 8 | $4,000 |
14 | 9 | 8 | $4,000 |
14 | 10 | 6 | $3,000 |
14 | 11 | 5 | $2,500 |
14 | 12 | 10 | $5,000 |
14 | 13 | 1 | $500 |
14 | 14 | 8 | $4,000 |
14 | 15 | 8 | $4,000 |
14 | 16 | 8 | $4,000 |
14 | 17 | 10 | $5,000 |
14 | 18 | 0 | $0 |
14 | 19 | 0 | $0 |
14 | 20 | 10 | $5,000 |
14 | 21 | 0 | $0 |
14 | 22 | 6 | $3,000 |
14 | 23 | 9 | $4,500 |
14 | 24 | 8 | $4,000 |
15 | 1 | 4 | $2,000 |
15 | 2 | 16 | $8,000 |
15 | 3 | 8 | $4,000 |
15 | 4 | 1 | $500 |
15 | 5 | 0 | $0 |
15 | 6 | 4 | $2,000 |
15 | 7 | 10 | $5,000 |
15 | 8 | 8 | $4,000 |
15 | 9 | 4 | $2,000 |
15 | 10 | 6 | $3,000 |
15 | 11 | 4 | $2,000 |
15 | 12 | 10 | $5,000 |
15 | 13 | 1 | $500 |
15 | 14 | 4 | $2,000 |
15 | 15 | 8 | $4,000 |
15 | 16 | 8 | $4,000 |
15 | 17 | 12 | $6,000 |
15 | 18 | 0 | $0 |
15 | 19 | 0 | $0 |
15 | 20 | 10 | $5,000 |
15 | 21 | 0 | $0 |
15 | 22 | 6 | $3,000 |
15 | 23 | 9 | $4,500 |
15 | 24 | 8 | $4,000 |
16 | 1 | 2 | $2,000 |
16 | 2 | 10 | $10,000 |
16 | 3 | 8 | $8,000 |
16 | 4 | 5 | $5,000 |
16 | 5 | 8 | $8,000 |
16 | 6 | 3 | $3,000 |
16 | 7 | 5 | $5,000 |
16 | 8 | 4 | $4,000 |
16 | 9 | 4 | $4,000 |
16 | 10 | 5 | $5,000 |
16 | 11 | 4 | $4,000 |
16 | 12 | 6 | $6,000 |
16 | 13 | 1 | $1,000 |
16 | 14 | 4 | $4,000 |
16 | 15 | 4 | $4,000 |
16 | 16 | 8 | $8,000 |
16 | 17 | 4 | $4,000 |
16 | 18 | 0 | $0 |
16 | 19 | 0 | $0 |
16 | 20 | 3 | $3,000 |
16 | 21 | 0 | $0 |
16 | 22 | 4 | $4,000 |
16 | 23 | 5 | $5,000 |
16 | 24 | 4 | $4,000 |
17 | 1 | 2 | $2,000 |
17 | 2 | 8 | $8,000 |
17 | 3 | 8 | $8,000 |
17 | 4 | 1 | $1,000 |
17 | 5 | 8 | $8,000 |
17 | 6 | 4 | $4,000 |
17 | 7 | 0 | $0 |
17 | 8 | 4 | $4,000 |
17 | 9 | 4 | $4,000 |
17 | 10 | 8 | $8,000 |
17 | 11 | 6 | $6,000 |
17 | 12 | 6 | $6,000 |
17 | 13 | 1 | $1,000 |
17 | 14 | 4 | $4,000 |
17 | 15 | 4 | $4,000 |
17 | 16 | 0 | $0 |
17 | 17 | 6 | $6,000 |
17 | 18 | 0 | $0 |
17 | 19 | 0 | $0 |
17 | 20 | 10 | $10,000 |
17 | 21 | 0 | $0 |
17 | 22 | 4 | $4,000 |
17 | 23 | 5 | $5,000 |
17 | 24 | 4 | $4,000 |
18 | 1 | 1 | $1,000 |
18 | 2 | 8 | $8,000 |
18 | 3 | 8 | $8,000 |
18 | 4 | 16 | $16,000 |
18 | 5 | 8 | $8,000 |
18 | 6 | 8 | $8,000 |
18 | 7 | 0 | $0 |
18 | 8 | 4 | $4,000 |
18 | 9 | 4 | $4,000 |
18 | 10 | 7 | $7,000 |
18 | 11 | 3 | $3,000 |
18 | 12 | 6 | $6,000 |
18 | 13 | 1 | $1,000 |
18 | 14 | 4 | $4,000 |
18 | 15 | 4 | $4,000 |
18 | 16 | 0 | $0 |
18 | 17 | 0 | $0 |
18 | 18 | 0 | $0 |
18 | 19 | 0 | $0 |
18 | 20 | 6 | $6,000 |
18 | 21 | 0 | $0 |
18 | 22 | 4 | $4,000 |
18 | 23 | 5 | $5,000 |
18 | 24 | 4 | $4,000 |
19 | 1 | 1 | $1,000 |
19 | 2 | 6 | $6,000 |
19 | 3 | 8 | $8,000 |
19 | 4 | 8 | $8,000 |
19 | 5 | 8 | $8,000 |
19 | 6 | 8 | $8,000 |
19 | 7 | 0 | $0 |
19 | 8 | 4 | $4,000 |
19 | 9 | 4 | $4,000 |
19 | 10 | 9 | $9,000 |
19 | 11 | 2 | $2,000 |
19 | 12 | 6 | $6,000 |
19 | 13 | 1 | $1,000 |
19 | 14 | 4 | $4,000 |
19 | 15 | 4 | $4,000 |
19 | 16 | 8 | $8,000 |
19 | 17 | 1 | $1,000 |
19 | 18 | 0 | $0 |
19 | 19 | 0 | $0 |
19 | 20 | 8 | $8,000 |
19 | 21 | 0 | $0 |
19 | 22 | 4 | $4,000 |
19 | 23 | 5 | $5,000 |
19 | 24 | 4 | $4,000 |
20 | 1 | 1 | $1,000 |
20 | 2 | 2 | $2,000 |
20 | 3 | 8 | $8,000 |
20 | 4 | 16 | $16,000 |
20 | 5 | 1 | $1,000 |
20 | 6 | 4 | $4,000 |
20 | 7 | 0 | $0 |
20 | 8 | 4 | $4,000 |
20 | 9 | 4 | $4,000 |
20 | 10 | 5 | $5,000 |
20 | 11 | 4 | $4,000 |
20 | 12 | 6 | $6,000 |
20 | 13 | 1 | $1,000 |
20 | 14 | 4 | $4,000 |
20 | 15 | 4 | $4,000 |
20 | 16 | 15 | $15,000 |
20 | 17 | 14 | $14,000 |
20 | 18 | 0 | $0 |
20 | 19 | 0 | $0 |
20 | 20 | 9 | $9,000 |
20 | 21 | 0 | $0 |
20 | 22 | 4 | $4,000 |
20 | 23 | 5 | $5,000 |
20 | 24 | 4 | $4,000 |
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura