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EXPERIMENTAL METHODWe test our hypotheses using the experimental setting in Stevens 2002. We find his experimentto be useful because it utilizes methods from both experimental economics and behavioralpsychology. Consistent with experimental economics, participants were paid privately in cash andmultiple decision periods were included to reduce the influence of learning effects. These featuresare important in experimental tests of the effects of economic incentives on judgments Smith1991; Smith and Walker 1993; Moser 1998. Consistent with behavioral psychology, the experimentcontained mundane realism in that the instructions described a production setting in whichparticipants produced units and set budgets for a production company. This feature is important inexperimental tests of the effects of personal values and perceptions Haynes and Kachelmeier1998. Finally, the instructions emphasized that the company desired a truthful budget and theexperimental procedures carefully guarded the privacy of the participants’ decisions.7 These featuresare important in experimental tests of moral reasoning Stevens 2002.
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