In Wrong Anticipation - Miscalibrated Beliefs between Germans, Israelis, and Palestinians.

ABSTRACT: The reconcilability of actions and beliefs in inter-country relationships, either in business or politics, is of vital importance as incorrect beliefs on foreigners' behavior can have serious implications. We study a typical inter-country interaction by means of a controlled laboratory investment game experiment in Germany, Israel and Palestine involving 400 student participants in total. An investor has to take a risky decision in a foreign country that involves transferring money to an investee/allocator. We found a notable constellation of calibrated and un-calibrated beliefs. Within each country, transfer standards exist, which investees correctly anticipate within their country. However, across countries these standards differ. By attributing the standard of their own environment to t

SUBMITTER: Goerg SJ 

PROVIDER: S-EPMC4911115 | biostudies-literature | 2016

REPOSITORIES: biostudies-literature