nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2024‒01‒15
six papers chosen by
Matthew Baker, City University of New York


  1. Do LLM Agents Exhibit Social Behavior? By Yan Leng; Yuan Yuan
  2. Strengths of social ties modulate brain computations for third-party punishment By Zixuan Tang; Chen Qu; Yang Hu; Julien Benistant; Frederic Moisan; Edmund Derrington; Jean-Claude Dreher
  3. The Virtues of Lab Experiments By Gary Charness; James Cox; Catherine Eckel; Charles Holt; Brian Jabarian
  4. Violent Conflict and Parochial Trust: Lab-in-the-Field and Survey Evidence By Katharina Werner; Ahmed Skali
  5. Self‐control is negatively linked to prosociality in young children By Gladys Barragan-Jason; Astrid Hopfensitz
  6. Genetics and Economics By Navarro Alfredo M.

  1. By: Yan Leng; Yuan Yuan
    Abstract: The advances of Large Language Models (LLMs) are expanding their utility in both academic research and practical applications. Recent social science research has explored the use of these "black-box" LLM agents for simulating complex social systems and potentially substituting human subjects in experiments. Our study delves into this emerging domain, investigating the extent to which LLMs exhibit key social interaction principles, such as social learning, social preference, and cooperative behavior, in their interactions with humans and other agents. We develop a novel framework for our study, wherein classical laboratory experiments involving human subjects are adapted to use LLM agents. This approach involves step-by-step reasoning that mirrors human cognitive processes and zero-shot learning to assess the innate preferences of LLMs. Our analysis of LLM agents' behavior includes both the primary effects and an in-depth examination of the underlying mechanisms. Focusing on GPT-4, the state-of-the-art LLM, our analyses suggest that LLM agents appear to exhibit a range of human-like social behaviors such as distributional and reciprocity preferences, responsiveness to group identity cues, engagement in indirect reciprocity, and social learning capabilities. However, our analysis also reveals notable differences: LLMs demonstrate a pronounced fairness preference, weaker positive reciprocity, and a more calculating approach in social learning compared to humans. These insights indicate that while LLMs hold great promise for applications in social science research, such as in laboratory experiments and agent-based modeling, the subtle behavioral differences between LLM agents and humans warrant further investigation. Careful examination and development of protocols in evaluating the social behaviors of LLMs are necessary before directly applying these models to emulate human behavior.
    Date: 2023–12
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2312.15198&r=evo
  2. By: Zixuan Tang; Chen Qu; Yang Hu; Julien Benistant; Frederic Moisan (EM - emlyon business school); Edmund Derrington; Jean-Claude Dreher
    Abstract: "Costly punishment of social norm transgressors by third-parties has been considered as a decisive stage in the evolution of human cooperation. An important facet of social relationship knowledge concerns the strength of the social ties between individuals, as measured by social distance. Yet, it is unclear how the enforcement of social norms is influenced by the social distance between a third-party and a norm violator at the behavioral and the brain system levels. Here, we investigated how social distance between punishers and norm-violators influences third-party punishment. Participants as third-party punished norm violators more severely as social distance between them increased. Using model-based fMRI, we disentangled key computations contributing to third-party punishment: inequity aversion, social distance between participant and norm violator and integration of the cost to punish with these signals. Inequity aversion increased activity in the anterior cingulate cortex and bilateral insula, and processing social distance engaged a bilateral fronto-parietal cortex brain network. These two brain signals and the cost to punish were integrated in a subjective value signal of sanctions that modulated activity in the ventromedial prefrontal cortex. Together, our results reveal the neurocomputational underpinnings of third-party punishment and how social distance modulates enforcement of social norms in humans."
    Keywords: social ties, social norms, neurocomputation
    Date: 2023–06–28
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04325737&r=evo
  3. By: Gary Charness; James Cox; Catherine Eckel; Charles Holt; Brian Jabarian
    Abstract: Physical lab experiments have played an instrumental role in sculpting the history of experimental economics, facilitating controlled information conditions, efficient monetary inducements, and exclusive advantages via immediate human interaction and engaging experiences. These unique benefits render in-person lab experiments essential for the future of experimental economics, complementing the growth of online experiments and the emerging AI revolution. We characterize the environments in which it seems particularly important to conduct lab-in-the-lab experiments. Overall, the lab benefits culminate in a comprehensive research procedure that produces precise and enlightening outcomes, ultimately enriching the domain of experimental economics, and potentially extending benefits to the broader realm of social science.
    Keywords: lab experiments, AI
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10796&r=evo
  4. By: Katharina Werner (University of Passau); Ahmed Skali (University of Groningen & GLO)
    Abstract: How does conflict exposure affect trust? We hypothesize that direct (firsthand) experience with conflict induces parochialism: trust towards out-groups worsens, but trust towards in-groups, owing to positive experiences of kin solidarity, may improve. Indirect exposure to conflict through third-party accounts, on the other hand, reduces trust toward everyone, owing to negativity bias. We find consistent support for our hypotheses in a lab-in-the-field experiment in Maluku, Indonesia, which witnessed a salient Christian-Muslim conflict during 1999-2002, as well as in three cross-country datasets exploiting temporal and spatial variation in exposure to violence. Our results help resolve a seeming contradiction in the literature and inform policies on resolving conflicts.
    Keywords: trust, conflict, direct exposure, indirect exposure, religion, discrimination
    JEL: C93 D74 Z12 Z13
    Date: 2023–12
    URL: http://d.repec.org/n?u=RePEc:hic:wpaper:404&r=evo
  5. By: Gladys Barragan-Jason; Astrid Hopfensitz (EM - emlyon business school)
    Abstract: "Human prosociality is a valuable but also deeply puzzling trait. While several studies suggest that prosociality is an impulsive behavior, others argue that self-control is necessary to develop prosocial behaviors. Yet, prosociality and self-control in children have rarely been studied jointly. Here, we measured self-control (i.e., delay-of-gratification) and prosociality (i.e., giving in a dictator game) in 250 4- to 6-year-old French schoolchildren. Contrary to previous studies, we found a negative relationship between waiting in the delay-of-gratification task and giving in the dictator game. The effect was especially pronounced when the partner in the dictator game was unknown compared with giving in a dictator game where the partner was a friend. Our results suggest that self-control is not always necessary to act prosocially. Future studies investigating whether and how such pattern develops across the lifespan and across cultures are warranted."
    Keywords: self control, sharing, children, dictator game
    Date: 2023–10–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04325644&r=evo
  6. By: Navarro Alfredo M.
    Abstract: This paper analyzes the relationship between genetics and economics and the effects of both genetics and the environment on the phenotype of human beings. Among other issues, it describes how data from the human genome can be used to explain certain economic characteristics, such as the existence of entrepreneurship, attitude towards risk, income level, propensity to invest, and ease of receiving education. A series of works related to this issue are analyzed, and the various ways of drawing conclusions from existing data are described. The paper concludes by stating that this type of study is in its infancy, but that it helps to better understand, along with the evaluation of the environment, certain characteristics of human behavior and opens an interesting field of study for economics. (JEL A10, A11, A12, B41, C13, D31, D33, I14, I24, Z13)
    JEL: A10 B41
    Date: 2023–11
    URL: http://d.repec.org/n?u=RePEc:aep:anales:4677&r=evo

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