Goerg, Sebastian J. ORCID: 0000-0002-1740-6870, Hennig-Schmidt, Heike, Walkowitz, Gari and Winter, Eyal ORCID: 0000-0002-4318-1759 (2016). In Wrong Anticipation - Miscalibrated Beliefs between Germans, Israelis, and Palestinians. PLoS One, 11 (6). SAN FRANCISCO: PUBLIC LIBRARY SCIENCE. ISSN 1932-6203

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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 the other countries investees are remarkably bad in predicting foreign investors' behavior. The tendency to ignore this potential difference can be a source of misinterpreting motives in cross-country interaction. Foreigners might perceive behavior as unfavorable or favorable differentiation, even thoughunknown to them-investors actually treat fellow-country people and foreigners alike.

Item Type: Journal Article
Creators:
CreatorsEmailORCIDORCID Put Code
Goerg, Sebastian J.UNSPECIFIEDorcid.org/0000-0002-1740-6870UNSPECIFIED
Hennig-Schmidt, HeikeUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Walkowitz, GariUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Winter, EyalUNSPECIFIEDorcid.org/0000-0002-4318-1759UNSPECIFIED
URN: urn:nbn:de:hbz:38-272157
DOI: 10.1371/journal.pone.0156998
Journal or Publication Title: PLoS One
Volume: 11
Number: 6
Date: 2016
Publisher: PUBLIC LIBRARY SCIENCE
Place of Publication: SAN FRANCISCO
ISSN: 1932-6203
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
BEHAVIORAL-EXPERIMENTS; CULTURAL INTERACTION; SOCIAL-EXCHANGE; TRUST; RECIPROCITY; DISCRIMINATION; COOPERATION; IDENTITYMultiple languages
Multidisciplinary SciencesMultiple languages
Refereed: Yes
URI: http://kups.ub.uni-koeln.de/id/eprint/27215

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