Post by kevinblandford on Jul 17, 2013 17:34:52 GMT -5
One recent study [23] involves the introduction of a currency system into a colony of captive capuchin monkeys. The currency is in the form of coins and is redeemable for food and other purchasable items when exchanged with a researcher. Under these conditions, the researchers studied three features of monkey trading: demand, loss aversion, and risk aversion.
In this study, monkeys are presented with an amount of money and are shown a certain amount of food or other goods. The monkeys must take the money and hand it to the experimenter in exchange for goods. In one condition of the experiment, after the monkey has paid for the goods, it has the option to take a sure amount of food now, or wait until the experimenter alters the amount of food presented. In this circumstance, the experimenter can either increase or decrease the amount of food given. Thus, this experimental setup allows the researchers to look at the gambling behavior of the animals. The experimenters can therefore ask the following questions: will the monkey take the sure amount of food? Will the monkey “gamble” by waiting until the experimenter changes the amount of food present? Does the decision of the animal depend on the circumstances? Results indicate that the monkeys are risk-averse: they prefer to take the initial amount of food than wait for the experimenter to change the amount presented.
The experimenters introduce several other manipulations, including changing the allocated budget, changing the cost of certain items, changing the items themselves. Specifically, the researchers found an increase in item purchase and consumption when that item decreases in value, a result consistent with those found in human economics.[23]
Taken together, the results of this study indicate that capuchin monkeys are not only risk-averse, but are also sensitive to constructs such as price, budget, and payoff expectation. According to the researchers, the animals are not trained to behave in this way; these behaviors arise naturally in the trading environment. As a result, these researchers argue that basic economic behavior and reasoning might be unlearned, innate, and subject to natural selection.
Note for class 101: Humans are hardwired for loss aversion.
Advanced Material: Smart people use this information to profit.
Mastery of the subject: Risk takers are the ones who change the system and the status qou.
In this study, monkeys are presented with an amount of money and are shown a certain amount of food or other goods. The monkeys must take the money and hand it to the experimenter in exchange for goods. In one condition of the experiment, after the monkey has paid for the goods, it has the option to take a sure amount of food now, or wait until the experimenter alters the amount of food presented. In this circumstance, the experimenter can either increase or decrease the amount of food given. Thus, this experimental setup allows the researchers to look at the gambling behavior of the animals. The experimenters can therefore ask the following questions: will the monkey take the sure amount of food? Will the monkey “gamble” by waiting until the experimenter changes the amount of food present? Does the decision of the animal depend on the circumstances? Results indicate that the monkeys are risk-averse: they prefer to take the initial amount of food than wait for the experimenter to change the amount presented.
The experimenters introduce several other manipulations, including changing the allocated budget, changing the cost of certain items, changing the items themselves. Specifically, the researchers found an increase in item purchase and consumption when that item decreases in value, a result consistent with those found in human economics.[23]
Taken together, the results of this study indicate that capuchin monkeys are not only risk-averse, but are also sensitive to constructs such as price, budget, and payoff expectation. According to the researchers, the animals are not trained to behave in this way; these behaviors arise naturally in the trading environment. As a result, these researchers argue that basic economic behavior and reasoning might be unlearned, innate, and subject to natural selection.
Note for class 101: Humans are hardwired for loss aversion.
Advanced Material: Smart people use this information to profit.
Mastery of the subject: Risk takers are the ones who change the system and the status qou.