So%20You%20Say%20You%20Want%20A%20Revolution:%20Experimental%20Findings%20from%20Indonesia

1
So You Say You Want A Revolution Experimental
Findings from Indonesia

• Berly Martawardaya
• LabSi Universita di Siena (Italy)
• and Universitas Indonesia

2
Structure

• Introduction
• Literature
• Experiment Setup
• Results
• Conclusion

3
Introduction

• Revolution has strong impact to social and
  economics conditions
• Economic factor has role in many revolutions
• But a rarely touch topic in economics, unlike in
  political science

4
Literature

• Dudley (2000)
• revolution in Europe (950-1950) by relative
  importance of fixed costs and network effects in
  producing the information to allocate society
  resources.
• Navqi and Wemhoner (1995)
• three agents models (landlord, labourer and
  merchant) and three commodities? landlord can
  wield power in SBPE of an infinite-move,
  extensive-form game of complete and perfect
  information.
• Hatlebakk (2002)
• allowed the landlord to pay the merchant and ?
  stage game with less rationality (more robust
  SBPE)

5
Experiment Setup

• Combining dicator game and social exclusion game
• Revolution as movement of the many poor against
  the few rich
• The poor must make colective contribution to make
  a succesful revolution
• Insufficient contribution failed revolution

6
Experiment Setup (2)

• 1) Three player game (A, B, C)
• 2) Endowment of B Endowment of C Rp 200
  rupiah but Endowment of A is very high (Rp 1000).
• 4) A decide how much to give (equally) to B C
• 5) B C contribute to common pool. If gt
  threshold (Rp 300) then it succed, if less then
  revolution fail but B C keep the gain. If B or
  C dont contribute then both get 0
• 5) Repeat for 5 rounds
• Dictator setting A is randomly chosen
• Merit setting A is chosen by a short test

7
Game Tree

• A
• (give x/2 )
• B B B
• SB SC T SB SC lt T SB or SC 0
• 0 EA x EA - x
• EA / 2 EB x/2 - SB 0

8
Experiment Setup (3)

• N 114
• Location
• U of Indonesia
• Subject
• undergrad in
• econ/business
• Paper base
• Anonymous
• Random assignment

9
Results Average Proposers gift
10
Results Average Proposers gift
t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting t test between proposer's offer in dictator setting and merit setting
round1 Round 2 Round 3 Round 4 Round 5
value 5,7123 6,0051 5,6728 5,7186 5,6825
prob 0 0 0 0 0
11
Results Average Responders contribution
12
Results Average Responders contribution
t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting t test between respondent's contribution in dictator setting and merit setting
Round 1 Round 2 Round 3 Round 4 Round 5
value 1,0245 -1,1971 2,6018 -7,7759 -14,0817
prob 0,3081 0,2341 0,0107 0 0
13
Result Average Revolt
14
Conclusion

• The proposer is more generous in dictator setting
  where they did not earn their position.
• the merit setting lead to higher rate of
  revolution.
• Regret? Where everyone could be supreme leader,
  all non supreme leader are losers.

15
You say you want a revolutionWell you knowWe
all want to change the worldYou ask me for a
contributionWell you knowWe're doing what we
can Don't you know it's gonna be
alrightAlright AlrightJohn Lennon in
Revolution