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Confucianism and preferences: Evidence from lab experiments in Taiwan and China

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  • Liu, Elaine M.
  • Meng, Juanjuan
  • Wang, Joseph Tao-yi

Abstract

This paper investigates how Confucianism affects individual decision making in Taiwan and in China. We found that Chinese subjects in our experiments became less accepting of Confucian values, such that they became significantly more risk loving, less loss averse, and more impatient after being primed with Confucianism, whereas Taiwanese subjects became significantly less present-based and were inclined to be more trustworthy after being primed by Confucianism. Combining the evidence from the incentivized laboratory experiments and subjective survey measures, we found evidence that Chinese subjects and Taiwanese subjects reacted differently to Confucianism.

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  • Liu, Elaine M. & Meng, Juanjuan & Wang, Joseph Tao-yi, 2014. "Confucianism and preferences: Evidence from lab experiments in Taiwan and China," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 106-122.
    • Handle: RePEc:eee:jeborg:v:104:y:2014:i:c:p:106-122
    DOI: 10.1016/j.jebo.2013.09.008
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    More about this item

    Keywords

    Social norm; Confucianism; Time preferences; Risk aversion; Trust;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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