IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v88y2022ics0167487021000933.html
   My bibliography  Save this article

When losses can be a gain. A large lab-in-the-field experiment on reference dependent forgiveness in Colombia

Author

Listed:
  • Fatas, Enrique
  • Restrepo-Plaza, Lina

Abstract

We test the effectiveness of two behaviorally inspired manipulations promoting forgiveness in a lab-in-the-field experiment in Cali, Colombia. Offenders (mostly juvenile) can only participate in a restorative justice program if victims agree to forgive them and let them participate. In our experiment, 756 participants were recruited using a panel maintained by a large public university. Participants are randomly assigned to one condition in a 2 × 2 between-subjects factorial design. In all conditions, restorative justice is introduced to participants using requests sent by real offenders to victims asking for their forgiveness. In one dimension, we manipulate the way the program is presented to them, using equivalent losses (risks of recidivism) or gains (successful rehabilitation). In the other dimension, we manipulate the default option (forgive or not-to-forgive), from which participants can easily opt-out. Decisions are incentivized by a sequence of lotteries. In all lotteries, a certain option is associated with the benefits of conventional justice (the opportunity cost of restorative justice) and a risky choice represents restorative justice, with large potential earnings (if the offender does not relapse into crime) and a chance of null earnings (if the offender does). Our results show that reluctance to forgive significantly decreases in the domain of losses relative to the domain of gains, while similar reluctance rates are observed in both default conditions. Disclosing objective information about the low recidivism rate of offenders also has a large impact, strongly reducing reluctance to forgive. Consistent with attention-based models, the magnitude of expected losses plays no significant role, and victims of crime are more willing to forgive than non-victims.

Suggested Citation

  • Fatas, Enrique & Restrepo-Plaza, Lina, 2022. "When losses can be a gain. A large lab-in-the-field experiment on reference dependent forgiveness in Colombia," Journal of Economic Psychology, Elsevier, vol. 88(C).
  • Handle: RePEc:eee:joepsy:v:88:y:2022:i:c:s0167487021000933
    DOI: 10.1016/j.joep.2021.102463
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167487021000933
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.joep.2021.102463?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Espinosa, María Paz & Fatás, Enrique & Ubeda, Paloma, 2019. "Linguistic diversity and out-group discrimination in bilingual societies," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 81(C), pages 102-127.
    2. Cristina Bicchieri & Enrique Fatas & Abraham Aldama & Andrés Casas & Ishwari Deshpande & Mariagiulia Lauro & Cristina Parilli & Max Spohn & Paula Pereira & Ruiling Wen, 2021. "In science we (should) trust: Expectations and compliance across nine countries during the COVID-19 pandemic," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-17, June.
    3. Ernst Fehr & Oliver Hart & Christian Zehnder, 2015. "How Do Informal Agreements And Revision Shape Contractual Reference Points?," Journal of the European Economic Association, European Economic Association, vol. 13(1), pages 1-28, February.
    4. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    5. Füllbrunn, Sascha & Luhan, Wolfgang J., 2020. "Responsibility and limited liability in decision making for others – An experimental consideration," Journal of Economic Psychology, Elsevier, vol. 77(C).
    6. Max, Sylvain & Grolleau, Gilles & Perchot, Rodolphe & Sutan, Angela, 2020. "On signaling disability in anonymous economic games," Journal of Economic Psychology, Elsevier, vol. 78(C).
    7. Bruns, Hendrik & Kantorowicz-Reznichenko, Elena & Klement, Katharina & Luistro Jonsson, Marijane & Rahali, Bilel, 2018. "Can nudges be transparent and yet effective?," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 41-59.
    8. Charness, Gary & Gneezy, Uri & Rasocha, Vlastimil, 2021. "Experimental methods: Eliciting beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 234-256.
    9. Simon Gächter & Eric J. Johnson & Andreas Herrmann, 2022. "Individual-level loss aversion in riskless and risky choices," Theory and Decision, Springer, vol. 92(3), pages 599-624, April.
    10. Borie, Dino & Jullien, Dorian, 2020. "Description-dependent preferences," Journal of Economic Psychology, Elsevier, vol. 81(C).
    11. Francesco Bogliacino & Pietro Ortoleva, 2014. "The Behavior of Others as a Reference Point," Working Papers 2014-4, Princeton University. Economics Department..
    12. Hermann, Daniel & Mußhoff, Oliver & Rau, Holger A., 2019. "The disposition effect when deciding on behalf of others," Journal of Economic Psychology, Elsevier, vol. 74(C).
    13. Shang, Xuesong & Duan, Hebing & Lu, Jingyi, 2021. "Gambling versus investment: Lay theory and loss aversion," Journal of Economic Psychology, Elsevier, vol. 84(C).
    14. Kimbrough, Erik O. & Porter, David & Schneider, Mark, 2021. "Reference dependent prices in bargaining: An experimental examination of precise first offers," Journal of Economic Psychology, Elsevier, vol. 86(C).
    15. Mark W. Lipsey & Nana A. Landenberger & Sandra J. Wilson, 2007. "Effects of Cognitive‐Behavioral Programs for Criminal Offenders," Campbell Systematic Reviews, John Wiley & Sons, vol. 3(1), pages 1-27.
    16. Faralla, Valeria & Novarese, Marco & Di Giovinazzo, Viviana, 2021. "Replication: Framing effects in intertemporal choice with children," Journal of Economic Psychology, Elsevier, vol. 82(C).
    17. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    18. Ernst Fehr & Oliver Hart & Christian Zehnder, 2011. "Contracts as Reference Points--Experimental Evidence," American Economic Review, American Economic Association, vol. 101(2), pages 493-525, April.
    19. Hendrik Bruns & Elena Kantorowicz-Reznichenko & Katharina Klement & Marijane Luistro Jonsson & Bilel Rahali, 2018. "Can nudges be transparent and yet effective?," Post-Print hal-01824076, HAL.
    20. Patrice Villettaz & Gwladys Gillieron & Martin Killias, 2015. "The Effects on Re‐offending of Custodial vs. Non‐custodial Sanctions: An Updated Systematic Review of the State of Knowledge," Campbell Systematic Reviews, John Wiley & Sons, vol. 11(1), pages 1-92.
    21. Garance Genicot & Debraj Ray, 2017. "Aspirations and Inequality," Econometrica, Econometric Society, vol. 85, pages 489-519, March.
    22. Fabrizi, Simona & Lippert, Steffen & Puppe, Clemens & Rosenkranz, Stephanie, 2016. "Manufacturer suggested retail prices, loss aversion and competition," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 141-153.
    23. Reitmann, Ann-Kristin & Goedhuys, Micheline & Grimm, Michael & Nillesen, Eleonora E.M., 2020. "Gender attitudes in the Arab region – The role of framing and priming effects," Journal of Economic Psychology, Elsevier, vol. 80(C).
    24. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    25. Besters, Lucas M. & van Ours, Jan C. & van Tuijl, Martin A., 2019. "How outcome uncertainty, loss aversion and team quality affect stadium attendance in Dutch professional football," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 117-127.
    26. Briscese, Guglielmo, 2019. "Generous by default: A field experiment on designing defaults that align with past behaviour on charitable giving," Journal of Economic Psychology, Elsevier, vol. 74(C).
    27. Jachimowicz, Jon M. & Duncan, Shannon & Weber, Elke U. & Johnson, Eric J., 2019. "When and why defaults influence decisions: a meta-analysis of default effects," Behavioural Public Policy, Cambridge University Press, vol. 3(2), pages 159-186, November.
    28. Francesco Bogliacino & Laura Jiménez Lozano & Daniel Reyes, 2018. "Socioeconomic stratification and stereotyping: lab-in-the-field evidence from Colombia," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(1), pages 77-118, March.
    29. Baron, Jonathan & Ritov, Ilana, 1994. "Reference Points and Omission Bias," Organizational Behavior and Human Decision Processes, Elsevier, vol. 59(3), pages 475-498, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eckel, Catherine C. & Fatas, Enrique & Kass, Malcolm, 2022. "Sacrifice: An experiment on the political economy of extreme intergroup punishment," Journal of Economic Psychology, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex Markle & George Wu & Rebecca White & Aaron Sackett, 2018. "Goals as reference points in marathon running: A novel test of reference dependence," Journal of Risk and Uncertainty, Springer, vol. 56(1), pages 19-50, February.
    2. repec:cup:judgdm:v:8:y:2013:i:3:p:214-235 is not listed on IDEAS
    3. Liêu, L.M. & Pelster, M., 2020. "Framing and the disposition effect in a scopic regime," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 175-185.
    4. Bramoullé, Y. & Ghiglino, C., 2024. "Status Consumption in Networks: A Reference Dependent Approach," Janeway Institute Working Papers 2409, Faculty of Economics, University of Cambridge.
    5. Ross, Phillip H., 2019. "Occupation aspirations, education investment, and cognitive outcomes: Evidence from Indian adolescents," World Development, Elsevier, vol. 123(C), pages 1-1.
    6. Ferro, Giuseppe M. & Kovalenko, Tatyana & Sornette, Didier, 2021. "Quantum decision theory augments rank-dependent expected utility and Cumulative Prospect Theory," Journal of Economic Psychology, Elsevier, vol. 86(C).
    7. Luca Congiu & Ivan Moscati, 2022. "A review of nudges: Definitions, justifications, effectiveness," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 188-213, February.
    8. Eyal Ert & Ido Erev, 2013. "On the descriptive value of loss aversion in decisions under risk: Six clarifications," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(3), pages 214-235, May.
    9. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    10. Luís Santos-Pinto & Adrian Bruhin & José Mata & Thomas Åstebro, 2015. "Detecting heterogeneous risk attitudes with mixed gambles," Theory and Decision, Springer, vol. 79(4), pages 573-600, December.
    11. Jonathan Chapman & Erik Snowberg & Stephanie Wang & Colin Camerer, 2018. "Loss Attitudes in the U.S. Population: Evidence from Dynamically Optimized Sequential Experimentation (DOSE)," NBER Working Papers 25072, National Bureau of Economic Research, Inc.
    12. Brice Corgnet & Roberto Hernán-González, 2019. "Revisiting the Trade-off Between Risk and Incentives: The Shocking Effect of Random Shocks?," Management Science, INFORMS, vol. 65(3), pages 1096-1114, March.
    13. repec:ubc:pmicro:halevy-04-10-29-10-08-43 is not listed on IDEAS
    14. Kontek, Krzysztof, 2010. "Linking Decision and Time Utilities," MPRA Paper 27541, University Library of Munich, Germany.
    15. Bowman, David & Minehart, Deborah & Rabin, Matthew, 1999. "Loss aversion in a consumption-savings model," Journal of Economic Behavior & Organization, Elsevier, vol. 38(2), pages 155-178, February.
    16. Roman Kräussl & Ronald Bosman & Thomas van Galen, 2014. "Emotions-at-Risk: An Experimental Investigation into Emotions, Option Prices and Risk Perception," LSF Research Working Paper Series 14-11, Luxembourg School of Finance, University of Luxembourg.
    17. Leiser, David & Azar, Ofer H. & Hadar, Liat, 2008. "Psychological construal of economic behavior," Journal of Economic Psychology, Elsevier, vol. 29(5), pages 762-776, November.
    18. Dorian Jullien, 2018. "Under Risk, Over Time, Regarding Other People: Language and Rationality within Three Dimensions," Research in the History of Economic Thought and Methodology, in: Including a Symposium on Latin American Monetary Thought: Two Centuries in Search of Originality, volume 36, pages 119-155, Emerald Group Publishing Limited.
    19. Elisabeth Vollmer & Daniel Hermann & Oliver Musshoff, 2019. "The disposition effect in farmers’ selling behavior: an experimental investigation," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 177-189, March.
    20. Stefan A Lipman & Arthur E Attema, 2020. "Good things come to those who wait—Decreasing impatience for health gains and losses," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-15, March.
    21. Jonathan W. Leland & Mark Schneider, 2016. "Salience, Framing, and Decisions under Risk, Uncertainty, and Time," Working Papers 16-08, Chapman University, Economic Science Institute.
    22. Stephen L. Cheung, 2020. "Eliciting utility curvature in time preference," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 493-525, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:88:y:2022:i:c:s0167487021000933. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.