Review of Behavioral Economics, 2017, 4: 69–81 Cognitive Load and Cooperation Felix Døssing1 , Marco Piovesan1 and Erik Wengström2∗ 1 University of Copenhagen, Department of Economics, Denmark Lund University, Department of Economics, Lund, Sweden and University of Copenhagen, Department of Economics, Denmark; [email protected] 2 ABSTRACT We study the effect of intuitive and reflective processes on cooperation using cognitive load. Compared with time constraint, which has been used in the previous literature, cognitive load is a more direct way to block reflective processes, and thus a more suitable way to study the link between intuition and cooperation. Using a repeated public goods game, we study the effect of different levels of cognitive load on contributions. We show that a higher cognitive load increases the initial level of cooperation. In particular, subjects are significantly less likely to fully free ride under high cognitive load. Keywords: Public goods, Cooperation, Cognitive load, Experiment JEL Codes: C70, C90, D03 1 Introduction Are we automatically inclined to cooperate when facing a social dilemma, or is prosocial cooperation the result of deliberate thinking? A recent stream of research has investigated the cognitive and motivational mechanisms related to prosocial behavior by focusing on the link between intuitive/deliberate cognitive processes and cooperative behavior (Rand et al., 2012; Rand et al., 2014). These papers study cooperation within the framework of dual process theory (Evans, 2008; Sloman, 1996; Miller and Cohen, 2001) in which autonomous processes (Type 1) yield default responses unless hindered by higher order ∗ We are thankful for financial support from the Department of Economics of the University of Copenhagen. Erik Wengström is also thankful for financial support from the Ragnar Söderberg Foundation. ISSN 2326-6198; DOI 10.1561/105.00000059 ©2017 F. Døssing, M. Piovesan and E. Wengström 70 Felix Døssing et al. reasoning processes (Type 2). Specifically the social heuristics hypothesis proposes that intuitive responses in a context involving cooperation are shaped by what the individual has experienced as successful in the past (Rand et al., 2012). The fact that there is a mismatch between what is optimal in an anonymous one-shot cooperation decision and what is often optimal in real life situations, which are repeated and subject to reputations effects, means that the intuitive response will favor cooperation when processing is more intuitive. Recent theoretical models have shown why one might expect to observe a conflict between cooperation and non-cooperation within the same agent and why manipulating intuition may affect the outcome of this conflict (Bear and Rand, 2016; Dreber et al., 2016). Bear and Rand (2016) present an evolutionary model, where agents participate in either a one-shot social dilemma or a social dilemma with reciprocal consequences. Agents may either act intuitively – cooperate or non-cooperate regardless of the game structure – or deliberate at a cost and choose the optimal strategy for the current game. Interestingly, depending on the probability of reciprocal consequences, selection favors either intuitive defectors, or dual-process agents who intuitively cooperate, but use deliberation to detect one-shot games, when the cost of deliberation is below a certain threshold. Selection never favors agents who use deliberation to override selfish impulses. From an experimental point of view, the effect of manipulating cognitive processing on cooperation remains controversial. While several studies have documented that cooperation increases when people rely more on the intuitive processes (Rand et al., 2012; Rand et al., 2014; Zaki and Mitchell, 2013; Lotito et al., 2013; Nielsen et al., 2014), these results have proven difficult to replicate (Verkoijen and Bouwmeester, 2014; Tinghög et al., 2013). In a recent meta-analysis, however, manipulating processing type was shown to have an overall and robust effect on cooperation (Rand, 2016). One reason for the inconsistent results may be that previous studies have primarily used time pressure and delay to manipulate cognitive processing. Although it is true that Type 1 processing is often associated with fast responses, response time is not viewed as a defining difference between the two processing types (Evans and Stanovich, 2013). Speed is simply a “typical correlate” and Evans and Stanovich (2013, pp. 226–229) even state that it is a common fallacy to think, that fast processing is necessarily indicative of Type 1 intuitive processing. The defining feature, which differentiates Type 1 from Type 2 processing, is rather, whether the process requires working-memory resources in order to function. Working memory is a system, which provides temporary storage of information and allows for different types of manipulations involved with reasoning (Baddeley, 1992; Baddeley, 2003). In this paper, we study the effect of cognitive load on cooperative behavior. We test the hypothesis that cognitive load increases cooperation, as would be expected given validity of the results from experiments involving time pressure Cognitive Load and Cooperation 71 and delay. Since the cognitive load task we used is designed to crowd out working memory, we can test the link between cooperative behavior and dual process theory in a way that targets the defining difference between the two types of processes. To the best of our knowledge there have been no other studies testing the effect of cognitive load on contributions in a public goods game. There are a number of studies that have tested the effect of cognitive load on generosity in the dictator game and other non-strategic games (Cornelissen et al., 2011; Roch et al., 2000; Schulz et al., 2014; Hauge et al., 2009; Kessler and Meier, 2014). Most studies report that generosity increases with cognitive load (Cornelissen et al., 2011; Schulz et al., 2014; Roch et al., 2000) while others do not find significant effects (Hauge et al., 2009). However, there are several differences between being generous in a dictator game and choosing to cooperate in the context of a social dilemma. In the public goods game the choices of each player reciprocally affects the outcome of the other players. As a consequence the public goods game involves the possibility of conditioning contributions on beliefs regarding other players’ contribution. Studies have documented a large tendency towards “conditional cooperation” (Fischbacher, 2007; Martinsson et al., 2013). Because of this the public goods game more accurately models the concept of cooperation as opposed to altruism. Further, contributions in the public goods game generally involve positive externalities and are efficiency enhancing, which is often not the case in dictator games.1 This means that in the case of the public goods game there is a mismatch between what is optimal in normal contexts involving repeated interactions, and the experimental context, which involves a one-shot anonymous interaction. This means that according to the social heuristics hypothesis we should expect increasing intuition to have an effect in the public goods game specifically (Rand, 2016; Rand et al., 2016). The effect of cognitive load in the context of social dilemma has so far only been studied in three papers of which none reliably measure the specific effect of cognitive load on coopration (Duffy and Smith, 2014; Liu and Hao, 2011; Milinski and Wedekind, 1998). Milinski and Wedekind (1998) study aniterated prisoners’ dilemma game. They find that when working memory is crowded, subjects switch from the “Pavlov strategy” (“win stay, lose shift”) to the “generous tit-for-tat” strategy. While this suggests an effect of cognitive load on cooperation, the study focuses on the use of different strategies in a repeated setting, which confounds intuitive cooperation with issues of complexity. Tit-for-tat is for example a more cooperative strategy, but also 1 Another difference is that there is strategic risk in the public goods game. Branas-Garza et al. (2016) study the relationship between response time and strategic risk and find that responses are slower in a game with high strategic risk compared to a game with low strategic risk. Taking this result at face value, it would imply slower response times among free riders in the public goods game as they have a dominant strategy that is independent of beliefs about other players’ actions. 72 Felix Døssing et al. a simpler strategy. Duffy and Smith (2014) find that subjects under high cognitive load behave less strategic than subjects under low cognitive load in a finite four-player prisoner’s dilemma. More specifically high load subjects exhibit more strategic defection near the end of the play and were more likely to condition their play on previous outcomes. Whether cognitive load affects the level of cooperation is not addressed by Duffy and Smith. Liu and Hao (2011) study the interaction between framing (giving vs. taking) and a combination of priming and cognitive load. Although they find no effect on cooperation, this has little to say in regards to a general effect of cognitive load on cooperation. In our experiment we focus on the initial level of cooperation in a public goods game. We find that cooperation in the public goods game is significantly higher in a treatment group exposed to high cognitive load compared to a treatment group with low cognitive load in the initial round. In the following rounds the effect of cognitive load weakens but also becomes more difficult to interpret. 2 Materials and Methods In our experiment, 166 subjects participated in a standard four-player public goods game (PGG) repeated for 10 rounds with random partner matching. All subjects where first year economics students with 65 female subjects, 101 male subjects and an average age of 21 years. The experiment was conducted at the Centre for Experimental Economics at the University of Copenhagen in 2014, during the Fall semester. Before the beginning of the experiment, we distributed written instructions to participants and we ask them to answer a number of comprehension questions correctly (for more details about the experimental design, including screen shots and instructions, see the Online Appendix). At the beginning of each period, they received an endowment of 20 points that they could allocate to a private or a public account. Points in the private account remained unchanged whereas points in the public account were doubled and shared equally between the four group members. After choosing their contribution, subjects were informed of their personal earnings and the average contribution of the other members of their group. The public goods game was set up with each player i having an endowment ei and choosing a contribution ci ≤ ei . If we have n players in each group, and we denote the set of players by I, the payoff of player i is given by: P a j∈I cj − ci vi (ci , c−i ) = n As long as na < 1 player i maximizes her payoff by choosing ci = 0, while social efficiency is achieved when ci = ei for all i. In the experiment the parameters where set a = 2, n = 4 and such that ei = 20 for all i. Cognitive Load and Cooperation Low Load 73 High Load Figure 1: Low and High Cognitive Load (red lines are added to the picture to illustrate what constitutes separate shapes). Before each period, subjects were presented with a dot pattern, which they were asked to remember and replicate at the end of the period. This cognitive load task is similar to the one developed by Bethell-Fox and Shepard (1988). In the Low Load (LL) treatment (n = 82), subject were shown a 3 × 3 matrix containing a single-dotted object shape, whereas in the High Load (HL) treatment (n = 84) the matrix contained either two or three dotted object shapes. This method for inducing cognitive load was chosen over the more common practice of having subjects remember a number, because we did not want to risk priming subjects with specific numbers. The left column of Figure 1 shows two examples of the low cognitive load, while the right column shows examples of the high load. The amount of load is determined by the amount of vertically and horizontally connected shapes rather than the amount of dots. This subtle manipulation has been shown to limit Type 2 processing specifically (Neys, 2006). The load task was incentivized, i.e. we pay subjects 10 point per correct entry. At the end of the experiment, subjects filled in standard background questions about age, gender and did the cognitive reflection test (CRT) introduced by Frederick (2005). The CRT was incentivized with subjects earning 5 points for each correct answer. We also included an incentivized confusion test to check if subjects understood the incentive structure of the public good game (see Online Appendix D for details). The total earnings (sum of all the points earned during the experiment) for each subject were converted to Danish kroner (DKK) with the following 74 Felix Døssing et al. exchange rate: 3 points = 1 DKK. The experiment lasted about an hour and subjects earned 147 DKK (∼EUR 20) on average (LL treatment: 137 DKK; HL treatment: 160 DKK). The experiment was programmed and conducted with the software z-Tree (Fischbacher, 2007) and subjects were recruited using the online recruitment system ORSEE (Greiner, 2015). 3 Results Since observations are only independent in the first round, our main focus is on first round contributions. As is common practice (Rand, 2016) we restrict our main analysis to subjects who answered the ex post confusion questions correctly.2 The remaining sample used in the analysis consists of 82 subjects, with 39 in LL and 43 in LL.3 Note that there is no significant difference in confusion, i.e. understanding of incentive structure, between the two treatment groups (Mann-Whitney test on the number of correct answers to the confusion questions, p-value = 0.782). The average contribution in the first round was 6.2 points in LL and 9.6 points in HL. That is, subjects under high cognitive load contributed on average 54 percent more than subject exposed to low cognitive load. The difference in contributions is statistically significant using the Mann-Whitney test (one-tailed p-value = 0.0064 ). Figure 2 shows the distribution of contributions for the two treatments. It is evident that the average treatment effect is driven by a higher fraction of subjects choosing to free ride by contributing zero to the public good in the LL treatment as well as a higher fraction of subjects choosing a contribution of 5, 10, and 20 in the HL treatment. The difference in free riding is significant using the Chi2 test (p-value = 0.006). The difference at 10 is borderline significant at the 5% level (Chi2 test p-value = 0.054), while the difference at 20 is not significant (Chi2 test p-value = 0.285). Since the confusion test was conducted after the end of the public goods game, we cannot fully control for the possibility that load induced uneven confusion, which disappeared at the end of the experiment. As for the cognitive load, we note that the number of incorrect answers across all ten periods was significantly larger for subjects under high load compared with subjects under low load using a Mann-Whitney test (p-value = 0.004). This evidence together with the facts that the cognitive load task was incentivized and that there 2 Strømland et al. (2016) conduct a time pressure experiment similar to that of Rand et al. (2012) and find that the effect on contribution is contingent on subjects answering similar ex post confusion questions correctly. 3 The level of confusion is similar to earlier studies using the same test (see for example Fosgaard et al., 2016). 4 Since we are specifically testing the hypothesis that cognitive load increases cooperation, we use a one-tailed test. The results are also significant using the Mann-Whitney test with the full sample (confused and non-confused subjects; one-tailed p-value = 0.046). Cognitive Load and Cooperation 75 0.4 Relative frequency 0.3 Low Load 0.2 High Load 0.1 0.0 0 0-5 5 5-10 10 10-15 15 15-20 20 Contribution Figure 2: The Distribution of Contributions in the First Round by Treatment. were generally few incorrect answers, suggest that the cognitive load succeeded in crowding the working memory of the subjects in the first round. We cannot know for sure whether subjects, who did not answer the cognitive load task correctly, where actually using working memory resources on the task. However, we note that the difference in first round contribution is still significant when we exclude subjects who failed the cognitive load task (Mann-Whitney test, one-tailed p-value = 0.010). Table 1 reports a series of regression estimates, which also indicate that a higher cognitive load induces more contributions. The HL (High Load) treatment dummy is positive and significant in column (1) which displays OLS estimates with contribution in the first period as the dependent variable. Column (2) shows that the positive association between HL and contributions is robust to the inclusion of a set of control variables (age, gender, number of incorrect answers in the cognitive load task, number of incorrect answers to the CRT and an interaction between CRT and HL). Up to now, we have focused on the behavior in the first period of the PGG. After the first period, individual contributions can no longer be viewed as 76 Felix Døssing et al. Table 1: OLS Regressions of Contributions. OLS Period 1 Variables High Load Female Age > 22 Age < 20 Incorrect CL Incorrect CRT Incorrect CRT*High Load Period Constant Observations Number of id Panel Random Effects Periods 1–5 Panel Random Effects All Periods (1) (2) (3) (4) (5) (6) 3.428∗∗ 6.638∗∗ 2.614∗∗ 5.056∗∗∗ 1.380 (1.092) 3.606∗∗ (1.765) −2.569∗∗ (1.209) −3.524∗∗∗ (1.192) −4.017∗ (2.157) 1.070 (1.184) 1.606∗ (0.853) −1.539 (1.503) (2.550) −2.418 (1.746) −3.124∗ (1.721) −4.712 (3.115) 0.582 (1.711) 1.861 (1.233) −2.061 (1.455) 6.154∗∗∗ 5.428∗∗∗ (1.088) (1.827) 82 82 82 82 (1.157) −0.356∗∗ (0.151) 6.822∗∗∗ (0.953) 410 82 (1.877) −2.723∗∗ (1.285) −3.477∗∗∗ (1.267) −4.443∗ (2.293) 1.312 (1.259) 1.631∗ (0.907) −1.683 (1.071) −0.356∗∗ (0.151) 6.498∗∗∗ (1.419) 410 82 (1.007) −0.352∗∗∗ −0.352∗∗∗ (0.0510) (0.0510) 7.472∗∗∗ 7.170∗∗∗ (0.839) (1.295) 820 820 82 82 Notes: Specifications (1) and (2) report OLS estimates with the contribution in period 1 as the dependent variable. Specifications (3) to (6) report Random Effect Panel estimates. High Load is a dummy variable for the HL treatment. The Female and Age variables are dummy variables. Incorrect CL denotes the number of incorrect answers in the cognitive load task. Incorrect CRT denotes number of incorrect answers in the Cognitive Reflection Test and Incorrect CRT*High Load is an interaction variable. Period indicate the period variable in the panel estimations. Robust standard errors in parentheses. ∗∗∗ p < 0.01, ∗∗ p < 0.05, ∗ p < 0.1 independent observations. Nevertheless, it is interesting to explore whether the effect of cognitive ability persists as the game is repeated. Previous studies using response time manipulations suggest that the effects may decline over time. For example, Sutter et al. (2003) report a time-pressure effect on rejection rates in the ultimate game, but the effect vanishes quickly as the game is repeated. Figure 3 shows the evolution of average contributions over time. The average contribution in the HL treatment is higher than in the LL treatment for the first rounds of the experiment but the difference vanishes as the game is repeated. The same pattern is present in the regression estimates of Table 1. Columns (3) and (4) display estimates from random effects panel estimations for periods 1–5 with and without controls. The HL dummy is again positive and significant. However, in line with a declining effect of cognitive load over Cognitive Load and Cooperation 77 Contribution 10 Low Load High Load 5 0 1 2 3 4 5 6 7 8 9 10 Figure 3: Average Contributions by Treatment. Error Bars Denote the Standard Errors of the Means. time, the HL coefficient is much smaller in columns (5) and (6) where we use data from all 10 periods. Regarding the effect of the covariates, we note a lower CRT score is positively related to cooperation in LL but not in HL. One potential explanation might be that low cognitive load is enough for those with low CRT scores to generate the effects we observe more generally under high cognitive load. One potential explanation behind the convergence in contributions is that the difference in cognitive load between treatments becomes smaller as subjects gain experience with the cognitive load task. Thus, we may not have been able to induce a working memory load in subsequent rounds. This view is supported by looking at the fraction of subjects that give an incorrect answer to the cognitive load task. In the first period, there is a dramatic difference with almost three times as many subjects providing an incorrect answer in the HL treatment compared with the LL treatment. But from period 3 an onwards, there is no apparent difference in the fraction of incorrect answers between treatments. Whether the load task was successful in rounds following the first is, however, difficult to distinguish from possible interaction effects. 78 4 Felix Døssing et al. Discussion Our results indicate that cognitive load causes an increase in cooperation in the first round, while the dynamic effects are more difficult to untangle. This result seems to be consistent with the hypothesis that relying on intuition increases cooperative behavior. One potential explanation is that cooperation is a heuristic response that subjects bring with them into the lab (Rand et al., 2014). When resources are not available to sufficiently compute costs and benefits they increasingly rely on this heuristic. As noted, the distribution of contributions in the first round of the two treatments show that the increase in cooperation is due to a higher frequency of zero donations in the LL treatment, as well as a higher amount of intermediate and maximum contributions in the HL treatment (Figure 2). While the effect on free riding and maximum contributions is perfectly in line with the social heuristics hypothesis, it does not explain why we observe an increase in 50% contributions in the HL treatment. Previous studies have looked at the tendency for choosing an intermediate contribution (Capraro et al., 2014) or an “equal-division” (Roch et al., 2000) and by analyzing subsequent statements have tied this to a preference for fairness. Therefore, a possible explanation is that cognitive load causes players to apply an “equal is fair” heuristic. We cannot, however, rule out the possibility that cognitive load affects different types of subject differently. Lacking cognitive resource may cause more selfish subjects to apply a more cooperative heuristic or it may cause them to apply a heuristic, which states that an intermediate choice is safe. In future work, we hope to better understand the mechanisms behind the treatment effect we observe. 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