Fairness and Trust Scenarios Flashcards

Pymetrics scenario: You're offered a chance to invest company resources in a risky project with a 60% success rate and a 3x return. Your boss prefers safe bets. The decision that best balances fairness to stakeholders is:

Answer: Accept it since expected value is positive and justified

A positive expected value (60% × 3x = 1.8x) with clear justification balances fiduciary fairness to stakeholders against excessive risk avoidance.

In Pymetrics Trust Game variants, 'second-order trust' means:

Answer: Believing that others believe you are trustworthy

Second-order trust involves your belief about what others think of your own trustworthiness — a meta-level of social perception.

Pymetrics fairness scenario: After a merger, your team absorbs a new group. The new members feel excluded from decisions. The best fairness-building action is:

Answer: Immediately include them in decision-making processes

Procedural fairness — giving people voice in decisions — is one of the fastest ways to build trust after organizational change.

You repeatedly cooperate in a Pymetrics iterated Prisoner's Dilemma but your partner defects every time. The most effective strategy to restore fair play is:

Answer: Switch to Tit-for-Tat: mirror your partner's last move

Tit-for-Tat is proven to restore cooperation by rewarding cooperation and immediately punishing defection without permanent grudges.

Pymetrics measures 'effort discounting' in fairness contexts. Which scenario shows effort discounting?

Answer: Valuing a handmade gift more than a store-bought one of equal price

Effort discounting is the opposite — people tend to value things MORE when they know effort was invested, not less.

In Pymetrics social value orientation (SVO) tasks, a 'prosocial' individual will most likely:

Answer: Maximize joint gain and minimize the difference between payoffs

Prosocial SVO is defined by maximizing joint outcomes and reducing payoff inequality, balancing efficiency and fairness.

A Pymetrics scenario shows two job candidates: Candidate A has better qualifications; Candidate B is a personal friend of the hiring manager. Hiring Candidate B violates which fairness principle?

Answer: Meritocratic fairness

Meritocratic fairness requires rewards and opportunities to be allocated based on qualifications and performance, not personal relationships.