Arnoldshain Seminar XV
“The EU and Latin America Facing Globalization”
September 4 – 6, 2017

Batsaikhan, Mongoljin, An Honest Day’s Pay: Entrepreneurs Out-cooperate Students in the Lab, More Cooperative Entrepreneurs Outcompete their Fellows in Business.
We study the decisions that small-scale entrepreneurs in Ulaanbaatar, Mongolia make in a laboratory property rights dilemma experiment, comparing these to the decisions of student counterparts in the same and other countries, and looking for correlations between lab decisions and success in real world business sales. We find that Mongolian entrepreneurs generally achieve much higher cooperation levels and hence higher experimental earnings than Mongolian students. Among individual participants, producing and desisting from theft in the lab setting is correlated at the 1% level with real world business sales. Our finding suggests that cooperative impulses or abidance of social norms is not a liability in this urban, small business environment.