Cultural diversity and economic transactions: Qualitative comparative analysis of cultures# consequences on fairness and punishment in ephemeral exchanges

Qualitative comparative analysis (QCA) focuses on the use of set theory and Boolean algebra to compare and contrast alternative causal recipes of antecedent conditions that may affect specific outcomes of scientific interest. Given that “culture” is a complex whole which includes knowledge, belief, art, morals, custom and any other capabilities and habit acquired by man as a member of society, rather than studying the net effects of each of several variables across cultures, QCA is appropriate particularly for comparing the complex wholes across cultures. QCA is a case-based strategy for examining a moderate number of cases (n = 10 to 30) though QCA studies also provide valuable and unique information in studies involving large sample sizes (n = 30 to 5,000). The study here applies QCA in an examination of data from 15 societies varying in their degree of market integration and participation in world religions; the data are available in Henrich, et al. (2010). The findings here provide a more nuanced coverage of the influences of cultural causal recipes on fairness and punishment in exchanges with strangers than net effect explanations. The coverage here explains how acts of fairness and punishment are contingent on several alternative paths including both low versus high levels market integration and world religion. Contrary to conclusions by Henrich, et al., depending on additional ingredients in the cultural recipes, a society does not need to achieve market integration and adoption of a world religion to be fair and avoid punishing.