Should Museums Charge For Admissions Advantages Disadvantages Economics Essay

Should Museums Charge For Admissions Advantages Disadvantages Economics Essay Museums are expensive to run, with the costs of acquisitions, conservation, maintenance, staff salaries and special exhibitions all weighing heavily upon their budgets. In many cases much of their funding comes from the government, whether at national or local level, with the remainder made up through endowments, income from museum shops and other commercial ventures, private donations and sponsorship, and, very often, through entry fees. By for-profit standards, museums are illogical. Museums have a business model with costs much greater than their revenues. In a non-profit organization, an admission fee wont even begin to cover the costs of delivering its service. Museums have found various ways to increase their income opportunities, for example through gift shops and restaurants. Logically, lowering the admission price, would increase the amount of visitors, these visitors would spend more money in gift shops and restaurants and could possibly result in a higher income. On the other hand, a museum misses out on extra income through admission fees. Is there an equilibrium price? And what are the alternative pricing options? The research question in this paper is: Should museums charge an admission fee? Literature on this issue provides this paper with a theoretical framework, next I will explore the effects of digitalization for museums. A Dutch case study, done by Aarts de Jong Wilms Goudriaan Public Economics (APE) will complete the answer to this question. Museum economics: Museums have high fixed costs. This results in a high average cost curve for museums. The demand curve often lies below this average cost curve. This makes it impossible to set an entrance price at which the total amount of income received through admission fees covers the costs of the museum. (Frey, 2006; Caves,2000) However, admission prices are of the main determinants that influence the economic outcome of a museum. The economic value of a museum is often very high as a result of its collection and location. To increase revenue however, museums do not only depend on admission fees but also on the income that comes from museum gift shops, restaurants, and renting possibilities. Additionally, museums receive a great deal of support, sponsoring and donations. For example, for Boijmans van Beuningen Museum Rotterdam only 20% of its total revenue is derived from direct revenues, while 80% is derived from subsidies. For some Dutch museums however, revenue derived from entrance fees can be up to 50% (Munster et al. 2008). Most museums receive governmental or public support, for the government, their economic performance is of high interest for policy makers. In all cases, entrance fees prove to be a very important determinant that influence the economic outcome of a museum. Questions about what role museums are playing, should play and will play in society, are today subjects very much under discussion. Is the museum a storehouse for things and memories, a showground, a centre for education, a playground for academics, a castle for people with a suitable habitus the way Pierre Bourdieu describes it, or an institution with an important role to fulfil in peoples life and a far-reaching part to maintain in the development of a society? In his article, National Museums: To charge or not to charge? OHagan explains that the most important function of a museum is educational. This function involves people educating and informing people concerning their past and origins, and if finance permits those of other peoples, through the artefacts of the museum, thereby contributing to the formation of a sense of the countrys identity and position in the world. For education only however, physical presence is not entirely necessary and especially in the digital world a museum is able to perform its educational role partly through the use of Internet. With this educational function in mind, charging an entrance fee would limit certain groups of people in accessing the museum, and therefore learning about its content. For museums admission fees maintain to be an important determinant of its revenues therefore museums use pricing options, such as price discrimination. Price differentiation occurs when a firm charges a different price to different groups of consumers for its service, for reasons not associated with costs. Students, children and elderly are often charged less than normal adult visitors. Only a minority of visitors pays the full entrance price. There is however one issue when looking at cultural organizations. The price elasticity for cultural demand is rather low which means differentiating in price does not result in a significant change in demand. As a result of this by raising its entrance price, a museum can generate a significant increase in revenue. Given the income of a consumer (i.e. the spending limit), prices and individual preferences result in a package of goods and services that best satisfy their individual utility. This economic optimization process leads to certain fe atures in which demand for different goods and services such as visits to museums depends on income and prices. Not only the price of the museum itself, but also the price of competing leisure activities and additional costs, such as travelling expenses play an important role in consumer behaviour. However tourists are less likely to feel limited by the admission fee. (Frey et al. 2006) The influence of competing leisure alternatives depends on the character of a museum; For a museum that is highly competing with other leisure alternatives, the price sensitivity of the visit turns out to be higher. In contrast, highbrow and unique museums show that their visitors are less sensitive to price changes. Blockbusters have also shown to be very price-inelastic. (Goudriaan et al, 2007) People with higher incomes tend to be higher educated and more developed preferences for cultural activities (Frey, 2006; Throsby 2001) People who are accustomed to visiting a museum to visit, are not inclined to change this behaviour when their income decreases or admission fees increase. On the other hand, people who are not accustomed to a visiting a museum are insensitive to the incentive free of reduced admission are ought to give. (Goudriaan et al, 2007) Digitalization allows museums to exhibit their collection online, this allows the museum to educate people online. Physical presence is no longer necessary to receive education about the museums artefacts. This could potentially lower the amount of visitors entering the museum. However, most museums gain great benefits from using the digitalization to their advantage, they educate and communicate with their visitors through the Internet. To charge or not to charge? Much has been written about the advantages and disadvantages of setting the admission price of a museum to zero (OHagan 1995; Anderson 1998; Baily and Falconer 1998). In for example the United Kingdom, national museums grant free entry to their visitors. More and more services have free access, such as the Internet, newspapers, unauthorized downloading, public transport etc. As a result, free access has gained popularity. Free access to museum has advantages, it enables all people to be able to visit the museum without getting charged. This might attract a new and bigger audience to experience the museum. In his article, Kirchberg (1998) found that income is the dominating characteristic influencing the subjective significance of entrance fees as a barrier to visiting museums. People in lower social classes experience admission charges as a barrier almost five times as much as higher sociological classed people. Increasing entrance fees increases revenues but according to Kirchberg, not only decreases the number of visitors but also change the socio-economic composition of the attendance. Distributing welfare is mainly the reason for subsidies, in the case of museums the distribution argument does not really hold up: studies have shown that visitors to a museum usually come from higher social classes. People from higher social classes can afford to pay an entrance fee, in practice this means that subs idizing admission prices, does not transfer welfare to lower social classes. Another benefit of free entry to a museum is that is increases the amount of visitors. For a museum, a high number of visitors often reflects cultural prestige (OHagan 1995). In his article OHagan also points out that donors prefer non-profit firms. With higher entrance fees, donors are less wiling to donate money or artefacts. The marginal costs of an additional visitor is zero, therefore another argument for free entry to a museum is the efficiency argument: entrance fees should then also be zero to satisfy efficiency (Frey, 2010). On the other hand, literature suggests that there are problems in determining the costs of museum services (Baily and Falconer 1998). There are still costs in allowing visitors into a building, they require security, heating, light and physical space). Free access also has disadvantages. According to Frey, efficiency is not attained if the respective museums get overcrowded and the quality of a visit decreases. This results in museums limiting visitors by enhancing admission restrictions, such as requiring visitors to place a reservation in advance. This raises the danger than tickets can be sold on the black market, a visit then cab still become a costly experience. Visitors can also think that something that has no price, has no value resulting in a decrease in a museums total revenue. In his article Steiner (1997) calculates the impact of free entry for one day to the total revenue of a museum. His study shows that the amount of additional visitors does not overcome the loss of the admission charges it would receive on a normal day. Additionally, the crowd of people the museum attracted contributed to the loss of value of the exhibition. Most of the museums that offer free access, charges for access to special or blockbuster exhibitions. Another strategy for free museums to make visitors pay is asking for a donation at the end of the visit. By doing so, they museum captures the wiliness to pay form visitors (OHagan 1995). A visitor is not obliged to pay, but often willing to do so as they enjoyed the visit. The more satisfying the visit, the more a visitor is willing to pay. This is also a better distribution of welfare, as the social higher classes have to ability to pay more, and the lower social classes have the ability to pay less. With free entrance leading to a higher amount of visitors, exit donation can bring in significant extra financial resources for a museum. Prices can be differentiated to allocate the resources as efficiently as possible. According to Frey, when demand is low, prices should be kept close to zero. When demand is high, prices can be higher to avoid overcrowding, This enables visitors with the highest willingness to pay to enter the museum. People with a low price elasticity should be charged higher prices than visitors with a high price elasticity of demand. Finally, price can be differentiated when visitors target a special exhibition, normal collection should be priced lower. Another option is to charge local visitors less than foreign visitors or tourists as tourists have a significantly lower price elasticity of demand than locals. Often, when visiting a city, visiting the museum is a must, and the additional costs of entrance fee are often easily paid for. Another argument for entrance fees is that the extra benefits a visitors receives from going to a museum, added to for example the existence value (Frey, 2006) should be paid for. As pointed out before, price elasticity of demand for cultural services is low, therefore ticket prices may not be the best explanation for demand. OHagan finds that, when The Long Room of Trinity College Dublin stated on entry that admission prices are required to improve the quality of the visit, the amount of visitors raised. Another variant of entry fees is creating a museum club. A fixed contribution is required to become a member and receive free entry to the museum. For culturally active people, this is a good solution and often cheaper than paying full entrance fees. For a museum, it has the same advantages and disadvantages of free entrance but it raises revenues (Frey, 2010) Problems with pricing is that it is often considered unfair. Considering the main role of a museum is education, it should be free for everyone to visit and become educated. In his article, Frey proposes a whole new pricing mechanism for museum: the application of exit prices. Instead of charging visitors when they enter a museum, they are charged on exit. The amount of time spent in the museum sets the exit price. A disadvantage of this proposal is that the length of visit becomes a great part of an economic calculation. A major advantage is that the experience of the visit, is charged afterwards. If the experience was not satisfying for the visitor, he/she would leave early and pay a lower price. Visitors pay for their use of the facility, this raises efficiency. The price system can considered to be less unfair, because up to a certain point, people can set their own prices. Frey also opts for the first 20 minutes to be free of charge, so that people who normally would not visit a museum, receive an incentive to stay only for a short period, maybe they will return later for a longer visit. The Dutch case study Aarts de Jong Wilms Goudriaan Public Economics (APE) has been commissioned by the ministry to research the possibilities for free entry for Dutch museums. In several extensive research papers, they calculate the effects of free entrances fees. Table 1: The quantitative effects of free entrance on all Dutch museums: Additional visits (x1000) Increase in visits (%) Total costs (x1mln.) Total cost per extra visit in Euros Free entry to the entire collection 5.867 30,0 98,9 17 Free entry every Sunday 416 2,1 23,4 56 Free entry once every month on Sunday 183 0,9 6,0 33 Free entry during one working day per week 267 1,4 11,2 42 Free museum card for students 1.623 8,3 12,3 8 Free entry to general collection 5.207 26,6 81,9 16 Source: APE Table 1 shows that the effects on the number of visits are most significant when free entry is given to the entire museum, including general collection and special exhibitions, followed by free entry to the general collection only. Both options also bring in the highest overall costs for the museums, costs per extra visit are relatively low because there is no real shift in the amount of visits from days on which visitors are charged, to days visitors are not charged an entrance price. A weekly free entry on Sunday raises the most costs for the museum because a shift appears from days on which visitors are charged to days visitors are not charged any admission fee. In all cases, the loss of entrance fees causes the greatest deal of costs for a museum. Their research shows that free entry increases the number of visits, but they state: we do not expect miracles to happen from removing entrance fees. The composition of visitors has proven to be very difficult to change. In another research, done by APE they have calculated the price elasticity of Dutch museums. From 1984- 2005 admission prices raised with 6,2% per year, this does not lead to a significant change in the umber of visits. They show that with a price elasticity of -0,18 the museum sector has the lowest price elasticity of all cultural sectors. With every 1% increase in price, visits reduce by 0,18%. According to the research this is a result of the fact that potential visitors value travelling expenses and consumption costs to be more important than admission prices. The price of substitutes is a major determinant for the number of visits to a museum: when substitutes raise their prices, the number of visits to a museum increases and vice versa. Ape also predicts price sensitivity for 2005- 2015: Figure 1: Predictions for changes in admission prices 2005-2015 Source: APE The index shows that the number of visits to a museum is unlikely to be affected by an increase or a decrease in entrance prices. Conclusion Museums have high fixed costs. This results in a high average cost curve for museums. The demand curve often lies below this average cost curve. This makes it impossible to set an entrance price at which the total amount of income received through admission fees covers the costs of the museum. However, admission prices are of the main determinants that influence the economic outcome of a museum. To increase revenue however, museums do not only depend on admission fees but also on the income that comes from museum gift shops, restaurants, and renting possibilities. Additionally, museums receive a great deal of support, sponsoring and donations. Museums have different roles to fulfil, educating is one of them, as is collection and researching. An important goal for many museums is reaching groups far from consuming culture. Other goals are financial revenue, conservation and gaining prestige. In this essay, various literature has been discussed offering different pricing options. The most important ones are free entry and efficiency admission fees, which both have advantages and disadvantages. Free entry is likely to increase the number of visitors, but museum visitors often come from higher socio-economic classes, which transfers the benefits from no entrance fee mostly to these upper classed visitors instead of the social lower classes as it is intended to. The existence value shows that museums radiate positive external effects for non-visitors, this effect supports free entrance. However, the benefits for visitors are higher than for non-visitors. Low price elasticity for museums helps support the argument for admission fees. There are various pricing options. Standard pricing is considered to be unfair, as it does not consider the willingness and ability to pay for visitors, considering the educating role, different groups of people should all be able to enter the museum. Prices need to be differentiated, allowing elderly, students and other groups to enter for a reduced price to match their ability to pay. Another option is to charge local visitors less than foreign visitors or tourists as tourists have a significantly lower price elasticity of demand than locals or the application of exit prices. The case study by APE, shows that removing entrance fees only results in a significant increase in the number of visitors when all Dutch museums would remove their entrance fees. As a result of a low price elasticity for museum visits, a change in price does not significantly affect the demand for a museum. These findings indicate that free entrance is not the best option for a museum to reach many people. Price changes do not affect the number of visits that much, a museum is better of differentiating its price in a way that lower socio-economic classes are still able to afford a visit if they decide to. Since higher socio-economic classes continue to be the most dominant visitors in a museum, an entrance fee will not likely decrease the number of visits. Entrance fees can contribute to a museums revenues and allow a museum to generate extra income that can be spent on increasing the quality of the experience for visitors.

Business Ethics: BA Credit Cards for Illegal Immigrants

Is the grant of a loan as well as issuance of a credit card to illegal immigrants ethical, moral or legal? Is Bank of America justified in ignoring the ethical, moral and legal issues of granting loans and credit cards to illegal immigrants? What could have been the more superior reasons for granting loans and credit cards to individuals without Social Security cards and who are in fact illegal immigrants? The need for new markets for loans and credits Just like any banking institution, the mad scramble for means to increase revenues can take a number of means including unethical, illegal or immoral means.While the interest of bank management is primarily to generate revenues to meet their compensation package for the expertise provided; shareholder value is similarly a strong interest on the part of the corporate board to prioritize revenues. Even labor would seek new benefits and salary adjustments to meet the increasing cost of living. Thus, the commonality of purpose in generatin g and increasing revenues is tempered by conflicting interests, resulting to further maximization efforts.This optimizing and maximizing strategies under a tightening competitive environment encourages corporate profit takers to identify new sources of revenues. Here, the groupthink syndrome starts to set aside ethical, moral and legal issues. (Jaksa & Pritchard, 1994) Credit cards and loans provide the vast opportunities for revenues for banks in the form of membership fees, interests, penalties, service charges, legal fees and other finance terms that mean only one thing: revenues and more revenues for the credit card issuer.In some instances, the law even protects the issuing bank and condones its usurious practices through hidden charges that suddenly appear in the card billing. In some instances, states criminalize credit card defaults. Interests are often compounded monthly at a basic rate of 3 to 5 per cent per month which translates into 60 per cent annually without even con sidering any form of penalty, service charges and other fees. Many cards even automatically increase the credit limit to keep the credit card user paying merely the minimum interest and leaving the principal to accumulate as means of sustaining revenues on interests alone.The cash payback period for credit card issuer can average at less than two years with the credit card user almost permanently now tied to the principal that now hardly diminishes with the gamut of fees and charges coming. Even US President Barack Obama is concerned about this. (Feller & Aversa, 2009) The consequences Thus, credit cards are often aggressively marketed both to prime and subprime clients with varying fees. With the hundreds of different cards vying for market share, card issuers will not stop at creating markets for new issuances; and consumers take pride in having more and more credit cards in their wallets.What then made the illegal immigrants or those without social security number a bright prospe ct for credit cards or loans? What opportunities and risks do credit card issuers face in this sector? Why are the requirements limited to the fact that only those with checking accounts during the last three months and without history of overdrafts are qualified? (Feller & Aversa, 2009) Illegal immigrants need liquidity to live in the United States and credit cards provide the liquidity vehicle to cope with the American dream.A large number of illegal immigrants find jobs, even odd ones, to survive; hence their capability to earn the means to live is strong and that their struggle to temporarily live even as an undocumented alien is considered a transition to ultimately becoming a permanent resident, as an immigrant or even as a US citizen. The need hence, to establish a credible record is considered necessary to become an honorable citizen later. This sector is reasonably a good credit risk considering their need to stay safe from the clutches of the Immigration and Naturalization Service by keeping payments updated.In general, this form of self-regulated discipline enhances the credit worthiness of illegal immigrants. On the other hand, even if person ultimately defaults and get caught by the INS, illegal immigrants are often forced to stay in the United States while his credit card case is pending. Thus, the chance that he is able to extricate himself from credit card liability might provide him time to await any form of amnesty to regularize his status. Thus, it is probably based on these market characteristics that Bank of America took the risk of identifying this sector as a good credit risk.In fact, the Bank pilot-tested the credit card in selected areas and probably, the expansion binge to make it nationwide is a concrete indicator that it has become a reasonably good prospect for business. Business, especially banks has a way of getting in despite the ethical, moral or legal issues. In uncertain times, generating revenues more than the need for ethic al, moral or legal constraints is a more primordial philosophy of management. Here again, groupthink in the organization attempts to rationalize such policy.The Bank can anyway afford to employ or hire topnotch lawyers to fight any form of charge of illegal transaction with illegal immigrants. But is it really illegal to issue credit cards to illegal immigrants? If it is not, isn’t it that what the law does not prohibit, it allows? Perhaps, the government will only be able to assert its role in the credit impasse if Bank of America seeks government intervention to collect from past due credit card users. Otherwise, credit card transactions are can be considered global instruments that know no political boundaries. Is it unethical to issue credit cards to illegal immigrants?Banks transact business on a global scale. If the illegal immigrant is issued a credit card in the United States, will it still be unethical or illegal or immoral in the event that if the person returns to his home country and uses his credit card therein? The global market has enabled banks and the credit card issuer to conduct businesses that transcends political boundaries. Thus, if Bank of America issues a credit card to a citizen of another country while he is in that country, then travels to the United States and overstays his visa, will it then be illegal, unethical or immoral to use the card?Is it not that the usurious and unfair practices of card issuer in charging usurious rates and the fine print trap, might be more of an unethical practice in the industry than issuing the credit card per se? Will not Bank of America in fact be helping the Immigration and Naturalization Service (INS) with issuing a credit card which effectively gets information from the illegal immigrant making the latter more vulnerable to apprehension by the INS? ConclusionThe issue of credit cards being issued by Bank of America to illegal immigrants can be taken from the context of purely business purpo se – to generate revenues. However, the ethical dimension that can be extracted from the case is the absence of ethical ascendancy on the part of Bank of America to contribute to the strengthening of the good governance, transparency practices and exemplary conduct of legitimate processes in the way revenues are generated.In the same way that employers of illegal immigrants are made to answer for the question of hiring these undocumented people in compliance with Immigration Laws. Thus, what right will Bank of America invoke to protect itself in the event of payment default by the illegal immigrant if it seeks protection from the law which discourages such transactions in the first place? The Bank undeniably wants the best of both worlds in this case.In addition, the groupthink syndrome in Bank of America that led to the adoption of this marketing strategy is, as usual, laced with that groupthink rationality. This makes use of the â€Å"we feeling, the illusion of morality, invulnerability with the moral, ethical and legal tone of such group rationalization and consensus leads to the excessive taking of risks without individual ethical responsibility. Hence, anyway one looks at the marketing strategy, the issue of ethics, morals and legalities can never be ignored. Has the Bank ran out of meaningful philosophy?Reference list Feller, B. & Aversa, J (2009), Obama pledges protections for credit-card users, the Associated Press; retrieved April 10, 2009;Website: http://news. yahoo. com/s/ap/us_obama_credit_cards Jaksa, J. & Pritchard, M. (1994), Communication ethics: Methods of Analysis. Western Michigan University, Belmont, CA; Wadworth Publishing Company. Malkim , M. (2007) Bank of illegal aliens in America, retrieved April 19, 2009; website: http://michellemalkin. com/2007/02/13/bank-of-illegal-aliens-in-america/

Role of Financial Institutions in the Global Economy

Globalization has sparked a revolution in information and communication technology, resulting in the emergence of an era that boasts the arrival of new levels of global interconnectedness. As a result, globalization has also increased the significance of the many different roles that financial institutions play in the overall global economy. Financial institutions can play several roles, ranging from operating as a simple method of savings, to functioning as an important revitalization source in a low-income community. This paper will explain the general role of financial institutions in the global economy, will touch on more significant individual roles, and discuss the overall role of international financial institutions. Research indicates that a financial institutions' role as an intermediary is clearest in the credit and deposit business (Krayer, 2002). The usual function involves clients bringing to the bank their savings, or money which the bank transfers to its credit clients in the form of loans. In the loan instance, a borrower's credit rating may change during the life of a loan, thereby changing the value of the loan at that point in time, which reflects the interest and amortization payments expected in the future (Krayer, 2002). In some cases, credits may even become entirely worthless if borrowers become insolvent and bankrupt (Krayer, 2002). Another function which banks perform within an economy is rating and selecting the loans they finance. Through their activities as an agent, another essential function performed by banks is to reduce risks overall (Krayer, 2002). In this way, the general role of banks is to undertake and provide specific products or services. Financial institutions also play an additional role within an economy by granting loans, processing payments, accepting deposits, and carrying out investments. Through these activities, banks create added value for their clients, employees, service providers and shareholders. As a result, there is a significant amount of potential damage were a bank to collapse. Thus, the economic benefits generated by a bank are basically no different from the economic benefits generated by a doctor, teacher or train driver: by exercising, to the best of their knowledge and abilities, their specialist function in competition with others, companies and their employees make their contribution to economic benefit (Krayer, 2002). Research indicates that bankers act responsibly when they ensure that their house is in order and resist the temptation to pass off poor financial performance as a contribution to the economy (Krayer, 2002). Larger financial institutions play an additional role than just that of providing typical banking services. Financial institutions can form the core of economic development in a low-income community. For example, the World Bank's focus is on project lending and structural reforms that enhance long-run development and poverty alleviation (Stiglitz, 1998). The role of the World Bank in the global economy is to address pressing issues such as weak financial sectors, lack of transparency and poor governance in the corporate sectors, and weaknesses in external liability management will help restore confidence among foreign and domestic investors (Stiglitz, 1998). In this way, the World Bank acts to reactivate poor economies and thus to protect and extend social and economic achievements. In poorer countries, the World Bank appears to operate in coordination with the government as it steps in and fills the income-security gap that is left by companies closing and workers losing their jobs. Over the longer term, the World Bank will be working with countries to help them design modern, durable social safety nets that complement their other structural reforms (Stiglitz, 1998). Finally, as illustrated above, the role of financial institutions is very diverse, as communities depend on them for basic transactions such as savings and loans. In the larger view, however, banks operate as the financial support of an economy, the stabilization of which the community depends on.

The Bystander Effect On Social Psychology - 1047 Words

†¢ General Aims: What is your general topic area? Inform the reader briefly of the overall topic and why it is of interest. The general topic area is about The Bystander Effect. John M.Darley and Bibb Latane research about the bystander effect based on the story of Kitty Genovese. Also known as individuals are less likely to help in a situation in the presence of others (Greitemeyer and Mugge, 201 p.116). When doing this literature research for the bystander effect, it discover that different types of emergency situations impact how individuals react. It was discover that the main focus was on the idea of feeling responsible for a situation and actions that occur as a result. The interest of learning about the different emotions of the†¦show more content†¦For this research, emotions was the main focus on the bystander effect theory. Shalom H. Schwartz and Avi Gottlieb (1980) found that the reactions of the participants could interfere with the decisions being made during any situation. (Schwartz and Gottlieb, 1968). This research was able to show that emotions do play a role in our decision maki ng in any situations. Schwartz, S. H., Gottlieb, A. (1980). Bystander anonymity and reactions to emergencies. Journal Of Personality and Social Psychology, 39(3), 418-430. doi:10.1037/0022-3514.39.3.418 Latan, B. And Darley, J. M. Group inhibition of bystander intervention in emergencies. Journal of Personality and Social Psychology, 1968, 10, 215-221. †¢ Hypothesis and Specific Aims: What idea does that research give you that you want to check out? In other words, state your hypothesis, including your theoretical IV and DV. It should be clear how this is different from what is already known. The hypothesis for this experiment was: Do our emotions specifically those of empathy or personal distress, interfere with our actions in a given situation? It was discovered that this question fit perfectly with the Bystander Effect Theory based on the idea that emotions could occur in any time of the day and still could affect one’s decisions making during any situations. The independent variable for this experiment is emotions. The dependent variable for this experiment is whether or not the participants help. †¢Show MoreRelatedThe Bystander Effect On Social Psychology1077 Words   |  5 Pagesreader briefly of the overall topic and why it is of interest. The general topic area is about The Bystander Effect. John M.Darley and Bibb Latane research about the bystander effect based on the story of Kitty Genovese. Also known as individuals are less likely to help in a situation in the presence of others (Greitemeyer and Mugge, 201 p.116). 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