The role of personality beliefs and "small talk" in strategic behaviour

Humans are predisposed to forming "first impressions" about the people we encounter including impressions about their personality traits. While the relationship between personality and strategic decision-making has been widely explored, we examine the role of personality impressions in predicting strategic behaviour and devising behavioural responses. In a laboratory setting, after only 4-minutes of "small talk", subjects developed a sense of the personality of their partners, particularly extraversion, which consequently changed their behaviour in future interactions. Subjects cooperated more in public goods games when they believed their partner to be extraverted and found it more difficult to out-guess opponents they perceived as similar to themselves in a level-k reasoning task, having engaged in conversation with them. We trace how language can generate these effects using text analysis, showing that talking more makes individuals appear extraverted and pro-social which in turn engenders pro-social behaviour in others.