Final answer:
The statement is true; when a participant withdraws part of their equity in an investment pool, their proportionate interest decreases, resulting in an increase in the proportionate interest of the remaining participants.
Step-by-step explanation:
The statement that when one participant in an investment pool withdraws part of its equity from the pool, that participant's proportionate interest is decreased and all other participants' proportionate interest is increased is true. This can be understood in the context of investment pools where each participant's share is proportionate to their contribution to the total pool. When one participant withdraws a portion of their investment, their proportionate interest in the pool diminishes accordingly, thus increasing the proportionate interest of the remaining participants, assuming the total value of the pool remains constant or is not otherwise affected by this withdrawal. The experimental data mentioned suggests that in reality, participants are not entirely self-interested and may value concepts like fairness, leading to behaviors that don't always maximize individual gain. Political scientists argue that such behavior could stem from a desire to maintain social norms or fairness, indicating a complex interplay between self-interest and communal standards.