We experimentally study the disincentive effect of taxing work and redistributing tax revenues when redistribution is imposed vs. democratically chosen in a vote. We find a “dividend of democracy” in the sense that the disincentive effect is substantially smaller when redistribution is...

Recent experimental research has shown that a policy put in place endogenously (i.e., through their votes) can be more effective at inducing cooperation in dilemma situations. This paper shows that a similar result holds when a mild sanction is implemented in a voluntary contribution dilemma....

We report on an experiment that tests for the effects of democratic versus hierarchical rules for joint decision making in organizations, like companies, which operate in a competitive environment. While discussion improves outcomes via an effect on public goods contributions, we find that there...