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cooperation through two mechanisms: an entry mechanism, which leads to assortative selection of interaction partners, or an exit … that voluntary participation has a positive effect on public good provision through the exit mechanism, but we do not find …, whereas the threat of costly exit is a powerful force to discipline free-riding. …
Persistent link: https://www.econbiz.de/10010504597
high barriers to exit generated higher welfare overall as they fostered stability and prevented inefficient breakdowns in … breakdown of partnerships by studying a public good game with imperfect public monitoring and an exit option. In our experiment … was excessive exit especially because subjects over-estimated the likelihood their partner would leave. Treatments with …
Persistent link: https://www.econbiz.de/10010477122
update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find … that when individuals have initially experienced systematic audits, they decrease both their beliefs and their … irregular, they maintain high beliefs about the probability of being audited and continue cooperating long after audits have …
Persistent link: https://www.econbiz.de/10010239265
factors that are known to affect cooperation levels, and in so doing replicate and extend previous empirical research on … public goods problems in several important ways. We measure social preferences and concurrently elicit beliefs on the … repeated interaction. We show that when heterogeneity in people’s preferences and beliefs is taken into consideration, more …
Persistent link: https://www.econbiz.de/10012015524
We study the effects of voluntary participation on cooperation in collective action problems. Voluntary participation … may foster cooperation through an entry mechanism, which leads to assortative selection of interaction partners, or an … exit mechanism, whereby the opportunity to leave the partnership can be used as a threat against free-riders. We examine …
Persistent link: https://www.econbiz.de/10011434271
-cooperative strategic games. Cooperation models, such as ERC and inequality aversion, yield superior predictions compared to the standard … account well for the observed fairness and cooperation in all the tested games. The impressive predictions of the theory … promoting fairness and cooperation in the discussed games is only marginal. Strikingly, the Golden Ratio, known for its …
Persistent link: https://www.econbiz.de/10013252726
can promote cooperation through a combination of sorting and opportunistic signaling, with late period defections by … remains unclear. In each of six treatments that vary the cooperation premium and the informational basis for reputation …, that with a high cooperation premium and good information, investment in reputation grows across sets of finitely …
Persistent link: https://www.econbiz.de/10010126752
Persistent link: https://www.econbiz.de/10012622309
cooperation flourish, and withholding punishment makes cooperation collapse. In less cooperative social environments, where … antisocial punishment has been detected, punishment was detrimental to cooperation. The success of punishment in enhancing … cooperation was explained as deterrence of free riders by cooperative strong reciprocators, who were willing to pay the cost of …
Persistent link: https://www.econbiz.de/10012607461
Publicly provided goods often create differential payoffs due to timely or spatial distances of group members. We design and test a provision mechanism which utilizes rank competition to mitigate free-riding in impure public goods. In our Rank-Order Voluntary Contribution Mechanism...
Persistent link: https://www.econbiz.de/10012064430