IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v107y2023ics2214804323001076.html
   My bibliography  Save this article

On the limits of hierarchy in public goods games: A survey and meta-analysis on the effects of design variables on cooperation

Author

Listed:
  • Billinger, Stephan
  • Rosenbaum, Stephen Mark

Abstract

We contribute to the emerging literature on the influence of hierarchy on group cooperation by reporting the findings of a meta-analysis on data aggregated from 20 public goods game (PGG) studies that entail design variables relevant in hierarchies, comprising 51 treatments with effect sizes, and more than 48,000 observations. Our findings attest to the limited effect of hierarchical design variables on worker cooperation. Any positive effects were short-term, with punishment being the only mechanism capable of sustaining cooperation over the longer run. Contrary to popular conception, our results suggest that leaders/managers’ ability to facilitate group cooperation over time may not improve upon levels observed in the leaderless baseline experiments.

Suggested Citation

  • Billinger, Stephan & Rosenbaum, Stephen Mark, 2023. "On the limits of hierarchy in public goods games: A survey and meta-analysis on the effects of design variables on cooperation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
  • Handle: RePEc:eee:soceco:v:107:y:2023:i:c:s2214804323001076
    DOI: 10.1016/j.socec.2023.102081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214804323001076
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.socec.2023.102081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guth, Werner & Levati, M. Vittoria & Sutter, Matthias & van der Heijden, Eline, 2007. "Leading by example with and without exclusion power in voluntary contribution experiments," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1023-1042, June.
    2. Jan Potters & Martin Sefton & Lise Vesterlund, 2007. "Leading-by-example and signaling in voluntary contribution games: an experimental study," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(1), pages 169-182, October.
    3. Jordi Brandts & David J. Cooper & Roberto A. Weber, 2015. "Legitimacy, Communication, and Leadership in the Turnaround Game," Management Science, INFORMS, vol. 61(11), pages 2627-2645, November.
    4. Alexander W. Cappelen & Bjørn-Atle Reme & Erik Ø. Sørensen & Bertil Tungodden, 2016. "Leadership and Incentives," Management Science, INFORMS, vol. 62(7), pages 1944-1953, July.
    5. Drouvelis, Michalis & Nosenzo, Daniele & Sefton, Martin, 2017. "Team incentives and leadership," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 173-185.
    6. Mana Komai & Philip J. Grossman & Travis Deters, 2011. "Leadership and information in a single‐shot collective action game: An experimental study," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 119-134, March.
    7. Matthias Sutter & Stefan Haigner & Martin G. Kocher, 2010. "Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1540-1566.
    8. Jana Vyrastekova & Daan van Soest, 2003. "Centralized Common-Pool Management and Local Community Participation," Land Economics, University of Wisconsin Press, vol. 79(4), pages 500-514.
    9. M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2007. "Leading by Example in a Public Goods Experiment with Heterogeneity and Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(5), pages 793-818, October.
    10. Cochard, François & Le Gallo, Julie & Georgantzis, Nikolaos & Tisserand, Jean-Christian, 2021. "Social preferences across different populations: Meta-analyses on the ultimatum game and dictator game," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    11. Marcin, Isabel & Robalo, Pedro & Tausch, Franziska, 2019. "Institutional endogeneity and third-party punishment in social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 243-264.
    12. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1605-1623, July.
    13. Daniele Nosenzo & Simone Quercia & Martin Sefton, 2015. "Cooperation in small groups: the effect of group size," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 4-14, March.
    14. Rivas, M. Fernanda & Sutter, Matthias, 2011. "The benefits of voluntary leadership in experimental public goods games," Economics Letters, Elsevier, vol. 112(2), pages 176-178, August.
    15. John R. Hamman & Roberto A. Weber & Jonathan Woon, 2011. "An Experimental Investigation of Electoral Delegation and the Provision of Public Goods," American Journal of Political Science, John Wiley & Sons, vol. 55(4), pages 738-752, October.
    16. James M. Walker & Matthew A. Halloran, 2004. "Rewards and Sanctions and the Provision of Public Goods in One-Shot Settings," Experimental Economics, Springer;Economic Science Association, vol. 7(3), pages 235-247, October.
    17. José Gabriel Castillo & Zhicheng Phil Xu & Ping Zhang & Xianchen Zhu, 2021. "The effects of centralized power and institutional legitimacy on collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 385-419, February.
    18. Guido, Andrea & Robbett, Andrea & Romaniuc, Rustam, 2019. "Group formation and cooperation in social dilemmas: A survey and meta-analytic evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 192-209.
    19. Han Il Chang & Christopher T. Dawes & Tim Johnson, 2018. "Political Inequality, Centralized Sanctioning Institutions, And The Maintenance Of Public Goods," Bulletin of Economic Research, Wiley Blackwell, vol. 70(3), pages 251-268, July.
    20. van der Heijden, Eline & Potters, Jan & Sefton, Martin, 2009. "Hierarchy and opportunism in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 39-50, January.
    21. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    22. Gürerk, Özgür & Lauer, Thomas & Scheuermann, Martin, 2018. "Leadership with individual rewards and punishments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 57-69.
    23. Andreoni, James & Gee, Laura K., 2012. "Gun for hire: Delegated enforcement and peer punishment in public goods provision," Journal of Public Economics, Elsevier, vol. 96(11), pages 1036-1046.
    24. Emrah Arbak & Marie-Claire Villeval, 2013. "Voluntary leadership: motivation and influence," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(3), pages 635-662, March.
    25. Komai, Mana & Grossman, Philip J., 2009. "Leadership and group size: An experiment," Economics Letters, Elsevier, vol. 105(1), pages 20-22, October.
    26. Podsakoff, Nathan P. & Podsakoff, Philip M. & Kuskova, Valentina V., 2010. "Dispelling misconceptions and providing guidelines for leader reward and punishment behavior," Business Horizons, Elsevier, vol. 53(3), pages 291-303, May.
    27. Tomáš Havránek & T. D. Stanley & Hristos Doucouliagos & Pedro Bom & Jerome Geyer‐Klingeberg & Ichiro Iwasaki & W. Robert Reed & Katja Rost & R. C. M. van Aert, 2020. "Reporting Guidelines For Meta‐Analysis In Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 469-475, July.
    28. Billinger, Stephan & Rosenbaum, Stephen Mark, 2019. "Discretionary mechanisms and cooperation in hierarchies: An experimental study," Journal of Economic Psychology, Elsevier, vol. 74(C).
    29. Gürerk, Özgür & Irlenbusch, Bernd & Rockenbach, Bettina, 2009. "Motivating teammates: The leader's choice between positive and negative incentives," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 591-607, August.
    30. Grieco, Daniela & Faillo, Marco & Zarri, Luca, 2017. "Enforcing cooperation in public goods games: Is one punisher enough?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 55-73.
    31. Hessel Oosterbeek & Randolph Sloof & Gijs van de Kuilen, 2004. "Cultural Differences in Ultimatum Game Experiments: Evidence from a Meta-Analysis," Experimental Economics, Springer;Economic Science Association, vol. 7(2), pages 171-188, June.
    32. repec:hal:spmain:info:hdl:2441/2k2jnd64aa9g19nja481vjohq3 is not listed on IDEAS
    33. Ngamaba, Kayonda Hubert & Armitage, Christopher & Panagioti, Maria & Hodkinson, Alexander, 2020. "How closely related are financial satisfaction and subjective well-being? Systematic review and meta-analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).
    34. Hiroki Ozono & Nobuhito Jin & Motoki Watabe & Kazumi Shimizu, 2016. "Solving the second-order free rider problem in a public goods game: An experiment using a leader support system," Working Papers 1604, Waseda University, Faculty of Political Science and Economics.
    35. Dominique Cappelletti & Werner Güth & Matteo Ploner, 2011. "Unravelling conditional cooperation - Reciprocity, inequity aversion, and anchoring in public goods provision," Jena Economics Research Papers 2011-047, Friedrich-Schiller-University Jena.
    36. Nikiforakis, Nikos & Oechssler, Jörg & Shah, Anwar, 2014. "Hierarchy, coercion, and exploitation: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 155-168.
    37. Viechtbauer, Wolfgang, 2010. "Conducting Meta-Analyses in R with the metafor Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 36(i03).
    38. Selhan Garip Sahin & Catherine Eckel & Mana Komai, 2015. "An experimental study of leadership institutions in collective action games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 100-113, July.
    39. Gerrit Frackenpohl & Adrian Hillenbrand & Sebastian Kube, 2016. "Leadership effectiveness and institutional frames," Experimental Economics, Springer;Economic Science Association, vol. 19(4), pages 842-863, December.
    40. Charles Figuières & David Masclet & Marc Willinger, 2012. "Vanishing Leadership And Declining Reciprocity In A Sequential Contribution Experiment," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 567-584, July.
    41. Keuschnigg, Marc & Schikora, Jan, 2014. "The Dark Side of Leadership: An Experiment on Religious Heterogeneity and Cooperation in India," MPRA Paper 57533, University Library of Munich, Germany.
    42. Ganna Pogrebna & David Krantz & Christian Schade & Claudia Keser, 2011. "Words versus actions as a means to influence cooperation in social dilemma situations," Theory and Decision, Springer, vol. 71(4), pages 473-502, October.
    43. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    44. Stefan Grosse & Louis Putterman & Bettina Rockenbach, 2011. "Monitoring In Teams: Using Laboratory Experiments To Study A Theory Of The Firm," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 785-816, August.
    45. Gächter, Simon & Renner, Elke, 2018. "Leaders as role models and ‘belief managers’ in social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 321-334.
    46. Haigner, Stefan D. & Wakolbinger, Florian, 2010. "To lead or not to lead: Endogenous sequencing in public goods games," Economics Letters, Elsevier, vol. 108(1), pages 93-95, July.
    47. Astrid Dannenberg, 2015. "Leading by example versus leading by words in voluntary contribution experiments," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(1), pages 71-85, January.
    48. Umer, Hamza & Kurosaki, Takashi & Iwasaki, Ichiro, 2022. "Unearned Endowment and Charity Recipient Lead to Higher Donations: A Meta-Analysis of the Dictator Game Lab Experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    49. Gerald Eisenkopf & Torben Kölpin, 2021. "Leading-by-Example: A meta-analysis," TWI Research Paper Series 125, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    50. Kingsley, David C. & Muise, Daniel, 2018. "More Talk, Less Need for Monitoring: Communication and Deterrence in a Public Good Game," Journal of Experimental Political Science, Cambridge University Press, vol. 5(2), pages 88-106, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Drouvelis, Michalis & Nosenzo, Daniele & Sefton, Martin, 2017. "Team incentives and leadership," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 173-185.
    2. Jing Yu & Martin G. Kocher, 2023. "Leading by example in a public goods experiment with benefit heterogeneity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(3), pages 685-712, October.
    3. Karakostas, Alexandros & Kocher, Martin G. & Matzat, Dominik & Rau, Holger A. & Riewe, Gerhard, 2023. "The team allocator game: Allocation power in public goods games," Games and Economic Behavior, Elsevier, vol. 140(C), pages 73-87.
    4. Luke Boosey & R. Mark Isaac & Abhijit Ramalingam, 2021. "Limiting the Leader: Fairness Concerns in Team Production with Leader-Determined Monitoring," Working Papers 21-11, Department of Economics, Appalachian State University.
    5. Gürerk, Özgür & Lauer, Thomas & Scheuermann, Martin, 2018. "Leadership with individual rewards and punishments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 57-69.
    6. Billinger, Stephan & Rosenbaum, Stephen Mark, 2019. "Discretionary mechanisms and cooperation in hierarchies: An experimental study," Journal of Economic Psychology, Elsevier, vol. 74(C).
    7. Lisa Bruttel & Gerald Eisenkopf & Juri Nithammer, 2024. "Pre-election communication in public good games with endogenous leaders," CEPA Discussion Papers 73, Center for Economic Policy Analysis.
    8. Eichenseer, Michael & Moser, Johannes, 2018. "Leadership in a Dynamic Public Goods Game: An Experimental Study," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181599, Verein für Socialpolitik / German Economic Association.
    9. Bryan C. McCannon, 2018. "Leadership and motivation for public goods contributions," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(1), pages 68-96, February.
    10. Béatrice Boulu-Reshef & Nina Rapoport, 2020. "Voluntary contributions in cascades: The tragedy of ill-informed leadership," Documents de travail du Centre d'Economie de la Sorbonne 20023, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    11. Raphaële Préget & Phu Nguyen-Van & Marc Willinger, 2016. "Who are the voluntary leaders? Experimental evidence from a sequential contribution game," Theory and Decision, Springer, vol. 81(4), pages 581-599, November.
    12. Heim, Réka & Huber, Jürgen, 2019. "Leading-by-example and third-party punishment: Experimental evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 24(C).
    13. Molle, Mana Komai & Grossman, Philip J. & Kulas, John T. & Lo, Siu Pong, 2023. "Does a leader's self-assessed integrity matter?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 104(C).
    14. Selhan Garip Sahin & Catherine Eckel & Mana Komai, 2015. "An experimental study of leadership institutions in collective action games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 100-113, July.
    15. Drouvelis, Michalis & Nosenzo, Daniele, 2013. "Group identity and leading-by-example," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 414-425.
    16. Gächter, Simon & Renner, Elke, 2018. "Leaders as role models and ‘belief managers’ in social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 321-334.
    17. Béatrice BOULU-RESHEF & Nina RAPOPORT, "undated". "Voluntary contributions in cascades: The tragedy of ill-informed leadership," LEO Working Papers / DR LEO 2824, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    18. Marie Claire Villeval, 2012. "Contribution au bien public et préférences sociales : Apports récents de l'économie comportementale," Post-Print halshs-00681348, HAL.
    19. Alexander W. Cappelen & Bjørn-Atle Reme & Erik Ø. Sørensen & Bertil Tungodden, 2016. "Leadership and Incentives," Management Science, INFORMS, vol. 62(7), pages 1944-1953, July.
    20. Emrah Arbak & Marie-Claire Villeval, 2013. "Voluntary leadership: motivation and influence," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(3), pages 635-662, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:107:y:2023:i:c:s2214804323001076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.