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Social Learning and Norms in a Public Goods Experiment with Inter-Generational Advice

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Author Info
ANANISH CHAUDHURI
SARA GRAZIANO
PUSHKAR MAITRA

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Abstract

We study a linear public goods game using an inter-generational approach. Subjects in one generation leave advice for the succeeding generation via free-form messages. Such advice can be private knowledge (advice left by one player in generation "t" is given only to his or her immediate successor in generation "t"+ 1), public knowledge (advice left by players of generation "t" is made available to all members of generation "t"+ 1), and common knowledge (where the advice is not only public but is also read aloud by the experimenter). Common knowledge of advice generates a process of social learning that leads to high contributions and less free-riding. This behaviour is sustained by advice that is generally exhortative, suggesting high contributions, which in turn creates optimistic beliefs among subjects about others' contributions. We suggest that socially connected communities may achieve high contributions to a public good even in the absence of punishment for norm violators. Copyright 2006 The Review of Economic Studies Limited.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-937X.2006.0379.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 73 (2006)
Issue (Month): 2 (04)
Pages: 357-380
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Handle: RePEc:bla:restud:v:73:y:2006:i:2:p:357-380

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  1. Martin G. Kocher & Matthias Sutter & Florian Wakolbinger, 2007. "The impact of naive advice and observational learning in beauty-contest games," Working Papers 2007-01, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
    Other versions:
  2. Tatsuyoshi Saijo & Junyi Shen & Xiangdong Qin & Kenju Akai, 2007. "The Spite Dilemma Revisited: Comparison between Chinese and Japanese," OSIPP Discussion Paper 07E004, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  3. Sven Fischer & Andreas Nicklisch, 2006. "Ex Interim Voting in Public Good Provision," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2006_23, Max Planck Institute for Research on Collective Goods. [Downloadable!]
  4. Stefania Ottone & Ferruccio Ponzano, 2007. "Cooperation without Punishment," Working Papers 123, University of Milano-Bicocca, Department of Economics, revised Oct 2007. [Downloadable!]
  5. Sven Fischer & Andreas Nicklisch, 2006. "Ex Interim Voting in Public Good Provision," Discussion Papers on Strategic Interaction 2006-13, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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