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Designing Institutions for Social Dilemmas

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  • Rockenbach Bettina
  • Wolff Irenaeus

    (University of Cologne, Thurgau Institute of Economics/University of Konstanz, Konstanz, Germany)

Abstract

Considerable experimental evidence has been collected on rules enhancing contributions in public goods dilemmas. These studies either confront subjects with prespecified rules or have subjects choose between different rule environments. In this paper, we completely endogenize the institution design process by asking subjects to design and repeatedly improve rule sets for a public goods problem in order to investigate which rules social planners facing a social dilemma ‘invent’ and how these rules develop over time. We make several noteworthy observations, in particular the strong and successful use of framing, the concealment of individual contribution information and the decreasing use of punishment.

Suggested Citation

  • Rockenbach Bettina & Wolff Irenaeus, 2016. "Designing Institutions for Social Dilemmas," German Economic Review, De Gruyter, vol. 17(3), pages 316-336, August.
    • Handle: RePEc:bpj:germec:v:17:y:2016:i:3:p:316-336
    DOI: 10.1111/geer.12103
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    4. Dannenberg, Astrid & Gallier, Carlo, 2019. "The choice of institutions to solve cooperation problems: A survey of experimental research," ZEW Discussion Papers 19-021, ZEW - Leibniz Centre for European Economic Research.
    5. Claudia Keser & Alexia Gaudeul, 2016. "Foreword: Special Issue in Honor of Reinhard Selten's 85th Birthday," German Economic Review, Verein für Socialpolitik, vol. 17(3), pages 277-283, August.
    6. Liu, Manwei & van der Heijden, Eline, 2019. "Majority rule or dictatorship? The role of collective-choice rules in resolving social dilemmas with endogenous institutions," Discussion Paper 2019-011, Tilburg University, Center for Economic Research.
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    9. Liu, Manwei & van der Heijden, Eline, 2019. "Majority rule or dictatorship? The role of collective-choice rules in resolving social dilemmas with endogenous institutions," Other publications TiSEM 78b5d351-486e-425d-a070-2, Tilburg University, School of Economics and Management.

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