Institutions influence preferences: Evidence from a common pool resource experiment
AbstractWe model the dynamic effects of external enforcement on the exploitation of a common pool resource. Fitting our model to experimental data we find that institutions influence social preferences. We solve two puzzles in the data: the increase and later erosion of cooperation when commoners vote against the imposition of a fine, and the high deterrence power of low fines. When fines are rejected, internalization of a social norm explains the increased cooperation; violations (accidental or not), coupled with reciprocal preferences, account for the erosion. Low fines stabilize cooperation by preventing a spiral of negative reciprocation.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 67 (2008)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/jebo
Other versions of this item:
- Carlos Rodríguez-Sickert & Ricardo Andrés Guzmán & Juan Camilo Cárdenas, 2006. "Institutions Influence Preferences: Evidence From A Common Pool Resource Experiment," DOCUMENTOS CEDE 002890, UNIVERSIDAD DE LOS ANDES-CEDE.
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