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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 67 (2008)
Issue (Month): 1 (July)
Contact details of provider:
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.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- H4 - Public Economics - - Publicly Provided Goods
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gneezy, Uri & Rustichini, Aldo, 2000.
"A Fine is a Price,"
The Journal of Legal Studies,
University of Chicago Press, vol. 29(1), pages 1-17, January.
- Andreoni, J., 1993.
"Cooperation in Public Goods Experiments: Kindness or Confusion?,"
9309, Wisconsin Madison - Social Systems.
- Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, vol. 85(4), pages 891-904, September.
- Armin Falk & Michael Kosfeld, .
"Distrust - The Hidden Cost of Control,"
IEW - Working Papers
193, Institute for Empirical Research in Economics - University of Zurich.
- Samuel Bowles & Herbert Gintis, 2001.
"Social Capital and Community Governance,"
01-01-003, Santa Fe Institute.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Simon Gachter & Ernst Fehr, 2000.
"Cooperation and Punishment in Public Goods Experiments,"
American Economic Review,
American Economic Association, vol. 90(4), pages 980-994, September.
- Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
- Ernst Fehr & Simon Gaechter, . "Cooperation and Punishment in Public Goods Experiments," IEW - Working Papers 010, Institute for Empirical Research in Economics - University of Zurich.
- Dufwenberg, M. & Kirchsteiger, G., 1998.
"A Theory of Sequential Reciprocity,"
1998-37, Tilburg University, Center for Economic Research.
- Georg Kirchsteiger & Martin Dufwenberg, 2004. "A theory of sequential reciprocity," ULB Institutional Repository 2013/5899, ULB -- Universite Libre de Bruxelles.
- Margin Dufwenberg & Georg Kirchsteiger, 2001. "A Theory of Sequential Reciprocity," Levine's Working Paper Archive 563824000000000090, David K. Levine.
- Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
- Rabin, Matthew, 1993.
"Incorporating Fairness into Game Theory and Economics,"
American Economic Review,
American Economic Association, vol. 83(5), pages 1281-1302, December.
- Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
- M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
- Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000.
"Local Environmental Control and Institutional Crowding-Out,"
Elsevier, vol. 28(10), pages 1719-1733, October.
- Juan-Camilo Cardenas & John Stranlund & Cleve Willis, 2000. "Local environmental control and institutional crowding-out," Artefactual Field Experiments 00028, The Field Experiments Website.
- Lin, Chung-cheng & Yang, C.C., 2006. "Fine enough or don't fine at all," Journal of Economic Behavior & Organization, Elsevier, vol. 59(2), pages 195-213, February.
- Samuel Bowles, 2007. "Social Preferences and Public Economics: Are good laws a substitute for good citizens?," Department of Economics University of Siena 496, Department of Economics, University of Siena.
- Mark Isaac, R. & McCue, Kenneth F. & Plott, Charles R., 1985.
"Public goods provision in an experimental environment,"
Journal of Public Economics,
Elsevier, vol. 26(1), pages 51-74, February.
- Isaac, R. Mark & McCue, Kenneth F. & Plott, Charles R., . "Public Goods Provision in an Experimental Environment," Working Papers 428, California Institute of Technology, Division of the Humanities and Social Sciences.
- Anderies, John M. & Janssen, Marco A. & Bousquet, François & Cardenas, Juan-Camilo & Castillo, Daniel & Lopez, Maria-Claudio & Tobias, Robert & Vollan, Björn & Wutich, Amber, 2011. "The challenge of understanding decisions in experimental studies of common pool resource governance," Ecological Economics, Elsevier, vol. 70(9), pages 1571-1579, July.
- Samuel Bowles & Sandra Polanía Reyes, 2009. "Economic Incentives and Social Preferences: A preference-Based Lucas Critique of Public Policy," UMASS Amherst Economics Working Papers 2009-11, University of Massachusetts Amherst, Department of Economics.
- Felix Bierbrauer & Nick Netzer, 2012.
"Mechanism Design and Intentions,"
Working Paper Series in Economics
53, University of Cologne, Department of Economics, revised 21 Aug 2012.
- Juan Camilo C�rdenas, 2009. "Experiments in Environment and Development," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 157-182, 09.
- Erik O. Kimbrough & Alexander Vostroknutov, 2013. "The Social and Ecological Determinants of Common Pool Resource Sustainability," Discussion Papers dp13-06, Department of Economics, Simon Fraser University.
- Jan Stoop & Charles N. Noussair & Daan van Soest, 2012.
"From the Lab to the Field: Cooperation among Fishermen,"
Journal of Political Economy,
University of Chicago Press, vol. 120(6), pages 1027 - 1056.
- Stoop, Jan & Noussair, Charles & van Soest, Daan, 2010. "From the lab to the field: Cooperation among fishermen," MPRA Paper 28924, University Library of Munich, Germany.
- Elisabeth Gsottbauer & Jeroen Bergh, 2011. "Environmental Policy Theory Given Bounded Rationality and Other-regarding Preferences," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(2), pages 263-304, June.
- Kimbrough Erik O. & Vostroknutov Alexander, 2012. "Using Rules to Screen for Cooperative Types: Rule-Following and Restraint in Common Pool Resource Systems," Research Memorandum 055, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Samuel Bowles & Sandra Polanía Reyes, 2009. "Economic Incentives and Social Preferences: A Preference-based Lucas Critique of Public Policy," CESifo Working Paper Series 2734, CESifo Group Munich.
- David Zetland & Marina Della Giusta, 2011. "Focal Points, Gender Norms and Reciprocation in Public Good Games," Economics & Management Discussion Papers em-dp2011-01, Henley Business School, Reading University.
- Samuel Bowles & Sandra Polania-Reyes, 2011. "Economic incentives and social preferences: substitutes or complements?," Department of Economics University of Siena 617, Department of Economics, University of Siena.
- Galinato, Gregmar I., 2011. "Endogenous property rights regimes, common-pool resources and trade," Ecological Economics, Elsevier, vol. 70(5), pages 951-962, March.
- José Santiago Arroyo Mina, 2012. "Dilemas sociales de la pesca en el pacífico colombiano: un análisis desde la teoría de juegos," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA.
- Villena, Mauricio G. & Zecchetto, Franco, 2011.
"Subject-specific performance information can worsen the tragedy of the commons: Experimental evidence,"
Journal of Economic Psychology,
Elsevier, vol. 32(3), pages 330-347, June.
- Villena, Mauricio G. & Zecchetto, Franco, 2010. "Subject-specific Performance Information can worsen the Tragedy of the Commons: Experimental Evidence," MPRA Paper 27783, University Library of Munich, Germany, revised 02 Dec 2010.
- Coria, Jessica & Villegas-Palacio, Clara & Cárdenas, J.C., 2012. "Why Do Environmental Taxes Work Better in Developed Countries?," Working Papers in Economics 521, University of Gothenburg, Department of Economics.
- Janssen, Marco A. & Bousquet, François & Cardenas, Juan-Camilo & Castillo, Daniel & Worrapimphong, Kobchai, 2013. "Breaking the elected rules in a field experiment on forestry resources," Ecological Economics, Elsevier, vol. 90(C), pages 132-139.
- Narloch, Ulf & Pascual, Unai & Drucker, Adam G., 2012. "Collective Action Dynamics under External Rewards: Experimental Insights from Andean Farming Communities," World Development, Elsevier, vol. 40(10), pages 2096-2107.
- Juan Cardenas, 2011. "Social Norms and Behavior in the Local Commons as Seen Through the Lens of Field Experiments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(3), pages 451-485, March.
- d'Adda, Giovanna, 2011. "Motivation crowding in environmental protection: Evidence from an artefactual field experiment," Ecological Economics, Elsevier, vol. 70(11), pages 2083-2097, September.
- Cherry, Todd L. & Cotten, Stephen J. & Jones, Luke R., 2013. "The appropriation of endogenously provided common-pool resources," Resource and Energy Economics, Elsevier, vol. 35(3), pages 329-341.
- Samuel Bowles & Sandra Polania-Reyes, 2012. "Economic Incentives and Social Preferences: Substitutes or Complements?," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 368-425, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.