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Outcome valence and externality valence framing in public good dilemmas

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  • Böhm, Robert
  • Theelen, Maik M.P.

Abstract

The aim of this paper is to examine how framing influences people’ s cooperation behavior in social dilemmas. In Experiment 1 we investigated the influence of outcome valence (positive vs. negative outcome) and externality valence (positive vs. negative externality) framing on players’ willingness to cooperate in a repeated public good game. We found a significant interaction effect on first-round cooperation, indicating larger cooperation rates when there is a negative outcome valence and a positive externality on others. Furthermore, this effect remained largely stable when comparing cooperation over all rounds, resulting in 45–63% increased cooperation compared to the other conditions. In Experiment 2 we replicated the effect in an applied vignette study, lending support for the generalizability of this framing effect. Taken together, these findings suggest that public goods provisions may be increased substantially by framing the situation’s outcome valence as negative rather than positive.

Suggested Citation

  • Böhm, Robert & Theelen, Maik M.P., 2016. "Outcome valence and externality valence framing in public good dilemmas," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 151-163.
    • Handle: RePEc:eee:joepsy:v:54:y:2016:i:c:p:151-163
    DOI: 10.1016/j.joep.2016.04.003
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    4. Böhm, Robert & Halevy, Nir & Kugler, Tamar, 2022. "The power of defaults in intergroup conflict," Organizational Behavior and Human Decision Processes, Elsevier, vol. 168(C).
    5. Edward Cartwright & Michalis Drouvelis, 2020. "Social Framing Effects in Leadership: Preferences or Beliefs?," CESifo Working Paper Series 8600, CESifo.
    6. Cartwright, Edward & Ramalingam, Abhijit, 2019. "Framing effects in public good games: Choices or externalities?," Economics Letters, Elsevier, vol. 179(C), pages 42-45.
    7. Tsikas, Stefanos A. & Wagener, Andreas, 2018. "Bringing Tax Avoiders to Light: Moral Framing and Shaming in a Public Goods Experiment," Hannover Economic Papers (HEP) dp-633, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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    More about this item

    Keywords

    Cooperation; Social dilemma; Framing effects;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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