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Playing with the good guys. A public good game with endogenous group formation

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Author Info

  • Brekke, Kjell Arne
  • Hauge, Karen Evelyn
  • Lind, Jo Thori
  • Nyborg, Karine

Abstract

Are some individuals generally more pro-social than others? If so, socially beneficial commitments could serve as a costly screening device helping the pro-social to match. We present a public good game experiment in which subjects choose between two group types: in blue groups, subjects receive a fixed extra payoff; in red groups, this extra payoff is donated, instead, to the Red Cross. A substantial share of our subjects chose red groups. Contributions in red groups were initially higher and stayed high, while contributions in blue groups displayed the well-known declining pattern.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 95 (2011)
Issue (Month): 9-10 (October)
Pages: 1111-1118

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Handle: RePEc:eee:pubeco:v:95:y:2011:i:9-10:p:1111-1118

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Altruism Conditional cooperation Self-selection;

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References

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  1. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-87, December.
  2. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  3. Claudia Keser & Frans A.A.M. van Winden, 2000. "Conditional Cooperation and Voluntary Contributions to Public Goods," Tinbergen Institute Discussion Papers 00-011/1, Tinbergen Institute.
  4. Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
  5. Urs Fischbacher & Simon Gaechter, 2006. "Heterogeneous social preferences and the dynamics of free riding in public goods," Discussion Papers 2006-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  6. Altmann, Steffen & Dohmen, Thomas & Wibral, Matthias, 2007. "Do the Reciprocal Trust Less?," IZA Discussion Papers 3010, Institute for the Study of Labor (IZA).
  7. Blanco, Mariana & Engelmann, Dirk & Normann, Hans Theo, 2011. "A within-subject analysis of other-regarding preferences," Games and Economic Behavior, Elsevier, vol. 72(2), pages 321-338, June.
  8. Gunnthorsdottir, Anna & Houser, Daniel & McCabe, Kevin, 2007. "Disposition, history and contributions in public goods experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 304-315, February.
  9. Ones, Umut & Putterman, Louis, 2007. "The ecology of collective action: A public goods and sanctions experiment with controlled group formation," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 495-521, April.
  10. Tibor Neugebauer & Javier Perote & Ulrich Schmidt & Malte Loos, 2007. "Selfish-biased conditional cooperation: On the decline of contributions in repeated public goods experiments," Kiel Working Papers 1376, Kiel Institute for the World Economy.
  11. Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
  12. Talbot Page & Louis Putterman & Bulent Unel, 2005. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Economic Journal, Royal Economic Society, vol. 115(506), pages 1032-1053, October.
  13. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
  14. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
  15. Brekke, Kjell Arne & Nyborg, Karine, 2008. "Attracting responsible employees: Green production as labor market screening," Resource and Energy Economics, Elsevier, vol. 30(4), pages 509-526, December.
  16. Croson, Rachel T. A., 1996. "Partners and strangers revisited," Economics Letters, Elsevier, vol. 53(1), pages 25-32, October.
  17. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  18. T. K. Ahn & R. Mark Isaac & Timothy C. Salmon, 2008. "Endogenous Group Formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(2), pages 171-194, 04.
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Citations

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Cited by:
  1. Fehrler, Sebastian & Kosfeld, Michael, 2013. "Can You Trust the Good Guys? Trust Within and Between Groups with Different Missions," IZA Discussion Papers 7411, Institute for the Study of Labor (IZA).
  2. Jacobsen, Karin J. & Eika, Kari H. & Helland, Leif & Lind, Jo Thori & Nyborg, Karine, 2011. "Are nurses more altruistic than real estate brokers?," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 818-831.
  3. Martin Beckenkamp & Christoph Engel & Andreas Glöckner & Bernd Irlenbusch & Heike Hennig-Schmidt & Sebastian Kube & Michael Kurschilgen & Alexander Morell & Andreas Nicklisch & Hans-Theo Normann & Em, 2009. "First Impressions are More Important than Early Intervention Qualifying Broken Windows Theory in the Lab," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_21, Max Planck Institute for Research on Collective Goods, revised Jan 2013.
  4. Christoph Engel & Sebastian Kube & Michael Kurschilgen, 2011. "Can we manage first impressions in cooperation problems? An experimental study on “Broken (and Fixed) Windows”," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2011_05, Max Planck Institute for Research on Collective Goods.
  5. Maren Bachke & Frode Alfnes & Mette Wik, 2012. "Eliciting donor preferences," Artefactual Field Experiments 00098, The Field Experiments Website.
  6. Cherry, Josh & Salant, Stephen & Uler, Neslihan, 2013. "Experimental Departures from Self-Interest when Competing Partnerships Share Output," Discussion Papers dp-13-07, Resources For the Future.
  7. John Duffy & Jonathan Lafky, 2014. "Birth, Death and Public Good Provision," Working Papers 520, University of Pittsburgh, Department of Economics, revised Jan 2014.

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