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Morally monotonic choice in public good games

Author

Listed:
  • James C. Cox

    (Georgia State University)

  • Vjollca Sadiraj

    (Georgia State University)

  • Susan Xu Tang

    (Arizona State University)

Abstract

Rational choice theory, including models of social preferences, is challenged by decades of robust data from public good games. Provision of public goods, funded by lump-sum taxation, does not crowd out private provision on a one-for-one basis. Provision games elicit more of a public good than payoff-equivalent appropriation games. This paper offers a morally monotonic choice theory that incorporates observable moral reference points and is consistent with the two empirical findings. The model has idiosyncratic features that motivate a new experimental design. Data from our new experiment and three previous experiments favor moral monotonicity over alternative models including rational choice theory, prominent belief-based models of kindness, and popular reference-dependent models with loss aversion.

Suggested Citation

  • James C. Cox & Vjollca Sadiraj & Susan Xu Tang, 2023. "Morally monotonic choice in public good games," Experimental Economics, Springer;Economic Science Association, vol. 26(3), pages 697-725, July.
  • Handle: RePEc:kap:expeco:v:26:y:2023:i:3:d:10.1007_s10683-022-09787-2
    DOI: 10.1007/s10683-022-09787-2
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    More about this item

    Keywords

    Public goods; Experiment; Payoff equivalence; Non-binding contractions; Rational choice; Morally monotonic choice; Belief-based kindness choice; Reference-dependent choice with loss aversion;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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