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The Scope of Cooperation: Values and Incentives

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Author Info
Guido Tabellini (IGIER, Bocconi University; CEPR; CES-Ifo; CIFAR)

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Abstract

What explains the range of situations in which individuals cooperate? This paper studies a model where individuals respond to incentives but are also influenced by norms of good conduct inherited from earlier generations. Parents rationally choose what values to transmit to their offspring, and this choice is influenced by the spatial patterns of external enforcement and of likely future transactions. The equilibrium displays strategic complementarities between values and current behavior, which reinforce the effects of changes in the external environment. Values evolve gradually over time, and if the quality of legal enforcement is chosen under majority rule, there is path dependence: adverse initial conditions may lead to a unique equilibrium where legal enforcement remains weak and individual values discourage cooperation. (c) 2008 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology..

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Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 123 (2008)
Issue (Month): 3 (August)
Pages: 905-950
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Handle: RePEc:tpr:qjecon:v:123:y:2008:i:3:p:905-950

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Cited by:
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  1. Adriani, Fabrizio & Sonderegger, Silvia, 2009. "Trust, Introspection, and Market Participation: an Evolutionary Approach," MPRA Paper 16110, University Library of Munich, Germany. [Downloadable!]
  2. Beugelsdijk, S. & Smulders, J.A., 2009. "Bonding and Bridging Social Capital and Economic Growth," Discussion Paper 2009-27, Tilburg University, Center for Economic Research. [Downloadable!]
  3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2009. "The Intergenerational Transmission of Attitudes," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 7(1), pages 8-12, 04. [Downloadable!]
  4. Adriani, Fabrizio & Sonderegger, Silvia, 2009. "Why do parents socialize their children to behave pro-socially? An information-based theory," MPRA Paper 16107, University Library of Munich, Germany. [Downloadable!]
  5. Alesina, Alberto & Giuliano, Paola, 2009. "Family Ties and Political Participation," IZA Discussion Papers 4150, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Lacetera, Nicola & Macis, Mario, 2008. "Motivating Altruism: A Field Study," IZA Discussion Papers 3770, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Marianna Belloc & Samuel Bowles, 2009. "International Trade, Factor Mobility and the Persistence of Cultural-Institutional Diversity," Working Papers 2009-08, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  8. Jean-Baptiste Michau, 2009. "Unemployment Insurance and Cultural Transmission: Theory and Application to European Unemployment," CEP Discussion Papers dp0936, Centre for Economic Performance, LSE. [Downloadable!]
  9. Luca Anderlini & Dino Gerardi & Roger Lagunoff, 2007. "Social Memory and Evidence from the Past," Working Papers gueconwpa~07-07-01, Georgetown University, Department of Economics. [Downloadable!]
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