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 the results of 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.
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Bibliographic InfoPaper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 002890.
Date of creation: 05 Jul 2006
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Field experiments; common pool resources; cooperation; enforcement; regulation; social preferences; social norms; learning models;
Other versions of this item:
- Rodriguez-Sickert, Carlos & Guzmán, Ricardo Andrés & Cárdenas, Juan Camilo, 2008. "Institutions influence preferences: Evidence from a common pool resource experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 215-227, July.
- 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
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