Claudia Keser () (Institut für Statistik und Mathematische Wirtschaftstheorie, Universität Karlsruhe) Frans A.A.M. van Winden () (CREED, University of Amsterdam)
Abstract
We compare a partners condition where the same small group of subjects plays a repeated public good game to a strangers condition where subjects play this game in changing group formations. Subjects in the partners condition contribute from the first period on significantly more to the public good than subjects in the strangers condition. In the strangers condition, contributions show a continual decay, while in the partners condition, contributions fluctuate on a high level until they decrease in the final periods. We interpret subjects' behavior in terms of conditional cooperation which is characterized by both future-oriented and reactive behavior.
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