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When the past is present – The ratchet effect in the local commons

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Author Info
Gerlinde Fellner
Magdalena Margreiter
Nuria Oses Eraso

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Abstract

The indirect evolutionary approach integrates forward-looking evaluation of opportunities and adaptation in the light of the past. Subjective motivation determines behavior, but long-run evolutionary success of motivational types depends on objective factors only, what can justify intrinsic aversion to inequality in reward allocation games. Whereas earlier analysis has typically been restricted to a particular game, we consider a more complex environment by combining different games which – studied in isolation – yield opposite implications for the survival of inequality aversion. Persistent divergence between intrinsic motivation and true material success is possible depending on the type of inequality aversion considered as well as on agents’ ability to discriminate between the different games they face.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-23.

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Length: 26 pages
Date of creation: Oct 2003
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Handle: RePEc:esi:discus:2003-23

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Related research
Keywords: Public Goods; Social Dilemma; Experimental Economics; Ratchet Effect; Local Interaction;

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Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D62 - Microeconomics - - Welfare Economics - - - Externalities
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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References listed on IDEAS
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    Other versions:
  3. Dillen, Mats & Lundholm, Michael, 1996. "Dynamic income taxation, redistribution, and the ratchet effect," Journal of Public Economics, Elsevier, vol. 59(1), pages 69-93, January. [Downloadable!] (restricted)
    Other versions:
  4. Freixas, Xavier & Guesnerie, Roger & Tirole, Jean, 1985. "Planning under Incomplete Information and the Ratchet Effect," Review of Economic Studies, Blackwell Publishing, vol. 52(2), pages 173-91, April. [Downloadable!] (restricted)
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  8. Polzer, Jeffrey T. & Stewart, Katherine J. & Simmons, Jessica L., 1999. "A Social Categorization Explanation for Framing Effects in Nested Social Dilemmas, , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(2), pages 154-178, August. [Downloadable!] (restricted)
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  11. Blackwell, Calvin & McKee, Michael, 2003. "Only for my own neighborhood?: Preferences and voluntary provision of local and global public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 52(1), pages 115-131, September. [Downloadable!] (restricted)
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  14. Hey, J.D. & Neugebauer, T. & Sadrieh, A., 2002. "An experimental analysis of optimal renewable resource management : the fishery," Discussion Paper 37, Tilburg University, Center for Economic Research. [Downloadable!]
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  15. Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-61, September. [Downloadable!] (restricted)
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