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

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  • Gerlinde Fellner
  • Magdalena Margreiter
  • Nuria Oses Eraso

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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Bibliographic Info

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
Date of revision:
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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  1. Armin Falk & Ernst Fehr & Urs Fischbacher, 2001. "Appropriating the Commons A Theoretical Explanation," CESifo Working Paper Series 474, CESifo Group Munich.
  2. Jeffrey P. Carpenter, 2000. "Negotiation in the Commons: Incorporating Field and Experimental Evidence into a Theory of Local Collective Action," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(4), pages 661-, December.
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  11. 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.
  12. Fischer, Maria-Elisabeth & Irlenbusch, Bernd & Sadrieh, Abdolkarim, 2004. "An intergenerational common pool resource experiment," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 811-836, September.
  13. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July.
  14. Hindriks, Jean & Pancs, Romans, 2002. " Free Riding on Altruism and Group Size," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 335-46.
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