Cooperation Is Relative: Income and Framing Effects with Public Goods
AbstractIn social dilemmas, there is tension between cooperation that promotes the common good and the pursuit of individual interests. International climate change negotiations provide one example: although abatement costs are borne by individual countries, the benefits are shared globally. We study a multi-period, threshold public goods game with unequally endowed participants and communication in which the decision variable is framed in three seemingly inconsequential ways: as absolute contributions, contributions relative to endowments and in terms of the effects of contributions on final payoffs. We find considerable agreement that “rich” (or high endowed) persons contribute more than “poor” (or low endowed) individuals at levels that are invariant across frames. Frames do, however, significantly affect both preferred and actual contributions for the poor: they contribute significantly less when the decision variable makes the effects on final payoffs salient than when it is framed in terms of absolute contributions. Contributions are explained mostly by self-interest, justice preferences, and experiencing failed negotiations, but we find no effects of reciprocity toward individuals or of the suggestions of others about what one should contribute.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 16/2012.
Length: 42 pages
Date of creation: 21 May 2012
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Public good game; threshold; communication; fairness; endowment heterogeneity;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-CBE-2012-09-03 (Cognitive & Behavioural Economics)
- NEP-EVO-2012-09-03 (Evolutionary Economics)
- NEP-EXP-2012-09-03 (Experimental Economics)
- NEP-PUB-2012-09-03 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reuben, Ernesto & Riedl, Arno, 2007.
"Public Goods Provision and Sanctioning in Priveleged Groups,"
028, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Reuben, Ernesto & Riedl, Arno, 2007. "Public Goods Provision and Sanctioning in Privileged Groups," IZA Discussion Papers 2916, Institute for the Study of Labor (IZA).
- Reuben, Ernesto & Riedl, Arno, 2007. "Public Goods Provision and Sanctioning in Priveleged Groups," Research Memorandum 028, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Ernesto Reuben & Arno Riedl, 2007. "Public Goods Provision and Sanctioning in Privileged Groups," CESifo Working Paper Series 2063, CESifo Group Munich.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008.
"Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis,"
77, Economic Research Southern Africa.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2007. "Income Inequality, Reciprocity And Public Good Provision: An Experimental Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 75(3), pages 508-520, 09.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008. "Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis," SALDRU Working Papers 23, Southern Africa Labour and Development Research Unit, University of Cape Town.
- Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas Löschel, 2011.
"Inequality, communication and the avoidance of disastrous climate change,"
Grantham Research Institute on Climate Change and the Environment Working Papers
34, Grantham Research Institute on Climate Change and the Environment.
- Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas LÃ¶schel, 2011. "Inequality, Communication and the Avoidance of Disastrous Climate Change," CCEP Working Papers 1103, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
- W. Guth & R. Schmittberger & B. Schwartz, 2010. "An experimental analysis of ultimatum bargaining," Levine's Working Paper Archive 291, David K. Levine.
- Kjell Arne Brekke & Snorre Kverndokk & Karinen Nyborg, 2000.
"An Economic Model of Moral Motivation,"
290, Research Department of Statistics Norway.
- Rege, Mari & Telle, Kjetil, 2004. "The impact of social approval and framing on cooperation in public good situations," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1625-1644, July.
- Lange, Andreas & Löschel, Andreas & Vogt, Carsten & Ziegler, Andreas, 2010.
"On the self-interested use of equity in international climate negotiations,"
European Economic Review,
Elsevier, vol. 54(3), pages 359-375, April.
- Andreas Lange & Andreas Löschel & Carsten Vogt & Andreas Ziegler, 2009. "On the Self-interested Use of Equity in International Climate Negotiations," NBER Working Papers 14930, National Bureau of Economic Research, Inc.
- Olof Johansson-Stenman & James Konow, 2010. "Fair Air: Distributive Justice and Environmental Economics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(2), pages 147-166, June.
- Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
- Weng, Qian & Carlsson, Fredrik, 2013. "Cooperation in teams: the role of identity, punishment and endowment distribution," Working Papers in Economics 551, University of Gothenburg, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rhiana Bergh-Seeley).
If references are entirely missing, you can add them using this form.