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Cycles of Conditional Cooperation in a Real-Time Voluntary Contribution Mechanism

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  • M. Vittoria Levati
  • Ro'i Zultan

Abstract

This paper provides a new way to identify conditional cooperation in a real-time version of the standard voluntary contribution mechanism. Our approach avoids most drawbacks of the traditional procedures because it relies on endogenous cycle lengths, which are defined by the number of contributors a player waits before committing to a further contribution. Based on hypothetical distributions of randomly generated contribution sequences, we provide strong evidence for conditionally cooperative behavior. Moreover, notwithstanding a decline in contributions, conditional cooperation is found to be stable over time.

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Bibliographic Info

Paper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp511.

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Length: 25 pages
Date of creation: May 2009
Date of revision:
Publication status: Published in Games 2011, 2(1), 1-15.
Handle: RePEc:huj:dispap:dp511

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References

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  1. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
  2. Tibor Neugebauer & Javier Perote & Ulrich Schmidt & Malte Loos, 2005. "Selfish-biased conditional cooperation: On the decline of contributions in repeated public goods experiments," Experimental, EconWPA 0503009, EconWPA.
  3. Bruno S. Frey & Stephan Meier, . "Social Comparisons and Pro-social Behavior - Testing ‘Conditional Cooperation’ in a Field Experiment," IEW - Working Papers 162, Institute for Empirical Research in Economics - University of Zurich.
  4. M. Vittoria Levati & Tibor Neugebauer, 2004. "An Application of the English Clock Market Mechanism to Public Goods Games," Experimental Economics, Springer, Springer, vol. 7(2), pages 153-169, 06.
  5. Dirk Engelmann & Martin Strobel, 2000. "The False Consensus Effect Disappears if Representative Information and Monetary Incentives Are Given," Experimental Economics, Springer, Springer, vol. 3(3), pages 241-260, December.
  6. repec:ebl:ecbull:v:3:y:2006:i:8:p:1-14 is not listed on IDEAS
  7. Claudia Keser & Frans A.A.M. van Winden, 2000. "Conditional Cooperation and Voluntary Contributions to Public Goods," Tinbergen Institute Discussion Papers 00-011/1, Tinbergen Institute.
  8. Güth, Werner & Levati, Maria Vittoria & Stiehler, Andreas, 2002. "Privately contributing to public goods over time: An experimental study," SFB 373 Discussion Papers 2002,18, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  9. M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
  10. repec:wop:humbsf:1999-66 is not listed on IDEAS
  11. Ananish Chaudhuri & Tirnud Paichayontvijit, 2006. "Conditional cooperation and voluntary contributions to a public good," Economics Bulletin, AccessEcon, vol. 3(8), pages 1-14.
  12. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
  13. Potters, Jan & Sefton, Martin & Vesterlund, Lise, 2005. "After you--endogenous sequencing in voluntary contribution games," Journal of Public Economics, Elsevier, vol. 89(8), pages 1399-1419, August.
  14. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, Springer, vol. 10(2), pages 171-178, June.
  15. Buckley, Edward & Croson, Rachel, 2006. "Income and wealth heterogeneity in the voluntary provision of linear public goods," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 935-955, May.
  16. Brandts, Jordi & Schram, Arthur, 2001. "Cooperation and noise in public goods experiments: applying the contribution function approach," Journal of Public Economics, Elsevier, vol. 79(2), pages 399-427, February.
  17. Goren, Harel & Kurzban, Robert & Rapoport, Amnon, 2003. "Social loafing vs. social enhancement: Public goods provisioning in real-time with irrevocable commitments," Organizational Behavior and Human Decision Processes, Elsevier, Elsevier, vol. 90(2), pages 277-290, March.
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Cited by:
  1. Urs Fischbacher & Simon Gaechter, 2009. "The behavioral validity of the strategy method in public good experiments," Discussion Papers, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham 2009-25, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  2. Eva-Maria Steiger & Ro'i Zultan, 2011. "See No Evil: Information Chains and Reciprocity in Teams," Jena Economic Research Papers 2011-040, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Steiger, Eva-Maria & Zultan, Ro'i, 2014. "See no evil: Information chains and reciprocity," Journal of Public Economics, Elsevier, vol. 109(C), pages 1-12.

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