Are cooperators effciency- or fair-minded? Evidence from a public goods experiment
AbstractWe use a two-person public goods experiment to distinguish between efficiency and fairness as possible motivations for cooperative behavior. Asymmetric marginal per capita returns allow only the high-productivity player to increase group payoffs when contributing positive amounts. Asymmetric contributions, however, yield unequal individual payoffs. To assess a priori cooperative preferences, we measure individual 'value-orientations' by means of the decomposed game technique. Overall, our results indicate that fairness (or inequality aversion) is more influential than efficiency in driving behavior.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-067.
Date of creation: 20 Sep 2007
Date of revision:
Public goods experiments; Conditional cooperation; Fairness; Efficiency; Value orientations;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-24 (All new papers)
- NEP-CBE-2007-09-24 (Cognitive & Behavioural Economics)
- NEP-EXP-2007-09-24 (Experimental Economics)
- NEP-GTH-2007-09-24 (Game Theory)
- NEP-PBE-2007-09-24 (Public Economics)
- NEP-SOC-2007-09-24 (Social Norms & Social Capital)
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- Gerlinde Fellner & Gabriele K. Lünser, 2008. "Cooperation in local and global groups," Department of Economics Working Papers wuwp122, Vienna University of Economics, Department of Economics.
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