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The Impact of Cash Mobs in the Vote with the Wallet Game: Experimental Results

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Abstract

We simulate in a randomised lab experiment the effect of Cash Mobs on consumers’ behaviour in an original variant of the multiplayer Prisoner’s dilemma called Vote-with-the-Wallet Game (VWG). The effect is modelled in a sequential game with/without an environmental frame in which a subset of players (cash-mobbers) is given the opportunity to reveal publicly (in aggregate without disclosing individual identities) their cooperation decision. We find that the treatment has a positive gross effect, that is, the share of cooperators is significantly higher in treated sessions and this is mainly due to the higher share of cooperators among cash-mobbers. Our results suggest that cash mobs-like mechanisms can help to solve social dilemmas with entirely private solutions (not based on punishment but on positive action) without costs for government budgets.

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  • Leonardo Becchetti & Maurizio Fiaschetti & Francesco Salustri, 2017. "The Impact of Cash Mobs in the Vote with the Wallet Game: Experimental Results," CEIS Research Paper 401, Tor Vergata University, CEIS, revised 18 Apr 2017.
    • Handle: RePEc:rtv:ceisrp:401
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    1. Becchetti, Leonardo & Salustri, Francesco, 2015. "The Vote With the Wallet as a Multiplayer Prisoner's Dilemma," AICCON Working Papers 141-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
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    More about this item

    Keywords

    vote with the wallet; prisoner’s dilemma; randomised experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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