‘Expressive’ Obligations in Public Good Games: Crowding-in and Crowding-out Effects
AbstractWe study individual behaviour in a repeated linear public good experiment in which, in each period, subjects are required to contribute a minimum level and face a certain probability to be audited. Audited subjects who contribute less than the minimum level are convicted to pay the difference between the obligation required and the voluntary contribution. We study the ‘expressive’ power of the obligations. While at early stages subjects contribute the minimum level, with repetition contributions decline below the required amount indicating that expressive obligations are not capable to sustain cooperation. We observe that expressive obligations exert a rather robust crowding-out effect on voluntary contributions as compared to a standard public good game. The crowding-out is stronger when payments collected by the monitoring activity are distributed to subjects rather than when they are pure dead-weight-loss.
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Bibliographic InfoPaper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2010_04.
Date of creation: 2010
Date of revision:
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Expressive law; motivation crowding theory; laboratory experiments;
Other versions of this item:
- Bernasconi, Michele & Corazzini, Luca & Marenzi, Anna, 2013. "‘Expressive’ obligations in public good games: Crowding-in and crowding-out effects," Research in Economics, Elsevier, vol. 67(1), pages 13-24.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-03-20 (All new papers)
- NEP-CBE-2010-03-20 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-03-20 (Experimental Economics)
- NEP-HPE-2010-03-20 (History & Philosophy of Economics)
- NEP-PBE-2010-03-20 (Public Economics)
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