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Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs

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  • Florian Engl
  • Arno Riedl
  • Roberto Weber

Abstract

Most institutions are limited in scope. We study experimentally how enforcement institutions affect behavior, preferences, and beliefs beyond their direct influence over the behaviors they control. Groups play two identical public good games, with cooperation institutionally enforced in one game. Institutions generally have economically significant positive spillover effects to the unregulated game. We also observe that institutions enhance conditional cooperation preferences and beliefs about others' cooperativeness, suggesting that both factors are drivers of observed spillover effects. In additional treatments, we provide evidence for several factors, including characteristics of institutions, that enhance or limit the effectiveness and scope of spillover effects.

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  • Florian Engl & Arno Riedl & Roberto Weber, 2021. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," American Economic Journal: Microeconomics, American Economic Association, vol. 13(4), pages 261-299, November.
    • Handle: RePEc:aea:aejmic:v:13:y:2021:i:4:p:261-99
    DOI: 10.1257/mic.20180336
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The pervasive externalities of pro-social behaviour: who knew?
      by Nicholas Gruen in Club Troppo on 2017-06-12 10:06:54

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    4. Florian Diekert & Tillmann Eymess & Joseph Luomba & Israel Waichman, 2022. "The Creation of Social Norms under Weak Institutions," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 9(6), pages 1127-1160.
    5. Kerstin Grosch & Holger A. Rau, 2020. "Procedural Unfair Wage Differentials And Their Effects On Unethical Behavior," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1689-1706, October.
    6. Cagala, Tobias & Glogowsky, Ulrich & Grimm, Veronika & Rincke, Johannes & Tuset-Cueva, Amanda, 2019. "Rent extraction and prosocial behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 709-723.
    7. Dal Bó, Pedro & Foster, Andrew & Kamei, Kenju, 2024. "The democracy effect: A weights-based estimation strategy," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 31-45.
    8. Columbus, Simon & Feld, Lars P. & Kasper, Matthias & Rablen, Matthew D., 2023. "Behavioural Responses to Unfair Institutions: Experimental Evidence on Rule Compliance, Norm Polarisation, and Trust," IZA Discussion Papers 16346, Institute of Labor Economics (IZA).
    9. Mekvabishvili, Rati, 2023. "Weak and Strong Formal Institutions in Resolving Social Dilemmas: Are They Double-Edged Swords?," MPRA Paper 119659, University Library of Munich, Germany.
    10. Emeric Henry & Nicolas Jacquemet & Roberto Galbiati, 2017. "Spillovers, Persistence and Learning: Institutions and the Dynamics of Cooperation," SciencePo Working papers Main halshs-01613850, HAL.
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    13. Tom Lane & Daniele Nosenzo & Silvia Sonderegger, 2023. "Law and Norms: Empirical Evidence," American Economic Review, American Economic Association, vol. 113(5), pages 1255-1293, May.
    14. Ai Takeuchi & Erika Seki, 2019. "Coordination and free-riding problems in blood donations," Discussion Papers in Economics and Business 19-15, Osaka University, Graduate School of Economics.
    15. Mekvabishvili, Rati, 2023. "Decentralized or Centralized Governance in Social Dilemmas? Experimental Evidence from Georgia," MPRA Paper 117811, University Library of Munich, Germany.
    16. Emeric Henry & Nicolas Jacquemet & Roberto Galbiati, 2017. "Spillovers, Persistence and Learning: Institutions and the Dynamics of Cooperation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01613850, HAL.
    17. Otten, Kasper & Buskens, Vincent & Przepiorka, Wojtek & Cherki, Boaz & Israel, Salomon, 2024. "Cooperation, punishment, and group change in multilevel public goods experiments," European Economic Review, Elsevier, vol. 164(C).
    18. Rati Mekvabishvili, 2023. "Weak and Strong Formal Institutions in Resolving Social Dilemmas: Are They Double-Edged Swords?," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(2), pages 11-20, December.
    19. Patrick Ring & Christoph A. Schütt & Dennis J. Snower, 2023. "Care and anger motives in social dilemmas," Theory and Decision, Springer, vol. 95(2), pages 273-308, August.
    20. Pedro Dal Bo & Andrew Foster & Kenju Kamei, 2019. "The Democracy Effect: a weights-based identification strategy," Working Papers 2019-4, Brown University, Department of Economics.
    21. Steven Jacob Bosworth & Simon Bartke, 2019. "Cross-task spillovers in workplace teams: Motivation vs. learning," Economics Discussion Papers em-dp2019-15, Department of Economics, University of Reading.
    22. Philipp Chapkovski & Luca Corazzini & Valeria Maggian, 2021. "Does Whistleblowing on Tax Evaders Reduce Ingroup Cooperation?," Working Papers 2021:20, Department of Economics, University of Venice "Ca' Foscari".
    23. Michele Bernasconi & Enrico Longo & Valeria Maggian, 2023. "When merit breeds luck (or not): an experimental study on distributive justice," Working Papers 2023:02, Department of Economics, University of Venice "Ca' Foscari".
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    25. Otten, Kasper & Buskens, Vincent & Przepiorka, Wojtek & Ellemers, Naomi, 2021. "Cooperation between newcomers and incumbents: The role of normative disagreements," Journal of Economic Psychology, Elsevier, vol. 87(C).

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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