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Designing Institutions for Social Dilemmas

Author

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  • Rockenbach Bettina

    (University of Cologne, Thurgau Institute of Economics/University of Konstanz,Konstanz, Germany)

  • Wolff Irenaeus

    (University of Cologne, Thurgau Institute of Economics/University of Konstanz,Konstanz, Germany)

Abstract

Considerable experimental evidence has been collected on rules enhancing contributions in public goods dilemmas. These studies either confront subjects with prespecified rules or have subjects choose between different rule environments. In this paper, we completely endogenize the institution design process by asking subjects to design and repeatedly improve rule sets for a public goods problem in order to investigate which rules social planners facing a social dilemma ‘invent’ and how these rules develop over time. We make several noteworthy observations, in particular the strong and successful use of framing, the concealment of individual contribution information and the decreasing use of punishment.

Suggested Citation

  • Rockenbach Bettina & Wolff Irenaeus, 2016. "Designing Institutions for Social Dilemmas," German Economic Review, De Gruyter, vol. 17(3), pages 316-336, August.
    • Handle: RePEc:bpj:germec:v:17:y:2016:i:3:p:316-336
    DOI: 10.1111/geer.12103
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    Cited by:

    1. Evgeny Kagan & Stephen Leider & William S. Lovejoy, 2020. "Equity Contracts and Incentive Design in Start-Up Teams," Management Science, INFORMS, vol. 66(10), pages 4879-4898, October.
    2. Rommel, Jens & Anggraini, Eva, 2018. "Spatially explicit framed field experiments on ecosystem services governance," Ecosystem Services, Elsevier, vol. 34(PB), pages 201-205.
    3. Astrid Dannenberg & Carlo Gallier, 2020. "The choice of institutions to solve cooperation problems: a survey of experimental research," Experimental Economics, Springer;Economic Science Association, vol. 23(3), pages 716-749, September.
    4. Dannenberg, Astrid & Gallier, Carlo, 2019. "The choice of institutions to solve cooperation problems: A survey of experimental research," ZEW Discussion Papers 19-021, ZEW - Leibniz Centre for European Economic Research.
    5. Patrick Hoffmann & Sergio Villamayor-Tomas & Maria Claudia Lopez, 2023. "Analyzing group communication dynamics and content in a common-pool resource experiment," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-20, May.
    6. Liu, Manwei & van der Heijden, Eline, 2019. "Majority rule or dictatorship? The role of collective-choice rules in resolving social dilemmas with endogenous institutions," Discussion Paper 2019-011, Tilburg University, Center for Economic Research.
    7. Astrid Dannenberg & Carlo Gallier, 2019. "The Choice of Institutions to Solve Cooperation Problems: A Survey of Experimental Research," MAGKS Papers on Economics 201911, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Keser Claudia & Gaudeul Alexia, 2016. "Foreword: Special Issue in Honor of Reinhard Selten’s 85th Birthday," German Economic Review, De Gruyter, vol. 17(3), pages 277-283, August.
    9. Christoph Engel & Svenja Hippel, 2017. "Experimental Social Planners: Good Natured, but Overly Optimistic," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2017_23, Max Planck Institute for Behavioral Economics.
    10. Liu, Manwei & van der Heijden, Eline, 2019. "Majority rule or dictatorship? The role of collective-choice rules in resolving social dilemmas with endogenous institutions," Other publications TiSEM 78b5d351-486e-425d-a070-2, Tilburg University, School of Economics and Management.

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