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Inducing efficient conditional cooperation patterns in public goods games, an experimental investigation

  • Guillen, Pablo
  • Fatas, Enrique
  • Brañas-Garza, Pablo

This study analyses the behavior in a repeated public goods game when subjects know about the possibility of existence of strict conditional cooperators. We employed a baseline treatment and a threat treatment in which subjects are informed about the possibility of being in a group together with automata playing a grim trigger strategy. We conjecture the resulting game allows for almost fully efficient outcomes. Contributions in the threat treatment increase by 40% before a surprise restart, and by 50% after the surprise restart. In line with the grim trigger strategy subjects contribute either all or nothing in the threat treatment.

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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 31 (2010)
Issue (Month): 6 (December)
Pages: 872-883

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Handle: RePEc:eee:joepsy:v:31:y:2010:i:6:p:872-883
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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