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Understanding the nature of cooperation variability

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  • Fosgaard, Toke R.
  • Hansen, Lars Gårn
  • Wengström, Erik

Abstract

Our paper investigates framing effects in a large-scale public good experiment. We measure indicators of explanations previously proposed in the literature, which when combined with the large sample, enable us to estimate a structural model of framing effects. The model captures potential causal effects and the heterogeneity of cooperation behavior. We find that framing only has a small effect on the average level of cooperation but a substantial effect on behavioral heterogeneity explained almost exclusively by a corresponding change in the heterogeneity of beliefs about other subjects' behavior. The impact of changes in preferences and game form misperception is on the other hand negligible.

Suggested Citation

  • Fosgaard, Toke R. & Hansen, Lars Gårn & Wengström, Erik, 2014. "Understanding the nature of cooperation variability," Journal of Public Economics, Elsevier, vol. 120(C), pages 134-143.
    • Handle: RePEc:eee:pubeco:v:120:y:2014:i:c:p:134-143
    DOI: 10.1016/j.jpubeco.2014.09.004
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    More about this item

    Keywords

    Framing; Public goods; Internet experiment; Simulation; Heterogeneous sample;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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