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At the Root of the North–South Cooperation Gap in Italy: Preferences or Beliefs?

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  • Maria Bigoni
  • Stefania Bortolotti
  • Marco Casari
  • Diego Gambetta

Abstract

The sharp gap in development between the North and the South of Italy represents a paradigmatic case of persistent within-country disparities. The evidence suggests that this gap could depend on a difference in the ability to cooperate. We investigate experimentally three possible sources of this difference, and find that Northerners and Southerners share the same pro-social preferences, but differ both in their belief about cooperativeness and in the aversion to social risk, respectively, more pessimistic and stronger among Southerners; intervention or events that reduced pessimistic beliefs should directly boost cooperation.

Suggested Citation

  • Maria Bigoni & Stefania Bortolotti & Marco Casari & Diego Gambetta, 2019. "At the Root of the North–South Cooperation Gap in Italy: Preferences or Beliefs?," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1139-1152.
  • Handle: RePEc:oup:econjl:v:129:y:2019:i:619:p:1139-1152.
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    File URL: http://hdl.handle.net/10.1111/ecoj.12608
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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