Spillovers, Persistence and Learning: Institutions and the Dynamics of Cooperation
We study how cooperation-enforcing institutions dynamically affect values and behavior using a lab experiment designed to create individual specific histories of past institutional exposure. We show that the effect of past institutions is mostly due to "indirect" behavioral spillovers: facing penalties in the past increases partners' cooperation in the past, which in turn positively affects ones' own current behavior. We demonstrate that such indirect spillovers induce persistent effects of institutions. However, for interactions that occur early on, we find a negative effect of past enforcement due to differential learning under different enforcement institutions.
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- Dal Bó, Ernesto & Dal Bó, Pedro, 2014.
"“Do the right thing:” The effects of moral suasion on cooperation,"
Journal of Public Economics,
Elsevier, vol. 117(C), pages 28-38.
- Ernesto Dal Bó & Pedro Dal Bó, 2009. ""Do the Right Thing:" The Effects of Moral Suasion on Cooperation," NBER Working Papers 15559, National Bureau of Economic Research, Inc.
- Sara Lowes & Nathan Nunn & James A. Robinson & Jonathan Weigel, 2015. "The Evolution of Culture and Institutions: Evidence from the Kuba Kingdom," NBER Working Papers 21798, National Bureau of Economic Research, Inc.
- Alessandra Cassar & Giovanna d'Adda & Pauline Grosjean, 2014. "Institutional Quality, Culture, and Norms of Cooperation: Evidence from Behavioral Field Experiments," Journal of Law and Economics, University of Chicago Press, vol. 57(3), pages 821-863. Full references (including those not matched with items on IDEAS)
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