A Dynamic Analysis of the Evolution of Conventions in a Public Goods Experiment with Intergenerational Advice
In this paper we analyse contributions to a public good within an inter-generational framework where at the end of each session one generation of subjects leave advice for the succeeding generation via free form messages. Such advice can be private (advice left by one player in generation t is given only to her immediate successor in generation t+1) or public (advice left by players of generation t is made available to all members of generation t+1). We adopt a novel approach to analysing the data by estimating a panel regression model that enables us to understand the dynamics of the process better and to highlight the learning that occurs over time. Our estimation results show that contributions in any period depend crucially on (1) contributions in the previous period and (2) on the group average in the previous period - more specifically whether a subjectÃ¢â‚¬â„¢s own contribution in the previous period fell above or below the group average. We find that in the public advice treatment when a subjectÃ¢â‚¬â„¢s contribution fell below the group average in the previous period there is a tendency on the part of that subject to increase contributions in the next period. This is evidence that the public advice treatment leads to the creation of virtuous norms that help sustain high cooperation and mitigate problems of free riding over time.
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Isaac, R. & McCue, Kenneth F. & Plott, Charles R., 1985.
"Public goods provision in an experimental environment,"
Journal of Public Economics,
Elsevier, vol. 26(1), pages 51-74, February.
- Isaac, R. Mark & McCue, Kenneth F. & Plott, Charles R., . "Public Goods Provision in an Experimental Environment," Working Papers 428, California Institute of Technology, Division of the Humanities and Social Sciences.
- Shotter, A. & Sopher, B., 2001.
"Advice and Behavior in Intergenerational Ultimatum Games: An Experimental Approach,"
01-04, C.V. Starr Center for Applied Economics, New York University.
- Schotter, Andrew & Sopher, Barry, 2007. "Advice and behavior in intergenerational ultimatum games: An experimental approach," Games and Economic Behavior, Elsevier, vol. 58(2), pages 365-393, February.
- Andrew Schotter, 2003. "Decision Making with Naive Advice," American Economic Review, American Economic Association, vol. 93(2), pages 196-201, May.
- Ernst Fehr & Simon Gaechter, .
"Cooperation and Punishment in Public Goods Experiments,"
IEW - Working Papers
010, Institute for Empirical Research in Economics - University of Zurich.
- Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
- Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
- Andereoni, J., 1988. "Why Free Ride? Strategies And Learning In Public Goods Experiments," Working papers 375, Wisconsin Madison - Social Systems.
- Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
- Marwell, Gerald & Ames, Ruth E., 1981. "Economists free ride, does anyone else? : Experiments on the provision of public goods, IV," Journal of Public Economics, Elsevier, vol. 15(3), pages 295-310, June.
- Andreoni, J., 1993.
"Cooperation in Public Goods Experiments: Kindness or Confusion?,"
9309, Wisconsin Madison - Social Systems.
- Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, vol. 85(4), pages 891-904, September.
- Rabin, Matthew, 1997.
"Psychology and Economics,"
Department of Economics, Working Paper Series
qt8jd5z5j2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Andrew Schotter & Barry Sopher, 2003.
"Social Learning and Coordination Conventions in Intergenerational Games: An Experimental Study,"
Journal of Political Economy,
University of Chicago Press, vol. 111(3), pages 498-529, June.
- Schotter, A. & Sopher, B., 2001. "Social Learning and Coordination Conventions in Inter-Generational Games: An Experimental Study," Working Papers 01-10, C.V. Starr Center for Applied Economics, New York University.
- Keser, Claudia & van Winden, Frans, 2000. " Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
- R. M. Isaac & J. M. Walker, 2010.
"Group size effects in public goods provision: The voluntary contribution mechanism,"
Levine's Working Paper Archive
310, David K. Levine.
- R. Mark Isaac & James M. Walker, 1988. "Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 179-199.
- R. Isaac & James Walker & Susan Thomas, 1984. "Divergent evidence on free riding: An experimental examination of possible explanations," Public Choice, Springer, vol. 43(2), pages 113-149, January.
- Chaudhuri, Ananish & Graziano, Sara, 2003. "Evolution of Conventions in an Experimental Public Goods Game with Private and Public Knowledge of Advice," Working Papers 201, Department of Economics, The University of Auckland.
When requesting a correction, please mention this item's handle: RePEc:ecm:ausm04:38. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.