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Understanding the Nature of Cooperation Variability

  • Toke Fosgaard

    ()

    (Department of Food and Resource Economics, University of Copenhagen)

  • Lars Gårn Hansen

    ()

    (Department of Food and Resource Economics, University of Copenhagen)

  • Erik Wengström

    ()

    (Department of Economics, Lund University
    Department of Economics, University of Copenhagen)

We investigate 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 behavioral heterogeneity of cooperation variability. We find that framing only has a small effect on the average level of cooperation but a substantial effect on behavioral heterogeneity and we show that this can be explained almost exclusively by a corresponding change in the heterogeneity of beliefs about other subjects’ behavior. Preferences are on the other hand stable between frames.

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File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2013/IFRO_WP_2013_4.pdf
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Paper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2013/4.

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Length: 24 pages
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:foi:wpaper:2013_4
Contact details of provider: Web page: http://www.ifro.ku.dk/english/
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  1. Chou, Eileen & McConnell, Margaret & Nagel, Rosemarie & Plott, Charles R., 2007. "The control of game form recognition in experiments: Understanding dominant strategy failures in a simple two person “Guessing” game," Working Papers 1274, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Iñigo Iturbe Ormaetxe & Giovanni Ponti & Josefa Tomás & Luis Ubeda, 2008. "Framing Effects in Public Goods: Prospect Theory and Experimental Evidence," Working Papers. Serie AD 2008-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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