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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
Handle: RePEc:foi:wpaper:2013_4
Contact details of provider: Web page: http://www.ifro.ku.dk/english/
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  25. Timothy N. Cason & Charles R. Plott, 2014. "Misconceptions and Game Form Recognition: Challenges to Theories of Revealed Preference and Framing," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1235-1270.
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