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Playing with the Good Guys: A Public Good Game with Endogenous Group Formation

Author

Listed:
  • Brekke, Kjell Arne

    () (Dept. of Economics, University of Oslo)

  • Hauge, Karen Evely

    () (Dept. of Economics, University of Oslo)

  • Lind, Jo Thori

    () (Dept. of Economics, University of Oslo)

  • Nyborg, Karine

    () (Dept. of Economics, University of Oslo)

Abstract

In public good games, voluntary contributions tend to start o high and decline as the game is repeated. If high contributors are matched, however, contributions tend to stay high. We propose a formalization predicting that high contributors will selfselect into groups committed to charitable giving. Testing this experimentally, we let subjects choose between two group types, where one type donate a xed amount to a charity. Contributions in these groups stayed high, whereas contributions in the other groups showed the well known declining pattern. One implication is that corporate social responsibility may attract more responsible employees.

Suggested Citation

  • Brekke, Kjell Arne & Hauge, Karen Evely & Lind, Jo Thori & Nyborg, Karine, 2009. "Playing with the Good Guys: A Public Good Game with Endogenous Group Formation," Memorandum 08/2009, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2009_008
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    References listed on IDEAS

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    Cited by:

    1. Engel, Christoph & Beckenkamp, Martin & Glöckner, Andreas & Irlenbusch, Bernd & Hennig-Schmidt, Heike & Kube, Sebastian & Kurschilgen, Michael & Morell, Alexander & Nicklisch, Andreas & Normann, Hans-, 2014. "First impressions are more important than early intervention: Qualifying broken windows theory in the lab," International Review of Law and Economics, Elsevier, vol. 37(C), pages 126-136.
    2. Nyborg, Karine, 2015. "Reciprocal Climate Negotiators," IZA Discussion Papers 8866, Institute for the Study of Labor (IZA).
    3. Gürerk, Özgür & Irlenbusch, Bernd & Rockenbach, Bettina, 2014. "On cooperation in open communities," Journal of Public Economics, Elsevier, vol. 120(C), pages 220-230.
    4. Khadjavi, Menusch & Tjaden, Jasper D., 2014. "Setting the bar - An experimental investigation of immigration requirements," Kiel Working Papers 1939, Kiel Institute for the World Economy (IfW).
    5. Fehrler, Sebastian & Kosfeld, Michael, 2013. "Can you trust the good guys? Trust within and between groups with different missions," Economics Letters, Elsevier, vol. 121(3), pages 400-404.
    6. Jacobsen, Karin J. & Eika, Kari H. & Helland, Leif & Lind, Jo Thori & Nyborg, Karine, 2011. "Are nurses more altruistic than real estate brokers?," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 818-831.
    7. Christoph Engel & Sebastian Kube & Michael Kurschilgen, 2011. "Can we manage first impressions in cooperation problems? An experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2011_05, Max Planck Institute for Research on Collective Goods, revised May 2014.
    8. Strømland, Eirik & Tjøtta, Sigve & Torsvik, Gaute, 2016. "Reciprocity evolving: partner choice and communication in a repeated prisoner’s dilemma," Working Papers in Economics 01/16, University of Bergen, Department of Economics.
    9. Nax, Heinrich H. & Balietti, Stefano & Murphy, Ryan O. & Helbing, Dirk, 2015. "Meritocratic matching can dissolve the efficiency-equality tradeoff: the case of voluntary contributions," LSE Research Online Documents on Economics 65443, London School of Economics and Political Science, LSE Library.
    10. repec:gam:jgames:v:8:y:2017:i:4:p:50-:d:119204 is not listed on IDEAS
    11. Nax, Heinrich H. & Murphy, Ryan O. & Helbing, Dirk, 2014. "Stability and welfare of 'merit-based' group-matching mechanisms in voluntary contribution game," LSE Research Online Documents on Economics 65444, London School of Economics and Political Science, LSE Library.
    12. repec:spr:sochwe:v:50:y:2018:i:2:d:10.1007_s00355-017-1081-5 is not listed on IDEAS
    13. repec:pit:wpaper:520 is not listed on IDEAS
    14. Lorenzo Cerda Planas, 2014. "Moving to Greener Societies: Moral Motivation and Green Behaviour," Documents de travail du Centre d'Economie de la Sorbonne 14035, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    15. Fehrler, Sebastian & Przepiorka, Wojtek, 2016. "Choosing a partner for social exchange: Charitable giving as a signal of trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 157-171.
    16. Lorenzo Cerda Planas, 2014. "Moving to Greener Societies: Moral Motivation and Green Behaviour," Post-Print halshs-01018651, HAL.
    17. Josh Cherry & Stephen Salant & Neslihan Uler, 2015. "Experimental departures from self-interest when competing partnerships share output," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 89-115, March.
    18. Fehrler, Sebastian & Fischbacher, Urs & Schneider, Maik T., 2016. "Who Runs? Honesty and Self-Selection into Politics," IZA Discussion Papers 10258, Institute for the Study of Labor (IZA).
    19. Lorenzo Cerda Planas, 2014. "Moving to Greener Societies: Moral Motivation and Green Behaviour," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01018651, HAL.
    20. Karine Nyborg, 2014. "Do responsible employers attract responsible employees?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-17, May.
    21. Frode Alfnes & Maren Bachke & Mette Wik, 2012. "Eliciting donor preferences," Artefactual Field Experiments 00098, The Field Experiments Website.
    22. John Duffy & Jonathan Lafky, 2016. "Birth, death and public good provision," Experimental Economics, Springer;Economic Science Association, vol. 19(2), pages 317-341, June.
    23. Andrea Robbett, 2016. "Community dynamics in the lab," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(3), pages 543-568, March.
    24. Felix Albrecht & Sebastian Kube & Christian Traxler, 2016. "Cooperation and Punishment: The Individual-Level Perspective," CESifo Working Paper Series 6284, CESifo Group Munich.

    More about this item

    Keywords

    Altruism; conditional cooperation; self-selection;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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