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Ostracism in alliances of teams and individuals: Voting, exclusion, contribution, and earnings

Author

Listed:
  • Stephan Huber

    () (University of Regensburg and UAS Augsburg)

  • Jochen Model

    (UAS Augsburg)

  • Silvio Städter

    (UAS Augsburg)

Abstract

Alliances often provide a collective good among their allies. This article offers laboratory experimental evidence that the possibility to vote for the exclusion of non-cooperating allies, i.e. ostracism, can be a powerful negative referendum to increase allies’ contributions to the collective good. However, it is found that ostracism does not necessarily increase earnings in a public goods game. In particular, it is shown that the ostracism mechanism is used differently by individuals. While ostracism increases contributions irrespective of the game is played with a alliances of individuals or teams as the decision makers, the earnings do not statistically significant increase in alliances of individuals. This result can be explained with different voting patterns. Compared to individuals, teams vote and in turn exclude significantly less in early periods but more in later periods of the game. Thus, negative earnings effects of ostracism, i.e., excluded players can neither contribute to the collective good nor receive from the collective good, are found to be less severe in alliances of teams.

Suggested Citation

  • Stephan Huber & Jochen Model & Silvio Städter, 2019. "Ostracism in alliances of teams and individuals: Voting, exclusion, contribution, and earnings," IAAEU Discussion Papers 201901, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  • Handle: RePEc:iaa:dpaper:201901
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    File URL: https://iaaeu.de/images/DiscussionPaper/2019_01.pdf
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    References listed on IDEAS

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    1. Marco de Pinto & Laszlo Goerke, 2020. "Welfare‐enhancing Trade Unions in an Oligopoly with Excessive Entry," Manchester School, University of Manchester, vol. 88(1), pages 60-90, January.
    2. Goerke, Laszlo & Pannenberg, Markus, 2015. "Direct evidence for income comparisons and subjective well-being across reference groups," Economics Letters, Elsevier, vol. 137(C), pages 95-101.
    3. Joanna Tyrowicz & Lucas van der Velde & Irene van Staveren, 2017. "Identifying age penalty in women's wages: new method and evidence from Germany 1984-2014," GRAPE Working Papers 24, GRAPE Group for Research in Applied Economics.
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    Cited by:

    1. Christens, Sven & Dannenberg, Astrid & Sachs, Florian, 2019. "Identification of individuals and groups in a public goods experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).

    More about this item

    Keywords

    alliances; team decision; public good; collective good; ostracism; exclusion; experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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