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Participation and Decision Making: A Three-person Power-to-take Experiment

  • Max Albert

    ()

    (Justus Liebig University Giessen)

  • Vanessa Mertins

    ()

    (Saarland University)

It is often conjectured that participatory decision making may increase acceptance even of unfavorable decisions. The present paper tests this conjecture in a three-person power-to-take game. Two takers decide which fraction of the responder's endowment to transfer to themselves; the responder decides which part of the endowment to destroy. Thus, the responder can punish greedy takers, but only at a cost to herself. We modify the game by letting the responder participate in takers' transfer decision and consider the effect of participation on the destruction rate. We nd that participation matters. Responders destroy more if they (1) had no opportunity to participate in the decision making process and (2) are confronted with highly unfavorable outcomes. This participation e ect is highly signi cant for those responders (the majority) who show negative reciprocity (i.e., destroy more when takers are greedier).

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/05-2008_albert.pdf
File Function: First version, 2008
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Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 200805.

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Length: 44 pages
Date of creation: 2008
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:200805
Contact details of provider: Postal: Universitätsstraße 25, 35037 Marburg
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Web page: http://www.uni-marburg.de/fb02/
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