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Happiness and Preferences in a Legality Social Dilemma: Comparing the Direct and Indirect Approach

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Abstract

We investigate players’ preferences in a multiplayer prisoner’s dilemma by comparing results from a direct (satisfaction based) and an indirect (choice based) approach. Both approaches provide strong evidence of preference heterogeneity, with players who cooperate above median being less affected in their choice by monetary payoffs vis-à-vis the public good component. The combination of a legality frame plus a conformity information design reduces further the relative preference (satisfaction) for the non-cooperative choice for such players. Our findings support the hypothesis that (part of the) players have, in addition to the standard self-interest component, an other-regarding preference argument that is further satisfied in the legality frame plus conformity design.

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  • Leonardo Becchetti & Germana Corrado & Vittorio Pelligra & Fiammetta Rossetti, 2016. "Happiness and Preferences in a Legality Social Dilemma: Comparing the Direct and Indirect Approach," CEIS Research Paper 372, Tor Vergata University, CEIS, revised 25 Mar 2016.
  • Handle: RePEc:rtv:ceisrp:372
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    More about this item

    Keywords

    Analysis of Collective Decision-Making; Corruption; Laboratory Experiment; Legality Game; Redistribution; Conformity.;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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