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Partners contribute more to Public Goods than Strangers: Conditional Cooperation

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  • Claudia Keser

    (University of Karlsruhe)

  • Frans van Winden

    (University of Amsterdam)

Abstract

In a series of experiments, we compare a situation where the same group of four subjects plays 25 repetitions of a public good game (partners condition) to a situation where subjects play this game in changing group formations over 25 periods (strangers condition). We observe that, on aggregate over all periods, subjects in the partners condition contribute significantly more to the public good than subjects in the strangers condition. This difference is significant already in the first period. In the strangers condition, contributions show a continual decay, while in the partners condition, contributionsfluctuate on a relatively high level until they drastically decrease in the final periods. Our tentative explanation is that subjects' behavior in the public good situation represents conditional cooperation, characterized by both future-oriented and simple reactive behavior. With this interpretation, we are able to explain the observed differences between the twoconditions.

Suggested Citation

  • Claudia Keser & Frans van Winden, 1997. "Partners contribute more to Public Goods than Strangers: Conditional Cooperation," Tinbergen Institute Discussion Papers 97-018/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19970018
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    References listed on IDEAS

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    Cited by:

    1. Brandts, J. & Saijo, T. & Schram, A., 2000. "A Four Country Comparision of Spite, Cooperation and Errors in Voluntary Contribution Mechanisms," ISER Discussion Paper 0496, Institute of Social and Economic Research, Osaka University.
    2. Ofra Amir & David G Rand & Ya'akov Kobi Gal, 2012. "Economic Games on the Internet: The Effect of $1 Stakes," PLOS ONE, Public Library of Science, vol. 7(2), pages 1-4, February.
    3. Jordi Brandts & Tatsuyoshi Saijo & Arthur Schram, 2002. "How Universal is Behavior? A Four Country Comparison of Spite, Cooperation and Errors in Voluntary Contribution Mechanisms," UFAE and IAE Working Papers 532.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    4. Brandts, Jordi & Schram, Arthur, 2001. "Cooperation and noise in public goods experiments: applying the contribution function approach," Journal of Public Economics, Elsevier, vol. 79(2), pages 399-427, February.
    5. Markus Pasche, 2013. "What Can be Learned from Behavioural Economics for Environmental Policy?," Jena Economics Research Papers 2013-020, Friedrich-Schiller-University Jena.
    6. Andreoni, James & Croson, Rachel, 2008. "Partners versus Strangers: Random Rematching in Public Goods Experiments," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 82, pages 776-783, Elsevier.

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    Keywords

    Experimental Economics; Public Goods;

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