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Inter-generational thoughtfulness in a dynamic public good experiment

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  • Spiller, Jörg
  • Bolle, Friedel

Abstract

In a laboratory experiment we investigate inter-generational concerns and myopia in a dynamic Public Good game. Groups of four played a 15-period game where they could either invest in a green sector or in a more profitable brown sector that builds a pollution stock. We find that subjects are more cooperative when their final pollution stock will be inherited by another group in a later session. Furthermore, we observe that defection from a negotiated common plan is higher when subjects are in a loss frame, negotiated plans are more ambitious. We analyze our results in reference to several social preference theories and find that Linear Altruism is most supported in such a dynamic environment.

Suggested Citation

  • Spiller, Jörg & Bolle, Friedel, 2016. "Inter-generational thoughtfulness in a dynamic public good experiment," Discussion Papers 383, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:383
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    More about this item

    Keywords

    Dynamic; Environmental Economics; Experimental Economics; Inter-Generation; Public Good;
    All these keywords.

    JEL classification:

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

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