Do upfront investments increase cooperation? A laboratory experiment

B-Tier
Journal: European Economic Review
Year: 2021
Volume: 140
Issue: C

Authors (2)

Casoria, Fortuna (Université de Lyon) Ciccone, Alice (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we experimentally investigate whether decentralized upfront investments increase cooperation in settings where there is no enforcement mechanism and cooperation is not easily sustained voluntarily. Such investments are a cost that individuals incur before deciding whether to cooperate or not, and increase the payoff resulting from the choice to cooperate. We study whether the effect of investments on cooperation depends on the investments being voluntary or mandatory. While cooperation rarely emerges spontaneously when investments are not possible, we show that introducing investment opportunities boosts overall cooperation levels. If investments are low and voluntary, cooperation is lower than when the same investments are mandatory. For high investments, cooperation is not significantly different between the two conditions. This is consistent with low investments being interpreted as a signal for unwillingness to cooperate, triggering non-cooperative choices.

Technical Details

RePEc Handle
repec:eee:eecrev:v:140:y:2021:i:c:s001429212100132x
Journal Field
General
Author Count
2
Added to Database
2026-01-25