Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations

S-Tier
Journal: Review of Economic Studies
Year: 2010
Volume: 77
Issue: 4
Pages: 1540-1566

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

We analyse an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a significantly positive effect of endogenous institutional choice on the level of cooperation in comparison to the same exogenously implemented institutions. This suggests that participation rights enhance cooperation in groups. With endogenous choice, groups typically vote for the reward option, although punishment is even more effective in sustaining high levels of cooperation. Our results are evaluated against the predictions of social preference models. Copyright , Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:77:y:2010:i:4:p:1540-1566
Journal Field
General
Author Count
3
Added to Database
2026-01-25