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The role of beliefs, trust, and risk in contributions to a public good

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  • Kocher, Martin G.
  • Martinsson, Peter
  • Matzat, Dominik
  • Wollbrant, Conny

Abstract

This paper experimentally investigates if and how beliefs, trust, and risk attitudes are associated with cooperative behavior. By applying incentivized elicitation methods to measure these concepts, we find that beliefs about others’ cooperation and trust are positively correlated with cooperation in a public goods game. However, even though contributing to a public good resembles a situation of making decisions under strategic uncertainty, elicited risk preferences do not seem to explain cooperation in a systematic way.

Suggested Citation

  • Kocher, Martin G. & Martinsson, Peter & Matzat, Dominik & Wollbrant, Conny, 2015. "The role of beliefs, trust, and risk in contributions to a public good," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 236-244.
    • Handle: RePEc:eee:joepsy:v:51:y:2015:i:c:p:236-244
    DOI: 10.1016/j.joep.2015.10.001
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    More about this item

    Keywords

    Public goods; Cooperation; Risk preferences; Trust; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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