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Social value orientation and group size uncertainty in public good dilemmas

Author

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  • Mill, Wladislaw
  • Theelen, Maik M.P.

Abstract

Risk and uncertainty are an integral part of everyday human interactions. Recent literature has shown that group size uncertainty might change strategic cooperation behavior in significant ways. In this paper, we investigate how conditional cooperation changes under group size uncertainty in a linear public good game where the selfish rational strategy is kept constant. Further, we suggest an underlying mechanism that consists of beliefs and group size estimation. We show that interpersonal differences (i.e., Social Value Orientation) are essential in how this mechanism operates. More specifically, we find that prosocials contribute more under uncertainty compared to certainty, whereas proselfs do not change their behavior. Given the same feedback proselfs estimated the group size to be bigger than prosocials, resulting in a smaller contribution belief. These results imply that interpersonal differences are important in explaining cooperation under uncertainty compared to certainty.

Suggested Citation

  • Mill, Wladislaw & Theelen, Maik M.P., 2019. "Social value orientation and group size uncertainty in public good dilemmas," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 81(C), pages 19-38.
    • Handle: RePEc:eee:soceco:v:81:y:2019:i:c:p:19-38
    DOI: 10.1016/j.socec.2019.05.001
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    Citations

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    Cited by:

    1. Hoeft, Leonard & Mill, Wladislaw, 2024. "Abuse of power," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 305-324.
    2. Brosig-Koch, Jeannette & Griebenow, Malte & Kifmann, Mathias & Then, Franziska, 2022. "Rewards for information provision in patient referrals: A theoretical model and an experimental test," Journal of Health Economics, Elsevier, vol. 86(C).
    3. Gächter, Simon & Fages, Diego Marino, 2023. "Using the Strategy Method and Elicited Beliefs to Explain Group Size and MPCR Effects in Public Good Experiments," IZA Discussion Papers 16605, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Group size uncertainty; Public good experiment; Social dilemma; Social value orientation; Social preferences;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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