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Reciprocity in Locating Contributions: Experiments on the Neighborhood Public Good Game

Author

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  • Siegfried Berninghaus

    (Institute of Economic Theory and Statistics, Karlsruhe Institute of Technology, Zirkel 2, Karlsruhe, Germany)

  • Werner Güth

    (Strategic Interaction Group, Max Planck Institute of Economics, Kahlaische Strasse 10, Jena,Germany)

  • Stephan Schosser

    (Institute of Social Medicine and Health Economics, University of Magdeburg, Leipziger Strasse 44, Magdeburg, Germany)

Abstract

In repeated public good experiments, reciprocity helps to sustain high levels of cooperation. Can this be achieved by location choices in addition to making contributions? It is more realistic to rely on an intuitive neighborhood model for community members who interact repeatedly. In our experiments, participants can locate their contribution, yielding a small benefit for the participant, who receives the contribution and a small disadvantage for the participant, at the opposite location. This mechanism of individually targeted sanctions helps to foster initial cooperation. It decreases over time, however. Location choices are used to reciprocate, but may not suffice to stabilize voluntary cooperation as an effect observed in the field.

Suggested Citation

  • Siegfried Berninghaus & Werner Güth & Stephan Schosser, 2013. "Reciprocity in Locating Contributions: Experiments on the Neighborhood Public Good Game," Games, MDPI, vol. 4(2), pages 1-19, April.
    • Handle: RePEc:gam:jgames:v:4:y:2013:i:2:p:144-162:d:25295
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    References listed on IDEAS

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    Cited by:

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    3. Zhang, Yang & He, Longfei, 2021. "Theory and experiments on network games of public goods: inequality aversion and welfare preference," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 326-347.

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