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The Influence of Indirect Democracy and Leadership Choice on Cooperation

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  • Fanny E. Schories

    (Hamburg University)

Abstract

The paper examines whether an institution has a differing impact on cooperation if it is introduced by a representative of the affected subjects rather than exogenously imposed. The experimental design controls for selection effects arising from the endogenous policy choice. The treatment varies whether the decision-maker is elected or randomly appointed. There is evidence of a large democracy premium in the sense that endogenously chosen institutions lead to more cooperation than identical exogenous institutions, but only if the group leader is democratically chosen. Especially the subjects who initially did not prefer the policy are more likely to cooperate if it was brought about by an elected representative. There is no democracy premium for randomly appointed group leaders.

Suggested Citation

  • Fanny E. Schories, 2022. "The Influence of Indirect Democracy and Leadership Choice on Cooperation," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1173-1201, September.
    • Handle: RePEc:kap:expeco:v:25:y:2022:i:4:d:10.1007_s10683-022-09750-1
    DOI: 10.1007/s10683-022-09750-1
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    Cited by:

    1. Thomas Markussen & Jean-Robert Tyran, 2023. "Is There a Dividend of Democracy? Experimental Evidence from Cooperation Games," CESifo Working Paper Series 10616, CESifo.
    2. Dal Bó, Pedro & Foster, Andrew & Kamei, Kenju, 2024. "The democracy effect: A weights-based estimation strategy," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 31-45.

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    More about this item

    Keywords

    Laboratory experiment; Representative democracy; Collective decision-making; Social dilemma; Legitimacy;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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