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Incentives for cooperation in groups: sociality meets decision rights

Author

Listed:
  • Britta Butz

    (RWTH Aachen University)

  • Pablo Guillen Alvarez

    (The University of Sydney)

  • Christine Harbring

    (RWTH Aachen University)

Abstract

We investigate the effect of a donation incentive tied to contributions to a public good when group members can decide on the size of their donation. An up to 20% donation of the public good was implemented either exogenously or endogenously by group members. In the Vote treatment, groups could either decide in favor of or against a donation of 20% of the public good; in the Vote Share treatment, subjects could decide on a donation share of between 0 and 20%. Results show that a large percentage of the participants vote in favor of implementing a donation share in both treatments. In groups voting in favor of a 20% donation share or endogenously implementing a high donation share in the Vote Share treatment contributions to the public good are higher compared to an exogenously implemented donation share.

Suggested Citation

  • Britta Butz & Pablo Guillen Alvarez & Christine Harbring, 2024. "Incentives for cooperation in groups: sociality meets decision rights," Review of Managerial Science, Springer, vol. 18(10), pages 2925-2951, October.
    • Handle: RePEc:spr:rvmgts:v:18:y:2024:i:10:d:10.1007_s11846-023-00698-x
    DOI: 10.1007/s11846-023-00698-x
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    More about this item

    Keywords

    Donations; Decision right; Public good game; Team incentives; Laboratory experiment; Charitable giving;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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