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The impact of redistribution mechanisms in the vote with the wallet game: experimental results

Author

Listed:
  • Leonardo Becchetti

    (University of Rome Tor Vergata)

  • Vittorio Pelligra

    (University of Cagliari)

  • Francesco Salustri

    (University of Rome Tor Vergata)

Abstract

We use the vote-with-the-wallet game to model socially or environmentally responsible consumption, an increasingly relevant but still under-researched phenomenon. Based on a theoretical model outlining game equilibria and the parametric interval of the related multiplayer prisoners’ dilemma we evaluate with a controlled lab experiment players’ behaviour in the game and test the effects of an ex post redistribution mechanism between defectors and cooperators. Our findings document that the redistribution mechanism interrupts cooperation decay and stabilizes the share of cooperators at a level significantly higher, even though inferior to the Nash equilibrium.

Suggested Citation

  • Leonardo Becchetti & Vittorio Pelligra & Francesco Salustri, 2018. "The impact of redistribution mechanisms in the vote with the wallet game: experimental results," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(4), pages 595-619, December.
    • Handle: RePEc:spr:sochwe:v:51:y:2018:i:4:d:10.1007_s00355-018-1130-8
    DOI: 10.1007/s00355-018-1130-8
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    Cited by:

    1. Leonardo Becchetti & Francesco Salustri & Vittorio Pelligra & Alejandra Vásquez, 2018. "Gender differences in socially responsible consumption. An experimental investigation," Applied Economics, Taylor & Francis Journals, vol. 50(33), pages 3630-3643, July.
    2. Leonardo Becchetti & Maurizio Fiaschetti & Francesco Salustri, 2017. "The Impact of Cash Mobs in the Vote with the Wallet Game: Experimental Results," CEIS Research Paper 401, Tor Vergata University, CEIS, revised 18 Apr 2017.
    3. Leonardo Becchetti, 2023. "Ecological transition:a game theoretic and statistical challenge," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 77(4), pages 4-12, October-D.
    4. Vittorio Pelligra & Alejandra Vásquez, 2020. "Empathy and socially responsible consumption: an experiment with the vote-with-the-wallet game," Theory and Decision, Springer, vol. 89(4), pages 383-422, November.
    5. Leonardo Becchetti & Gianluigi Conzo, 2023. "The Wind of Populism: Voter Turnout and Political Distance," CEIS Research Paper 569, Tor Vergata University, CEIS, revised 19 Dec 2023.
    6. L. Becchetti & V. Pelligra & S.F. Taurino, 2015. "Other-Regarding Preferences and Reciprocity: Insights from Experimental Findings and Satisfaction Data," Working Paper CRENoS 201514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    7. Du, Jinming, 2019. "Redistribution promotes cooperation in spatial public goods games under aspiration dynamics," Applied Mathematics and Computation, Elsevier, vol. 363(C), pages 1-1.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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