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Smiley or Frowney: The effect of emotions and framing in a downstream water pollution game

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  • Czap, Hans J.
  • Czap, Natalia V.
  • Khachaturyan, Marianna
  • Burbach, Mark E.
  • Lynne, Gary D.

Abstract

Common-pool resources and other shared resources frequently suffer from overextraction/overuse and associated negative externalities. In this paper we design a framed laboratory experiment on downstream water pollution to investigate (a) the importance of framing in determining the behavior of upstreamers regarding the negative externalities, and (b) the potential of downstreamers to influence the choices of upstreamers using non-monetary sanctions and rewards, alleviating the need for intervention by the local governments and regulatory institutions. Our results show that framing has a significant impact on the behavior of subjects. Subjects behaved more profit-oriented in the self-interest framing and more egalitarian in the empathy framing. In addition, we show that nudging subjects to “walk in the shoes of others” significantly increased empathetic behavior. Lastly, negative emotional feedback is a powerful tool for changing behavior of subjects towards more environmentally friendly and empathetic behavior. Interestingly, positive emotional feedback is counterproductive in that it instead decreases environmentally friendly and empathetic behavior. In general our results indicate that explicit emotional feedback, even though not expressed by everyone, works similarly to the implicit appeal to emotions through framing.

Suggested Citation

  • Czap, Hans J. & Czap, Natalia V. & Khachaturyan, Marianna & Burbach, Mark E. & Lynne, Gary D., 2011. "Smiley or Frowney: The effect of emotions and framing in a downstream water pollution game," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102696, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:102696
    DOI: 10.22004/ag.econ.102696
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    References listed on IDEAS

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    4. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 2002. "Framing decisions: Hypothetical and real," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1162-1175, November.
    5. Ben-Shakhar, Gershon & Bornstein, Gary & Hopfensitz, Astrid & van Winden, Frans, 2007. "Reciprocity and emotions in bargaining using physiological and self-report measures," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 314-323, June.
    6. Daan van Soest & Jana Vyrastekova, 2006. "Peer Enforcement in CPR Experiments: The Relative Effectiveness of Sanctions and Transfer Rewards, and the Role of Behavioral Types," Chapters, in: John A. List (ed.), Using Experimental Methods in Environmental and Resource Economics, chapter 6, Edward Elgar Publishing.
    7. John List & Michael Price, 2013. "Using Field Experiments in Environmental and Resource Economics," Artefactual Field Experiments 00447, The Field Experiments Website.
    8. Lynne, Gary D., 2006. "Toward a dual motive metaeconomic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(4), pages 634-651, August.
    9. John A. List (ed.), 2006. "Using Experimental Methods in Environmental and Resource Economics," Books, Edward Elgar Publishing, number 4180.
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    Cited by:

    1. Adam Zylbersztejn, 2013. "Strategic signaling or emotional sanctioning? An experimental study of ex post communication in a repeated public goods game," Documents de travail du Centre d'Economie de la Sorbonne 13011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Adam Zylbersztejn, 2015. "Nonverbal Feedback, Strategic Signaling, and Nonmonetary Sanctioning: New Experimental Evidence from a Public Goods Game," Research in Experimental Economics, in: Replication in Experimental Economics, volume 18, pages 153-181, Emerald Group Publishing Limited.
    3. Adam Zylbersztejn, 2014. "The predominant role of signal precision in experimental beauty contests," Working Papers 1443, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Czap, Natalia V. & Czap, Hans J. & Khachaturyan, Marianna & Lynne, Gary D. & Burbach, Mark, 2012. "Walking in the shoes of others: Experimental testing of dual-interest and empathy in environmental choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 642-653.
    5. Adam Zylbersztejn, 2013. "Strategic signaling or emotional sanctioning? An experimental study of ex post communication in a repeated public goods game," Post-Print halshs-00800587, HAL.

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    Keywords

    Environmental Economics and Policy; Institutional and Behavioral Economics; Land Economics/Use;
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