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Cycles of Conditional Cooperation in a Real-Time Voluntary Contribution Mechanism

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  • M. Vittoria Levati
  • Ro'i Zultan

Abstract

This paper provides a new way to identify conditional cooperation in a real-time version of the standard voluntary contribution mechanism. Our approach avoids most drawbacks of the traditional procedures because it relies on endogenous cycle lengths, which are defined by the number of contributors a player waits before committing to a further contribution. Based on hypothetical distributions of randomly generated contribution sequences, we provide strong evidence for conditionally cooperative behavior. Moreover, notwithstanding a decline in contributions, conditional cooperation is found to be stable over time.

Suggested Citation

  • M. Vittoria Levati & Ro'i Zultan, 2009. "Cycles of Conditional Cooperation in a Real-Time Voluntary Contribution Mechanism," Discussion Paper Series dp511, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp511
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    References listed on IDEAS

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    Cited by:

    1. Fischbacher, Urs & Gächter, Simon & Quercia, Simone, 2012. "The behavioral validity of the strategy method in public good experiments," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 897-913.
    2. Steiger, Eva-Maria & Zultan, Ro'i, 2014. "See no evil: Information chains and reciprocity," Journal of Public Economics, Elsevier, vol. 109(C), pages 1-12.
    3. Roi Zultan & Eva-Maria Steiger, 2011. "See No Evil: Information Chains and Reciprocity in Teams," Working Papers 1108, Ben-Gurion University of the Negev, Department of Economics.
    4. Vyrastekova, Jana & Funaki, Yukihiko, 2018. "Cooperation in a sequential dilemma game: How much transparency is good for cooperation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 88-95.

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    More about this item

    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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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