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Behavioural Responses to Unfair Institutions: Experimental Evidence on Rule Compliance, Norm Polarisation, and Trust

Author

Listed:
  • Columbus, Simon

    (University of Copenhagen)

  • Feld, Lars P.

    (University of Freiburg)

  • Kasper, Matthias

    (Walter Eucken Institute, Freiburg)

  • Rablen, Matthew D.

    (University of Sheffield)

Abstract

This study investigates the effects of unfair enforcement of institutional rules on public good contributions, personal and social norms, and trust. In a preregistered online experiment (n = 1,038), we find that biased institutions reduce rule compliance compared to fair institutions. However, rule enforcement – fair and unfair – reduces norm polarisation compared to no enforcement. We also find that social heterogeneity lowers average trust and induces ingroup favouritism in trust. Finally, we find consistent evidence of peer effects: higher levels of peer compliance raise future compliance and spillover positively into norms and trust. Our study contributes to the literature on behavioural responses to institutional design and strengthens the case for unbiased rule enforcement.

Suggested Citation

  • Columbus, Simon & Feld, Lars P. & Kasper, Matthias & Rablen, Matthew D., 2023. "Behavioural Responses to Unfair Institutions: Experimental Evidence on Rule Compliance, Norm Polarisation, and Trust," IZA Discussion Papers 16346, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16346
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    More about this item

    Keywords

    public goods; compliance; social norms; trust; audits; biased rule enforcement; polarisation;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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