IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/6x9p3.html
   My bibliography  Save this paper

Cooperatives exhibit greater cooperation than comparable businesses: experimental evidence

Author

Listed:
  • Tremblay, Ethan
  • Hupper, Afton
  • Waring, Timothy

Abstract

Cooperatives as can be presumed to rely on the economic cooperation of their members. However, game-theoretic and institutional models suggest that cooperatives may be inherently fragile due to the individual costs of cooperation. Because of this it is widely believed that organizations which rely less on cooperation may be more stable, while organizations that require cooperation may be at higher risk of folding. Therefore, if cooperatively owned or managed businesses do in fact require higher levels of prosocial and cooperative behavior than hierarchically managed firms, they must attract and maintain cooperation among participants in order to function. We hypothesized that successful consumer food cooperatives will exhibit greater generalized cooperation than conventional grocery stores. We employed an experimental dictator game to measure altruistic cooperation among consumers at a food cooperative and a comparable conventional grocery. Cooperative customers exhibit a higher base rate of cooperation than similar conventional food shoppers, and this relationship holds even when taking demographic factors such as income, education, and age into account. We conclude that, when successful, consumer food cooperatives exhibit greater levels of cooperation than comparable traditional businesses.

Suggested Citation

  • Tremblay, Ethan & Hupper, Afton & Waring, Timothy, 2019. "Cooperatives exhibit greater cooperation than comparable businesses: experimental evidence," SocArXiv 6x9p3, Center for Open Science.
  • Handle: RePEc:osf:socarx:6x9p3
    DOI: 10.31219/osf.io/6x9p3
    as

    Download full text from publisher

    File URL: https://osf.io/download/5c4b6f27bf723100167a1013/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/6x9p3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy M. Waring & Sandra Hughes Goff & Julia McGuire & Z. Dylan Moore & Abigail Sullivan, 2014. "Cooperation across Organizational Boundaries: Experimental Evidence from a Major Sustainability Science Project," Sustainability, MDPI, vol. 6(3), pages 1-20, March.
    2. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    3. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    4. Samuel Bowles & Herbert Gintis, 2009. "Beyond Enlightened Self-Interest: Social Norms, Other-Regarding Preferences, and Cooperative Behavior," Springer Series in Game Theory, in: Simon A. Levin (ed.), Games, Groups, and the Global Good, pages 57-78, Springer.
    5. Ernst Fehr & Urs Fischbacher, "undated". "Why Social Preferences Matter - The Impact of Non-Selfish Motives on Competition," IEW - Working Papers 084, Institute for Empirical Research in Economics - University of Zurich.
    6. Nancy Buchan & Rachel Croson, 1999. "Gender and Culture: International Experimental Evidence from Trust Games," American Economic Review, American Economic Association, vol. 89(2), pages 386-391, May.
    7. Christoph Engel, 2011. "Dictator games: a meta study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 583-610, November.
    8. Wilson, David Sloan & Ostrom, Elinor & Cox, Michael E., 2013. "Generalizing the core design principles for the efficacy of groups," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 21-32.
    9. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
    10. Joan B. Silk & Sarah F. Brosnan & Jennifer Vonk & Joseph Henrich & Daniel J. Povinelli & Amanda S. Richardson & Susan P. Lambeth & Jenny Mascaro & Steven J. Schapiro, 2005. "Chimpanzees are indifferent to the welfare of unrelated group members," Nature, Nature, vol. 437(7063), pages 1357-1359, October.
    11. Catherine C Eckel & Enrique Fatas & Sara Godoy & Rick K Wilson, 2016. "Group-Level Selection Increases Cooperation in the Public Goods Game," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-13, August.
    12. Henrich, Joseph & Boyd, Robert & Bowles, Samuel & Camerer, Colin & Fehr, Ernst & Gintis, Herbert (ed.), 2004. "Foundations of Human Sociality: Economic Experiments and Ethnographic Evidence from Fifteen Small-Scale Societies," OUP Catalogue, Oxford University Press, number 9780199262052.
    13. Cordes, Christian & Richerson, Peter J. & McElreath, Richard & Strimling, Pontus, 2008. "A naturalistic approach to the theory of the firm: The role of cooperation and cultural evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 125-139, October.
    14. Ernst Fehr & Urs Fischbacher, 2002. "Why Social Preferences Matter -- The Impact of Non-Selfish Motives on Competition, Cooperation and Incentives," Economic Journal, Royal Economic Society, vol. 112(478), pages 1-33, March.
    15. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ciska Ulug & Elen-Maarja Trell & Lummina Horlings, 2021. "Ecovillage foodscapes: zooming in and out of sustainable food practices," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(4), pages 1041-1059, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tünde Paál & Tamás Bereczkei, 2015. "Punishment as a Means of Competition: Implications for Strong Reciprocity Theory," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-14, March.
    2. Hanna Fromell & Daniele Nosenzo & Trudy Owens, 2014. "Tradeoffs between Self-interest and Other-Regarding Preferences Cause Willpower Depletion," Discussion Papers 2014-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    3. Tobias Hahn & Noël Albert, 2017. "Strong Reciprocity in Consumer Boycotts," Journal of Business Ethics, Springer, vol. 145(3), pages 509-524, October.
    4. Russell Golman, 2016. "Good manners: signaling social preferences," Theory and Decision, Springer, vol. 81(1), pages 73-88, June.
    5. Frank Cowell & Marc Fleurbaey & Bertil Tungodden, 2015. "The tyranny puzzle in social preferences: an empirical investigation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 765-792, December.
    6. Sun-Ki Chai & Dolgorsuren Dorj & Katerina Sherstyuk, 2018. "Cultural Values and Behavior in Dictator, Ultimatum, and Trust Games: An Experimental Study," Research in Experimental Economics, in: Experimental Economics and Culture, volume 20, pages 89-166, Emerald Group Publishing Limited.
    7. Bartoš, Vojtěch, 2021. "Seasonal scarcity and sharing norms," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 303-316.
    8. Singer, Marcos & Donoso, Patricio & Rodríguez-Sickert, Carlos, 2008. "A static model of cooperation for group-based incentive plans," International Journal of Production Economics, Elsevier, vol. 115(2), pages 492-501, October.
    9. Thorsten Chmura & Christoph Engel & Markus Englerth, 2013. "Selfishness As a Potential Cause of Crime. A Prison Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2013_05, Max Planck Institute for Research on Collective Goods.
    10. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    11. Simon Gaechter, 2006. "Conditional cooperation: Behavioral regularities from the lab and the field and their policy implications," Discussion Papers 2006-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    12. Hayo, Bernd & Vollan, Björn, 2012. "Group interaction, heterogeneity, rules, and co-operative behaviour: Evidence from a common-pool resource experiment in South Africa and Namibia," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 9-28.
    13. Nyborg, Karine, 2018. "Reciprocal climate negotiators," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 707-725.
    14. Marosán, György, 2007. "A proszociális értékek evolúciója a játékelméleti kísérletek tükrében [The evolution of pro-social values, in the light of game-theory experiments]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 716-733.
    15. van den Bergh, Jeroen C.J.M. & Gowdy, John M., 2009. "A group selection perspective on economic behavior, institutions and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 1-20, October.
    16. Roberto Burlando & Francesco Guala, 2005. "Heterogeneous Agents in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 8(1), pages 35-54, April.
    17. Rigdon, Mary, 2009. "Trust and reciprocity in incentive contracting," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 93-105, May.
    18. Fehr, Ernst & Henrich, Joseph, 2003. "Is Strong Reciprocity a Maladaptation? On the Evolutionary Foundations of Human Altruism," IZA Discussion Papers 712, Institute of Labor Economics (IZA).
    19. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    20. María Alejandra Vélez & Carlos Andres Trujillo & Lina Moros & Clemente Forero, 2016. "Prosocial Behavior and Subjective Insecurity in Violent Contexts: Field Experiments," PLOS ONE, Public Library of Science, vol. 11(7), pages 1-23, July.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:6x9p3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.