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Do risk and competition trigger conditional cooperative behavior? Evidence from Public good experiment

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  • Bergantino, Angela Stefania
  • Morone, Andrea
  • Gil Gallen, Sara

Abstract

We investigate the effect of intragroup competition and risky marginal per capita returns on subjects' cooperative behavior in a one-shot public good game – following the wellknown approach proposed by Fischbacher, Gächter, and Fehr (2001) and extending the Colasante et al. (2019) and Colasante et al. (2018) parametrization. We are aiming to study the interaction between environment and social preferences and test the existence of a causal relationship of risk and competition over cooperative behavior when an individual’s benefit of the public good is heterogeneous and uncertain. Our results report experimental evidence about competition fostering cooperative behavior leading a raise contribution for all the subjects regardless of their social preferences. On the contrary, risky has a detrimental effect on cooperative behavior due to encouraging free riding.

Suggested Citation

  • Bergantino, Angela Stefania & Morone, Andrea & Gil Gallen, Sara, 2020. "Do risk and competition trigger conditional cooperative behavior? Evidence from Public good experiment," MPRA Paper 104465, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104465
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    File URL: https://mpra.ub.uni-muenchen.de/104465/1/MPRA_paper_104465.pdf
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    References listed on IDEAS

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    4. Thöni, Christian & Volk, Stefan, 2018. "Conditional cooperation: Review and refinement," Economics Letters, Elsevier, vol. 171(C), pages 37-40.
    5. Till O. Weber & Ori Weisel & Simon Gächter, 2018. "Dispositional free riders do not free ride on punishment," Nature Communications, Nature, vol. 9(1), pages 1-9, December.
    6. Jana Freundt & Andreas Lange, 2019. "On the Impact of Risky Private and Public Returns in the Private Provision of Public Goods - The Case of Social Investments," CESifo Working Paper Series 7458, CESifo.
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    Cited by:

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    2. Yansong Li & Zhenliang Liu & Yuqian Wang & Edmund Derrington & Frederic Moisan & Jean-Claude Dreher, 2023. "Spillover effects of competition outcome on future risky cooperation," Post-Print hal-04325682, HAL.

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    More about this item

    Keywords

    risk; competition; conditional cooperator; marginal per capita return.;
    All these keywords.

    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
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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