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Can Formal Institutions Lead to the Spillover Effect of Cooperation?

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  • Mekvabishvili, Rati

Abstract

Can formal institutions shape prosocial behavior and lead to the spillover effect of cooperation? To explore this question, we experimentally test the spillover- based theory in a novel context. We measured the spillover effect on cooperation in the same domain measured by the repeated anonymous public goods game. We found strong evidence of altruism. Our results are inconsistent with prediction of the spillover-based theory. Our finding suggests that exposure to strong formal institutions that provide top-down motivation for cooperation substantially improves cooperation in their presence, but do not seem to lead to more prosociality after their absence.

Suggested Citation

  • Mekvabishvili, Rati, 2021. "Can Formal Institutions Lead to the Spillover Effect of Cooperation?," MPRA Paper 107047, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107047
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    References listed on IDEAS

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    1. Antonio A. Arechar & Simon Gächter & Lucas Molleman, 2018. "Conducting interactive experiments online," Experimental Economics, Springer;Economic Science Association, vol. 21(1), pages 99-131, March.
    2. David G. Rand & Alexander Peysakhovich & Gordon T. Kraft-Todd & George E. Newman & Owen Wurzbacher & Martin A. Nowak & Joshua D. Greene, 2014. "Social heuristics shape intuitive cooperation," Nature Communications, Nature, vol. 5(1), pages 1-12, May.
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    Cited by:

    1. Mekvabishvili, Rati, 2023. "Weak and Strong Formal Institutions in Resolving Social Dilemmas: Are They Double-Edged Swords?," MPRA Paper 119659, University Library of Munich, Germany.
    2. Rati Mekvabishvili, 2023. "Weak and Strong Formal Institutions in Resolving Social Dilemmas: Are They Double-Edged Swords?," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(2), pages 11-20, December.
    3. Mekvabishvili, Rati & Mekvabishvili, Elguja & Natsvaladze, Marine & Sirbiladze, Rusudan & Mzhavanadze, Giorgi & Deisadze, Salome, 2023. "Prosocial Behavior and the Individual Normative Standard of Fairness within a Dynamic Context: Experimental Evidence," MPRA Paper 116774, University Library of Munich, Germany, revised 20 Mar 2023.

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    More about this item

    Keywords

    Centralized Punishment; Spillover; Public Goods; Cooperation;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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