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Law and Behaviours in Social Dilemmas: Testing the Effect of Obligations on Cooperation

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  • Roberto Galbiati
  • Pietro Vertova

Abstract

Laws consist of two components: the ‘obligations’ they express and the ‘incentives’ designed to enforce them. In this paper we run a public good experiment to test whether or not obligations have any independent effect on cooperation in social dilemmas. The results show that, for given marginal incentives, different levels of minimum contribution required by obligation determine significantly different levels of average contributions. Moreover, unexpected changes in the minimum contribution set up by obligation have asymmetric dynamic effects on the levels of cooperation: a reduction does not alter the descending trend of cooperation, whereas an increase induces a temporary re-start in the average level of cooperation. Nonetheless, obligations per se cannot sustain cooperation over time.

Suggested Citation

  • Roberto Galbiati & Pietro Vertova, 2005. "Law and Behaviours in Social Dilemmas: Testing the Effect of Obligations on Cooperation," Labsi Experimental Economics Laboratory University of Siena 001, University of Siena.
    • Handle: RePEc:usi:labsit:001
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    References listed on IDEAS

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    Cited by:

    1. Hannah Schildberg-Hörisch & Christina Strassmair, 2012. "An Experimental Test of the Deterrence Hypothesis," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 28(3), pages 447-459, August.
    2. S.N. O'Higgins & Arturo Palomba & Patrizia Sbriglia, 2010. "Second Mover Advantage and Bertrand Dynamic Competition: An Experiment," Labsi Experimental Economics Laboratory University of Siena 028, University of Siena.
    3. Ibanez, Marcela & Martinsson, Peter, 2008. "Can we do policy recommendations from a framed field experiment? The case of coca cultivation in Colombia," Working Papers in Economics 306, University of Gothenburg, Department of Economics.
    4. Roberto Galbiati & Pietro Vertova, 2006. "The Hidden Effect of Rules: Behavioural consequences of Obligations," Discussion Papers 18_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    5. Bruno Deffains & Claude Fluet, 2007. "Legal versus Normative Incentives under Judicial Error," Cahiers de recherche 0718, CIRPEE.

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    More about this item

    Keywords

    Obligation; Incentives; Public Good Game; Experiments.;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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