The Impact of Redistribution Mechanisms in the Vote with the Wallet Game: Experimental Results

Leonardo Becchetti, V. Pelligra () and Francesco Salustri

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: We use the Vote-with-the-Wallet game (VWG) to model socially or environmentally responsible consumption, an increasingly relevant but still under-researched phenomenon. Based on a theoretical model outlining game equilibria and the parametric interval of the related multiplayer prisoners' dilemma (PD) we evaluate with a controlled lab experiment players' behavior in the game and test the effects of an ex post redistribution mechanism between defectors and cooperators. Our findings document that the redistribution mechanism interrupts cooperation decay and stabilizes the share of cooperators at a level significantly higher, even though inferior to the Nash equilibrium.

Keywords: vote with the wallet; prisoner's dilemma; lab experiment (search for similar items in EconPapers)
JEL-codes: C72 C73 C91 M14 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-exp, nep-gth and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://crenos.unica.it/crenos/sites/default/files/WP15-12.pdf (application/pdf)

Related works:
Journal Article: The impact of redistribution mechanisms in the vote with the wallet game: experimental results (2018)
Working Paper: The Impact of Redistribution Mechanisms in the Vote with the Wallet Game: Experimental Results (2015)
Working Paper: The Impact of Redistribution Mechanisms in the Vote with the Wallet Game: Experimental Results (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:201512

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