Designing Institutions for Social Dilemmas

Rockenbach Bettina and Irenaeus Wolff
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Rockenbach Bettina: University of Cologne, Thurgau Institute of Economics/University of Konstanz,Konstanz, Germany

German Economic Review, 2016, vol. 17, issue 3, 316-336

Abstract: Considerable experimental evidence has been collected on rules enhancing contributions in public goods dilemmas. These studies either confront subjects with prespecified rules or have subjects choose between different rule environments. In this paper, we completely endogenize the institution design process by asking subjects to design and repeatedly improve rule sets for a public goods problem in order to investigate which rules social planners facing a social dilemma ‘invent’ and how these rules develop over time. We make several noteworthy observations, in particular the strong and successful use of framing, the concealment of individual contribution information and the decreasing use of punishment.

Keywords: Public good; strategy method; experiment; public choice (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Journal Article: Designing Institutions for Social Dilemmas (2016)
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DOI: 10.1111/geer.12103

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