EconPapers    
Economics at your fingertips  
 

Spillover Effects of Institutions on Cooperative Behavior, Preferences and Beliefs

Florian Engl, Arno Riedl and Roberto Weber ()

No 10781, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Institutions are an important means for fostering prosocial behaviors, but in many contexts their scope is limited and they govern only a subset of all socially desirable acts. We use a laboratory experiment to study how the presence and nature of an institution that enforces prosocial behavior in one domain affects behavior in another domain and whether it also alters prosocial preferences and beliefs about others' behavior. Groups play two identical public good games. We vary whether, for only one game, there is an institution enforcing cooperation and vary also whether the institution is imposed exogenously or arises endogenously through voting. Our results show that the presence of an institution in one game generally enhances cooperation in the other game thus documenting a positive spillover effect. These spillover effects are economically substantial amounting up to 30 to 40 percent of the direct effect of institutions. When the institution is determined endogenously spillover effects get stronger over time, whereas they do not show a trend when it is imposed exogenously. Additional treatments indicate that the main driver of this result is not the endogeneity but the temporal trend of the implemented institution. We also find that institutions of either type enhance prosocial preferences and beliefs about others' prosocial behavior, even toward strangers, suggesting that both factors are drivers of the observed spillover effects.

Keywords: public goods; institutions; spillover effect; social preferences; beliefs (search for similar items in EconPapers)
JEL-codes: C92 D02 D72 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cbe, nep-cdm, nep-evo, nep-exp, nep-gth, nep-soc and nep-upt
Date: 2017-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp10781.pdf (application/pdf)

Related works:
Working Paper: Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs (2017) Downloads
Working Paper: Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs (2017) Downloads
Working Paper: Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp10781

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().

 
Page updated 2018-10-19
Handle: RePEc:iza:izadps:dp10781