“Show the right thing to do”. The effect of exemplary behavior in public good games

Sara Godoy ()
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Sara Godoy: Department of Economic Theory, Universidad de Málaga

No 2011-05, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: Using a linear public good game we investigate the role of exemplary behavior on cooperation in public goods games. Subjects face the chance of show a good (like the employee of the month) or a bad example (evading taxes) to the rest of their group, knowing in advance that the unique feedback they will get back is the largest (or smallest) contribution to the group project. Our results suggest that immaterial incentives have a positive though transitory effect on contribution. Even when they do not alter the game structure or its theoretical prediction, exemplary behavior increases cooperation; especially on top contributors who react strongly to the chance of becoming good examples.

Keywords: exemplary behavior; information; experimental economics; public goods; cooperation (search for similar items in EconPapers)
JEL-codes: C91 D21 H41 M54 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2011-10
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Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2011-5

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