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

Leonardo Becchetti, Vittorio Pelligra and Francesco Salustri

No 354, CEIS Research Paper from Tor Vergata University, CEIS

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)
Pages: 53 pages
Date: 2015-10-02, Revised 2015-10-02
New Economics Papers: this item is included in nep-env, nep-exp, nep-gth and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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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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