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Experimental economics

Operations, Information and Decisions Papers

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Group Cooperation Under Uncertainty, Min Gong, Joanne Baron, Howard Kunreuther Dec 2009

Group Cooperation Under Uncertainty, Min Gong, Joanne Baron, Howard Kunreuther

Operations, Information and Decisions Papers

Previous research has shown an ‘interindividual-intergroup discontinuity effect’: intergroup interactions generally lead to less cooperative outcomes than interindividual interactions. We replicate the discontinuity effect in the deterministic prisoner’s dilemma, but find that groups are more cooperative than individuals in a stochastic version of the game. Three major factors that underlie the usual discontinuity effect are reduced in the stochastic environment: greed, fear, and persuasion power. Two group mechanisms are proposed to explain the reversed discontinuity effect: the motivation to avoid guilt and blame when making decisions that affect others’ welfare, and the social pressure to conform to certain norms ...


Reciprocity, Matching And Conditional Cooperation In Two Public Goods Games, Rachel Croson, Enrique Fatas, Tibor Neugebauer Apr 2005

Reciprocity, Matching And Conditional Cooperation In Two Public Goods Games, Rachel Croson, Enrique Fatas, Tibor Neugebauer

Operations, Information and Decisions Papers

Experimental and empirical evidence identifies social preferences and proposes competing models of such preferences. We find that participants match the contributions of others in the voluntary contribution mechanism (VCM). We also examine a game with different equilibria, the weakest link mechanism (WLM). Here, in contrast, participants match the minimum contribution of others.