Heterogeneous Social Preferences and the Dynamics of Free Riding in Public Good Experiments

Fischbacher, Urs; Gächter, Simon

Heterogeneous Social Preferences and the Dynamics of Free Riding in Public Good Experiments

Files

49_08_05_TWI_RPS_Fischerbacher_Gaechter.pdf(658.93 KB)

Date

2008

Authors

Fischbacher, Urs

Gächter, Simon

Series

Research paper series / Thurgauer Wirtschaftsinstitut; 27

Publication type

Working Paper/Technical Report

Abstract

We provide a direct test of the role of social preferences and beliefs in voluntary cooperation and its decline. We elicit individuals cooperation preference in one experiment and use them as well as subjects elicited beliefs to make predictions about contributions to a public good played repeatedly. We find substantial heterogeneity in people s preferences. With simulation methods based on this data, we show that the decline of cooperation is driven by the fact that most people have a preference to contribute less than others. Belief formation and virtual learning do not contribute to the decline of cooperation.

Subject (DDC)

330 Economics

Keywords

Public goods experiments,social preferences,conditional cooperation,free riding

Cite This

ISO 690

FISCHBACHER, Urs, Simon GÄCHTER, 2008. Heterogeneous Social Preferences and the Dynamics of Free Riding in Public Good Experiments

BibTex

@techreport{Fischbacher2008Heter-11874,
  year={2008},
  series={Research paper series / Thurgauer Wirtschaftsinstitut},
  title={Heterogeneous Social Preferences and the Dynamics of Free Riding in Public Good Experiments},
  number={27},
  author={Fischbacher, Urs and Gächter, Simon}
}

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