Do upfront investments increase cooperation? A laboratory experiment

نویسندگان

چکیده

In this paper, we experimentally investigate whether decentralized upfront investments increase cooperation in settings where there is no enforcement mechanism and not easily sustained voluntarily. Such are a cost that individuals incur before deciding to cooperate or not, the payoff resulting from choice cooperate. We study effect of on depends being voluntary mandatory. While rarely emerges spontaneously when possible, show introducing investment opportunities boosts overall levels. If low voluntary, lower than same For high investments, significantly different between two conditions. This consistent with interpreted as signal for unwillingness cooperate, triggering non-cooperative choices.

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ژورنال

عنوان ژورنال: European Economic Review

سال: 2021

ISSN: ['1873-572X', '0014-2921']

DOI: https://doi.org/10.1016/j.euroecorev.2021.103779