Choosing the Carrot or the Stick ? Endogenous Institutional Choice in Social Dilemma Situations

@inproceedings{Sutter2008ChoosingTC,
  title={Choosing the Carrot or the Stick ? Endogenous Institutional Choice in Social Dilemma Situations},
  author={Matthias Sutter},
  year={2008}
}
We analyse an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a significantly positive effect of endogenous institutional choice on the level of cooperation in comparison to the same exogenously implemented institutions. This suggests that participation rights enhance cooperation in groups. With endogenous choice… CONTINUE READING
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