The Scope of Cooperation: Values and Incentives

@inproceedings{Tabellini2008TheSO,
  title={The Scope of Cooperation: Values and Incentives},
  author={Guido Tabellini},
  year={2008}
}
What explains the range of situations in which individuals cooperate? This paper studies a model where individuals respond to incentives but are also influenced by norms of good conduct inherited from earlier generations. Parents rationally choose what values to transmit to their offspring, and this choice is influenced by the spatial patterns of external enforcement and of likely future transactions. The equilibrium displays strategic complementarities between values and current behavior… CONTINUE READING

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