Cultural Norms: Transmitted Behaviors or Adaptive Responses?

Economic game experiments have become a prominent method among social scientists developing and testing theories of cooperation. These games provide a valuable opportunity to generate measures of cooperation that can be compared from one place to the next, yet challenges remain in how to interpret cross-cultural differences in these experiments and connect them to cooperation in naturally occurring contexts. I address these challenges by examining framing effects in public goods games (PGGs) with salmon fishers and reindeer herders in Kamchatka, Russia. Combining standard versions of the game with versions that refer to post-Soviet institutions coordinating fishing and herding, I show that (1) average contributions in the PGG in Kamchatka are substantially higher than reported elsewhere and (2) framing the PGG alters the relationship between contributions and expectations, shifting strategies away from unconditional generosity and toward conditional cooperation. My analysis, by synthesizing quantitative analysis of PGG data with long-term qualitative ethnography, including extensive postgame interviews with participants, supports the notion that cooperation in economic games increases along with cultural norms, values, and institutions that emerge from economic interdependence. Framing effects suggest that researchers should devote more attention to investigating the relationship between contributions and expectations

Privacy as a Public Good

Privacy is commonly studied as a private good: my personal data is mine to protect and control, and yours is yours. This conception of privacy misses an important component of the policy problem. An individual who is careless with data exposes not only extensive information about herself, but about others as well. The negative externalities imposed on nonconsenting outsiders by such carelessness can be productively studied in terms of welfare economics. If all relevant individuals maximize private benefit, and expect all other relevant individuals to do the same, neoclassical economic theory predicts that society will achieve a suboptimal level of privacy. This prediction holds even if all individuals cherish privacy with the same intensity. As the theoretical literature would have it, the struggle for privacy is destined to become a tragedy. But according to the experimental public-goods literature, there is hope. Like in real life, people in experiments cooperate in groups at rates well above those predicted by neoclassical theory. Groups can be aided in their struggle to produce public goods by institutions, such as communication, framing, or sanction. With these institutions, communities can manage public goods without heavy-handed government intervention. Legal scholarship has not fully engaged this problem in these terms. In this Article, we explain why privacy has aspects of a public good, and we draw lessons from both the theoretical and the empirical literature on public goods to inform the policy discourse on privacy

The roles of incentives and voluntary cooperation for contractual compliance

Efficiency under contractual incompleteness often requires voluntary cooperation in situations where self-regarding incentives for contractual compliance are present as well. Here we provide a comprehensive experimental analysis based on the gift-exchange game of how explicit and implicit incentives affect cooperation. We first show that there is substantial cooperation under non-incentive compatible contracts. Incentive-compatible contracts induce best-reply effort and crowd out any voluntary cooperation. Further experiments show that this result is robust to two important variables: experiencing Trust contracts without any incentives and implicit incentives coming from repeated interaction. Implicit incentives have a strong positive effect on effort only under non-incentive compatible contracts.principal-agent games; gift-exchange experiments; incomplete contracts, explicit incentives; implicit incentives; repeated games; separability; experiments

The Roles of Incentives and Voluntary Cooperation for Contractual Compliance

Efficiency under contractual incompleteness often requires voluntary cooperation in situations where self-regarding incentives for contractual compliance are present as well. Here we provide a comprehensive experimental analysis based on the gift-exchange game of how explicit and implicit incentives affect cooperation. We first show that there is substantial cooperation under non-incentive compatible contracts. Incentive-compatible contracts induce best-reply effort and crowd out any voluntary cooperation. Further experiments show that this result is robust to two important variables: experiencing Trust contracts without any incentives and implicit incentives coming from repeated interaction. Implicit incentives have a strong positive effect on effort only under non-incentive compatible contracts.principal-agent games, gift-exchange experiments, incomplete contracts, explicit incentives, implicit incentives, repeated games, separability, experiments

The heart of political steering: the EU's areana of power as template for a governance typology

The literature on the so-called new modes of governance in the European Union focuses on steering instruments beyond hierarchy and coercion. While it has repeatedly been put into question how ‘new’ these instruments are, no systematic attention has been paid to the mutual dependency between policy types marked by the specific conflict lines and choice of governance tools. On the contrary, some attempts to classify modes of governance explicitly disregard policy typologies. The paper argues conversely that in order to arrive at a comprehensive mapping of modes of governance – ‘old’ and ‘new’ – the most promising doorway is indeed to start from the actor constellations characteristic for the different policy types. A review of the European Union’s policies and modes of governance illustrates how modes of governance are pre-defined by the structures between policy-makers and –takers innate to the policy types that dominate supranational policy-making

Bargaining and Influence in Conflict Situations

[Excerpt] This chapter examines bargaining as an influence process through which actors attempt to resolve a social conflict. Conflict occurs when two or more interdependent actors have incompatible preferences and perceive or anticipate resistance from each other (Blalock 1989; Kriesberg 1982). Bargaining is a basic form of goal-directed action that involves both intentions to influence and efforts by each actor to carry out these intentions. Tactics are verbal and/or nonverbal actions designed to maneuver oneself into a favorable position vis-a-vis another or to reach some accommodation. Our treatment of bargaining subsumes the concept of negotiation (see Morley and Stephenson 1977). This chapter is organized around a conceptual framework that distinguishes basic types of bargaining contexts. We begin by introducing the framework and then present an overview of and analyze theoretical and empirical work on each type of bargaining context

Why People Obey the Law: Experimental Evidence from the Provision of Public Goods

According to economists, severe legal sanctions deter violations of the law. According to legal scholars, people may obey law backed by mild sanctions because of norm-activation. We experimentally investigate the effects of mild and severe legal sanctions in the provision of public goods. The results show that severe sanctions almost perfectly deter free-riding. However, people also obey law backed by mild sanctions if it is accepted in a referendum. We show that voting for mild law induces expectations of cooperation, and that people tend to obey the law if they expect many others to do so.deterrent effect of legal sanctions, expressive law, social norms, public goods, voting.

The Good of the Few: Reciprocity in the Provision of a Public Bad

People have been shown to engage in favor-trading when it is efficiency-enhancing to do so. Will they also trade favors when it reduces efficiency, as in a series of wasteful public projects that each benefits an individual? We introduce the “Stakeholder Public Bad” game to study this question. In each round, contributions to a common fund increase the earnings of one person (the “Stakeholder”) but reduce the earnings of the rest of the group so much that overall efficiency is reduced. The Stakeholder position rotates through members of the group and the promise of the high reward associated with this position may enable subjects to behave reciprocally. We hypothesize that some people will help a current Stakeholder by contributing in hopes of being rewarded later with a reciprocal gift. In a lab experiment, we find evidence of such favor trading. We also find that Stakeholders in this situation seem perfectly willing to sacrifice the good of the group to reap their own personal rewards, and this is true even when their contribution decisions are public. While the revelation of information about others’ actions and roles has previously been shown to enable efficiency-increasing reciprocity, we show that it also enables efficiency-decreasing reciprocal acts. Subjects who are more risk-averse behave in a way that is more myopically self-interested as compared to less risk-averse people when information conditions preclude favor trading, and subjects who identify with the Democratic Party show more restraint when they are Stakeholder than those who do not.logrolling, social preferences, reciprocity, externalities, public bad, public good