Peer effects in public contributions: theory and experimental evidence

Abstract

This paper analyzes the impact of social integration on cooperative behavior. We show that if the social network shows assortative mixing then conditional cooperation is an equilibrium strategy for altruistic subjects with a high degree of social integration.We provide experimental evidence on the relationship between individuals’ position in a social network and their contributions in a public good game.María Paz Espinosa acknowledges financial aid from MEC (SEJ2006-06309/ECON) and Gobierno Vasco, DEUI (IT-313-07); Pablo Brañas-Garza from DGCYT (SEJ2007-62081/ECON)

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