Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments
Author(s) -
Urs Fischbacher,
Simon Gächter
Publication year - 2010
Publication title -
american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.936
H-Index - 297
eISSN - 1944-7981
pISSN - 0002-8282
DOI - 10.1257/aer.100.1.541
Subject(s) - public good , free riding , economics , imperfect , dynamics (music) , public goods game , free rider problem , microeconomics , social preferences , public economics , turnover , social psychology , psychology , pedagogy , linguistics , philosophy , incentive , management
One lingering puzzle is why voluntary contributions to public goods decline over time in experimental and real-world settings. We show that the decline of cooperation is driven by individual preferences for imperfect conditional cooperation. Many people's desire to contribute less than others, rather than changing beliefs of what others will contribute over time or people's heterogeneity in preferences makes voluntary cooperation fragile. Universal free riding thus eventually emerges, despite the fact that most people are not selfish. (D12, D 83, H41, Z13)
Accelerating Research
Robert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom
Address
John Eccles HouseRobert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom