|
on Cognitive and Behavioural Economics |
| By: | Massimo Finocchiaro Castro (Department of Economics, Royal Holloway, University of London) |
| Abstract: | We study the effect of cultural differences on contributions in a public good experiment, analysing real-time interactions between Italian and British subjects in their home countries. In the first treatment, subjects play in nationally-homogeneous groups. In the second treatment, Italian and British subjects play in heterogeneous groups, knowing the nationality of the group members. In the third treatment, we control for a possible “country effect” by giving players no information on nationality. The data suggest that, in homogeneous groups, British subjects contribute significantly more to the public good; contributions are lower in heterogeneous groups; there is no country effect. |
| Keywords: | public goods, experiments, real time interactions, cultural differences |
| JEL: | C92 H41 Z13 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:hol:holodi:0603&r=cbe |
| By: | Andrew E. Clark (PSE and IZA Bonn); David Masclet (CNRS and CREM); Marie-Claire Villeval (CNRS, GATE and IZA Bonn) |
| Abstract: | This paper considers the effect of status or relative income on work effort combining experimental evidence from a gift-exchange game with ISSP survey data. We find a consistent negative effect of others’ incomes on individual effort in both datasets. The individual’s rank in the income distribution is a stronger determinant of effort than others’ average income, suggesting that comparisons are more ordinal than cardinal. We then show that effort is also affected by comparisons over time: those who received higher income offers or had higher income rank in the past exert lower levels of effort for a given current income and rank. |
| Keywords: | effort, comparison income, rank, peak-end, experiments |
| JEL: | M54 J33 A13 C92 D63 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2169&r=cbe |