NDLI: Do Upfront Investments Increase Cooperation? A Laboratory Experiment

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Do Upfront Investments Increase Cooperation? A Laboratory Experiment

Content Provider	Scilit
Author	Casoria, Fortuna Ciccone, Alice
Copyright Year	2019
Description	Journal: SSRN Electronic Journal We investigate whether upfront investments increase cooperation in settings with no enforcement mechanism, where cooperation is not easily sustained voluntarily. Such investments are a cost that individuals incur before deciding whether to cooperate and increase cooperation payoff. We find that cooperation rarely emerges in treatments without investments, while both endogenous and exogenous investments boost overall cooperation levels. For low endogenous investments, cooperation is lower than when the same investments are exogenous. For high investments, cooperation is not significantly different between endogenous and exogenous conditions. This supports low investments being interpreted as a signal of unwillingness to cooperate, triggering non-cooperative choices.
Related Links	https://halshs.archives-ouvertes.fr/halshs-02121193/file/1918.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3383536
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.3383536
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2019-05-06
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Upfront Investments Prisoners' Dilemma
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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