Understanding the Nature of Cooperation Variability

Toke Reinholt Fosgaard, Lars Gårn Hansen, Erik Roland Wengström

Abstract

We investigate framing effects in a large-scale public good experiment. We measure indicators of explanations previously proposed in the literature, which when combined with the large sample, enable us to estimate a structural model of framing effects. The model captures potential causal effects and the behavioral heterogeneity of cooperation variability. We find that framing only has a small effect on the average level of cooperation but a substantial effect on behavioral
heterogeneity and we show that this can be explained almost exclusively by a corresponding change in the heterogeneity of beliefs about other subjects’ behavior. Preferences are on the other hand stable between frames.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDepartment of Food and Resource Economics, University of Copenhagen
Pages1-22
Number of pages22
Publication statusPublished - 2013
SeriesIFRO Working Paper
Number2013/4

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