Browsing by Author "Cardenas, Juan Camilo"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Institutions influence preferences: Evidence from a common pool resource experiment
    (ELSEVIER SCIENCE BV, 2008) Rodriguez Sickert, Carlos; Guzman, Ricardo Andres; Cardenas, Juan Camilo
    We model the dynamic effects of external enforcement on the exploitation of a common pool resource. Fitting Our model to experimental data we find that institutions influence social preferences. We solve two puzzles in the data: the increase and later erosion of cooperation when commoners vote against the imposition of a fine, and the high deterrence power of low fines. When fines are rejected, internalization of a social norm explains the increased cooperation; violations (accidental or not), coupled with reciprocal preferences, account for the erosion. Low fines stabilize cooperation by preventing a spiral of negative reciprocation. (C) 2007 Elsevier B.V. All rights reserved.