Information and the persistence of private-order contract enforcement institutions: An experimental analysis

Wilkening, Tom

doi:10.1016/j.euroecorev.2016.07.004

Cited by 3 publications

(3 citation statements)

References 47 publications

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“…In contrast to these studies, there is evidence for path dependence and that groups can fail to adapt perfectly to a changing environment. [34,35] traced this back to incomplete information. According to [36], path dependence arose when the preferences of subjects changed gradually yet separately.…”

Section: Plos Onementioning

confidence: 99%

Reverberation effect of communication in a public goods game

Bershadskyy

2023

PLoS ONE

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Using a public goods laboratory experiment, this paper analyzes the extent to which face-to-face communication keeps its efficiency gains even after its removal. This is important as communication in real world is costly (e.g. time). If the effect of communication is long-lasting, the number of communication periods could be minimized. This paper provides evidence that there is a lasting positive effect on contributions even after communication was removed. Yet, after the removal, the contributions are lower and abate over time to the previous magnitude. This is referred to as the reverberation effect of communication. As we do not observe an effect of endogenizing communication, the strongest driver of the size of the contributions is the existence of communication or its reverberation. Eventually, the experiment provides evidence for a strong end-game effect after communication was removed, insinuating communication does not protect from the end-game behavior. In total, the results of the paper imply, that the effects of communication are not permanent but communication should be repeated. Simultaneously, results indicate no need for permanent communication. Since communication is conducted using video-conference tools, we present results from a machine learning based analysis of facial expressions to predict contribution behavior on group level.

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Section: Plos Onementioning

confidence: 99%

Reverberation effect of communication in a public goods game

Bershadskyy

2023

PLoS ONE

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“…Similarly, Hossain and Morgan (2009) find no evidence of path dependence in a lab experiment on platform competition when participants start off on a particular platform; when a new, more efficient platform is introduced, participants have no difficulty to switch to the payoff-dominant equilibrium. Andreoni et al (2017) and Smerdon et al (2016) investigate experimentally conditions under which inefficient social norms can persist, while Wilkening (2016) considers the persistence of contractual-enforcement institutions. These studies find evidence that groups can fail to adapt optimally in changing circumstances.…”

Section: Related Literaturementioning

confidence: 99%

“…These studies find evidence that groups can fail to adapt optimally in changing circumstances. The main reason in Smerdon et al (2016) and Wilkening (2016) is the problem of incomplete information. In contrast, in Andreoni et al (2017) the problem appears to arise from preferences changing gradually and separately for each individual.…”

Section: Related Literaturementioning

confidence: 99%