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Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 2013:6:
Understanding the Nature of Cooperation Variability

Toke Fosgaard (), Lars Gårn Hansen () and Erik 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.

Keywords: Framing; Public Goods; Internet Experiment; Simulation; (follow links to similar papers)

JEL-Codes: C13; C71; C93; H41; (follow links to similar papers)

56 pages, March 19, 2013

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