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Pledge-and-review in the laboratory

Games and Economic Behavior. 2021. Vol. 130. P. 179–195.
Lippert S., Tremewan J.

We perform a laboratory test of Pledge-and-Review bargaining, implementing a simplified version of the model analysed in Harstad (2021). In theory, this institution should increase contributions to a public good only if there is uncertainty over the value of possible future payoffs. In contrast, we find that Pledge-and-Review increases efficiency in all the settings we investigate, and that the improvement is most persistent in our setting without uncertainty. Our results suggest that the Pledge-and-Review institution may be useful, even without uncertainty, as it allows conditional cooperators to test, risk free, the cooperativeness of their partners.

Research target: Economics and Management
Language: English
DOI
Keywords: public goodsExperimental EconomicsConditional cooperationPledge and review bargaining
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